GCC Equity Market's Performance
Global equity markets delivered a strong performance during 2025, supported by monetary easing, resilient economic growth, and sustained corporate earnings momentum. Despite periods of volatility driven by geopolitical developments and shifts in global trade dynamics, major indices recorded solid gains by year-end. The MSCI World Index closed the year with an increase of 19.5%, marking its strongest performance in six years, while emerging markets outperformed developed peers, with the MSCI Emerging Markets Index rising by 30.6%, reflecting robust performance and benefiting from improving economic conditions across several rising economies.
Within the GCC, equity markets underperformed global peers, with the MSCI GCC Index recording a modest gain of 1.6% in 2025. Regional performance remained uneven, with select markets delivering double-digit returns, while others posted marginal gains or declines amid oil price volatility and heightened geopolitical uncertainty.
Bahrain Bourse's Market Performance
Against this regional backdrop, Bahrain Bourse recorded a steady performance in 2025, ranking among the moderately performing GCC exchanges. The Bahrain All Share Index closed the year at 2,066.54 points, representing a year-on-year increase of 4.06% and marking the fifth consecutive year of growth. The index surpassed the 2,000-point level during the second half of the year and reached a peak of 2,079.68 points in late October, reflecting improved market sentiment and investor confidence.
Market activity strengthened notably over the year, with the total value of shares traded increasing by 93.6% to BD 619.1 million, compared to BD 319.8 million in the previous year. However, trading volumes decreased slightly by 4.3%, totaling 1.42 billion shares, reflecting higher average trade values but softer market sentiment.
Enhancing Liquidity
Enhancing market liquidity remains a central pillar of our strategic priorities. During the year, we launched a comprehensive Trading Incentive Scheme aimed at stimulating trading activity, supporting price discovery, and encouraging broader participation across listed securities.
In parallel, we strengthened our market-making framework through the approval of Al Ramz Capital, BHM Capital, and Arqaam Securities as external market makers, supporting improved liquidity and tighter bid–ask spreads across selected securities. These efforts were further complemented by the authorization of Ajyad Capital as a broker-dealer, supporting greater diversification and resilience across the market.
Collectively, these initiatives reflect our deliberate and structured approach to deepening market liquidity, enhancing trading efficiency, and reinforcing Bahrain Bourse's role as a dynamic and accessible capital market.
The Market 2.0" Conference
As part of our commitment to advancing dialogue on capital market development, Bahrain Bourse in collaboration with the Arab Federation of Capital Markets (AFCM), hosted “The Market 2.0" Conference under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister which was inaugurated by His Excellency Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy. The conference provided a strategic platform to examine the evolving landscape of capital markets, with a particular focus on digital transformation and the role of technology in shaping future-ready market infrastructure.
The event brought together senior market participants, regulators, and industry leaders from across the region, reinforcing our role as a facilitator of regional collaboration and knowledge exchange. Through initiatives such as “The Market 2.0" Conference, we continue to contribute to the Kingdom's vision of a resilient, innovative, and digitally enabled financial sector.
Awards
Our continued efforts to enhance market infrastructure, promote sustainability, and strengthen investor engagement were recognized through a number of regional and international awards during the year. These accolades reflect our consistent focus on innovation, operational excellence, and responsible market development.
During the year, we were honored with the CIO Legend Award at the Global CIO 200 Summit – Bahrain Edition, in recognition of our leadership in technology and digital transformation. We also received dual recognition for sustainability leadership in the GCC from World Finance Magazine and International Business Magazine. In addition, we were awarded Best Exchange for Financial Literacy in the Middle East at the Euromoney Capital Markets Awards 2025, reflecting our ongoing commitment to investor education and market awareness.
Sustainability at Bahrain Bourse
Sustainability remains a core pillar of our long-term strategy and an integral part of our role in supporting the development of resilient and responsible capital markets. We continue to advance initiatives that promote transparency, accountability, and the integration of environmental, social, and governance considerations across the market ecosystem.
This year, we strengthened our sustainability agenda through the signing of a memorandum of understanding with Safa, a national platform established to support carbon offsetting and the transition towards a net zero economy. This collaboration reflects our commitment to enabling sustainable finance practices and encouraging closer alignment between capital markets and the Kingdom's climate and sustainability objectives.
Strengthening Investor Protection
Strengthening investor protection and safeguarding market integrity remain fundamental to our mandate. In this regard, Bahrain Clear continued to play a critical role in reinforcing confidence across the post-trading environment.
Over the course of the year, Bahrain Clear distributed a total of BD 390.01 million under the Amanat Investor Protection Funds, underscoring the robustness of the Kingdom's clearing and settlement framework and its ability to protect investors' rights in a transparent and orderly manner. These mechanisms remain central to maintaining trust, stability, and resilience within Bahrain's capital markets.
Financials
Bahrain Bourse demonstrated strong resilience and operational discipline throughout 2025. The market delivered a solid recovery, underscoring its financial strength, robust regulatory framework, and the effectiveness of its strategic direction as we move forward with confidence into 2026.
Bahrain Bourse recorded a net profit of BD 1.09 million for the fiscal year ended 31 December 2025, compared to BD 0.68 million for the fiscal year ended 31 December 2024, reporting an increase of 60%. The total operating income increased to BD 3.31 million compared to BD 2.94 million in 2024, reflecting an increase of approximately 12%. The total operating expenses stood at BD 6.08 million in comparison to BD 5.24 million in 2024, reporting an increase of approximately 16%. Total assets also grew to approximately BD 69.83 million, up 9% from BD 63.87 million in 2024.
Future Outlook
Bahrain Bourse's engagement with Al Ramz Corporation and the launch of new Capital Markets Development Plan 'Elevate' marked an important milestone during the year, setting the foundation for a series of market developments. The upcoming period will focus on several key priorities, including diversifying market offerings, deepening liquidity, and streamlining market operations, in line with the 2026-2028 strategic objectives.
Guided by a commitment to transparency, resilience, and sound governance, we will continue to work closely with regulators, market participants, and regional partners to support the ongoing development of Bahrain's capital markets and to strengthen the Exchange's role in supporting capital formation and fostering investor confidence over the long term.
Acknowledgements
On behalf of our Board of Directors, management, and team, I would like to express my sincere appreciation to His Majesty King Hamad bin Isa Al Khalifa and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander of the Armed Forces, and Prime Minister, for their continued support and guidance in advancing the Kingdom's financial sector and capital markets.
I would also like to extend my gratitude to H.E. the Minister of Industry and Commerce - the Minister mandated to carry out the responsibilities of Bahrain Bourse's shareholder - for his ongoing commitment and support to the development of Bahrain Bourse and Bahrain Clear. My sincere thanks also go to the Chairman and members of the Board of Directors for their steadfast oversight, direction, and continued confidence.
Our progress would not be possible without the dedication and collective efforts of our team, whose contributions continue to strengthen the Exchange and support its strategic objectives. I would also like to thank our stakeholders and market participants, including listed companies, brokers, custodians, and investors, for their engagement and cooperation, which remain central to the continued growth and resilience of Bahrain's capital markets.
Khalifa bin Ebrahim Al-Khalifa
Chief Executive Officer