MANAMA: The Kingdom of Bahrain should position itself as a regional and international hub for the Special Purpose Vehicles (SPV) business in light of the economic benefits and the spillover effects of SPV related activities on the local economy.
This was the crux of the Bahrain Asset Managers Association (BAMA) roundtable on the Special Purpose Vehicles (SPV) wherein panelists deliberated on the significance of promoting and positioning Bahrain as a hub of such business.
The panel discussion titled “Special Purpose Vehicles (SPV) and Corporate Entities Component in Investment Banking and Asset Management was held in cooperation with the Central Bank of Bahrain (CBB) and the Bahrain Economic Development Board (EDB), aimed to examine the opportunity and significance of promoting and positioning Bahrain as a regional and international hub for SPVs.
Mr. Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB), Mr. Abdulrahman Al Baker, Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain and Dr. Ahmed Al Jawhary, Chairman of BAMA and CEO of J Equity Partners were among the key panelists during the discussion.
The discussion also focused on how to spearhead the introduction of the SPV business in the Kingdom of Bahrain, the regulatory framework for SPVs, secrecy and privacy laws, regional competition and the prerequisites for making Bahrain an attractive SPV hub.
The roundtable is the first of a series of events to be hosted by BAMA in support of further growth and innovation of Bahrain’s asset management industry. BAMA aims to foster engagement and co-operation between its members and regulators, decision-makers and legislators that shape and provide oversight of the industry and the promotion of key sectors of the economy.
“Bahrain is a leading asset management centre in the region, with four decades of experience, and asset managers now distribute more funds from our shores than from anywhere else in the Middle East. The sector benefits from our core strengths, including the diverse pool of quality talent, our strong regional connectivity and the cost-competitive environment. The Central Bank of Bahrain and the Kingdom’s government are also progressing a number of important regulatory initiatives that will further strengthen our offering. We look forward to working with BAMA to develop and expand the asset management sector, positioning Bahrain as a leading regional and global hub for the industry,” said, Mr. Khalid Al Rumaihi, Chief Executive of the EDB.
“We expect the asset management sector to continue its growth in the coming years, mainly due to the surge in the economic growth of the Kingdom and the region, as well as the soundness of the regulatory and supervisory framework of the asset management sector in Bahrain,” said, Mr. Abdulrahman Al Baker, Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain.
“The roundtable session is in line with BAMA’s efforts to promote the Kingdom of Bahrain as a regional and international hub for this specialized element of investment banking and asset management. The session was an important first step in addressing the opportunity for the SPV business in Bahrain and emphasized the significance of dialogue between all stakeholders in the financial sector. Professional and interactive channels of communication and introduction of a think tank element comprising practitioners, investment firms and asset managers licensed under the CBB from one side and the regulator, law and decision makers from another side are critical in perfecting the legislative and technical framework for such a critical industry,” said, Dr. Ahmed Al Jawhary, CEO of J Equity Partners and Chairman of BAMA.
“BAMA succeeded through its debut event to illustrate how ideas, insights and feedback from all concerned parties involved in Bahrain’s asset management industry can be crystallized to form executable recommendations that can be implemented through official platforms and formal channels. Following this important session on SPVs a White Paper will be developed and submitted to the concerned authorities in the Kingdom for their consideration and perusal. In this manner, to objective of integrating the professional opinions and feedback gathered from these sessions into the decision making process will be swiftly fulfilled,” added, Dr. Al Jawhary.
The Bahrain Asset Managers Association is a professional body established to represent and promote the interests of Bahrain’s asset management industry – including both Islamic and conventional financial institutions specialized in asset management. It was officially established in May 2014 under the patronage of the Central Bank of Bahrain, and with support from key elements of the local financial community in the Kingdom.
