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Bahrain Investment Market to create a platform for SMEs

Bahrain Investment Market to create a platform for SMEs

Bahrain Bourse is in the process of launching Bahrain Investment Market, a new initiative targeted at companies looking for growth finance. The implementation of Basel III capital rules is going to limit the banks’ ability fund long term projects. This has created an opportunity for capital markets to fill this funding gap.

Many small and medium size enterprises are reluctant to go through the capital markets route is because of the very high cost involved in initial public offerings (IPOs). Bahrain Bourse is offering a solution to these companies to list themselves on the bourse without having to go through an IPO.

The stock exchange is in the process of offering a platform for those companies looking for investors to list themselves to obtain the process of growth funding easier. The bourse believes that investors such as venture capital funds and private equity firms looking for investment opportunities can easily identify opportunities through this platform.

“The whole idea is to create an ecosystem of companies seeking investors and potential investors seeking robust investment opportunities. One of the reasons the venture capital funding has not taken off in the region in a big way is because it is difficult to identify the right investment targets and the overall lack of transparency. This platform is going to be a marketplace for both investors and companies looking for growth funding,” said Shaikh Khalifa Bin Ebrahim Al Khalifa, CEO of Bahrain Bourse.

To make the platform viable and robust, Bahrain Bourse will make it mandatory for companies to have stringent accounting and reporting standards based on IFRS SME standards.