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New report reveals changing shape of Bahrain financial services
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Mon July 19, 2010 1:15 pm
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BAHRAIN. Growth in retail banking and insurance has formed an important part of the changing nature of the financial services industry in Bahrain, according to the Annual Economic Review, which was officially launched today by the Bahrain Economic Development Board.

The Annual Economic Review: Sustainable Prosperity focuses on Bahrain’s recent economic performance. It surveys the previous decade and assesses the challenges in the years to come.

The diversity of Bahrain’s economy meant that despite the worst global financial crisis for over sixty years where financial services suffered heavily in other economies, growth in Bahrain’s financial services sector remained broadly steady as a result of strong growth in retail banking and insurance.

In particular, the insurance industry has doubled in size in the last five years and grew by 6% in 2009 despite the global crisis. Bahrain currently counts 169 onshore insurance firms in total, of which 9 offer Shari’a-compliant insurance products. Retail banking, too, has shown steady growth.

The financial services sector accounts for about a quarter of Bahrain’s GDP and has contributed nearly 23% of the total increase in GDP over the last six years.

The Bahrain Economic Development Board (EDB) is a public agency with an overall responsibility for formulating and overseeing the economic development strategy of Bahrain, and for creating the right climate to attract direct investment into the Kingdom.

The growth of the financial services sector in Bahrain, which has existed for over forty years, is an important part of Vision 2030 and the National Economic Strategy.

These reforms are being led by the Bahrain Economic Development Board (EDB), under the guidance of His Royal Highness Prince Salman Bin Hamad Al-Khalifa, Crown Prince of Bahrain and Chairman of the EDB, which aims to improve and elevate the national living standards for all Bahrainis.

Islamic banking has also seen strong growth, as Bahrain has capitalised on its position as a hub for Islamic finance in the region.

Shaikh Mohammed bin Essa Al Khalifa said: “The findings of this Review demonstrate the benefits of greater diversification in financial services. The growth in insurance and retail banking will help us to continue to spread the benefits of national growth to all Bahrainis. This also shows the benefits of investing in training and education. By investing in our people we have enabled the benefits to flow to all.”

To date, 67% of the workforce in financial services is Bahraini of which 37% are Bahraini women.
 
The Bahrain EDB is also responsible for attracting inward investment into Bahrain, and is focusing on six target economic sectors in which the Kingdom offers significant strengths. These are financial services, downstream industries, tourism, business services, logistics, and education and training.
 
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

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