CBB Governor: Bahrain’s capital market development is a key driver of economic growth

Manama, Nov. 21 (BNA): Khalid Humaidan, Governor of the Central Bank of Bahrain (CBB), highlighted the substantial growth opportunity within Bahrain’s capital markets, noting that the Kingdom’s market capitalisation signals strong potential compared to regional and international benchmarks.

These remarks were mentioned during the Governor’s participation in a fireside chat titled “From Vision to Reality: Reshaping the Future of Bahrain’s Capital Markets” at The Market 2.0 conference, hosted by Bahrain Bourse and in cooperation with the Arab Federation of Capital Markets (AFCM), under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister.

During the session, underscored that increasing listings, improving liquidity, and deepening investor participation remain as one of CBB’s key priorities and that national stakeholders at all levels are involved in the progress of an ongoing development plan for public equity markets.

Humaidan emphasised the wider economic impact of developing Bahrain’s capital markets, noting that stronger markets enhance company valuations, attract foreign capital, and allow banks to provide greater financing with ease to SMEs.

The Governor reiterated that CBB prioritises digital transformation, talent development, and ongoing regulatory refinement to ensure an adaptive and globally aligned ecosystem, assuring that Bahrain’s strong digital infrastructure and skilled talent base can support in positioning the Kingdom not only for domestic market needs but for broader regional financial sector demand.

Finally, Humaidan further highlighted CBB’s focus on advancing payment infrastructure and accelerating the adoption of Supervisory Technology (SupTech) to enhance real-time oversight and reduce systemic risk. He affirmed that all new activities are assessed in adherence to core principles of systemic risk management, compliance, consumer protection, and governance, enabling the CBB to support innovation while safeguarding the financial system’s integrity.