Bahrain and Dubai vie for Middle East finance crown

His Excellency Shaikh Ahmed Bin Mohammed Al Khalifa, Governor of the Bahrain Monetary Agency, has accepted an invitation to deliver the keynote address in Geneva, Switzerland, to the International Islamic Finance Forum (www.iiff.net).

The move comes as Bahrain - host to nearly 200 banks and other financial institutions applying both conventional and Islamic principles - faces new competition from the recently announced Dubai International Finance Centre.

Dubai has thrown down a gauntlet to Bahrain by declaring it wants to become the Hong Kong or Singapore of the Middle East for financial services - including the Islamic finance sector.

But Dubai's financial centre, for the moment, exists only on paper and the thrusting member of the federal United Arab Emirates faces an uphill battle against well-established Bahrain, only 40 minutes away by air.

"By diligent and prudential application of sound banking principles and the implementation of a firmly based regulatory regime, Bahrain enjoys a worldwide reputation as a safe place in which to conduct business," says the Bahrain Monetary Agency.

As well as providing the keynote address to next month's Forum in Geneva, Shaikh Ahmed will also take part in a high level debate on the regulatory environment which will provide an answer to the question "Is Islamic finance sound finance?"

The session will be chaired by the outspoken Khalid Janahi, Group Chief Executive of Dar Al-Maal Al-Islami, Switzerland, and include contributions from Charles Freeland, Deputy Secretary General of the Basel Committee on Banking Supervision; Jonathan M. Winer, former US Deputy Assistant Secretary of State for International Law Enforcement; and Elisabeth Jackson-Moore, Managing Director Middle East Banks, Moody's Investor Services.