Bahrain Banking Report H2 2019: Key Developments and Trends
Infrastructure Development: A Catalyst for Growth
The Bahraini government has embarked on a significant infrastructure development agenda, with various high-profile transportation, industrial, and energy projects underway. This initiative is expected to drive economic growth, create jobs, and enhance the overall quality of life in the kingdom.
Key Projects and Initiatives
- Transportation Infrastructure: Upgrades to Bahrain’s airport and seaport facilities are underway, improving connectivity with international markets.
- Industrial Development: The government has established several industrial parks, providing a range of services and incentives for businesses looking to establish operations in the kingdom.
Fintech Adoption: Enabling Innovation
Bahrain is actively promoting fintech development, aiming to become a regional hub for financial technology innovation. This effort includes initiatives such as open banking, cryptocurrency regulation, and crowdfunding.
Fintech Highlights
- Open Banking: The Central Bank of Bahrain (CBB) has launched a regulatory sandbox for fintech companies, leading to the development of an open banking platform adopted by NBB and other banks.
- Cryptocurrency Regulation: Bahrain has introduced regulations for cryptocurrency businesses, creating a favorable environment for innovation and investment in this space.
Access to Credit: Expanding Opportunities
The government is working to expand access to credit through new regulations, enabling crowdfunded peer-to-business (P2B) lending platforms to operate in Bahrain. This move is expected to provide small and medium-sized enterprises with increased access to funding.
Key Regulations and Initiatives
- Crowdfunding Regulation: The CBB has introduced regulations for crowdfunding platforms, allowing them to offer a range of financial products and services.
- P2B Lending: Bahrain’s new regulations enable P2B lending platforms to operate in the kingdom, providing small businesses with access to funding.
Conclusion
The Bahrain banking sector is undergoing significant transformations, driven by infrastructure development, fintech adoption, and increased access to credit. These developments position Bahrain for continued growth and diversification, making it an attractive destination for investors and businesses alike.