George Richani-CEO-Al Ahli Bank of Kuwait

Building bridges: Recent agreements with long-term partners and expanding ties with other markets promise to drive economic diversification

Bahrain has long taken a liberal approach to international trade and investment policy, which it conducts largely in line with its partners in the GCC, especially neighbouring Saudi Arabia. Historically, its closest foreign relations beyond the region have been with the US and the UK. Initially built around the defence industry, over the years these relations have expanded to areas such as electrical machinery and agricultural goods. After a challenging couple of years as a result of the Covid-19 pandemic, several recent developments could open

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George Richani-CEO-Al Ahli Bank of Kuwait

Balancing act: The government aims to support a post-pandemic recovery via a series of investment projects while also balancing the budget

In October 2021 the government launched a reform and investment programme in line with Bahrain Economic Vision 2030, the country’s long-term development and diversification framework. The package had five pillars: the revised Fiscal Balance Programme (FBP), labour market reforms, regulatory reforms, a strategic projects plan aiming to attract $30bn in investment and a priority sector plan. Under the auspices of the reform programme, the updated FBP aims to eliminate the fiscal deficit by 2024. At the same time, the plan launched an ambitious effort to

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Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Changing workplace: After a pandemic-induced shift to working from home, companies around the world have adopted new business models

From remote work to widespread job losses, the Covid-19 pandemic dramatically changed the way people work. These interruptions are likely to have a significant impact on the labour market well into the future. In a briefing from June 2021, the UN said that many emerging markets in particular were experiencing a “full-blown unemployment crisis” that was exacerbating existing economic disparities. Rise of Remote Work One of the most prominent changes to come out of the pandemic was the shift to remote work. Before the pandemic

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Even approach: Despite high oil prices, many Gulf countries are following fiscally stringent economic strategies

As oil prices reach recent highs, a number of countries in the Middle East have unveiled fiscal measures designed to balance their budgets after two years of Covid-19 pandemic-related spending. Bahrain is following this trend: in October 2021 it released a plan designed to balance the budget by 2024 (see analysis). In addition to doubling the value-added tax (VAT) to 10%, the plan includes a reduction in government expenditure, a streamlining of cash subsidies to citizens and the introduction of new revenue initiatives. Although Bahrain

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Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Complete coverage: Mandatory health insurance and new green products are set to propel sector growth and increase uptake

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 regulatory policies; expand the insurance sector; and augment financial services and fintech. It also details eight key performance indicators that the financial services sector hopes

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Pham Hong Hai-CEO-HSBC Vietnam

Deepening outreach: Harnessing innovation to transform banking services while balancing consumer protection and innovator empowerment

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 fintechs to scale across the region. The use of technology to integrate financial services and establish a unified payment and settlement network for the Arab world

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David Gledhill-CEO-Port of Salalah

Global stage: Islamic finance gains more recognition on an international scale

Uncategorized

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 many of the world’s heavyweights in Islamic finance, the global sector’s assets grew by 10.6% in 2020, according to ratings agency Standard & Poor’s (S&P). (http://rxreviewz.com/) Although this was down from the 17.3% growth recorded in 2019, it was a strong performance in

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Xi Jinping-President of China

Smaller footprint: A focus on sustainability is expected to reduce risks associated with climate change while bolstering bottom lines

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 associated with climate change. Targeting Net Zero  The NZIA brings together eight of the world’s biggest insurers and reinsurers, each of which are committed to transitioning their

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Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

Tie-up trend: GCC banks consolidate to boost resilience against future crises

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 institutions expecting constrained profitability despite having a low pre-crisis risk profile. A report published by ratings agency Standard & Poor’s (S&P) in March 2021 noted that the adverse effects of the 2020 shock were expected to be felt acutely

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George Richani-CEO-Al Ahli Bank of Kuwait

Growth opportunities: An underutilised market offers the key to unlocking funding for the kingdom’s small and medium-sized players

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 source of financing for growth companies that require support before going public on Bahrain Bourse (BHB) or elsewhere. For example, while the BHB

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