While bankers might decry the slowdown in growth resulting from curtailed government spending and investor uncertainty, economists – who generally take a longer-term view – often see a silver lining in a sustained drop in the price of a barrel of oil. Falling hydrocarbons revenues have compelled governments around the Gulf to embark on a process of fiscal reform many believe was overdue,…
With the exception of Saudi Arabia, the banking sector across the GCC is generally fragmented in nature, with a large number of institutions pursuing business within relatively small bankable populations. For decades regulators have extolled the virtues of sector consolidation, in some cases approaching banks discretely to encourage a merger, and in other cases, adjusting regulatory frameworks…
The Bahrain Bourse (BHB) was established in 1987 and commenced operations in 1989, with only two stocks trading. By February 2018 the bourse had grown to comprise 43 common stocks, government bonds and mutual funds, and a real estate investment trust (REIT). The market is serviced by 12 brokers, of which three are individuals. SICO is the largest broker in the kingdom. LEADERBOARD: As of November…
In 2017 Bahrain took an important step towards a more centralised approach to sharia supervision. The issue has been on the domestic agenda for some years, and speaks to the broader conversation taking place in the global Islamic financial services (IFS) sector as to how the industry should be governed. Currently there is significant variation in IFS regulatory frameworks from one jurisdiction…
With Bahrain’s population and industrial footprint growing at pace, the kingdom has had to expand its electricity infrastructure. According to the Ministry of Electricity and Water Affairs, Bahrain has an available electricity capacity of nearly 3921 MW, with peak demand hitting 3418 MW in summer 2016. At the same time, top estimates have peak demand reaching around 4500 MW in 2020, with…
In September 2017 Bahrain announced plans to develop a 100-MW high-tech solar power plant in collaboration with the private sector. This is just the latest in a line of developments related to solar power to come out of Bahrain over the last few years, as the kingdom looks to diversify its energy sources. The tender process for the plant was set to begin in the first quarter of 2018, with work…
Bahrain has seen a boom in mixed-use and waterfront developments, with a number of major projects currently under construction that will add significantly to the high-end residential and commercial real estate landscape, not to mention expand the available hotel and tourism-related infrastructure that could be influential in helping grow the kingdom as a tourist destination. In September 2017…
Substantial investment in the road network is under way in Bahrain. The standout project is the upcoming King Hamad Causeway, which will provide an additional link to Saudi Arabia, and is set to be built on a public-private partnership (PPP) basis. This international link is complemented by a large number of strategic domestic road projects, either planned or under development, that are aimed…
In recent years there has been a strong push among Gulf nations to improve regional connectivity, with the proposed Gulf Railway – which will ultimately link Kuwait City with Muscat via Saudi Arabia, Bahrain and the UAE – perhaps the most ambitious of the projects under development. However, it is by no means alone, with substantial investment in far-reaching road networks also under way. In…
Several major expansion projects are currently under way in the hydrocarbons sector, pointing both to the significant role the industry still plays in the economy and to the positive efforts being taken to leverage the use of the kingdom’s natural resources. Although Bahrain has achieved a higher degree of economic diversification than many of its Gulf neighbours, it still relies heavily…
