The insurance sector is set to undergo a series of reforms under the government’s Financial Services Development Strategy (FSDS) 2022-26, announced at the end of 2021 and developed in line with the broader Bahrain Economic Vision 2030 to stimulate growth over the course of the decade. The strategy has five priorities: create job opportunities; develop capital markets; strengthen legislation and…
Bahrain has laid the foundation for strong growth in its financial technology (fintech) companies and ecosystem and is pursuing a two-fold strategy to expand the industry in the years ahead. The first prong aims to leverage fintech to facilitate integration of domestic payments infrastructure and improve links between retail banks, merchants and service providers. The second element involves enabling…
After a resilient performance in 2020, the international Islamic finance sector fared positively in 2021 as an improved economic environment, a rise in the number of large projects, and an increased focus on environmental, social and governance (ESG) factors combined to drive demand for services. Despite the twin challenges of the Covid-19 pandemic and the fall in international oil prices that affected…
As environmental, social and governance (ESG) concerns become increasingly important in the corporate world, insurance companies are emerging as potentially key players in the shift away from fossil fuel-powered projects. The launch of the UN-convened Net-Zero Insurance Alliance (NZIA) in July 2021 reflects an ongoing change in the global insurance industry towards the wider recognition of the risks…
The Gulf banking sector has witnessed an increase in mergers and acquisitions (M&A) in recent years, driven in part by the economic headwinds associated with the Covid-19 pandemic. At the outset of the pandemic in the first quarter of 2020, it was anticipated that the economic slowdown and the associated fall in oil prices would accelerate the M&A trend among banks in the region, with most…
Alongside significant political efforts to speed up the energy transition, 2021 was a record-breaking year for green finance, as governments, international institutions and lenders alike sought to support the shift towards renewables. This mirrored developments in generation: new renewable energy capacity reached an all-time high of 290 GW in 2021. Meanwhile, the issuance of green bonds – financial…
Launched in 2017, the Bahrain Investment Market (BIM) has so far secured one listing. However, with expectations that the worst of the Covid-19 pandemic may now be over, the financial authorities are intent on breathing new life into the initiative as a means of promoting rapid growth of high-potential small and medium-sized enterprises (SMEs). Vibrant Ecosystem The BIM provides an alternative, less-regulated…
With hydrocarbons-rich countries in the Gulf increasingly looking to reduce their carbon emissions, some in the region are turning to multi-coloured hydrogen as a more environmentally sustainable solution. Along with renewable sources like solar and wind, hydrogen is regarded as a potential low-carbon or zero-carbon fuel that is key to the transition away from fossil fuels. However, different types…
In November 2021 Bahrain became the third GCC member, after the UAE and Saudi Arabia, to commit to reaching net-zero carbon emissions by 2060. Although its current emissions amount to a fraction of those emitted by its neighbours, climate change poses a very real threat to the kingdom. Modelling carried out in 2017 showed that a rise in sea levels of 1.5 metres would see Bahrain lose 27% of its landmass,…
After opening 2022 at around $78 per barrel, Brent crude prices rose sharply over the next few months to surpass $127 on March 8 – the highest price in 14 years, driven in part by Russia’s invasion of Ukraine – before moderating slightly to around $106 as of midMarch. Although investment in oil and gas has fallen by about 30% since the outbreak of the pandemic, there are signs that the increased…
