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Country story

Bahrain

Bahrain is a long-established regional financial centre in which the central bank maintains separate rulebook volumes for conventional and Islamic banks.

Islamic banks operate under a dedicated supervisory volume alongside conventional institutions, making regulatory differentiation unusually visible.

Islamic banking assets87.73B2024
Manufacturing value addedNot availableNo verified observation
Median largest disclosed shareholding26.08 % of disclosed equity2024 · median across 3 qualifying banks
How Islamic finance is organised

Islamic banks operate under a dedicated supervisory volume alongside conventional institutions, making regulatory differentiation unusually visible.

Why this case matters

The case helps separate a mature Islamic institutional infrastructure from the wider question of where bank financing is allocated.

Central tension

Formal specialisation and governance depth coexist with a banking system embedded in regional wholesale finance.

What cannot be inferred

Country aggregates cannot show the purpose of every financing claim or the influence of an individual shareholder.

Descriptive comparison

Gross capital formation

Latest available year: 2024.

13.5220.3527.1834.0140.8419992006201220182025YearGross capital formation (% of GDP)
Bahrain
View chart data
Bahrain Gross capital formation trajectory in original units. Values for Year and Gross capital formation (% of GDP) by series.
SeriesYearGross capital formation (% of GDP)Source note
Bahrain · 20002,00016.93Authorised country-level annual series
Bahrain · 20012,00115.76Authorised country-level annual series
Bahrain · 20022,00223.85Authorised country-level annual series
Bahrain · 20032,00324.25Authorised country-level annual series
Bahrain · 20042,00421.1Authorised country-level annual series
Bahrain · 20052,00527.26Authorised country-level annual series
Bahrain · 20062,00631Authorised country-level annual series
Bahrain · 20072,00735.41Authorised country-level annual series
Bahrain · 20082,00835.69Authorised country-level annual series
Bahrain · 20092,00926.67Authorised country-level annual series
Bahrain · 20102,01030.26Authorised country-level annual series
Bahrain · 20112,01125.35Authorised country-level annual series
Bahrain · 20122,01230.88Authorised country-level annual series
Bahrain · 20132,01328.75Authorised country-level annual series
Bahrain · 20142,01429.76Authorised country-level annual series
Bahrain · 20152,01529.38Authorised country-level annual series
Bahrain · 20162,01633.01Authorised country-level annual series
Bahrain · 20172,01736.47Authorised country-level annual series
Bahrain · 20182,01838.15Authorised country-level annual series
Bahrain · 20192,01935.62Authorised country-level annual series
Bahrain · 20202,02037.29Authorised country-level annual series
Bahrain · 20212,02128.09Authorised country-level annual series
Bahrain · 20222,02224.59Authorised country-level annual series
Bahrain · 20232,02329.17Authorised country-level annual series
Bahrain · 20242,02428.44Authorised country-level annual series

What this visual showsA verified country trajectory in the measure’s stated unit.

What it does not establishA causal effect of Islamic finance on the observed outcome.

Descriptive comparison

Financing directed towards FIRE-related activities

Country-year medians by bank type. Each point reports its covered-bank count.

FIRE ordinarily refers to finance, insurance and real estate. Here the measure is broader: it captures bank financing reported for financial institutions, insurance, real estate and consumer-durable activities. It is used as a proxy for firm-level financialisation. The measure does not imply that every underlying financing claim is speculative, harmful or unproductive. It is a sectoral-allocation proxy and a level measure that is sensitive to bank size.

18.621.2623.9226.5829.2419992005201120172023YearLogged FIRE-related financing volume (natural log) (natural-log units)
ConventionalIslamic
View chart data
Bahrain descriptive medians by bank type, 2000 to 2022 where observations are available. Values for Year and Logged FIRE-related financing volume (natural log) (natural-log units) by series.
SeriesYearLogged FIRE-related financing volume (natural log) (natural-log units)Source note
Conventional · 20002,00024.92 covered banks
Islamic · 20002,00019.693 covered banks
Conventional · 20012,00124.642 covered banks
Islamic · 20012,00119.574 covered banks
Conventional · 20022,00224.232 covered banks
Islamic · 20022,00219.476 covered banks
Conventional · 20032,00326.523 covered banks
Islamic · 20032,00319.816 covered banks
Conventional · 20042,00425.612 covered banks
Islamic · 20042,00419.935 covered banks
Conventional · 20052,00526.22 covered banks
Islamic · 20052,00520.156 covered banks
Conventional · 20062,00626.643 covered banks
Islamic · 20062,00620.487 covered banks
Conventional · 20072,00726.295 covered banks
Islamic · 20072,00720.827 covered banks
Conventional · 20082,00826.054 covered banks
Islamic · 20082,00820.928 covered banks
Conventional · 20092,00923.623 covered banks
Islamic · 20092,00921.119 covered banks
Conventional · 20102,01025.895 covered banks
Islamic · 20102,01021.29 covered banks
Conventional · 20112,01125.945 covered banks
Islamic · 20112,01121.138 covered banks
Conventional · 20122,01226.055 covered banks
Islamic · 20122,01221.119 covered banks
Conventional · 20132,01325.497 covered banks
Islamic · 20132,01321.249 covered banks
Conventional · 20142,01425.377 covered banks
Islamic · 20142,01421.369 covered banks
Conventional · 20152,01525.287 covered banks
Islamic · 20152,01521.358 covered banks
Conventional · 20162,01626.248 covered banks
Islamic · 20162,01621.498 covered banks
Conventional · 20172,01727.367 covered banks
Islamic · 20172,01721.499 covered banks
Conventional · 20182,01827.467 covered banks
Islamic · 20182,01821.629 covered banks
Conventional · 20192,01926.957 covered banks
Islamic · 20192,01921.799 covered banks
Conventional · 20202,02026.767 covered banks
Islamic · 20202,02021.729 covered banks
Conventional · 20212,02127.547 covered banks
Islamic · 20212,02121.939 covered banks
Conventional · 20222,02228.197 covered banks
Islamic · 20222,02221.749 covered banks

What this visual showsDescriptive median logged volumes among covered banks.

What it does not establishA bank-size-adjusted or causal difference between bank types.

Institutional sources