Bahrain Bourse unveils $107M fund to deepen market liquidity
What's the deal? Bahrain BourseDealroom has a profile for this one. Try Dealroom → has announced a BHD 40 million (about $107 million) Market Making Fund, backed by four of the kingdom's biggest financial institutions. Partners include sovereign wealth fund Bahrain Mumtalakat Holding Company, Osool Asset Management, Bank of Bahrain and Kuwait (BBK)Dealroom has a profile for this one. Try Dealroom →, and National Bank of Bahrain (NBB)Dealroom has a profile for this one. Try Dealroom →. Al Ramz Capital will manage the fund.
Why now? The fund is a plank of the exchange's Capital Market Development Plan 2026–2028, branded "Elevate," which bundles 46 initiatives to broaden products, attract listings, and lift Bahrain's international standing. It was unveiled on the sidelines of Gateway Gulf 2026.
What's the endgame? The fund will target a select basket of securities, putting dedicated capital behind continuous buy and sell orders, tighter bid-ask spreads, and fairer price discovery. Over the longer term, the bourse wants a deeper investor base and a shot at advancing within global indices and market classifications.
"Enhancing liquidity is central to building a deeper, more competitive and resilient capital market," said Shaikh Khalifa bin Ebrahim Al Khalifa, chief executive officer of Bahrain Bourse. NBB chief Usman Ahmed framed his bank's role as both a listed company and seed investor seeking "greater liquidity and more effective price discovery."
What could go wrong? The announcement describes an intention to establish the fund, not proof of impact. In 2025, share-trading value jumped 93.6% to BHD 619.1 million, but volume slipped 4.3% — higher value alone does not confirm broader liquidity. The outcome will hinge on which shares the fund supports and whether the activity holds up.
The signal: Pairing sovereign and bank capital behind market-making is a bid to make a small Gulf exchange more investable before any push for a global index upgrade. Whether it works will show in sustained trading, not the headline figure.
Read more: bahrainwire.com, bahrainbourse.com
Image credit: Generated with Gemini
