Regulatory Environment

Regulatory Authority
The Bahrain Monetary Agency (BMA) is the single regulatory body responsible for the entire financial services sector in Bahrain, overseeing banks, insurance firms, and capital markets. With over 30 years of relevant regional experience, the BMA provides a sound and market-friendly regulatory environment for captive insurance companies that is based on international standards.

Direct, Reinsurance, Offshore, and Islamic Structures
Both direct and reinsurance captives can be established in Bahrain. Moreover, offshore insurers may also directly access regional insurance markets from Bahrain. Lastly, Islamic captive insurance structures are available in Bahrain.

Anti-Money Laundering
Bahrain's law, Decree 4 of 2001, prohibits money laundering or any assistance associated with money laundering. Any act associated with money laundering is punishable under the law. The BMA reinforced its commitment to combating money laundering by adopting the Bank of International Settlement anti-money laundering guidelines and the FATF 40 recommendations.

Exchange Controls
There are no exchange control restrictions in Bahrain on converting or transferring funds.


Operating and Tax Environment

Insurance Infrastructure
Bahrain hosts over 150 organizations within the insurance industry, including insurers, reinsurers, brokers, managers, actuaries, and adjusters. Moreover, Bahrain has a number of advanced support sectors, including banking, legal, accounting, and other professional services firms.

Labor Force
Bahrain has a strong, indigenous labor force, with over 6,000 professionals in the financial services sector and approximately 1,000 professionals specifically within the insurance sector. Bahrain has been recognized as an established regional financial and insurance center for decades.

Bahrain International Insurance Center (BIIC)
As a demonstration of its strong support for the insurance sector, Bahrain is developing the BIIC, an innovative, world-class facility specifically designed and built for the insurance industry. Companies from across the region are being invited to locate their operations in this specially tailored insurance center within the prestigious Bahrain Financial Harbour project along the Manama sea front.

Accessibility
Bahrain's world-class infrastructure, airport, seaport, roads, and central location within the region make it easily accessible from most major cities.

Telecommunications
Bahrain has some of the most advanced telecommunications infrastructure in the region. With the recent deregulation of its telecommunication sector, Bahrain will continue to provide high quality and cost-effective voice and data services to its financial services and insurance sectors.

Language
Both English and Arabic are commonly used in commercial and retail interactions.

Lifestyle
Bahrain is an attractive group of islands in the Arabian Gulf with a progressive and cosmopolitan lifestyle coupled with a strong cultural identity and family values.

Economic Agreements
Bahrain has entered into a number of economic agreements with other countries to promote and protect investments and eliminate double taxation.

Profit Repatriation
Bahrain has no restrictions on the repatriation or remittance of profits, capital, income, royalties, or dividends.

Interest Restrictions
Bahrain has no restrictions on interest paid to a non-resident parent in a tax treaty country.

Premium Taxes
No premium taxes are applicable on international insurance transacted from Bahrain.