"Gedha"Fund Signing Ceremony
In a significant initiative intended to promote Bahrain's food security needs, the Ministry of Finance (acting through the Future Generation Reserve) and the National Bank of Bahrain have agreed to set up the BD 100 million "Gedha"Fund, with the objective of developing Bahrain's food self-sufficiency by investing in viable projects and technologies in agriculture, dairy farming, fisheries, livestock processing, poultry, etc
At a ceremony held at the NBB headquarters in Manama and attended by H.E. Shaikh Ahmed bin Mohammed Al Khalifa, the Minister of Finance and Future Generation Reserve Chairman of the Board, Mr. Farouk AlMoayyed, Chairman of the NBB Board of Directors, Board members and other distinguished guests and representatives from the print and television media, NBB and the Future Generation Reserve signed a Memorandum of Understanding for the promotion and development of the "Gedha" Fund. The MOU was signed by Mr. Abdul Razak A. Hassan Al Qassim (CEO and Director of NBB) and Mr. Mohammed M. Al Sulaity (CEO, Future GenerationReserve.
The Fund will focus on medium to long-term investment in projects within and outside Bahrain that would help the Kingdom attain self sufficiency in food and which would include the following:
- Promote and/or invest in viable existing companies andprojects engaged in agriculture, poultry and allied sectors and enable them to scale up their activity levels
- Promote and/or invest in viable start-up companies engaged in agriculture, poultry and allied activities
- Purchase land in overseas countries for captive production
- Engage appropriate advisors for each project that the Fund seeks to invest in
- Support the investee companies/projects with management inputs and facilitate their eventual listing/IPO.
- Target the entire food production value chain including production, storage, processing, logistics and distribution
The Minister of Finance, H.E. Shaikh Ahmed bin Mohammed Al Khalifa, said, "The Gedha Fund is a joint initiative between the Future Generation Reserve and the National Bank of Bahrain to help Bahrain in its march for progress. In keeping with the aims and goals outlined in the Vision 2030, this Fund endeavours to improve Bahrain's food security. We are delighted to partner the National Bank of Bahrain in this strategic initiative that will not only address the food requirements of the Kingdom but will also prove to be a model for more partnerships between the public and private sectors.
Speaking on the occasion, Mr. Abdul Razak A. Hassan Al Qassim said "It is a special moment not only for us at NBB but for the entire Kingdom. Food is one of the most significant aspects in the progress of any nation. It is but imperative that the nation is able to ensure that its citizens have access to enough food at all times. Given the fact that land is at a premium in the country, especially arable land, it is extremely important to ensure that the Kingdom is geared to attain self sufficiency in food. The "Gedha" Fund has been set up with the objective of assisting Bahrain to achieveself sufficiency in food.
We, at NBB are extremely delighted and proud to be associated with this initiative which illustrates how we can develop market-based solutions and leverage resources to make a sustainable impact."
Mohammed M. Al Sulaity commented "The Future Generations Reserve's partnership with the National Bank of Bahrain is designed to address the needs of many of our most important stakeholders. We are pleased to be combining powerful local networks, proven experience in development assistance and strong industry expertise to help create a venture that will positively impact the livelihood of local farmers, address the critical issue of food self sufficiency and create sustainable business opportunities for the Kingdom."
The "Gedha" Fund will be a closed-ended Private Equity Fund that would be incorporated with limited liability under the laws of the Kingdom of Bahrain. The Fund will seek approval of the CBB to be registered as an Exempt Collective Investment Undertaking..
The Fund will be covered in phases depending on the progress in the plan implementation. The initial seed funding of BD 10 million will be provided by the Future Generation Reserve and NBB on an equal basis. Companies, trusts, partnerships, individuals and entities will then be invited to subscribe to the Fund.
-Ends-
© Press Release 2011
