‘New laws to boost finance sector’
Manama : Bahrain has become the first country in the Gulf Cooperation Council (GCC) region to integrate financial laws into its legal system to enhance the competitiveness of financial services, said a top financial expert.
Brian Howard, Partner at Trowers & Hamlins said this while commenting on the outreach programme introduced by the Economic Development Board (EDB) in partnership with the Central Bank of Bahrain (CBB) to explain its importance.
He viewed that the addition of the new investment limited partnership law, the protected cell companies law and the new trusts law in Bahrain, opens the door to many new lines of business and investment structures not previously available and brings Bahrain’s structuring options in line with the best modern international examples.
The outreach programme aims to explain the importance of the new mechanisms to financial institutions and banks in the Kingdom, while also promote discussion to support in further enhancing the sector’s performance. Other jurisdictions have issued such limited partnership laws through free zones only.
“These reforms will provide a strong boost to the sector, support growth in a number of areas and help to make Bahrain a highly competitive location for those looking to access the opportunities around the Gulf,” said Khalid Al Rumaihi, Chief Executive of EDB.
Abdulrahman Al Baker, Executive Director of Financial Institutions Supervision at the CBB said that the outreach programme will facilitate an ongoing dialogue with industry to discuss opportunities of further boosting Bahrain’s position as a financial hub, said
The new changes
The Limited Partnership Law is expected to provide a strong boost to the sector, supporting growth in real estate funds, private equity funds, venture capital and technology funds, startups, and Shariah compliant funds, as well as captive insurance.
The introduction of the Trusts Law aims to regulate the creation of a trust and its liabilities, as well as allowing establishment of a trust for charitable and non-charitable purposes. Meanwhile, the Protected Cell Companies law is looked to allow strengthening investors’ rights in separating their private assets from company running the fund, as well as lowering running costs.
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