BizBahrain Magazine Nov-Dec 2017

Interview | Bahrain Bourse
Since taking on her current role in
January 2016, Narjes has successfully
spearheaded the creation and
development of numerous projects for
Bahrain Bourse with a results-oriented
philosophy that leverages strategic
thinking, international best practices,
and a strong execution discipline.
Among her most notable projects
is the Bahrain Investment Market,
a unique equity market that targets
companies in the growth and developed
stages initiating Bahrain Trade, an
online trading solution, and spin off of
Bahrain Bourse’s Central Depository
and Settlement (CDS) into a separate
legal entity ‘Bahrain Clear”. She talks
to bizbahrain Group Editor Reena
Abraham about the journey.
Can you tell us a little about the history
of Bahrain Bourse and your vision for it?
With roots stemming back to
AlJowhara Market in the early 1980s,
Bahrain Bourse (‘BHB’) has been built
on a long history of integrity, innovation
and market expertise. Bahrain
Bourse is a self-regulated multi-asset
marketplace. Bahrain Bourse aspires
to provide to its investors, issuers, and
intermediaries a widespread suite of
exchange-related services including
offering listing, trading, settlement,
and depositary services for various
financial instruments. The long-term
vision aims to position Bahrain Bourse
as a ‘Regional Multi-Asset Class
Marketplace Leader’. Today we have
more than 100 investor nationalities
trading in 33 billion listed shares.
Bahrain Bourse is the region’s most
open capital market.
“The long-term vision
aims to position Bahrain
Bourse as a ‘Regional
Multi-Asset Class
Marketplace Leader’.
How does the Bahrain Bourse promote
economic diversification?
Bahrain Bourse offers a diversified
spectrum of financial instruments
available for trading, which are
available to both local and international
investors which includes a wide range
of asset classes.
What products and reforms would help to
increase the liquidity and sophistication of
the BHB?
As part of the Bahrain Bourse’s
mission to create a comprehensive capital
market eco-system, and increasing the
pool of securities and associated financial
products, it offers a wide range of asset
classes including equities, bonds & sukuk,
treasury bills, mutual funds, Real Estate
Investment Trusts (REITs), and the most
recently launched Bahrain Investment
Market (‘BIM’)
Other initiatives recently
launched include promoting the
development of a diverse investor
base, and enhancement of services
such as Bahrain Trade which enables
individuals holding retail accounts with
select financial institutions to trade
directly on Bahrain Bourse through an
online licensed broker platform, hence
offering simplified market access.
We have also recently launched
Bahrain Clear, a subsidiary of Bahrain
Bourse with an authorized capital of
BD 5 million and paid-up capital of BD1
million. Bahrain Clear is a fully-fledged
clearing house for the region, offering
comprehensive management, operation,
and consultancy, and custodian and
technical services of platforms relating
to depository, clearing and settlement
in a range of asset classes.
How can small and medium-sized
enterprises (SMEs) be further enticed to
list on the BHB?
The BIM concept was developed
by adapting global practices to suit
local requirements. The concept also
incorporated findings from extensive
research and consultations, including
a Consultation Paper issued in
January 2015 by Bahrain Bourse to
solicit key stakeholders’ views and
recommendations.
The result was a platform which
connects owners of growing businesses
and established family businesses
which are ready to take the next step
in their development with regional
and global investors who are seeking
investment opportunities in the region,
with a solid regulatory and financial
framework that protects the rights of
both the companies and investors and
ensures their needs are met efficiently.
In focusing on these two segments,
the BIM has an imperative role to fill
an important gap and complements
the existing financing ecosystem, a
prerequisite for private sector growth.
While risk-averse traditional banks
focus on large companies, the BIM
opens the door for mid and small-cap
companies on the rise to find investors
who believe in their long-term success.
How do you assess the BHB’s
position in terms of globalisation and
interconnectivity?
Bahrain Bourse is a member of
the most prominent standard-setting
international organizations in the
field of capital markets and central
November-December 2017
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