Islamic Financial Services

Reduced oil prices and fiscal austerity measures being carried out by governments across the GCC have resulted in a challenging environment for Bahrain’s sharia-compliant financial institutions. The competitive domestic market – home to the largest concentration of Islamic financial institutions in the Middle East – has reacted to adverse conditions, with what appears to be the beginning of a long-awaited period of consolidation: both the banking and takaful (Islamic insurance) segments saw significant merger and acquisition activity over the past year. The sector also received notice in 2017 of a change in the regulatory framework that will usher in a new era of oversight.

This chapter contains an interview with Hassan Jarrar, CEO, Bahrain Islamic Bank.