Collective Investment Undertakings

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 Investments Schemes rules were issued by the CBB in 1992 and were subsequently revamped in June 2007, when the CIU Module within CBB Rulebook Volume 6 was issued. The rules were further revamped and issued in a separate Volume of CBB Rulebook (Volume 7). The new Volume provides comprehensive rules and regulations pertaining to the authorization/registration and supervision of mutual funds domiciled and/or offered for marketing in Bahrain.

As at the end of August 2020, the number of mutual funds stood at 1980 funds, of which 76 funds were Bahrain domiciled, compared to 2143 funds as of August 2019. The number of Sharia compliant funds stood at 75 as of August 2020.

The net asset value (NAV) of those funds totaled US$ 6.761 billion as of the end of June 2020, reflecting a 12.92% decrease compared to US$ 7.764 billion the previous year. Of the total NAV, US$ 2.803 billion is invested in locally incorporated funds, and US$ 1.822 billion in Sharia compliant funds.

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