Investments and assets of the govt will be consolidated
Bahrain is planning to form a holding company, which will consolidate all the investments and assets of the government, according to sources in the industry. The planned company, apart from investing in domestic firms, will also look out for new business opportunities around the world.
The plan, it is learnt, already has the approval of the Cabinet and is now awaiting clearance from Parliament. "The new company should be up and running in a couple of months time," the source said.
The main aim of the holding company would be to look at government investments from a commercial point of view rather than political. "It will provide for better management of stakes owned by the government in different companies. The holding company would work towards increasing profitability. It will look at acquiring and selling of assets."
The source added that only profitability would be the criteria for the new company to invest in new businesses - both in Bahrain and elsewhere.
The source was not certain of the exact number of companies where in the government held a stake. The government has interests in a vast range of sectors, including banks, telecom and real estate. Some of the companies where the government has a stake are listed firms.
Telecom services provider Batelco would come under the new holding company, the source said. The government has a 37 per cent stake in Batelco. Other stakeholders include UK's Cable and Wireless, General Organisation for Pension Insurance and General Organisation for Pension Fund.
Energy sector, it is learnt, will not be made part of the new holding company. The reason to keep the sector out of the holding company's purview is, however, not known. When asked if any of the government agencies such as Economic Development Board and Bahrain Chamber of Commerce and Industry would be involved in the new set up, the source answered in the negative.
By Pradeep Kumar Business Reporter
© Bahrain Tribune 2006
