Banking
From The Report: Bahrain 2023
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The financial services industry plays a crucial role in Bahrain’s economy, contributing 16.8% to GDP. Recognising the need to reduce dependence on oil, the government has prioritised the development of the sector. In order to strengthen the local economy and facilitate recovery from the Covid-19 pandemic, the government introduced the Economic Recovery Plan. The plan is centred around securing over $30bn for investment and financing infrastructure projects. Additionally, the Central Bank of Bahrain devised the Financial Services Development Strategy 2022-26, which outlines five pivotal priorities: job creation, legislation and policies, financial markets, financial services and financial technology, as well as the insurance segment. This strategic framework aims to achieve medium-term goals, including raising the sector’s contribution to GDP to 20% by 2026 and
further expanding it to 25% over the longer term. 

This chapter contains interviews with Usman Ahmed, Group CEO, National Bank of Bahrain and Yaser Alsharifi, CEO, Bahrain Islamic Bank.

Articles from this Chapter

Overview

Forward momentum: Digital payment innovation positions the country as a centre for financial technology in a dynamic landscape
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The financial services industry plays a crucial role in Bahrain’s economy, contributing 16.8% to GDP. Recognising the need to reduce the country’s dependence on oil, the government has prioritised the development of the sector. In order to strengthen the local economy and facilitate recovery from the Covid-19 pandemic, the government introduced the Economic Recovery Plan (ERP). The plan is centred around securing over $30bn for investment and financing infrastructure projects. Additionally, the…

Interview

Smart credit: Usman Ahmed, Group CEO, National Bank of Bahrain, on setting up a sustainable roadmap and using digital tools to manage risk
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Interview:Usman Ahmed What are the immediate priorities for local banks to accelerate their sustainability strategies? USMAN AHMED: Financial institutions are vital to promoting sustainability in the economy. The integration of environmental, social and governance (ESG) frameworks into business and operational practices is relatively new for banks in Bahrain. That said, it is important that an organisation’s highest level of governance sets the agenda in this area to ensure its business strategy…

Interview

Evolutionary change: Yaser Alsharifi, CEO, Bahrain Islamic Bank (BisB), on growth opportunities for sharia-compliant financial entities
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Interview:Yaser Alsharifi Where do you see potential opportunities for Bahrain’s Islamic banking sector? YASER ALSHARIFI: Banking remains key to the financial services sector, with significant potential for growth. Although there has been a recent consolidation in the industry, it continues to be a vital driver of economic performance. The sector has been a key focus for the government and the Bahrain Economic Development Board. The regulatory approach and strategy support customers’ needs,…

Analysis

New horizons: With the rapid expansion of Islamic finance, the role of specialised financial technology players has become increasingly vital
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Bahrain is the seventh-largest Islamic finance market globally, with $41.6bn in total assets at the end of 2022. It has the largest concentration of Islamic financial institutions in the Middle East, comprising 38.3% of domestic banking system assets over the same period. The Islamic banking segment experienced a 7.6% increase in assets during 2022, surpassing the 2% growth observed among conventional counterparts. According to the financial data company Refinitiv’s Islamic Finance Development…

Analysis

Crypto rush: Decentralised financing could play an important role in GCC countries’ efforts to diversify their economies
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As GCC countries look to harness new forms of financial technology (fintech), expand their services and improve financial inclusion, governments are embracing decentralised finance (DeFi) and working to attract cryptocurrency companies. DeFi – peer-to-peer financial services with no central authority or intermediary involved in trading, lending and investing – is seen by GCC countries as an opportunity to diversify their economies and embrace Web3 technologies, such as blockchain, the internet…