Islamic Financial Services
From The Report: Bahrain 2019
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In light of its history as a regional financial hub, and the presence in the country of several major international Islamic financial institutions and support bodies, Bahrain has a well-developed, sharia-compliant financial services sector. The Islamic banking and takaful (Islamic insurance) segments have been posting healthy growth in recent years, though profit margins in each are under greater pressure than in their conventional counterparts. Both segments are also witnessing a trend towards consolidation, which industry players say should help create stronger institutions better able to invest in expansion and technological development. The kingdom is a major global centre for the Islamic finance segment, and is home to four standard-setting institutions and infrastructure providers.

Articles from this Chapter

Overview

A proactive approach: As a leader in sharia-compliant finance, the kingdom works to strengthen the industry with new reforms and consolidation
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In light of its history as a regional financial hub, and the presence in the country of several major international Islamic financial institutions and support bodies, Bahrain has a well-developed, sharia-compliant financial services sector. The Islamic banking and takaful (Islamic insurance) segments have been posting healthy growth in recent years, though profit margins in each are under greater pressure than in their conventional counterparts. Both segments are also witnessing a trend towards…

Analysis

Taking the leap: Islamic banks venture into new technological solutions
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Islamic financial institutions are increasingly interested in utilising financial technologies (fintech), with a survey published in May 2018 by the Bahrain-based General Council for Islamic Banks and Financial Institutions showing that over 70% of managers in the sector regard fintech and digital transformation as highly important factors in making strategic decisions. Against this backdrop Bahrain is seeking to solidify its status as a regional financial hub by becoming a leader in fintech,…

Analysis

Comply to grow: Adoption of global standards widens to the benefit of the industry
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Bahrain is home to four international Islamic finance governing bodies, including the Accounting and Auditing Organisation for Islamic Financial Institutions ( AAOIFI). The kingdom is pushing for greater international standardisation in the sector, which is taking place as more and more countries adhere to AAOIFI guidelines; these in turn are being expanded and updated to reflect the growing sophistication of the sharia-compliant financial services market. Across the Board Khalid…