Bahrain continues to attract financial institutions

This brought to 357 the total number of financial institutions licensed by the BMA by 2003-end.

"Bahrain continues to remain a magnet for financial institutions wishing to do business in the Middle East region," said Mr. Ahmed Al Bassam, Director, Licensing & Policy, at the BMA.

During 2004, the BMA will continue work on developing a new licensing structure.

The new, single licence system will take into account the international trend towards financial convergence. The new system is intended to facilitate market innovation and provide greater flexibility to financial institutions in carrying out multiple lines of business.

"We are committed to continuing to exercise the kind of financial leadership for which we have a track record of three decades," said Mr. Al Bassam.

Of the new licences issued during 2003, 12 were for banks and banking-related institutions, 17 for insurance and insurance-related operations and one capital market broker.

At 2003-end, the total number of institutions licensed by the BMA stood at 182 banking institutions, 162 insurance firms and 13 capital market brokers.

"We attracted a good mix of locally-incorporated, regional and international institutions during 2003," said Mr. Al Bassam.

"The business activities of the new institutions, many of which will serve the Middle East market, will also add value to Bahrain's financial center."

The year saw little merger and acquisition activity, which was fairly extensive during 2002 as a result of the global trend towards consolidation and restructuring, he said.

During 2003, the BMA signed an important agreement with the Ministry of Commerce, enabling the Agency to become a single-access point for the licensing as well as commercial registration of financial institutions, Mr. Al Bassam pointed out.

The agreement allows the BMA to complete commercial registration (CR) formalities on behalf of its applicants, via the Ministry's on-line facility.

Meanwhile, the BMA has so far granted four licences, of which three are for banks and one for an insurance firm, since the start of 2004. A fifth licence has also been approved, in principle, for a bank.

With the granting of the new licences in January 2004, the total number of financial institutions regulated by the BMA will increase to 362, of which 186 are banks and banking-related institutions, 163 insurance and insurance-related firms and 13 capital market brokers.