Your Excellencies, Distinguished Guests, Programme Graduates, Ladies and Gentlemen: Good Evening.
I am delighted to be with you here today, at this third graduation ceremony of the BIBF/DePaul MBA programme. The DePaul MBA is a challenging course, and those of you have successfully graduated deserve to be richly congratulated for your hard work and commitment. Successfully completing this programme is an achievement to be proud of, and tonight's ceremony is a fitting tribute to your success.
I should also like to take this opportunity to thank the management team at the BIBF, for their efforts in ensuring that the Institute remains at the forefront of specialized training and professional development in the Gulf.
The BIBF's long-track record in developing credible training programmes of international standing has done much to help Bahrain's development.
Human resources are especially critical in the area of financial services. A recent survey of leading financial institutions, looking at the key competitive factors that help make a location attractive as a financial services centre, ranked the availability of skilled personnel as the most important.
Bahrain has one of the largest "home-grown" pools of financial sector professionals in the region, and this has been an important factor in Bahrain's development as a financial centre. The more such professionals we can grow, the more we create strength in depth.
The second most important factor noted in this survey was the regulatory environment, and this gives me an opportunity to say a few words about BMA's vision for Bahrain as a financial centre, and what we are doing to implement it.
Currently, financial services are the largest single contributor to GDP, accounting for around 25%. It is also a significant employer: some 7,000 are directly employed in financial services, excluding those working in related sectors.
In recent years, the share of financial services in the national economy has grown appreciably, and the future development of Bahrain's economy depends to a large measure on the continued success of Bahrain as a regional financial centre. The sector, in short, is of strategic importance.
The BMA has historically played a full part in supporting the sector's growth, and it will continue to do so going forward. Of course, Bahrain's success as a financial centre is also dependent on a variety of other factors, outside the BMA's own areas of responsibility: the legal framework, real estate, telecommunications and air transport links are also highly important, to give but a few examples. So the BMA doesn't stand alone - a coordinated effort is required across many different parts of government.
For its part, the BMA is continuing to build an effective yet market-friendly regulatory regime: strong, internationally compliant standards are essential to Bahrain's credibility and reputation, and in ensuring a stable and soundly based financial system.
In doing so, we work closely with the industry, to ensure that our regulations accommodate and support industry developments, such as the growth in Islamic banking. Thus, having put in place the first comprehensive regulatory regime for Islamic banks and (more recently) insurance firms, we are now in the process of developing a complete framework for investment business.
The BMA will also continue to encourage and support the training and development of local finance professionals, whether it be through our involvement in the BIBF, or in other initiatives such as the development of an Islamic finance research and training institute - which will be formally launched later this month.
And finally, the BMA is also active in helping spread awareness of Bahrain in key financial markets overseas, through targeted events aimed at finance professionals and specialist media, and through cooperation agreements with key markets.
Despite increasing global competition, I am quietly confident that Bahrain can continue to develop its position as a regional financial centre. But as the financial sector grows in size and complexity, the role of the regulator becomes more challenging.
The BMA is therefore also increasing its skilled resources, and broadening its recruitment base. Programmes such as these are essential in ensuring an adequate supply of trained professionals in the Bahrain market.
Let me close my remarks by wishing you, the graduates assembled here tonight, all the best in your various careers. The economic outlook is extremely positive, and you are well placed to contribute further to this growth. May your hopes and aspirations for the future be met.
Thank you for your attention.
© Press Release 2005
