Interview:Tim Murray What are the most significant market challenges in the aluminium industry at present, and how is Alba addressing them? TIM MURRAY: The main headlines for 2015 were the collapse of all-in prices – namely, those on the London Metal Exchange (LME) and regional premiums as well as the drop in oil prices. We recognise that the key challenge for the aluminium industry is low…
Interview:Muna Al Hashemi To what extent would more infrastructure sharing help provide better service for customers? MUNA AL HASHEMI: In the mobile technology context, infrastructure sharing can help expand coverage to previously unserved or congested areas, which then translates into better quality of service. Infrastructure sharing would also reduce operational and investment costs, which…
This year marks the 22nd World Islamic Banking Conference in Bahrain, a milestone which is perhaps unmatched in the 40-year young Islamic finance industry. This year’s conference brings together many interesting themes and some of the most prominent speakers from around the world. Since the global financial crisis of 2008, the financial sector has entered a different phase, and Islamic finance is…
The new era of lower oil prices is having considerable repercussions on the GCC’s capital markets. Both equity and debt capital markets are undergoing challenging times affected by a changing macroeconomic environment and the increasing risk averseness of market participants. In the equities space, corporate earnings have already started seeing the impact of low oil prices in the first nine months…
Financial institutions and other market participants use a number of mechanisms in their daily operations designed to reduce risk exposure, such as providing each other with security or collateral. In addition, participants may agree to include provision for close-out netting in the contracts they enter with each other. Close-out netting is a relatively new addition to legal terminology and was, until…
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…
