Bahrain's sovereign fund Mumtalakat takes full control of McLaren Group

British giant McLaren has secured its future under Bahrain's sovereign wealth fund.

Iconic British carmaker McLaren has entered a new era after Bahrain's sovereign wealth fund, Mumtalakat, expanded its stake from 60 percent to 100 percent, officially taking full ownership of McLaren Group on March 22. This move comes after a period of financial strain for McLaren and is expected to provide much-needed stability and resources for future growth.

READ MORE: EXCLUSIVE: Hamilton engineer backs Vasseur for great partnership

The Bahraini fund has been a long-term investor in McLaren, initially acquiring a 30% stake in 2007. Over the years, Mumtalakat steadily increased its ownership to 60%, playing a crucial role in supporting the company financially. Now, with complete control, Mumtalakat is expected to provide the resources McLaren needs to develop new technologies and forge strategic partnerships, particularly in the burgeoning electric vehicle (EV) market.

"We are delighted at Mumtalakat's continued commitment to McLaren through this deal," McLaren Group's executive chairman Paul Walsh said in a statement.

"This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, while continuing to explore potential technical partnerships with industry partners."

Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Mumtalakat, added: "Today's announcement crystallizes the next phase of the Company's trajectory of growing its leadership position in the luxury super car and motorsports industries. This reorganisation and new simplified structure positions McLaren for success and opens up strategic avenues, which include exploring new partnerships to enhance the company's growth over the coming years.

"The completion of this process is also a significant milestone that reflects our support for McLaren's continued innovation and long-term commitment to excellence."

McLaren Group also owns a majority stake in McLaren Racing, which owns the McLaren F1 team and also competes in IndyCar, Formula E, and Extreme E.

READ MORE: F1 driver calls for FIA to 'review' penalties after race controversy

Mumtalakat Holding Company

Mumtalakat is a sovereign wealth fund established by Royal Decree in 2006, owned wholly by the Bahraini government.

The name Mumtalakat, meaning "assets" or "possessions" in Arabic, reflects the company's goal of managing a diverse portfolio of non-oil and gas assets across local, regional, and international markets to grow the wealth of the country.

Under the leadership of HE Shaikh Salman bin Khalifa Al Khalifa, the Minister of Finance and National Economy and the Chairman of the Board of Directors, and HE Shaikh Abdulla bin Khalifa Al Khalifa, the CEO, among others on the board, Mumtalakat aims to contribute to the economic diversification and sustainable development of the Kingdom, as well as maintaining a portfolio of investments across various sectors.

Mumtalakat investments span healthcare, education, automotive, real estate, tourism, aviation, telecommunications, media & technology in disparate geographies.

The company manages a diverse portfolio of over 50 companies with majority stakes in strategic Bahraini companies, accounting for 18% of the Kingdom's GDP, and supporting more than 12,000 jobs locally.

Some of the notable companies in Mumtalakat's portfolio include Bahrain International Circuit, which hosts the F1 Bahrain Grand Prix, as well as Bahrain International Golf Course Company, Radio Bahrain, Aluminium Bahrain, Bahrain Real Estate Investment Company, Bahrain Telecommunications Company, Envirogen Group, FAI Aviation Group, Gulf Cryo, Gulf Hotel Group, and National Bank of Bahrain.

Over the years, Mumtalakat has contributed significantly to the national budget, totalling BD100 million ($265.3 million) between 2017 and 2021.

READ MORE: Ultimatum puts Ricciardo at risk of losing seat

Related

Latest F1 News

Brundle delivers SCATHING assessment of proposed point system changes

• Yesterday 21:00

Andrea Kimi Antonelli

Get to know Kimi Antonelli: The junior sensation who could be set to replace Hamilton

• Yesterday 06:00