Islamic Financial Services
From The Report: Bahrain 2016
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As a pioneer in Islamic finance regulations and the home of some of the most important standard- setting institutions in the global sharia-compliant arena, Bahrain is at the forefront of the international Islamic financial services industry. In 2001 Bahrain became the first country in the world to implement regulations specific to Islamic banking. Since then the Central Bank of Bahrain’s rulebook has been widely regarded as the benchmark for sharia-compliant governance. Takaful markets in particular have experienced rapid growth, with takaful firms accounting for around 22% of gross written premiums in 2012, up from 3% in 2001. Meanwhile in March 2015 the Central Bank of Bahrain issued its first one-week Islamic deposit facility based on a wakalah agent contract, by which the regulator invests cash on behalf of the lender.

This chapter contains interviews with Shaikha Hessa bint Khalifa Al Khalifa, Chairperson, Al Salam Bank-Bahrain; and Hassan Jarrar, CEO, Bahrain Islamic Bank.

Articles from this Chapter

Overview

At the forefront: The country remains a leading global centre for Islamic finance
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As a pioneer in Islamic finance regulations and the home of some of the most important standard-setting institutions in the global sharia-compliant arena, Bahrain is at the forefront of the international Islamic financial services (IFS) industry. Islamic banks in the kingdom continue to expand, serving the region as well as the domestic market, while sharia-compliant insurance activity is about to receive a welcome fillip in the form of an improved regulatory structure. Regional Centre When civil…

Interview

Steps in the right direction: OBG talks to Shaikha Hessa bint Khalifa Al Khalifa, Chairperson, Al Salam Bank-Bahrain
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Interview:Shaikha Hessa bint Khalifa Al Khalifa How would you judge the position of women in Bahrain, considering the central bank’s emphasis on women in finance in 2015? SHAIKHA HESSA BINT KHALIFA AL KHALIFA: A survey by Al Salam Bank-Bahrain of publicly listed companies in the country revealed that there is only one female chairperson in Bahrain. There are 43 heads of publicly listed companies who are men and 37 vice-presidential posts, predominantly occupied by men, while there are only…

Analysis

Encouraging adoption: Supporting a forward-looking approach to reforms
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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 event, the governor of the Central Bank of Bahrain (CBB), Rasheed Mohammed Al Maraj, reminded…

Interview

Back to basics: OBG talks to Hassan Jarrar, CEO, Bahrain Islamic Bank
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Interview: Hassan Jarrar What measures are being taken to improve the level of confidence in Bahrain’s banks? HASSAN JARRAR: The region as a whole is experiencing low economic confidence, with unsustainable levels of spending, ongoing war and rock-bottom oil prices – all problems that have become more severe in the past year. That said, Bahrain has weathered these crises well, and Islamic finance has overall remained relatively insulated as an area. Our priority should be to improve the perception…

Analysis

Uneasy ground: Efforts are afoot to solidify standards and improve access to liquidity
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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 Liquidity The problem, put simply, is a lack of options: where conventional lenders generally…