Islamic Financial Services

A history of clear regulation and prudent oversight has served the Islamic financial services sector well in the challenging years since the onset of the global economic downturn. It also accounts for the sense of optimism within the sector, despite the challenges that are facing the broader global finance industry. In 2011 the opening of the Bahrain Financial Exchange added new depth to the country’s capital markets and brought with it an Islamic platform, the Bait Al Bursa, which has broken new ground with its sharia-compliant instruments and represents the latest in a long series of sharia-compliant innovations to emerge from Manama. As of April 2012, some 27 Islamic banks had been licensed by the Central Bank of Bahrain to operate in the Kingdom. The presence of such a large number of industry bodies which exert an influence far beyond the borders of Bahrain is one of the reasons why the country will remain a key player in the global Islamic financial service industry. This chapter includes interviews with Mohammed Ebrahim Mohammed, CEO, Bahrain Islamic Bank; and Mohammed Bucheerei, CEO and Member of the Board at Ithmaar Bank.