Financial Services

Islamic Finance, Takaful & Re-Takaful

Bahrain is widely recognised as the global leader in Islamic finance. We have pioneered many of the financing instruments that have become popular in recent years, and host the largest concentration of Islamic financial institutions in the world. Bahrain also had one of the most developed Islamic finance knowledge landscapes and performed well in terms of governance, with a comprehensive regulatory framework covering all aspects of Islamic finance. Bahrain has been named the GCC’s leading Islamic finance market and 2nd out of 92 countries worldwide, according to the ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI)1.
 
Assets in Bahrain’s Islamic banking sector have risen from $1.9 billion in 2000 to $24.8 billion in October 20132. Bahrain has 24 Islamic banks, whose assets account for around 14% of the Kingdom’s total banking assets. These institutions cover almost every aspect of Islamic banking, including asset management, bond issuance and insurance. With the CBB taking a leading role, we have been at the forefront of developing Islamic products.
 
​Islamic Finance Organisations in Bahrain include:
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
​General Council for Islamic Banks and Financial Institutions (CIBAFI)
​International Islamic Financial Market (IIFM)
Islamic International Rating Agency (IIRA)
Deloitte’s Islamic Finance Knowledge Centre
Ernst & Young’s Islamic Banking Centre
​Al Baraka Banking Group
​Kuwait Finance House
​Citi Islamic Investment Bank
​ABC Islamic Bank
​The Islamic Bank of Asia
We are regarded as setting the benchmark for Islamic banking regulation and are leading the industry with our regulatory framework specific to Takaful and Retakaful companies.
 
Middle Eastern demand for Shari’a compliant insurance products is expected to increase enormously. The popularity of Takaful (Islamic insurance) is rising rapidly in the region and many conventional insurance companies have added Takaful arms. Being an Islamic finance’s leading global centre, Bahrain have fostered the industry’s expansion, introducing market-leading regulations, while sponsoring dedicated professional bodies and associations. Along with our wealth of human talent, Bahrain became the location of choice for Islamic insurers and reinsurers.
 
Gross contributions of Takaful firms increased by around 7% to BD 57.22 million in 2013 compared to BD 53.67 million in 2012. These contributions represented around 22% of Bahrain’s total gross premiums and contributions in 2013.
 
Bahrain is fast establishing itself as the leader in the field. It was first to introduce regulations for Takaful companies that met the requirements of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
 
For the third year in a row, the Central Bank of Bahrain was awarded ‘Best financial centre’ at the 2010 International Takaful Summit in London, recognising its position as the leading location for the Takaful industry.
 
​Takaful and Re-Takaful Companies in Bahrain include:
Hannover Retakaful
Legal & General Gulf Takaful
Medgulf Takaful
ACR Retakaful
Chartis Takaful ENAYA
Takaful International
T'azur
Solidarity
1ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI) https://www.zawya.com/islamic-finance-development-indicator/

2Central Bank of Bahrain, Financial Sector Fact Sheet April 2014