Bahrain is host to a thriving mutual funds industry. The first overseas mutual funds started being marketed in Bahrain during the 1980s, and the first Bahrain domiciled scheme was launched in 1984.
The first Collective Investment Undertaking (“CIU”) rules were issued by the CBB in 1992, which were revamped in June 2007, by the launch of the CIU Module as part of Volume 6 of the CBB Rulebook. The CIU rules were further revamped and issued in April 2012, under a separate Volume of CBB Rulebook (Volume 7). In March 2022, the CBB has relaunched the CIU rules under the completely novated “Module CIU”. The Module CIU provides rules and regulations pertaining to the authorization/notification processes, as well as the supervision regime of locally domiciled and overseas domiciled CIUs in Bahrain.
As at the end of December 2024, the number of mutual funds stood at 1741 funds, of which 61 funds were Bahrain domiciled, compared to 1663 funds as of December 2023. The number of Sharia compliant funds stood at 152 as of December 2024.
The net asset value (NAV) of those funds totaled US$ 11.232 billion as of the end of September 2024, reflecting a 3.34% rise compared to US$ 10.869 billion the previous year. Of the total NAV, US$ 4.349 billion is invested in locally incorporated funds, and US$ 1.904 billion in Sharia compliant funds.