m and a causeway linking Bahrain with eastern Saudi Arabia. The island state has become the international financial services capital of the Middle East. Most major Arab financial institutions have offices in Bahrain, as do many international banks, branches of foreign insurance companies and exempt companies trading offshore. The country is also an international and regional wholesale inter-bank money market centered on its offshore banking sector, which was first established in 1975 with assets equaling $70 million US dollars.Bahrain has a firm but flexible regulatory environment, directed by the Bahrain Monetary Agency. The Bahraini dinar is freely convertible and stable currency, firmly linked to the US dollar. Bahrain has also had mostly a consistent stock exchange in recent years. The gross volume of shares increased from 62 million in 1989 to nearly 400 million in 1993. Servicing the financial and business sectors is a digital telecommunication system as advanced as any in the world. Services include exclusive private channels, access to international databases and the Internet plus specially developed communication systems for bank treasury options.Recently there has been a major push to attract information technology companies. World class computer and software companies such as Silicon Graphics and Digital Equipment have chosen Bahrain as their regional base for sales and support operations. By attracting such businesses and investment to Bahrain, the government can point to ten purpose-built industrial areas accommodating over 500 different manufacturing and service companies. Bahrain is a key player in world financial and banking services. Its strategic location between east and west time zones and its advanced digital telecommunications systems enable it to communicate with all financial and business centers during the day. The country is an international and regional wholesale interbank money market centered on...
