Strategic Progress
Bahrain Bourse (BHB) has made significant strides in reinforcing its position as a dynamic and leading capital market, stemming from BHB's forward-looking and ambitious vision which is in line with the Kingdom of Bahrain's broader economic aspirations. Through strategic engagements, sustainability driven initiatives, operational enhancements, and talent development, Bahrain Bourse continues to foster a resilient and accessible capital markets ecosystem.
This year's achievements highlight Bahrain Bourse's commitment to innovation and global best practices, strengthening its appeal to regional and international investors. By integrating Environmental, Social, and Governance (ESG) principles, advancing regulatory frameworks, and investing in human capital, Bahrain Bourse remains a key enabler of sustainable growth, supporting the Kingdom's long-term economic vision.
Initiatives and Legislative Developments
During 2024, Bahrain Bourse implemented various initiatives, most notably focusing on the development of its legislative framework. Those initiatives included the introduction of Technical (Uncovered) Short-Selling Guidelines and the adoption of a new Market Making and Liquidity Provision Regulatory Framework with the aim of enhancing liquidity in the market. In addition, BHB launched the Listing Incentives Program to encourage listing of privately held companies. Bahrain Bourse also updated its Listing Rules and its Guidelines, to incorporate a comprehensive set of updates, including new disclosure requirements pertaining to ESG requirements. Moreover, BHB launched the 'Trading Incentives Scheme', to enable market participants, including market makers, liquidity providers, and other brokers, to obtain rebates for market makers and liquidity providers.
In terms of other initiatives during the year, BHB joined the Net Zero Financial Service Providers Alliance. This significant step underscores Bahrain Bourse's unwavering dedication to sustainability and aligns with its overarching mission to foster Environmental, Social and Governance (ESG) principles across the capital market.
Broadening Market Accessibility and Enhancing Liquidity
During the year, Bahrain Bourse and Bahrain Clear, a fully-owned subsidiary of Bahrain Bourse participated in a number of high-profile forums including the HSBC MENAT Future Forum 2024 held in Dubai, and the HSBC GCC Exchanges London Conference 2024 held in London, showcasing Bahrain's key regulatory and market developments and opportunities offered by its listed companies, and highlighting the Kingdom's ESG advancements.
Further strengthening regional collaboration, Bahrain Bourse signed a cooperation agreement with Saudi Tadawul Group, demonstrating its commitment to market integration and cross-border investment. This strategic alliance unlocks new opportunities for regional and international investors, enhancing market efficiency and accessibility.
As part of Bahrain Bourse's ongoing efforts to develop the capital market in the Kingdom of Bahrain and enhance market liquidity, BHB approved Q Market Makers LLC ('QMM') as an External Market Maker. This strategic addition expands the exchange's market depth and liquidity, providing investors with increased trading opportunities and tighter spreads.
Listings
The year 2024 witnessed new listings at Bahrain Bourse, where AlAbraaj Restaurants Group B.S.C. listed its shares on the main market. Hope Ventures Holding BSC (c) also listed its shares on Bahrain Investment Market (BIM), further expanding the market's size and liquidity, and introducing new investment opportunities within Bahrain Bourse.
Strengthening Investor Protection
Bahrain Clear has successfully distributed the cash dividend distributions during the year 2024, amounting to BD 364.67 million of dividends on behalf of 31 companies, of which BD 360.75 million were distributed under the 'Annual Cash Dividends Fund' to 56,967 entitled shareholders representing 97.4% distribution of the total amount received. In addition, BD 3.92 million were distributed under the 'Accumulated Cash Dividends Fund' for unclaimed dividends pertaining to previous years.
Bahrain Clear also achieved a significant regulatory advancement, which is the adoption of an enhanced Delivery Versus Payment (DVP) Model. This development strengthens post-trade infrastructure, mitigates settlement risks, and aligns with global standards, reinforcing Bahrain Clear's commitment to a secure and efficient trading environment.
Awards and Achievements
During 2024, BHB received several awards and achieved a number of accomplishments across various levels. These accolades and achievements are a result of the future-oriented vision and the strategic plan adopted by the Board of Directors, as well as the directives of the executive management of Bahrain Bourse and Bahrain Clear to ensure proper implementation of the plan. This resulted in receiving the Most Sustainable Practices in ESG Bahrain 2024 award, the Best Arab Stock Exchange for Financial Literacy, in addition to the ISO 22301:2019 certification for Business Continuity Management Systems.
Empowering Talent & Nurturing Excellence and Offering Awareness Programs
Bahrain Bourse recognizes that its employees are the driving force behind its success. In 2024, Bahrain Bourse and Bahrain Clear honored its long-serving team members during the annual Service Award Ceremony, celebrating their dedication and contributions over the past three decades. This initiative underscores Bahrain Bourse's and Bahrain Clear's commitment to fostering a rewarding and empowering work environment that supports professional growth and institutional excellence.
In line with the Board of Directors' commitment to develop employees and support their career paths within Bahrain Bourse and Bahrain Clear to assume key management positions, the Board approved a succession planning program for the employees of both companies. This aims to enhance employee loyalty and encourage them to consistently deliver outstanding and exceptional performance, positively impacting employee retention rates. A significant emphasis was placed on employee development in the past year, as evidenced by the high training participation rates at Bahrain Bourse and Bahrain Clear. Specifically, 93% of Bahrain Bourse employees and 88% of Bahrain Clear employees received training aimed at personal and professional growth.
Bahrain Bourse also demonstrated its commitment to offering its awareness programs. In collaboration with the Bahrain Institute of Banking and Finance (BIBF), BHB celebrated the first cohort of the BHB Board Mentorship Program, an initiative designed to equip senior executives for board positions and promote stronger corporate governance. Additionally, BHB continued its outreach efforts by organizing the TradeQuest Program for diverse age groups and the "Smart Investor" program for elementary school students, in partnership with INJAZ Bahrain.
Financials
Looking into Bahrain Bourse's financial performance in 2024, BHB achieved a net profit of BD 688,054 compared to BD 890,713 in 2023 to record a decrease of 23%. The total operating revenues amounted to BD 6.33 million in 2024 compared to BD 5.88 million in 2023, recording an increase of approximately 8%. The total operating expenses were BD 5.24 million in comparison to BD 4.84 million in 2023, reporting an increase of approximately 8%.
Bahrain Bourse's total assets increased to BD 63.88 million in 2024 against BD 56.52 million in 2023, while the total liabilities reached BD 58.61 million compared to BD 52.1 million in 2023. Shareholders' equity increased from BD 4.43 million in 2023 to BD 5.26 million in 2024.
Acknowledgments
On behalf of myself, the Board of Directors, and the Management of Bahrain Bourse and Bahrain Clear, I would like to extend my deepest gratitude and sincere appreciation to His Majesty King Hamad bin Isa bin Salman Al Khalifa, King of the Kingdom of Bahrain, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander of the Armed Forces, and Prime Minister for their invaluable guidance and unwavering support of Bahrain Bourse. Their visionary leadership continues to drive national economic growth and strengthen Bahrain's position as a leading financial hub.
I would also like to extend my sincere thanks to H.E. the Minister of Industry and Commerce for his steadfast support of Bahrain Bourse and Bahrain Clear. Furthermore, I would like to express my appreciation to the Chairman and Board Members of the Central Bank of Bahrain (CBB), for their instrumental role in shaping Bahrain's financial sector and fostering an environment of stability and innovation.
My appreciation also goes to the Board of Directors of Bahrain Bourse and Bahrain Clear for their strategic vision and unwavering commitment, which have been pivotal in navigating another year of progress. Lastly, I extend my heartfelt gratitude to our issuers, investors, members, custodians, and stakeholders, your trust and confidence remain the foundation of our success. As we continue our journey toward sustainable growth, your ongoing support will be instrumental in reaching new milestones and unlocking further opportunities for Bahrain's capital markets.
Finally, I would like to express my deep appreciation and gratitude to the dedicated and committed employees of Bahrain Bourse and Bahrain Clear, our most valuable assets. They are the cornerstone of our companies' excellence, driving our development, enabling us to achieve our goals, and enhancing our effectiveness and efficiency for all stakeholders in the capital markets sector.
Abdulkarim Ahmed Bucheery
Chairman
(27th Dec. 2016 – 28th April 2025)