Bahrain sovereign wealth fund renews land lease deal with Trafco Group

Bahrain sovereign wealth fund renews land lease deal with Trafco Group
Profits tripled at Bahrain's wealth fund in 2017.
Published: 29 August 2018 - 3:38 a.m.
By: Jack Ball

Bahrain’s sovereign wealth fund has renewed a land lease deal with logistics company Trafco Group, a move the country says will advance the kingdom’s food security and economic diversification agenda.

According to reports by the Bahrain News Agency (BNA), the agreement will see the wealth fund’s real estate investment arm, Edamah, provide land from its portfolio for Trafco projects, but specific details about the contract are yet to be disclosed.

The lease was signed on Monday by Amin Al Arrayed, Edamah’s chief executive officer, and Trafco chairman, Ibrahim Zainal.

“We are delighted to announce that Edamah intends to extend its collaboration with Trafco Group,” said the Edamah chief, speaking on the tie-up.

“Edamah is fully committed to supporting Trafco in its initiatives to develop the food and beverage industry in Bahrain, which plays a key role in advancing the kingdom’s economic diversification and food security agenda.”

The move, he added, was in line with the logistics firm’s commitment to supporting and strengthening “vital private sector jobs, increasing the private sector’s contribution to the national economy, and advancing sustainable development”.

Trafco's Zainal said: “We are keen to put on record our appreciation to Edamah’s Management for supporting Trafco Group’s projects.

“The collaboration and assistance we have received from Edamah has enhanced our ability to provide logistical services and reinforce Trafco Group’s position in the local food and beverage industry, which is one of the most important sectors for the citizens and residents of Bahrain.”

READ: Edamah, Vision Marine ink deal for reclamation project in Bahrain

The news comes as Edamah embarks on a new strategy with a new board of directors and chief executive officer.

Projects at the real estate arm include the mixed-use waterfront development Sa’ada and the newly opened multi storey carpark, named The Terminal, in Adliya.

According to BNA, Edamah will also concentrate on the industrial, leisure, and entertainment sectors.

Earlier this month, the country's sovereign wealth fund reported a tripling of net profits last year, with the value of the fund’s consolidated assets also seeing a solid double digit increase compared to 2016.

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