Bermuda looks to Middle East for financial expansion and Islamic finance links

Written by Ray Clancy

Tuesday, 20 July 2010 09:50

Bermuda finance and business sectors are looking to expand and regard Bahrain as a gateway into the Middle East’s financial markets, it is claimed.

President and chief executive officer of Bermuda’s Stock Exchange, Greg Wojciechowski, said that a recent visit to Bahrain had convinced him that the Gulf state offers Bermuda’s financial community a remarkable opportunity to develop commercial relationships thorough out the GCC region.

During the visit, which also included Bermuda’s Minister of Finance, Paula Cox, delegates met with Bahrain’s top government and business leaders prior and attended the first Bahrain/Bermuda conference on Global Financial and Insurance Services.

Wojciechowski said there were many areas of growth to be pursued in Bahrain which has recently signed a double taxation agreement with Bermuda. The agreement was the first of its kind Bermuda has signed with any country with provisions that makes it easier for Bermuda and Bahrain business leaders to cooperate in finance.

He believes there will be positive developments in building business between the two economies sooner rather than later. Bermuda, he said, could perhaps even look forward to seeing the listing of the first Islamic bond or sukuk on the BSX in the not too distant future.

Possible areas of cooperation and development especially those related to listing mutual funds, asset management, hedge funds and the listing of Islamic financial instruments, were discussed, he added.

‘I believe an opportunity exists to build stronger ties between the two stock exchanges and I look forward to progressing our initial discussions. In Bermuda we are interested in listing sukuks from this region on our market,’ said Wojciechowski.

‘I feel strongly that Bermuda can act as a gateway to the North American and European markets for Bahrain’s Islamic financial expertise and, in turn, Bahrain can act as a gateway for Bermuda's financial expertise in the Middle East and North Africa, he explained.

‘It is apparent to me that a relationship with The Bahrain Stock Exchange presents a special opportunity for joint co-operation, one which we hope to pursue. As a regulator, I was impressed to see the world class trading environment at the Bahrain Stock Exchange and I look forward to the opportunity of furthering my talks with my Bahrain counterparts,’ he added.

The Bermuda Stock Exchange, established in 1971, has 700 issues listed and has a market capitalization of $200 billion. BSX is a member of the International Organization of Securities Commission (IOSCO), the World Federation of Exchanges and other regional and international federations related to capital markets.