Bahrain - Banking Systems Bahrain - Banking Systems
The banking sector in Bahrain includes both conventional and Islamic lenders and there is some crossover between the two as reflected by recent mergers and equity purchases.
Bahrain is one of the primary financial hubs in the Middle East, though it faces steep competition from the United Arab Emirates (mainly Dubai). International financial institutions operate in Bahrain without impediments. The Central Bank of Bahrain regulates the banking and insurance sectors. Legal, regulatory, and accounting systems in the financial sector (onshore and offshore) are transparent and consistent with international norms.
Major U.S. banks and financial services firms in Bahrain include Citibank, J.P. Morgan, and American Express. The Bahraini Government announced it hoped to attract more investment funds and “special purpose companies” to Bahrain by offering tax incentives and minimizing capital controls. The Bahraini Government, through its Economic Development Board, is investing heavily in the financial technology sector. In 2017, it launched “Bahrain FinTech Bay,” the largest FinTech hub in the Middle East and Africa, to help solidify its position as a financial hub in the region.
As per Bahrain’s Economic Board, the main financial services providers in Bahrain are:
Benefit: Operates Bahrain’s national electronic network for financial transactions. Established in 1997 by 17 commercial banks. Benefit’s latest initiatives include a secure, efficient electronic funds transfer system (EFTS) and electronic bill payment presentment (EBPP).
Arab Financial Services (AFS): AFS offers Payment Card Industry compliant card payments and outsourced consumer finance.
NEC Payments: Offers digital banking and payments.
Health 360: Established in 2013 as a joint venture between Takaful International Company and Paramount Healthcare Management Pvt Ltd.
Payment International Enterprise (PIE): Provides pre-paid, mobile and payment solutions with an emphasis on assisting customers without bank accounts.
PayTabs: Offers e-commerce, online payment processing, invoice and fraud prevention for businesses.
SADAD: Originating in Saudi Arabia, SADAD provides a single payment solution for individuals, banks, businesses and government
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