Bahrain-US accord seen as further boosting Islamic finance sector

The agreement also signals major growth in the Bahrain Islamic finance industry's already substantial business in the US market.

While Dubai in the United Arab Emirates is vying to become the future regional financial hub, Bahrain is currently the leading centre for international conventional and Islamic financial institutions.

The international importance and credibility of the Bahrain finance industry will be emphasised later this month at the global Islamic finance industry's most important networking event taking place in Istanbul, Turkey.

Led by His Excellency Sheikh Salman bin Ahmed Al Khalifa, Director of Banking Services for the country's financial regulator, the Bahrain Monetary Agency, the island kingdom is fielding seven out of a total of 60 speakers at the International Islamic Finance Forum.

The Forum, organised by IIR Middle East in association with Dow Jones Indexes, is considered "the benchmark event in Islamic finance" and brings together around 400 participants from more than 50 countries to debate the latest issues and challenges facing the industry (www.iiff.com).

Sheikh Al Khalifa will be addressing the Forum during a session on the regulatory environment, international perceptions of Islamic finance, transparency and disclosure.

In other sessions over the three day event starting on 27 September, will be high level speakers from Bahrain, including: Dr Fuad Al Omar, Chairman of Gulf Finance House; Dr Taha Eltayeb, Head of Islamic Banking and Finance at the Bahrain Institute of Banking and Finance; Ismail Dadabhoy, Head of Institutional Banking at Noriba Bank; Essam Janahi, Chairman of Bahrain Financial Harbour Holdings; Taher Makkiyah, Chief Operating Officer of Unicorn Investment Bank; and one of the world's leading scholars, Sheikh Nizam Yaquby.

Analysts say the new Free Trade Agreement with the US will trigger the flow of foreign investment to the kingdom. Bahrain's business community views the development as endorsement of economic, political and democratic reforms.

"The agreement, combined with Bahrain's leading position as the Islamic finance hub of the region, provides growth potential in the US market," said Forum director Chris Mullinger.

"Increasingly, Islamic financial houses are emphasising their products are not just for Muslims and are in demand by those seeking ethically-based products - a market that is particularly strong in the United States."