Mumtalakat Holding Company, the Bahrain government-owned sovereign wealth fund said its 2015 net profit, has slumped 68.7 per cent, pulled down by impairment losses.

The fund, which holds stakes in companies such as carmaker McLaren, posted net income of $76.3m last year, down from $243.6m reported at the end of 2014, Mumtalakat said in a statement.

The reduction in net profit was due to “impairment losses recognised on goodwill”, the fund said with elaborating. The impact on profitability, however, was partially offset by a higher contribution from its share of profit from associates and improved operational performance at Gulf Air.

The carrier’s net profit after government grants and write back of provisions and payables rose to $176.6m, compared with $42m in the prior year. The airline has also reduced its operating losses by 53 per cent to $82.7m, down from $174.5m in 2014, as a result of improved cost controls and operating efficiencies, according to the statement.

The fund is eyeing investments in Saudi Arabia as opportunities arises in the wake of proposed privatisation of state-entities under the kingdom’s Vision 2030, Mumtalakat’s chief executive Mahmood Hashim Alkooheji, told a conference in Riyadh on 3 May, without elaborating which of the sectors the fund would target in Saudi Arabia.

Saudi Arabia on 25 April announced Vision 2030, a programme, which outlines sweeping economic reforms. The government is expected to reveal its National Transformation Plan (NTP) in June, which could include about 146 state assets Riyadh has identified for possible privatisation or sold to the public, as it looks to monetise assets to meet budget shortfalls. The list includes subsidiaries of core government ministries and government-related entities (GREs), sources familiar with the matter told MEED on 27 March.

Mumtalakat says it holds stakes in more than 40 commercial enterprises spanning a variety of sectors, including industrial manufacturing and services, financial services, tourism, telecommunications, real estate, logistics, consumer, and healthcare. Portfolio companies include Aluminium Bahrain (Alba), Gulf Air, Arcapita Group, National Bank of Bahrain and telecoms operator Batelco.