The Bahrain Bourse, also called the Bahrain Stock Exchange (BSE), is the

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...

Bahrain Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and a ...

. As at 2017, 42 companies were listed on the exchange. The exchange operates from Sunday to Thursday. Three indices track the Bahrain Bourse (BHB): the Bahrain All Share Index, the Dow Jones Bahrain Index and the Estirad Index. The BSE was established in 1987 by Amiri decree Amiri decree No.(4) and officially commenced operations on 17 June 1989, with 29 listed companies. It operated as an autonomous institution supervised by an independent Board of Directors, chaired by the Governor of the

Central Bank of Bahrain The Central Bank of Bahrain (CBB) is the central bank of Bahrain. It is a public corporate entity established by the ''Central Bank of Bahrain and Financial Institutions Law 2006.'' It was created on 6 September 2006. ''Decree No. 64 of 2006 with ...

. Bahrain Bourse (BHB) was established as a shareholding company under Law No. 60 of 2010 that replaced the BSE. The Bahrain Bourse is a member of the

Federation of Euro-Asian Stock Exchanges The Federation of Euro-Asian Stock Exchanges (FEAS) is a non-profit international organization comprising the main stock exchanges in Eastern Europe, the Middle East, and Central Asia. The purpose of the Federation is to contribute to the cooperat ...

Foreign ownership of securities

foreigners can purchase, own or sell bonds, units of mutual funds, and warrants of domestic joint-stock companies. Foreigners who reside in Bahrain for one year or more can purchase, own, and/or trade up to 49% of a domestic joint-stock company's equities. However, an individual foreigner may not own more than 1% of a company's issued capital. There are ten companies that are completely open to foreign investors:

Arab Banking Corporation Arab Banking Corporation (also called Bank ABC) is an international bank with headquarters in the Diplomatic Area of Manama, in Bahrain. It was incorporated as a joint stock company in 1980 through a special decree by the Amir of Bahrain. It obtai ...

(ABC), Arab Insurance Group (ARIG),

Ahli United Bank Ahli United Bank ( ar, البنك الأهلي المتحد) is a regional bank based in Bahrain. Its head office is situated at Manama and is the largest bank in Bahrain. It is present in 8 countries in the Middle East and United Kingdom. Ahli Uni ...

(AUB),

Al Baraka Banking Group Al Baraka Group B.S.C. ("ABG" / the “Group”) is licensed as an Investment Business Firm – Category 1 (Islamic Principles) by the Central Bank of Bahrain and is listed on Bahrain Bourse. It is a leading international Islamic financial group ...

(BARKA), Bahrain Middle East Bank (BMB),

Ithmaar Bank Ithmaar Bank B.S.C. (closed) ("Ithmaar Bank") is a Bahrain-based Islamic retail bank that is licensed and regulated by the Central Bank of Bahrain and provides retail, commercial, treasury & financial institutions and other banking services. I ...

(ITHMR),

Investcorp Bank Investcorp is a global manager of alternative investment products, for private and institutional clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, ...

(INVCORP), Bahrain Shamil Bank (SHAMIL),

Al Salam Bank AL, Al, Ål or al may stand for: Arts and entertainment Fictional characters * Al (''Aladdin'') or Aladdin, the main character in Disney's ''Aladdin'' media * Al (''EastEnders''), a minor character in the British soap opera * Al (''Fullmetal ...

(SALAM), and TAIB Bank (TAIB). Foreign security holders are legally entitled to enjoy all the benefits of the ownership of securities of domestic joint-stock companies. They have voting rights on all matters submitted for approval, and receive dividends and other distributions tax free.

Taxation

There are no

capital gains Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period. An asset may include tangible property, a car, a business, or intangible property such as shares. ...

dividend tax A dividend tax is a tax imposed by a jurisdiction on dividends paid by a corporation to its shareholders (stockholders). The primary tax liability is that of the shareholder, though a tax obligation may also be imposed on the corporation in the ...

es in Bahrain on both foreigners and nationals.

Trading and settlement regulations

Securities listed on the BSE, with certain exceptions, must be traded on the floor through registered brokers, who are subject to standards and operate under terms, laws and by-laws of the BSE. Settlements and transfers of ownership of domestic joint stock securities are undertaken through the BSE. The sale and purchase of a security creates a binding contract on the part of the seller to deliver the security and on the part of the purchaser to make payment on the settlement date. The settlement period is two days after the trading date, (

T+2 T2, T-2, T2, T2 may refer to: Computing * Apple T2, a SoC from Apple for security and hardware management within Intel based Macs * Palm Tungsten T2, a Palm OS-based personal digital assistant * T2 or T-2, a 6.312 Mbit/s T-carrier in telecommuni ...

). The BSE management is continuously monitoring and reviewing the exchange's existing laws and procedures in an effort to further develop and enhance its contribution to the

economy of Bahrain The economy of Bahrain is heavily dependent upon oil and gas. The Bahraini Dinar is the second-highest-valued currency unit in the world. Since the late 20th century, Bahrain has heavily invested in the banking and tourism sectors. The country' ...

References

*Kingdom of Bahrain, Ministry of Labou
Unemployment Insurance System
Retrieved 6 November 2007.

External links

Official website
{{Authority control Financial services companies established in 1987 1987 establishments in Bahrain Financial services companies of Bahrain Stock exchanges in Bahrain Companies based in Manama

Foreign ownership of securities

Taxation

Trading and settlement regulations

See also

References

External links