As the Bahrain Bourse (BHB) continues along its path of institutional development, it does not do so in isolation. Both the regulator and the exchange authorities have for many years played a productive role within regional and global bodies that share many of the same ambitions in terms of market development, and the past year has seen some useful strengthening of international ties. Upgrade In…
While Bahrain continues to raise the profile of its bourse through cooperation with regional and global markets, it is also making strenuous efforts to heighten awareness of the advantages of investment among the local population. To do so, it has taken a multi-faceted approach. Social Media Understandably given the nation’s internet penetration rate of around 96%, social media platforms are playing…
The Bahrain Bourse (BHB) was established in 1987 and commenced operations in 1989, with only two stocks trading. Since then, the bourse has grown to include 46 common stocks (including two closed for trading, and two non-Bahraini companies listed on the exchange), government bonds and mutual funds. The market is serviced by 12 brokers, of which three are individuals. Securities and Investment Company…
The kingdom of Bahrain (rated “BBB-”) has developed into a seasoned and popular issuer, tapping local and international capital markets in 2015 for a record amount of debt. Bahrain raised 800m in Bahraini dinars and 1.5bn in US dollars, as the kingdom sought to strengthen its economy and finance its growing deficit, which is estimated to reach 12% of GDP in 2015 amid falling oil prices. The timeline…
The kingdom’s reputation as an Islamic finance centre rests not only on its long history of successfully regulating its diverse sharia-compliant industry, but also its willingness to revisit its rules as needed. Fittingly, the need for continued reform of the sector was a central theme of the 21st Annual World Islamic Banking Conference, held in Bahrain in December 2014. Speaking at the opening of…
The Islamic banking sector might be outstripping its conventional counterpart in terms of growth, but the rapidly developing industry still faces a number of challenges which ordinary lenders are not confronted by. One of the most salient of them is the question of liquidity, which has existed as a potential impediment to growth since the birth of the modern sharia-compliant financing industry. Easing…
In February 2015 the leading participants in the region’s insurance market came to Bahrain for the Middle East Insurance Forum, an annual event which has become the largest and most influential industry gathering in the Gulf. Staged under the official patronage of the Central Bank of Bahrain (CBB), the event attracted around 500 attendees, from over 200 leading global organisations, to listen to…
The large amount of business ceded by Gulf insurers to domestic, regional and global reinsurers has, for many years, been a hot topic in the sector. The downside risks of this market characteristic are frequently rehearsed at industry conferences and regulatory seminars: Middle Eastern insurers, it is argued, have grown accustomed to the easy commissions made while passing business on to reinsurers…
With over nine hours of sunshine a day for eight months of the year, Bahrain would appear to be an obvious location in which to pursue solar power as a renewable energy option. Looking to harness this readily available resource, the country has already taken its first steps in establishing a renewable energy strategy and is creating a watchdog to oversee this new aspect of its energy sector. First…
The rapid growth in Bahrain’s population presents considerable challenges for the private and state providers supplying utilities. As well as routine work to replace, refurbish and improve existing power, water and sewage networks, providers are also required to expand their networks to serve new communities that are being constructed. Even as it works to keep pace with today’s demand levels, the…
