BMA to create world-class insurance hub

The Bahrain International Insurance Centre (BIIC) project has received the approval of HH Shaikh Khalifa Bin Salman Al Khalifa, Prime Minister of the Kingdom of Bahrain and Chairman of the BMA Board.

The project will be located within the US$1.3 billion Bahrain Financial Harbour (BFH) complex, currently being built along the Manama seafront.

"The BIIC is an important element in a comprehensive strategy designed to take the Kingdom's insurance industry into the future," said HE Abdulla Hassan Saif, Minister of Finance and National Economy and Deputy Chairman of the BMA Board.

The industry, which contributed 2.6% to Bahrain's gross domestic product (GDP) in 2002, offers tremendous potential for growth and for creating high quality, specialised jobs for Bahrainis, he said.

"The BIIC is designed to be a physical hub of insurance service providers, as well as ancillary service providers, all under one roof," said HE Shaikh Ahmed bin Mohammed Al Khalifa, Governor of the BMA.

The project is the finishing touch to a comprehensive plan, currently being implemented by the BMA, to further develop and grow the Kingdom's insurance industry.

"Since the BMA assumed responsibility of regulating the insurance sector, in August 2002, the industry's further development has been a top priority for the Agency," said Shaikh Ahmed.

The Agency is making a major investment in further developing the insurance regulatory framework, on par with international best practice; enhancing transparency and good corporate governance as well as ensuring availability of insurance professionals.

Specific lines of business being targeted for growth and expansion include Bancassurance, Takaful (Islamic insurance), and captive insurance.

"In the area of insurance as well, we want to exercise the kind of leadership for which we have a track record in banking," said Shaikh Ahmed.

The nerve center will be customised for the industry, offering a host of services, including office space, meeting and conference rooms, an auditorium as well as retail and hospitality outlets.

It will be located in a stand-alone building in the BFH. The BMA will lease seven floors in the building, on long-term basis. The space will then be re-leased by an independent dedicated team to insurance and insurance-related firms.

"We will target insurance firms already operating in Bahrain, to relocate to the BIIC, as well as new firms wishing to establish operations in the Kingdom," said Shaikh Ahmed.

Mr. Esam Janahi, Chairman of BFH Holding Company, said he was delighted that the BIIC would be located in BFH, a revolutionary financial business park, which will be a first in the Middle East.

"The BIIC is an innovative concept which will further reinforce Bahrain's status as the financial capital of the Middle East," he said.

Anchor tenants for the massive, futuristic real estate development project will include the Bahrain Stock Exchange (BSE) and several leading regional financial institutions.