SovereignWealthFunds.comBahrain Future Generations Reserve Fund
Bahrain Future Generations Reserve Fund: what it invests in
Geography Global
Bahrain Future Generations Reserve Fund: how big it is, and on what basis
In US dollars: about USD 1.11B. Audited total assets in US dollars, 31 Dec 2025
Bahrain Future Generations Reserve Fund: what it publishes
Published 5 · Partly 3 · Not published 2
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. Bahrain's Future Generations Reserve (FGR) saves a slice of every barrel of exported crude for the future. Created by law in 2006, it invests abroad through external managers in equities, bonds, alternatives and multi-asset funds, and is finishing a tower on Bahrain Bay. Audited total assets were USD 1.11 billion at end 2025, up from USD 924 million a year earlier. S1 S2 S5 S6
Key points
- Audited total assets of USD 1,109.6 million and equity of USD 1,099.9 million at 31 December 2025. S2
- Net profit of USD 95.9 million in 2025, against USD 72.1 million in 2024. S2
- Oil contributions of USD 86.2 million in 2025; the per-barrel deduction steps up as prices rise. S2
- Securities book of USD 879.9 million: equity 39.5 percent, fixed income 34.2, alternatives 20.5, multi-asset 5.8. S2
- Mandated to invest outside Bahrain and in non-dinar currencies; plans to exit local holdings during 2026. S5 S7
- Building the 38-floor Future Generations Reserve Tower on Bahrain Bay, carried at USD 70.5 million. S2 S6
Interesting facts
- The original rule set aside USD 1 per barrel when oil traded between USD 40 and USD 80, rising to USD 3 above USD 120. S2
- The Finance Ministry pays the Reserve's running costs, so investment returns are not used for overheads. S2
- Its accounts are audited by Bahrain's National Audit Office and approved by the Shura Council. S2 S5
Mandate and goals
The FGR sets aside part of Bahrain's oil revenue and invests it for future generations. It aims to preserve capital and maximise risk-adjusted total return, investing abroad and in currencies other than the dinar. S2 S1 S5
How it invests
| Industries | Real estate, Healthcare and life sciences, Financial services. Sector agnostic S2 |
|---|---|
| Asset classes | Public equities, Fixed income, Hedge funds and absolute return, Private equity, Real estate, Cash and money markets S2 |
| Stages | Public markets, Credit, Buyout, Real estate S2 |
| Geography | Global. Mandate is offshore; remaining domestic assets are property and a factory project S5 S2 |
| Direct / through funds / co-invest | No / Yes / No S2 S5 |
| Ticket size | Manager mandates are not disclosed. S2 |
| Deal sizes seen | USD 139.5M of fund purchases and USD 2.6M of private equity additions in 2025 |
| External managers | External portfolio managers; management and custody fees of USD 6.82M in 2025 S2 S5 |
| Co-investment programme | No co-investment programme S2 |
Largest holdings: Future Generations Reserve Tower (in development) USD 70.5M (100%) (as of 2025-12-31) S2
Published criteria
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2025 | Fund purchases 2025. Additions to the securities book, against USD 110.6M of disposals. S2 | Fund commitment | Multi-sector | Public markets | USD 139.5M |
| 2025 | Private equity additions. Private equity book of USD 17.0M at year end. S2 | Fund commitment | Multi-sector | Buyout | USD 2.6M |
| 2025 | Future Generations Reserve Tower. A 38-floor tower on Bahrain Bay; handover planned for 2026. S2 S6 | New company or platform | Real estate | Real estate | USD 34.1M added in 2025 |
| 2024 | Tower management by CBRE. Agreement for CBRE to manage the tower. S9 | Joint venture or partnership | Real estate | Real estate | Not published |
| Not published | Pharmaceutical factory project. Domestic holding the ministry aims to exit in 2026. S5 | Sale or exit | Healthcare and life sciences | Not stated | Not published |
Case studies
An oil price-linked savings rule S2
- What: Each exported barrel feeds the Reserve once prices pass USD 40, with higher deductions at higher prices; laws in 2022 and 2025 raised the scale.
- When: 2007 to 2025
- Size: USD 86.2M in 2025
- Why: Saves windfalls automatically rather than by annual decision.
- Outcome: Total assets grew from about USD 614 million (end 2022) to USD 1.11 billion (end 2025).
Refocusing offshore S7 S6
- What: The council plans to exit local investments in 2026 once the Bahrain Bay tower is handed over.
- When: 2026
- Size: Not published
- Why: The founding decree points the Reserve at foreign, non-dinar assets.
Investment process
A nine-member council chaired by the Finance Minister sets policy under Decree No. 25 of 2008. The CEO leads an Investment Directorate and a Financial Operations Directorate. S4 S2 S1
| Committee | Role |
|---|---|
| FGR Council | Chairman, deputy and members; sets investment policy S4 |
- Oil contributions are paid into the Reserve and booked as equity. S2
- The Investment Directorate guides portfolio construction for capital preservation and total return. S1
- External managers run fixed income, equity, alternatives and multi-asset mandates. S2 S5
- Statements are audited by the National Audit Office and approved by the Shura Council. S2 S5
How to approach: No proposal route is published; contact details are on the Finance Ministry's FGR page. S1
Size and returns
- Headline size: USD 1.11B (Total assets (balance sheet), as of 2025-12-31) S2
- In US dollars: about USD 1.11B. Audited total assets in US dollars, 31 Dec 2025
- Total assets, end 2024: USD 924.2M (Total assets (balance sheet), as of 2025-12-31) S2
- Total assets, end 2023: USD 768.9M (Total assets (balance sheet), as of 2026-01-19) S5
- Securities at fair value, end 2025: USD 879.9M (Portfolio value, as of 2025-12-31) S2
- Return, 2023: 8.4 percent (return reported in parliamentary discussion; no return series in the statements) S5
Leadership
| Name | Title | Since |
|---|---|---|
| Shaikh Salman bin Khalifa Al Khalifa | Chairman; Minister of Finance and National Economy S4 | Not published |
| Shaikh Ali bin Salman Al Khalifa | Chief Executive Officer S2 S10 | 2021-06-17 |
| Yusuf Abdulla Alhumood | Deputy Chairman; Undersecretary for Financial Affairs S4 | Not published |
| Noor bint Ali Alkhulaif | Council member; Minister of Sustainable Development S4 | Not published |
| Nawaf Abdulla Hamza | Council member S4 | Not published |
| Nader Karim Al Maskati | Council member S4 | Not published |
| Najla Mohammed Al Shirawi | Council member S4 | Not published |
Governance and transparency
- Legal basis: Law No. 28 of 2006; Decree No. 2 of 2007, Decree No. 25 of 2008 and later decrees and laws S1
- Oversight: Council chaired by the Finance Minister; National Audit Office; Shura Council approval of accounts S2 S5
- The ministry reimburses administrative costs under Article 13 of Decree No. 25 of 2008. S2
- Final accounts are posted from 2014 onward. S8
Transparency score: 6.5 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.
History
| Date | Event |
|---|---|
| 2006-07-17 | Law No. 28 of 2006 issued. S1 |
| 2007-01-01 | Oil contributions begin. S2 |
| 2021-06-17 | Shaikh Ali bin Salman Al Khalifa appointed CEO. S2 |
| 2022-04-18 | Law No. 16 of 2022 raises oil deductions. S2 |
| 2025-01-29 | Law No. 5 of 2025 amends the deduction rule. S2 |
| 2026-01-18 | Shura Council approves the 2022 and 2023 accounts. S5 |
| 2026-05-21 | FY2025 audit report signed. S2 |
For family offices
The FGR invests through external managers and does not co-invest with private investors. Asset managers are the relevant counterparties. S2 S5
- External mandates in fixed income, equity, alternatives and multi-asset funds. S2
Reports
- Audited financial statements 2025: https://www.mofne.gov.bh/media/cnqbiovf/fgr-doc.pdf S2
- Financial statements 2024: https://www.mofne.gov.bh/media/zbdffoxo/fgr-financial-statements-fy-2024.pdf S11
- Final accounts archive: https://www.mofne.gov.bh/en/final-accounts S8
Common questions
How big is the fund?
USD 1,109.6 million of audited total assets at 31 December 2025. S2
Where does the money come from?
A per-barrel deduction on Bahrain's crude exports when prices exceed USD 40. S2
Who runs it?
A council chaired by the Finance Minister; Shaikh Ali bin Salman Al Khalifa is CEO. S4
Is it an IFSWF member?
No. S3
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All sovereign wealth funds in Middle East · All savings and future generations funds · All funds in Bahrain
Sources
- S1MOFNE, About the Future Generations Reserve
- S2FGR, audited financial statements 2025
- S3IFSWF, Our members
- S4MOFNE, FGR Council
- S5Daily Tribune, Shura Council session on FGR accounts, 19 January 2026
- S6Al-Ayam, Future Generations Reserve Tower, 4 October 2026
- S7Daily Tribune, parliamentary report on FGR, 16 January 2026
- S8MOFNE, Final accounts of the FGR
- S9Akhbar Al Khaleej, CBRE to manage FGR tower, January 2024
- S10Crown Prince Court, Edict 16/2020, 29 June 2020
- S11FGR, financial statements 2024
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