Bahrain World's Fastest Growing Financial Centre According To GFCI Index

by Philip Morton, Investors Offshore.com

17 March 2008

Bahrain has welcomed its inclusion as the world’s fastest growing financial centre in the recently published third edition of The City of London’s Global Financial Centres Index (GFCI3).

The jurisdiction rose by 59 points in the ranking of the world’s financial centres; the fastest growth of any financial centre.

The GFCI report, which publishes the top 50 rated financial centres, ranked Bahrain 39th, up three places from the previous edition, and ahead of neighbouring Qatar.

Moreover, Bahrain has overtaken a number of other emerging financial centres, previously ranked as higher, such as Mumbai (48th); Beijing (46th) and Johannesburg (41st).

According to a statement from the Bahrain Economic Development Board, of the Gulf states covered by the report, Bahrain was the only one to have moved up the Index in the last six months, while Dubai slipped two places to 24th, and Qatar was down three places to 47th.

The GFCI report ranks financial centres based on external benchmarking data and current views of competitiveness. Competitiveness factors are grouped into five key areas, namely – people, business environment, market access, infrastructure and general competitiveness.

Bahrain has a highly diversified economy, expanding at more than 6% per annum. The Kingdom’s GDP currently stands at USD15.7 billion, to which its financial sector contributes more than 25%.

Commenting on the Index findings, Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board, observed that:

“Bahrain’s rise to prominence in the Index reflects both our continued investment in our finance sector and our ability to attract finance business to the Kingdom. We are recognised as the most business friendly and cost competitive centre in the Gulf."

He concluded: "We welcome the scrutiny of the GFCI report and consider this Index to be a major endorsement of Bahrain’s reputation as a leading location for international business and finance and key destination in the Gulf for inward investment.”

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