its offshore banking sector. The offshore financial sector today has assets of some US $70 billion and the daily foreign exchange turnover of all Bahrains financial institutions totals some US $4 billion.International law firms, insurance companies, certified public accountants, management and public relations consultants, financial analysts, and advisers are all represented in the well-integrated services sector. This has of course stimulated the evolution of other related financial establishments including the Bahrain Stock Market, the money exchange sector, the real estate and construction business, and other commercial enterprises. Bahrain is home to some 90 commercial banks, investment houses and offshore banking units (OBUs). There are also over 50 representative offices, money and foreign exchange brokers, and about 60 local, foreign, and exempt insurance companies. Bahrains economy is estimated to be growing at a rate close to 5% with financial services now accounting for some 18 % of all economic activity. Banks are investing in major projects and lending at an ever-increasing pace to investors. The Bahrain Monetary Agency (BMA) is the force behind the moves to improve the already high reputation of Bahrain in banking circles. The BMA maintains sound reporting and accounting arrangements, which strictly adhere to the best international practice. It conforms to international standards in the area of supervision and focuses increasingly on the quality rather than the quantity of bank assets. Bahrain has never had to revoke a banking license and has avoided the severe losses, which have occurred in some other financial centers. Because no financial sector can ever be immune to external happenings, the BMA announced a Deposit Protection Scheme. Under this scheme, the commercial bank deposits of both residents and non-residents, in local or foreign currency, will be protected up to a prescribed level in the event of the...
