Capital Markets
From The Report: Bahrain 2024
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Bahrain’s capital markets are aiming to increase activity, with the GCC region experiencing a surge in initial public offerings. Both corporate and government entities are turning to debt and securities, particularly sovereign bonds, which attract investors seeking to reduce portfolio risk amid global economic uncertainty. The kingdom’s diversified economy, bolstered by a robust financial services sector, helps reduce its reliance on hydrocarbons. The country’s forward-thinking, risk-averse policies support this growth, while efforts to strengthen regional stock market cooperation are resulting in mergers and cross-listings. Initiatives to help smaller companies benefit from market flotation are poised for growth, with potential policy adjustments expected to accelerate progress. With high interest rates, traditional bonds and sukuk (Islamic bonds) remain attractive, while cryptocurrency regulations introduced in 2023 and 2024 should enhance Bahrain’s competitiveness in this emerging market.

This chapter includes an interview with Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse.

Articles from this Chapter

Overview

Sustained dynamism: Initial public offering targets, crypto-asset regulation and regional collaboration are central to growth plans
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Bahrain’s capital markets are targeting increased activity, with the GCC region in the midst of a sustained initial public offering (IPO) boom. Key corporate and government entities are looking to debt and security markets to fund growth, with sovereign bonds in particular proving highly attractive to investors keen to de-risk their portfolios at a time of global economic unpredictability. Bahrain boasts a more diversified economy than many of its GCC neighbours – with an advanced financial…

Interview

Enhanced ecosystem: Sheikh Khalifa bin Ebrahim Al Khalifa, CEO, Bahrain Bourse (BHB), on boosting investor confidence and participation
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Analysis

Universal standards: Regional focus on environmental, social and governance factors is bolstering domestic sustainable finance initiatives
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Following the COP28 UN Conference on Climate Change, hosted by the UAE in late 2023, GCC member countries have seen intensified regional efforts to expedite the energy transition, implement environmental strategies and establish new financial frameworks emphasising climate action. This shift has catalysed the emergence of new investment products and strategies that incorporate environmental, social and governance (ESG) factors. Consequently, there has been a surge in ESG reporting initiatives, a…