Bahrain IT Financing

 

Overview: The largest industry in Bahrain that yields most of the revenue is the Banking and the Finanical sector. Most of the banking in the entire Middle East is based in Bahrain and as of now, the IT industry is also playing in the development of the Infrastructure of Banking transactions on the Internet.

The major source of IT financing in the island of Bahrain comes directly or indirectly through the Bahrain Financing Company or BSC(2). The company was initially established in the year 1988 and was allowed to deal in the areas of IT financing for start ups and existing IT related companies in the country. As such, the company primarily deals with signing short and long term contracts with various IT companies, deals in various aspects of Exchange, Transfers as well as the purchase and sale of bullion of non exchange business.

The company has become the leading names in Forex related services throughout the Kingdom and also deals with the transfer of money overseas mainly to South Asian countries where most of the IT labor in Bahrain comes from. Bahrain is also regarded as the principal financial services hub in the entire Middle East, and due to that it handled a total asset of local and foreign banks to the amount of US $ 66.9 billion, according to the report by the Bahrain Monetary Agency(1).

 

Besides the Bahrain Financing Company, the other major loan lender is the Bahrain Development Banks that mostly lends funds for various IT projects and the necessary Credit is put aside on the market terms as well as taking into consideration the availability of foreign investors. Most of the credit terms for the purposes of IT financing vary but, the contracts usually last for a total period of 10 years.

The banks also take into consideration the concept of risk when they sign a contract with an IT firm and look for features as the strength and the credibility of the company to pay back the loans that the company would have taken. Bahrain Financing Company right now is under the leadership of Mr. Nonoo, the founder of the company(2).