Capital Raising - Bahrain

Bahrain

The country in Bahrain is expected to see Total Capital Raised in the Capital Raising market market reach US$73.80m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$66.46m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, with US$195,400.0m in 2024.
Bahrain's capital raising market is witnessing a surge in demand for Islamic bonds (sukuk) as a Sharia-compliant financing option for local and international investors.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Bahrain has been experiencing significant growth in recent years, driven by a number of factors.

Customer preferences: Investors in Bahrain have shown a strong preference for capital raising activities, as it provides them with opportunities to diversify their investment portfolios and generate higher returns. The market has also seen an increase in demand from institutional investors, who are looking for alternative investment options to traditional asset classes such as stocks and bonds.

Trends in the market: One of the key trends in the capital raising market in Bahrain is the growing popularity of initial public offerings (IPOs). Companies in Bahrain are increasingly opting to go public in order to raise capital for expansion and growth. This trend is driven by a number of factors, including the favorable regulatory environment in Bahrain, which encourages companies to list on the local stock exchange. Additionally, the government has introduced a number of initiatives to support the growth of the capital raising market, including tax incentives for companies that go public. Another trend in the market is the increasing use of debt financing by companies in Bahrain. With interest rates at historic lows, companies are taking advantage of cheap credit to fund their expansion plans. This trend is particularly evident in the real estate sector, where developers are borrowing heavily to finance new projects.

Local special circumstances: Bahrain has a number of unique characteristics that make it an attractive destination for capital raising activities. Firstly, the country has a well-developed financial services sector, which includes a number of local and international banks, investment firms, and venture capital funds. This provides companies with access to a wide range of financing options and expertise. Secondly, Bahrain has a favorable regulatory environment for capital raising activities. The country has implemented a number of reforms to streamline the process of raising capital, including the introduction of a new bankruptcy law and the establishment of a dedicated capital raising regulatory authority. These measures have helped to improve investor confidence and attract more companies to the market.

Underlying macroeconomic factors: The growth of the capital raising market in Bahrain is also supported by favorable macroeconomic conditions. The country has a stable political environment and a strong legal framework, which provides investors with a high level of confidence. Additionally, Bahrain has a well-diversified economy, with strong sectors such as finance, manufacturing, and tourism. This diversification helps to mitigate risks and provides opportunities for companies to raise capital in different sectors. In conclusion, the Capital Raising market in Bahrain is experiencing significant growth, driven by customer preferences for alternative investments, the increasing popularity of IPOs, and the use of debt financing. The market is supported by local special circumstances such as a well-developed financial services sector and a favorable regulatory environment. The underlying macroeconomic factors, including political stability and a diversified economy, further contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.