Islamic Financial Services
From The Report: Bahrain 2018
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Reduced oil prices and fiscal austerity measures being carried out by governments across the GCC have resulted in a challenging environment for Bahrain’s sharia-compliant financial institutions. The competitive domestic market – home to the largest concentration of Islamic financial institutions in the Middle East – has reacted to adverse conditions, with what appears to be the beginning of a long-awaited period of consolidation: both the banking and takaful (Islamic insurance) segments saw significant merger and acquisition activity over the past year. The sector also received notice in 2017 of a change in the regulatory framework that will usher in a new era of oversight.

This chapter contains an interview with Hassan Jarrar, CEO, Bahrain Islamic Bank.

Articles from this Chapter

Overview

Leading the line: The kingdom is a major regional player in a growing industry
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Reduced oil prices and fiscal austerity measures being carried out by governments across the GCC have resulted in a challenging environment for Bahrain’s sharia-compliant financial institutions. The competitive domestic market – home to the largest concentration of Islamic financial institutions in the Middle East – has reacted to adverse conditions with what appears to be the beginning of a long-awaited period of consolidation: both the banking and takaful (Islamic insurance) segments…

Interview

Refine and redefine: Hassan Jarrar, CEO, Bahrain Islamic Bank, on the need for innovation among Islamic financial institutions
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Interview:Hassan Jarrar How will the issuance of new regulations that require Islamic banks in Bahrain to undergo external audit challenge the market? HASSAN JARRAR: Bahrain has one of the more robust regulatory frameworks with respect to Islamic banking and financial services. Nevertheless, more transparency is needed, and the new external auditing requirements will help in this respect. I think the issue of standardisation is less of a concern because, despite there being individual sharia…

Analysis

On the same page: A centralised approach to sharia regulation is on the way
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In 2017 Bahrain took an important step towards a more centralised approach to sharia supervision. The issue has been on the domestic agenda for some years, and speaks to the broader conversation taking place in the global Islamic financial services (IFS) sector as to how the industry should be governed. Currently there is significant variation in IFS regulatory frameworks from one jurisdiction to the next, but most fall within one of two basic models: a largely self-regulating system by…

Analysis

Bond of trust: Investors are showing strong interest in sukuk issuances
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While bankers might decry the slowdown in growth resulting from curtailed government spending and investor uncertainty, economists – who generally take a longer-term view – often see a silver lining in a sustained drop in the price of a barrel of oil. Falling hydrocarbons revenues have compelled governments around the Gulf to embark on a process of fiscal reform many believe was overdue, and argue would not have been undertaken if prices had remained elevated. The new economic landscape…