Despite obtaining triple-A status at the beginning of the month, the Mumtalakat fund had a very bad year in 2009, suffering losses that were twice as big as those of 2008, namely 487 million dollars compared with 184.3 million the previous year.

The companies Gulf Air and Aluminium Bahrain, in which the fund has shareholdings of 100% and 77% respectively, are mainly responsible for these losses. According to the press in the Emirate, the losses of the airline company increased by 21% in 2009, to reach 502 million dollars, while the aluminium producer lost 220 million dollars last year.

Mumtalakat can, however, hope for better results in 2010: according to a recent survey by the World Bank, the assets of Arab sovereign funds increased by 20 billion dollars in the first quarter of 2010. Their assets now amount to 1,400 billion dollars.

According to James Lim, the World Bank economist, fresh injections of cash and a gradual recovery in the markets have helped the funds to recover. The Bahrain fund should receive fresh money in the next few days: Mumtalakat is preparing to raise about 500 million dollars from international investors.