Country Profile
From The Report: Bahrain 2017
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The kingdom of Bahrain has been ruled as a constitutional monarchy since 2002 under the leadership of Sheikh Hamad bin Isa Al Khalifa. The country pioneered the Middle East’s oil production in 1932, thus establishing the region’s initial framework for the petroleum industry. The energy sector remains a pillar of the kingdom’s economy, accounting for the bulk of government revenues but a shrinking proportion of GDP thanks to early efforts to diversify its economy at an early stage. Consequently, the country established itself as a leading regional financial centre in the 1970s and 1980s, with its highly regarded regulatory system encouraging various regional banks looking to move their capital out of Lebanon during that country’s civil war to set up base in Bahrain.

This chapter contains an interview with Abdul Latif Al Zayani, Secretary-General, GCC; and a viewpoint from Theresa May, Prime Minster of the UK.

Articles from this Chapter

Overview

Distinctive land: The island nation is a connected player within the region, yet remains true to its own history and cultural uniqueness
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The name Bahrain means “two seas” in Arabic. It is unclear what two seas the term specifically refers to, and for much of its history, Bahrain was the name for the eastern coast of Arabia. Only recently has it come to identify the islands of the Awal archipelago. HISTORY: The island’s first notable inhabitants were of the Dilmun civilisation, approximately 6000 years ago, but its geographically strategic location has attracted the attention of numerous empires over the centuries, including…

Analysis

Increased issuance: Regional bond market activity rises to meet financing needs
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A combination of factors has led to a rise in bond issuance from GCC members in 2016. Across the year, bonds and sukuk (Islamic bonds) issued in the GCC hit $66.5bn, more than doubling the $27.6bn total issued in 2015, and rivalled only by the $60.9bn issued during 2009. A $17.5bn historic bond sale from Saudi Arabia accounted for 26.3% of the 2016 total. SUPPLY & DEMAND: A number of elements have coincided to catalyse this bond boom. First and foremost is the desire for financing in…