Bahrain Stock Exchange Performing Well Despite Economic Downturn

by Philip Morton, Investors Offshore.com

18 August 2008

It emerged on Monday that despite the recent economic uncertainty, and going against the current trend set by its Western counterparts, the Bahrain Stock Exchange (BSE) has experienced significant growth in the first half of 2008; posting a growth of 348% in total volume of shares traded, and an increase of 33.83% in market capitalisation.

This growth was predominantly led by Bahrain’s strong financial services sector, which contributes to over 84% of the Exchange’s current market cap.

Commenting on the BSE’s recent growth, Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board (EDB), the public agency with overall responsibility for formulating and overseeing the economic development strategy of Bahrain, suggested that:

“The success of these most recent listings is a clear indication of rising investor confidence in Bahrain’s capital markets.”

He went on to observe, with regard to Bahrain's fund sector, that:

“Bahrain has a thriving funds industry, with assets under management by Bahrain’s mutual funds industry surging in 2007 by nearly 73% to over US$15 billion. The decision by Global Investment House to list all six funds on the BSE is yet another sign of Bahrain’s dominance as the Gulf’s regional funds centre.”

The BSE was established in 1989, currently 52 companies, 19 bonds (both conventional and Islamic) and 42 mutual funds are listed on the Exchange.

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