Islamic Financial Services

As a pioneer in Islamic finance regulations and the home of some of the most important standard- setting institutions in the global sharia-compliant arena, Bahrain is at the forefront of the international Islamic financial services industry. In 2001 Bahrain became the first country in the world to implement regulations specific to Islamic banking. Since then the Central Bank of Bahrain’s rulebook has been widely regarded as the benchmark for sharia-compliant governance. Takaful markets in particular have experienced rapid growth, with takaful firms accounting for around 22% of gross written premiums in 2012, up from 3% in 2001. Meanwhile in March 2015 the Central Bank of Bahrain issued its first one-week Islamic deposit facility based on a wakalah agent contract, by which the regulator invests cash on behalf of the lender.

This chapter contains interviews with Shaikha Hessa bint Khalifa Al Khalifa, Chairperson, Al Salam Bank-Bahrain; and Hassan Jarrar, CEO, Bahrain Islamic Bank.