The Bahrain Monetary Agency and Bahrain Stock Exchange commissioned the World Bank to conduct a comprehensive study of the Kingdom’s Capital Market. The study will evaluate the current situation of BSE and steps required to enhance BSE’s role in the economic development process of the Kingdom of Bahrain, in order to formulate a strategy aiming at developing BSE.
Mr. Rashid Al Maraj the Governor of BMA Chairman of BSE said that this study is a part of the strategic plan that the BMA has formulated in 2003 for the development of the financial sector in the Kingdom and to enhance its competitiveness in line with the kingdoms enhancements of its role as a leading financial center. He also said that a steering committee including BMA, BSE and representatives from the private sector was formed to follow up the progress of BSE’s study. Al Maraj added that BMA is committed to take all necessary steps that ensure the continuity of developing the legal infrastructure and prepare a conducive environment for attracting more investments and providing opportunities that would increase the contribution of the Financial & Banking Sector to the Kingdom’s GDP.
The Director of Bahrain Stock Exchange Mr. Fouad Rashid said that the World Bank’s study will specifically assess the role of BSE, through identifying the kingdom’s strategic resources, and more specifically the Kingdoms capital market in order to identify BSE’s current and future strategy. He also revealed that the study would provide improved alternative strategies that will assist BSE achieve the study’s objectives.
Mr. Fouad said that the World Bank’s team will work in cooperation with the concerned parties in the BMA and BSE on the preparation and implementation of strategies that will determine the major areas and services that the Kingdom in general and BSE in particular can capitalize on to develop the stock exchange and enhance its role in the kingdom’s economic development process.
“The World Bank’s team task includes a program of visits and meetings with concerned parties and officials from both government and private sector to explore their views and opinions in relevance to the study.” He added. It is expected that the World Bank will submit the final draft of the study in six months.