White paper with recommendations on benefits of the SPV business for Bahrain to be circulated to industry and authorities

Manama - March 30, 2016

The Bahrain Asset Managers Association (BAMA) hosted a high level panel discussion on 29 March 2016 on "Special Purpose Vehicles (SPV) and Corporate Entities Component in Investment Banking & Asset Management." The event, 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.

Key panelists at the discussion were 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.

Together, panelists deliberated the significance of promoting and positioning Bahrain as a regional and international hub for the SPV business and the economic benefits and the spill over effects of SPV related activities on the local economy. The discussion also addressed who should 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.

Mr. Khalid Al Rumaihi, Chief Executive of the EDB, said: "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."

Also commenting, Mr. Abdulrahman Al Baker, Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain said "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".

Dr. Ahmed Al Jawhary, CEO of J Equity Partners and Chairman of BAMA, added, "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."

Dr. Al Jawhary, concluded, "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."   

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. 

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About the Bahrain Asset Managers Association
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.

The Association was established in May 2014 with the approval and support of the Central Bank of Bahrain.

The Association's mission is to support the development of the asset management industry in Bahrain and the region and contribute to its elevation on a global level. Its main objectives are to:

o   Work with regulators and legislators to positively influence and shape regulations governing the sector;

o   Promote the sector by establishing solid linkages with relevant think tanks, research centers, sister associations and professional bodies from around the world;

o   Form and represent the sector's views in relevant forums and with decision makers;

o   Act as a forum for debate and research;

o   Encourage professionalism, integrity, ethical practices and quality;

o   Support the sharing of information and training in order to enhance the talent pool and human capital within the sector;

o   Represent and advocate on behalf of members.

The Association is governed by a five-member Board currently comprised of its Chairman - Dr. Ahmed Al Jawhary, CEO at J Equity Partners, Vice Chairman - Mr. Munther Al Kooheji, Managing Partner, Alpine Wealth Management and Board Members Mr. Talal Al Zain, Independent Member, Mr. Ahmed Sultan, CEO, Tadhamon Capital and Mr. Adel Al Mangrou, Deputy CEO, The Family Office Company.

It operates under the supervision of the Central Bank of Bahrain and its membership is open to all investment firms and other financial institutions licensed by the Central Bank of Bahrain.

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© Press Release 2016