MANAMA: Bahrain Bourse has obtained the approval of the Central Bank of Bahrain on the Bahrain Investment Market Rules (BIM Rules), one of the initiatives launched by the Bourse to meet the financing requirements of the companies.
Shaikh Khalifa Bin Ebrahim Al Khalifa, CEO of Bahrain Bourse expressed his gratitude and appreciation to the CBB’s Governor His Excellency Mr. Rasheed Mohammed Al Maraj for the support and assistance provided by the CBB through the process of preparation and approval of these rules.
Shaikh Khalifa said that this initiative comes in line with the role played by Bahrain Bourse to enhance the Kingdom of Bahrain’s efforts in supporting the SMEs sector in a way that contributes to the economy growth of Bahrain, creates more job opportunities for the citizens, creates wealth and increases productivity.
“We, at the Bourse, are keen about making Bahrain Investment Market a vehicle for companies seeking to increase their capital by benefiting from the opportunities offered by this market, especially in light of the cooperation and coordination between the Bourse and a number of institutions such as Tamkeen and the Bahrain Development Bank, in order to make this initiative a success. This will contribute in diversifying the sources of finance for the companies listed in this market in a relatively low cost compared to the cost of IPO, or in comparison to relying solely on loans provided by banks in financing the expansion projects in these companies,” Shaikh Khalifa, said.
CEO of Bahrain Bourse confirmed that in order to foster the process of listings on the BIM market, the Bourse has eased the requirements of listing in terms of the paid-up capital which should not be less than BD250,000, as well as profitability term which is no longer required from the companies when applying for listing on the BIM. Shaikh Khalifa added that the Bourse will finalize the listing application in this market within 30 days only, so the companies can immediately agree with the Bourse on the listing date.
Shaikh Khalifa revealed that once the BIM is launched, the Bourse will accordingly conduct promotional and awareness campaigns that aim to clarify the benefits of this promising market to both the business owners and investors.
The CEO of Bahrain Bourse indicated that according to the issued rules, the Bourse may impose requirements or make any admission to special conditions to some companies as it deems appropriate.
Shaikh Khalifa added that Bahrain Investment Market will contribute in providing additional financing alternatives for SMEs with a reasonable financing cost, as well as providing more investment alternatives for the investors by contributing and participating in the growth of these companies, which guarantees reasonable returns on their investments.
In spite of all of the facilities provided to the companies seeking to be listed on this market, the Bourse has adopted a number of procedures and mechanisms to ensure that the companies applying for listing have clear plans for growth and risk management and are not shell companies.
Bahrain Investment market is designed for companies seeking growth in their capital including SME’s and family-owned businesses. Bahrain Investment Market also provides an array of benefits to the companies including reduced capital and suitable exit options, which enhance these companies’ financial status, brand recognition and contributes in increasing their competitiveness locally and internationally.
