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 2021, the number of mutual funds stood at 1683 funds, of which 74 funds were Bahrain domiciled, compared to 1980 funds as of August 2020. The number of Sharia compliant funds stood at 91 as of August 2021.
The net asset value (NAV) of those funds totaled US$ 10.122 billion as of the end of June 2021, reflecting a 49.71% increase compared to US$ 6.761 billion the previous year. Of the total NAV, US$ 5.786 billion is invested in locally incorporated funds, and US$ 1.100 billion in Sharia compliant funds.