Bahrain: CBB issues first Investment Business Category 4 licence to BAGS

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Bahrain - The Central Bank of Bahrain (CBB) has issued the first Investment Business Category 4 (Collective Investment Undertaking Operator) licence to BAGS Capital.

This new licence category applies for the business models of specialist fund managers who operate, manage, and market Collective Investment Undertakings (CIUs) exclusively for accredited investors.

Abeer Al Saad, Executive Director of Financial Institutions Supervision at CBB, commented: "The issuance of Bahrain's first Investment Business Category 4 (CIU Operator) licence to BAGS Capital, is in pursuance of the recent amendments made to the licensing requirements in relation to the investment firms’ activities and the newly introduced licence categories. This new licence category exemplifies our unwavering commitment to nurturing specialised fund managers and fostering an environment conducive to their growth.”

New opportunities

Ebtisam Al Arrayed, Director of Financial Institution Supervision at the CBB, added: "We believe that this new licence category will contribute to introducing new types of investment business firms and will provide new opportunities to experienced investment bankers to establish their own asset management boutique in Bahrain.”

Abdulla Haji, Director of Licensing at the CBB, said: "This licence highlights our commitment to fostering innovation and providing a conducive regulatory environment for specialised fund managers. The introduction of this new licence category opens doors for a broader range of investment management applicants and reinforces Bahrain’s standing as a preferred destination for investment activities."

Nasir Obeid, the COO and founding member of BAGS Capital, commented: “Following the successful receipt of the licence from CBB, our shareholders are proud to establish the first Investment business firm, Category 4 licence specialising in managing and operating investment funds, with initial focus on the grain supply sector in addition to other sectors, leveraging on our global grain supply expertise. Bahrain has established a well-renowned and transparent regulatory framework for the financial sector with a supportive ecosystem that nurtures the growth of financial institutions.”