Capitals Of Islamic Finance-Bahrain

Manama, Bahrain
Population Muslims 718,306 81.2%
Financial Sector:Islamic $251.1 billion (assets)$16.4 billion (assets),or 6.5% of financial sector:
Major players Al-Baraka Bank, Shamil Bank, Noriba Bank,First Islamic Investment Bank.

Bahrain is widely acknowledged as the first home of modern Islamic finance, with origins tracing back to the 1970s. The island kingdom's economy today is small, but very open: The Heritage Foundation ranks Bahrain as the freest economy in the Middle East and North Africa region.
But there is no doubt that Dubai and other members of the United Arab Emirates are posing a threat to Bahrain as they attract recycled petro-dollars and diversify their economies. And although Bahrain itself has an attractive regulatory environment, the rapidly developing financial centers of Dubai and Qatar are proving tough to beat.

One advantage Bahrain has over its rivals is cost effectiveness. The boom in the UAE has brought very strong inflation with it, leaving Bahrain as a tempting alternative.