Hassan Al-Sitri
In its session yesterday, the House of Representatives refused to adopt the annual report and audited financial statements to calculate the Future Generations Reserve for the fiscal year ending on December 31, 2023, in addition to the 2022 report.
In the context of the discussions, Representative Munir Sorour pointed out that the Finance Committee’s report shows positive indicators that are in the Fund’s favor, expressing his surprise at the rejection decision. This was supported by the Minister of Shura and Representatives Council Affairs, Ghanem Al-Buainain, who confirmed that the indicators indicate an increase in revenues and a decrease in operating expenses, which reflects optimistic and positive numbers, and he asked why the Council objected to the report.
For her part, Vice-Chairman of the Finance Committee, Zainab Abdel Amir, explained that the 2022 report indicated a decrease in assets, while in the 2023 report, no satisfactory answers were provided to some important points.
As for the Undersecretary of the Ministry of Finance and National Economy for Financial Affairs, Yousef Al-Hamoud, he indicated that the report was prepared in accordance with best practices, and is subject to audit by external parties and the Financial Supervision Bureau, stressing that it was prepared transparently, and is not directly related to the issue of profitability and loss. He added that the year 2022 was an exceptional year due to the markets declining by 22%, compared to the Al-Ajyal Fund’s decline of only 11%. Stressing that these are unrealized losses; Because the fund’s investments are long-term, and not short-term speculation. He also explained that with the growth of assets from 2020 to 2024, the fund was able to achieve remarkable balance and stability.
The agent pointed out the importance of approving the final account for its role in supporting the fund’s financial and supervisory system, stressing that the overall performance is based on a long-term strategy aimed at developing assets and protecting wealth for future generations.
Regarding the Fund’s pharmaceutical factory project, Al-Hamoud explained that the pharmaceutical sector is subject to strict regulations, and is not just an ordinary commercial commodity. He also pointed out that the factory recently obtained all the necessary approvals to produce a full list of medicines, and has already begun the trial production phase, with full production expected to begin soon. He stressed that the project is moving towards providing job opportunities for Bahrainis, noting that all of the factory’s employees are 100% Bahrainis, and they currently number 14 employees.
Al-Hamoud also announced that the Generations Fund Tower will be completed by the end of May 2026, coinciding with the start of leasing operations, which witnessed intense requests from investors. He added that it is expected that all offered spaces will be covered upon operation.
He concluded by emphasizing that the fund’s performance is balanced and stable, based on a long-term strategy focused on preserving national wealth and enhancing financial sustainability for future generations, stressing the continued growth of assets, despite the absence of actual losses.
