Reality check is needed…

In the days of my youth, a lot of messages full of portent started off, “A little bird told me …”

A mere rumour perhaps, but usually one that had a bit of substance, maybe facts mingled with a bit of fiction, but if you allow me a mixing of metaphors, often a glimmer of truth.

So when I heard from an otherwise reliable ‘birdie’ that the UK Treasury were undertaking an inaugural roadshow to solicit interest in attracting suksuk investment, it did not surprise me at all that they were visiting Kuala Lumpur then Riyadh, Jeddah, Dubai, Abu Dhabi and Doha … before winging it back to London.

You spotted it too; what about Bahrain we cry in unison.

What about Bahrain’s financial hub attributes as the self-proclaimed global centre for Islamic banking, never mind just the region?

Why were there no Bahrain banks in the lead syndicate?

It’s possible that the arranging banks decided on a different format for Bahrain and perhaps conducted hush-hush meetings here after all, “confidentiality” and all that.

But the whole object of roadshows are usually to say “we are here, let’s talk.”

And being a leader in the field, Bahrain should want to do that.

Surely the Brit organisers are not inept travel planners or do they think no-one will notice if they overfly?

So maybe it is a “reality check” that perhaps, despite all the glowing talk of “strong and traditional ties,” and economic bounties “around the corner,” the British assessors do not see Bahrain, full of charming individuals though they might be, as in the same league as their GCC brethren, even when it comes to Islamic banking?

“Oh” said a banking contact with a knowledge of these things, “maybe it was because Bahrain manages so little Islamic Sharia money, as do the other places, and they felt no need to visit.”

Apparently there is “disagreement and conflict” in the views of various Bahraini Sharia scholars in interpreting religious teachings.

Fine in academia, but less attractive to investors and money managers who seek certainty of interpretation, in what does and does not, constitute Sharia compliant investment.

In banking circles it is told that a local Sharia adviser opposed investment in a prosperous chocolate company on the basis that they produced chocolate Easter Bunnies, therefore promoting a religion other than Islam.

The 2008 global crisis has led to a leaner, consolidated and more innovative global banking structure and while Bahrain is “on that bus” in its own domain, it needs to do more if it wants to stay on that bus, and not just be a manager of off-shore petrodollars.

It means being innovative, highly efficient in its banking operations, finding opportunity niches, continuing to deliver sound political leadership and assuring security, and on that basis, broadcasting to the world out there, “you ignore us at our peril.”

And if the rumour is founded, getting on the phone, at the highest level, to George Osborne, and making sure that in future, Bahrain is always a destination, not a fly-by.

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