Bahrain Stock Exchange
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In the year 1987 the Bahrain Stock Exchange was founded by Amiri Decree and the Bahrain Stock Exchange officially started its operations on 17th June 1989. At the start of the Bahrain Stock Exchange there were 29 listed companies and now there are nearly 50 companies listed in it. The Bahrain Stock Exchange is monitored by an independent board of directors governed by The Central Bank of Bahrain Governor. The Bahrain Stock Exchange is an autonomous body in itself.
The Bahrain Stock Exchange has three indexes. They are:
- The Bahrain All Share Index
- The Dow Jones Bahrain Index
- The Estirad Index
The foreign investors can also buy sale and own properties and bonds,units of mutual fund and warrant of domestic joint stock companies in the Bahrain Stock Exchange . Foreigners who have lived in Bahrain for more than a year get the permission to buy sale and trade nearly up to 49% of the equities of any domestic joint stock company although only one percent of the company’s total capital can be owned by a foreigner. The foreign investors are given all the facilities that a domestic investor enjoys in the Bahrain Stock Exchange . They even have rights to vote while taking an important decision for the company. They are also entitled for dividends without being taxed .
There are nearly ten companies which accept foreign investment openly. Some of the major companies are:
- Al Salam Bank
- Bahrain Shamil Bank
- Investcorp Bank
- Ithmaar Bank
- Bahrain Middle East Bank
- Arab Banking Corporation
- Arab Insurance Group
The ownership settlement and transfer of joint stock securities is done by the Bahrain Stock Exchange through plain and simple methods. The buying and selling of a security produces a kind of attaching agreement on the seller’s part. And for the buyer the rule forces him to pay the money on the day settled earlier(T+2). It is the duty of the Bahrain Stock Exchange management to continuously look into the market and its laws. It also decides upon the existing laws and ways of transactions, and changes them in need and looks to enhance the economy of Bahrain.
