Bahrain is host to a thriving mutual funds industry. The first overseas mutual funds started being marketed in Bahrain during the 1980s, and the first Bahrain domiciled scheme was launched in 1984. Since 1992, when the first formal regulations were issued, the industry has grown exponentially.
Over 2,600 funds are registered in Bahrain. Of these, 97 are Bahrain domiciled schemes, and 80 Islamic. Total assets under management are some $9.3bn (up nearly 40% on the previous year's total), demonstrating Bahrain’s regional dominance as the leading funds centre.
Collective investment schemes are regulated and supervised by the Financial Institutions Directorate of the Central Bank. Regulatory frameworks have kept pace with the changes in the industry. In 2006, CBB initiated discussions to update the existing framework and allow for different categories of investors, including enabling hedge funds. The new rules were issued in May 2007.
Collective Investment Undertaking Rules >