Bahrain Bourse (BHB) has launched a high-stakes three-year roadmap to transform the kingdom into a premier global investment hub, with the potential to trigger a surge of up to $4 billion in foreign direct investment (FDI).
The ‘Capital Market Development Plan 2026-2028,’ themed Elevating the Market, was unveiled during a high-profile Press conference yesterday. The ambitious strategy targets a “Market Classification Upgrade” to emerging market status – a move officials say could attract equity capital inflows ranging from $1.2bn to $4bn while correcting long-standing market valuation gaps.
A cornerstone of the strategy is the ‘Equity and Capital Formation’ pillar, which seeks to list eight major government and private companies across key sectors over the next 36 months. This initiative is designed to build a structured IPO pipeline, channelling domestic savings into the market to bolster the national economy. To support this, BHB will launch an IPO incubator and a dedicated listing incentives programme to drive private sector participation.
The exchange is also set for a major technical overhaul through its ‘Trading Operations Catalyst’ pillar. This involves diversifying product offerings to include index products, ETFs, and derivatives such as futures and options. To meet international standards, BHB will introduce advanced trading tools including short-selling, margin trading, and securities lending and borrowing. These upgrades will be supported by extended trading hours and enhanced closing auction mechanisms to boost liquidity.
Regulatory and digital infrastructure will also undergo a comprehensive refresh. BHB plans to streamline decision-making through ‘Regulatory and Corporate Re-alignment,’ alongside a ‘Digital Readiness’ initiative that integrates the eKey system and a new Listing Gateway to simplify the experience for issuers and investors.
The transformation will be rolled out in three phases: the ‘Ignite’ phase in 2026 for structural readiness; the ‘Accelerate’ phase in 2027 focusing on regulatory implementation; and the ‘Harvest’ phase in 2028, aimed at achieving full market scale.
Commenting on the launch, Bahrain Bourse chairman Yusef Al Yusef said the mission was to operate a secure, internationally aligned infrastructure that facilitates capital raising for both the government and private sector.
“We are driving the development of Bahrain Bourse into a cornerstone of national economic growth and diversification,” Mr Al Yusef said. “We remain committed to enhancing the capital market’s contribution to Bahrain’s economy in line with Economic Vision 2030.”
BHB chief executive officer Shaikh Khalifa bin Ebrahim Al Khalifa noted that the plan reflects Bahrain’s ambition to attract consistent investment and build a more dynamic, sustainable marketplace.
“Our strategy focuses on five key pillars aimed at attracting a broader investor base and accelerating market operations,” Shaikh Khalifa said. “Working with our regulator and market participants, we aim to introduce 46 initiatives over three years that deepen liquidity levels and ensure market readiness for a potential re-classification and upgrade.”
Officials emphasised that the plan’s success will have significant “spillover effects” beyond the trading floor. The resulting surge in economic wealth is expected to strengthen the sovereign balance sheet, increase the value of pension and citizens’ savings, and fund major national projects that drive sustainable job creation across the kingdom.
avinash@gdnmedia.bh
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