Bahrain is a global leader in Islamic finance, a sector that combines ethical principles with financial services. The country hosts several influential organizations that set the standards and best practices for the industry, such as AAOIFI, International Islamic Financial Market and the General Council for Islamic Banks and Financial Institutions.

Bahrain is also a pioneer in Islamic fintech and digital transformations, embracing new technologies and solutions that enhance the efficiency and accessibility of Islamic financial products and services.

On 12th December 2023, IFN, with the support of IsDB as the multilateral strategic partner, organized the World Islamic Finance Dialogues 2023 at Wyndham Grand Manama. The event brought together experts and practitioners from various segments of the Islamic finance industry to share their insights and experiences on the latest trends and developments in the field.

The event kicked off with a keynote address by Khalid Hamad Al-Hamad, Executive Director – Banking Supervision, Central Bank of Bahrain, who highlighted the achievements and challenges of the Islamic finance industry in Bahrain and beyond. He also emphasized the role of the Central Bank of Bahrain in fostering a conducive regulatory environment for the growth and innovation of the sector.

The first session of the event focused on the Islamic financial and capital markets, which have witnessed remarkable growth and diversification in recent years. The panelists discussed the factors that contributed to the success of the Shariah compliant markets, such as the supportive regulatory frameworks, the product innovation, the market depth and liquidity, and the investor base expansion. They also explored the potential of the Islamic capital market to finance sustainable and green projects, such as clean energy and infrastructure, using Shariah compliant structures and instruments.

The second session of the event delved into the innovation, transformation and digitalization of Islamic financial services, which are essential for the competitiveness and resilience of the industry in the face of rapid changes and disruptions. The panelists shared their views on the current state and outlook of the Islamic banking sector, which remains the dominant segment of the industry. They also discussed the opportunities and challenges of the digitalization of Islamic financial services, such as the adoption of new technologies, the regulatory implications, the customer preferences, and the funding options. They also touched upon the issues of Tier 1 and Tier 2 Sukuk, which are important tools for Islamic financial institutions to manage their capital adequacy and liquidity.

The event concluded with a networking session, where the participants had the opportunity to exchange ideas and opinions with their peers and counterparts. The World Islamic Finance Dialogues 2023 was a successful and fruitful event that showcased the achievements and aspirations of the Islamic finance industry in Bahrain and the world. It also demonstrated the commitment and collaboration of the key stakeholders in the industry to foster innovation and excellence in Islamic finance.