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 April 2019, the number of mutual funds stood at 2137 funds, of which 74 funds were Bahrain domiciled, compared to 2325 funds as of April 2018. The number of Sharia compliant funds stood at 83 as of April 2019.
The net asset value (NAV) of those funds totaled US$ 7.427 billion as of the end of December 2018, reflecting a 0.1% decrease compared to US$ 7.433 billion the previous year. Of the total NAV, US$ 3.188 billion is invested in locally incorporated funds, and US$ 1.271 billion in Sharia compliant funds.