Business & Finance Club - Manama : Mumtalakat, Bahrain's sovereign wealth fund, expects to return to profit this year and is eyeing property investments in the UK, said a top official.

“This year should be a profitable year, the first half is already looking very good,” chief executive Talal Alzain said.

The fund posted a $487.2 million loss last year, compared with a $184.3 million loss in 2008, due to losses at its portfolio companies Gulf Air and Alba.

Alzain said Mumtalakat is looking to buy into more liquid assets such as debt or alternative investments including hedge funds, but is also looking to make real estate investments.

The fund in the long run plans to own only between 25 per cent and 50 per cent of its portfolio companies, he said adding there were no immediate plans to sell its stakes in National Bank of Bahrain and Batelco.