|Location||Bahrain Financial Harbour, Manama, Bahrain|
|Key people||Yusuf Abdulla Humood (Chairman)|
The Bahrain Stock Exchange (BSE) was established in 1987 by Amiri Decree No.(4) and officially commenced operations on June 17, 1989, with 29 listed companies. Currently, there are 50 companies listed on the exchange. The BSE operates as an autonomous institution supervised by an independent Board of Directors, chaired by the Governor of the Central Bank of Bahrain.
The BSE has pre-market sessions from 9:15am to 9:30am and normal trading sessions from 9:30am to 12:30pm, from Sunday to Thursday, except for holidays declared by the Exchange in advance.
There are three indices that track the BSE: the Bahrain All Share Index, the Dow Jones Bahrain Index and the Estirad Index.
- 1 Foreign ownership of securities
- 2 Taxation
- 3 Practice governing trading and settlement of securities
- 4 Settlement of sales and purchases of securities
- 5 Companies traded on the BSE
- 6 See also
- 7 References
- 8 External links
Foreign ownership of securities
Currently, 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 are entitled to 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 (ABC), Arab Insurance Group (ARIG), Ahli United Bank (AUB), Al Baraka Banking Group (BARKA), Bahrain Middle East Bank (BMB), Ithmaar Bank (ITHMR), Investcorp Bank (INVCORP), Bahrain Shamil Bank (SHAMIL), Al Salam Bank (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 without being subject to taxation .
Bahrain has no capital gains or dividend taxes on both foreigners and nationals.
Practice governing trading and settlement of securities
Securities listed on the Exchange, with certain exceptions, must be traded on the floor through registered brokers. The specific standards of due care and diligence, which are needed in the execution of transactions and in the safeguarding of customers' funds and securities, are imposed under the terms of the BSE's laws and by-laws which are adhered to by the brokers and dealers.
Settlement of sales and purchases of securities
Settlement and transfer of ownership of domestic joint stock securities is undertaken through the Exchange in accordance with simple and straightforward procedures. 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, i.e. within two days after the trading date, (T + 2). 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.
Companies traded on the BSE
Commercial banks sector
|AUB||Al-Ahli United Bank|
|AUB.PREF.A||AUB Class A Preference Share|
|SALAM||Al Salam Bank|
|BISB||Bahrain Islamic Bank|
|BBK||Bank of Bahrain and Kuwait|
|NBB||National Bank of Bahrain|
|BSB||The Bahraini Saudi Bank|
|BARKA||Al Baraka Banking Group|
|ABC||Arab Banking Corporation|
|BCFC||Bahrain Commercial Facilities|
|BMB||Bahrain Middle East Bank|
|ESTERAD||Esterad Investment Company|
|GFH||Gulf Finance House|
|GMG||Gulf Monetary Group|
|UGB||United Gulf Bank|
|UGIC||United Gulf Industries Corporation|
|SICO-C||Securities and Investment Company|
|BKIC||Bahrain & Kuwait Insurance Company|
|AHLIA||Al-Ahlia Insurance Company|
|AIIC||Arab International Insurance Company|
|TAKAFUL||Takaful International Company|
|ARIG||Arab Insurance Group|
|BNH||Bahrain National Holding Company|
|BASREC||Bahrain Ship Repairing & Engineering Company|
|CPARK||Bahrain Car Park Company|
|CINEMA||Bahrain Cinema Company|
|DUTYF||Bahrain Duty Free Shop Complex|
|BMMI||Bahrain Maritime & Mercantile International|
|TRAFCO||General Trading & Food Processing Company|
|BFM||Bahrain Flour Mills Company|
|POLTRY||Delmon Poultry Company|
Hotels & tourism sector
|FAMILY||Bahrain Family Leisure Company|
|BHOTEL||Bahrain Hotels Company|
|BTC||Bahrain Tourism Company|
|SEEF||Seef Properties B.S.C.|
|BANADER||Banader Hotels Company|
|NHOTEL||National Hotels Company|
|GLOBAL||Global Investment House|
|IIG||International Investment Group|
|SDTL||Sudan Telecommunications Company|
|UFC||United Finance Company|
- Kingdom of Bahrain, Ministry of Labour Unemployment Insurance System. Accessed November 6, 2007.