Gulf International Bank
dr Khaled M Al-Fayez,CEO

Stephen Timewell reports on FT Business’s seminar on new opportunities in Bahrain as it develops its Islamic banking sector and regulatory powers.

High oil prices and an increasing aversion to Western markets are drawing huge flows of wealth into the Gulf. This is creating a highly lucrative market for private bankers in Bahrain.

Against the background of its solid reputation as an international banking centre, Bahrain is expanding the scope of its activities with the development of its insurance market.

The burgeoning Sukuk bond market is just one sign of the global Islamic financial services industry’s spectacular growth, which Bahrain is promoting by providing a sound investment and regulatory environment. James Gavin and Jon Marks report.

Several other members of the six Gulf Co-operation Council (GCC) economies have traditionally had dollar pegs. And since the December 2001 Oman GCC summit decided to move the regional grouping towards a single currency by 2010, all Bahrain’s partners have moved to a dollar peg.

As well as regulation,the Bahrain Monetary Authority is responsible for setting and overseeing monetary policy objectives, to protect the Bahraini dinar’s value and maintain general economic stability, as well as that of financial markets.

Bahrain is making efforts on many fronts to strengthen its status as a financial services hub. The Banker reports on current projects and developments.

Stephen Timewell reports on how a major new financial centre, a strong regulatory environment and a plethora of projects are set to cement Bahrain’s reputation among its Gulf neighbours.
Brimming with confidence after its successful Formula 1 grand prix in early April, Bahrain is ambitious to project its long-established role as the Gulf’s premier financial and banking hub and capitalise on the booming economies in the region.

Profits at Bahrain’s locally incorporated banks more than doubled during 2003, compared with 2002.