Financial Services
From The Report: Bahrain 2022
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Bahrain is home to one of the region’s most vibrant financial sectors, with financial services rivalling oil and gas in terms of economic importance. Indeed, by late 2021 the financial sector had overtaken hydrocarbons as the largest contributor to the economy. The Islamic finance sector is also strong, with Bahrain ranking fourth out of 135 countries and second in the MENA region in terms of Islamic finance development in a 2021 report by financial analysis firm Refinitiv. Through initiatives such as the launch of the region’s first cross-border innovation centre in 2020, the kingdom is also working to establish itself as a global financial technology centre.

This chapter contains interviews with Jean-Christophe Durand, CEO, National Bank of Bahrain; Abdulrahman Ali Saif, CEO, Bank of Bahrain and Kuwait; and Hassan Jarrar, CEO, Bahrain Islamic Bank.

Articles from this Chapter

Overview

Primed for expansion: Sustained support for financial technology and innovative solutions sets the stage for future expansion
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Bahrain is home to one of the region’s most vibrant financial sectors, with financial services rivalling oil and gas in terms of economic importance: indeed, by late 2021 the financial sector had overtaken hydrocarbons as the largest contributor to the economy. The country’s Islamic finance sector is also strong, with Bahrain ranking fourth out of 135 countries and second in the MENA region in terms of Islamic financial development in a 2021 report by financial analysis firm Refinitiv. Through…

Interview

Tailored services: Jean-Christophe Durand, CEO, National Bank of Bahrain (NBB), on meeting customer needs in a rapidly evolving landscape
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Interview:Jean-Christophe Durand In which ways can small and medium-sized enterprises (SMEs) be better supported? JEAN-CHRISTOPHE DURAND: It was necessary for banking institutions to forge closer relationships with SME customers, who needed guidance on how to mitigate the sudden challenges brought about by the Covid-19 pandemic. Some SME clients are still in the early stages of development, and as much as they need financing when everything goes well, they likewise need advice and support…

Analysis

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

Interview

Present priorities: Abdulrahman Ali Saif, CEO, Bank of Bahrain and Kuwait, on accelerating digitalisation and improving the customer experience
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Interview:Abdulrahman Ali Saif Where do you identify gaps in the banking sector that could benefit from further innovation? ABDULRAHMAN ALI SAIF: With traditional banking revenue streams under pressure – and with increasing competition from other banks and non-traditional players such as telecoms providers and social media companies – banks are seeking to boost income through innovative strategies. At the same time, they are looking to reduce costs via automation and diversify revenue…

Analysis

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

Analysis

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

Interview

Shifting modalities: Hassan Jarrar, CEO, Bahrain Islamic Bank, on incorporating emerging trends for the benefit of the company and clients
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Interview:Hassan Jarrar To what extent did the Covid-19 pandemic affect the banking sector in Bahrain? HASSAN JARRAR: Although Bahrain faced the same issues as other countries at the onset of the pandemic, because the kingdom is an island, there were an additional set of consequences when the country shut down. The main challenges related to maintaining corporate and retail client activities, while contributing to economic growth and attracting investment. As a result of the disruption, digitalisation…

Analysis

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

Analysis

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

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…