Perfect gateway

The Gulf's trillion dollar market provides outstanding and compelling opportunities for the fund management industry and Bahrain's strengths make it the perfect gateway to access them, delegates at a top financial forum heard.

In his opening address at the fourth annual Fund Forum Middle East 2010 conference, in Manama, Shaikh Mohammed bin Essa Al Khalifa, chief executive of the Bahrain Economic Development Board (EDB), highlighted Bahrain's long and impressive track record within financial services, particularly in fund management, and to the structural growth drivers of a rapidly expanding domestic population, and growing prosperity within the region, which is underpinning long term demand for financial products and services.

The increasing contribution to world economic growth from the Middle East, alongside other emerging markets such as China and India, prompted Shaikh Mohammed to also identify the 'rise of the East'.

Shaikh Mohammed highlighted Bahrain as having the widest range of funds in the Gulf, the country's high quality regulation and its importance to companies seeking safety for their money and reputation, and also Bahrain's status as an international hub of Islamic finance. He added that whilst the global financial crisis had tested many countries, the Gulf region had coped better than most and is collectively, firmly back on the road to growth.

He also cited Bahrain's long term investment in diversification of its economy and its more risk-averse approach which made the country less vulnerable to shocks and contributed to an increase in domestic GDP, in 2009, of over three per cent and anticipated GDP growth of 4.5 per cent in 2010.

Shaikh Mohammed said: "We are lucky to be part of the 'rise of the East'. We hear a lot about the BRIC economies - the emerging markets of Brazil, Russia, India and China. I offer you as an alternative driver of future growth the CHIME economies - that's China, India and the Middle East.

"The six countries of the GCC together have a GDP as big as India's. As we grow bigger, we grow closer together.

"The fact that we are well established also means that we now have the widest range of funds in the Gulf - over 2,700. Of those, 137 are Bahrain domiciled and 59 are part of the growing market in Islamic finance. Moreover, in the Central Bank of Bahrain (CBB), we have the region's most respected regulator."

Shaikh Mohammed highlighted the CBB's authorisation of the formulation and marketing of the Hyperion Australian Equity Islamic Fund. He also reiterated that the Vision 2030 programme, led by the EDB, under the guidance of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, aims to improve the lives of all Bahraini citizens, diversify the economy further and to make the private sector the engine for future growth.

The Fund Forum Middle East which runs until tomorrow is being attended by prominent CEOs and key players in the fund industry.