New investments in the hospitality sector and efforts to raise Bahrain’s international profile should drive tourism growth in 2016, broadening the kingdom’s appeal as a destination for travellers from the region and further afield. With Manama formally named the “Capital of Gulf Tourism 2016” in early January by the tourism ministers of the GCC, a series of projects and exhibitions are being…
Energy and finance remain drivers of growth a crucial partner for peace and stability in the region education seen as a major strength for the population regional effort to improve food security in the Gulf.
In a low-tax nation such as Bahrain the obvious part of the balance sheet to look at when addressing a stubborn fiscal deficit is government spending. It is hardly surprising, then, that over the past year the question of government subsidies has come to the fore in the public debate on the nation’s challenging economic situation. While the Gulf Assistance Programme has allowed Bahrain to maintain…
One of the unfortunate consequences of the recent fall in oil prices is a regional tightening of lending conditions for small and medium-sized enterprises (SMEs). The vulnerability of smaller firms to business interruptions means that lenders adopt a cautious stance, often demanding more collateral or stricter documentation standards, and offering shorter tenors. However, while Bahrain’s banking…
Despite declining oil prices and a renewed focus on fiscal contraction, one government body has bucked the consolidation trend and embarked on a new phase of expansion. Established in 2006, Bahrain Mumtalakat Holding Company is the independent holding company for Bahrain’s strategic non-oil-and-gas-related assets, and as such is the government’s chief investment division. It is a medium-sized player,…
With fewer hydrocarbons resources than many of its Gulf neighbours, Bahrain’s status as a financial centre is crucial to its long-term economic development. One of the biggest concerns arising from the political unrest of 2011, therefore, was that is banking sector would see an exodus of brand names to other Gulf capitals. The decision by Crédit Agricole in late 2011 to move its regional headquarters…
Credit cards have long been a key tool for financial institutions vying for market share in Bahrain’s competitive banking sector, and from a consumer’s perspective there has never been so much choice in the local market, with conventional and Islamic banks alike offering credit options. The major local and foreign institutions operating in the country, such as American Express and Credimax, offer…
In addition to conventional instruments, the Central Bank of Bahrain (CBB) has introduced various Islamic products to support sharia-compliant banking. The kingdom has a high penetration of Islamic financial institutions, comprising six sharia-compliant retail banks and 18 wholesale banks, along with seven takaful (Islamic insurance) companies. A New Tool The CBB launched a new sharia-compliant liquidity…
A push to bring new products and services to the stock market is being steered by the Central Bank of Bahrain (CBB), which regulates the country’s financial services industry. The launch comes against a backdrop of reforms, which marks part of a broader, two-pronged bid to strengthen the position of the Bahrain Bourse (BHB) at home and boost its appeal abroad. Addressing a regional equities summit…
The Bahrain Bourse (BHB) will soon be listing its first real estate investment trust (REIT). This will be a welcome addition for investors seeking diversification and exposure to the Bahrain real estate sector, with this segment currently limited to Seef Properties, a malls operator. A REIT is a regulated legal structure that holds income-generating real estate assets, and issues units to investors.…
