New Investment Law to Support Bahrain Financial Sector

Bahrain has become the first country in the GCC region to introduce an Investment Limited Partnership Law and integrate it in the country’s legal system. The new move allows investors to establish limited partnerships nationwide, as oppose to only in identified free zones.

Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB) said: “We see great potential in the GCC for investors looking for strong returns – and the development of the local funds industry can play an important role in facilitating that investment.

Activities within the newly introduced law include collective investment undertakings, private investment undertakings, securitization and insurance captives. The flexibility to develop tailored investment terms is expected to be welcomed by investors as a more cost effective option than in other GCC economies, which currently only offer it through ‘free zones.’