CBB eyes mutual fund market growth

The Central Bank of Bahrain along with HSBC took a big step forward in Bahrain’s push to boost the mutual funds’ industry here by showcasing the Kingdom’s potential at the Global Distribution Conference in Luxemburg. Overall, there are 80 Islamic funds incorporated and registered in Bahrain with total assets amounting to US$1.2 billion as of June 2019.

A delegation from the CBB, in coordination with HSBC, participated in the Association of the Luxembourg Fund Industry (ALFI) Global Distribution Conference that took place on 24 and 25 September 2019 at the European Convention Center Luxembourg. “This visit was an opportunity to engage with the top mutual fund professionals and regulators in the world,” Ebtisam Al Arrayed, the Director of the Financial Institutions Supervision Directorate at the CBB said.

Al Arrayed said the forum constituted a perfect platform to share Bahrain’s extensive experience in the mutual fund industry that stretches back to the 1980s. Bahrain, he said, was a pioneer in issuing mutual funds legislation in the GCC and MENA region and “continues to lead with a highly developed and well-tested regulatory framework.” The conference is considered one of the largest fund management forums in Europe and is held annually, involving more than 200 international fund managers, with around 600 delegates from over 25 countries.

Bahrain’s delegation held several one-to-one meetings with global asset managers, the Luxembourg financial regulator and the Luxembourg Stock Exchange. It is worth highlighting that the mutual fund sector is a fast-growing segment of the asset management industry with approximately US$ 7.8 billion in assets under management, through more than 2,100 funds.