Investment in Bahrain has been prepared by the partners of the Bahrain member firm of KPMG International as a guide for new and existing business in Bahrain. This booklet is intended to provide a summary of Bahrain's fiscal, economic, legal and social framework and to highlight certain important factors which should be examined if Bahrain is considered as a potential investment location.

The Bahrain Monetary Agency is the principal regulator of the investment funds industry in Bahrain. All investment funds established and/or marketed in/from the Kingdom of Bahrain are supervised and regulated by the Agency pursuant to its regulation and principles/guidelines. Investment funds are commonly referred to as collective investment schemes in Bahrain.

Regulation is a vital catalyst for change in the financial services industry. A failure to comply with changing regulation can lead to major reputational damage and in some countries fines and compensation payments. On the other hand a proactive and positive approach to regulation will allow financial institutions not only to achieve full compliance but also to identify areas of business and competitive advantage. This edition of Frontiers in Finance is designed to help readers in all regulatory environments – from the mature to the recently created – in understanding the regulatory issues that affect them.