CBB issues Investment Business Category 4 licence to BAGS Capital

BAGS Capital has become the first recipient of a new Central Bank of Bahrain (CBB) licence that allows investment firms to manage funds for wealthy investors.

The Investment Business Category 4 (Collective Investment Undertaking Operator) caters for the business models of specialist fund managers who operate, manage, and market CIUs exclusively for accredited investors.

Accredited investors are individuals and institutions that meet certain financial and investment experience requirements. They are considered to be sophisticated investors who are able to understand and bear the risks of investing in CIUs.

The new licence category is designed to support the growth of the asset management industry in Bahrain and to provide accredited investors with access to a wider range of investment opportunities.

Abeer Al Saad, executive director of financial institutions supervision at CBB, commented: “The issuance of Bahrain’s first Investment Business Category 4 (CIU Operator) licence to BAGS Capital, is in pursuance to the recent amendments made to the licensing requirements in relation to the investment firms activities and the newly introduced licence categories.”

Adding futher, Ebtisam Al Arrayed, director of financial institution supervision at the CBB, added: “We believe that this category will contribute in introducing new types of investment business firms and will provide new opportunities to experienced investment bankers to establish their own asset management boutique in Bahrain.”

According to Abdulla Haji, director of licensing at the CBB, the introduction of the new licence category opens doors for a broader range of fund management applicants and reinforces the kingdom’s standing as a preferred destination for investment activities.

Nasir Obeid, the chief operating officer and founding member of BAGS Capital, said the firm’s shareholders were proud to establish Bahrain’s first Category 4 investment business, specialising in managing and operating investment funds, with initial focus on the grain supply sector, leveraging on its global grain supply expertise.

“Our shareholder and chief executive Amer Auf is pleased to have taken Bahrain as regional business domiciliation. The kingdom has established a well-renowned and transparent regulatory framework for the financial sector with a supportive ecosystem that nurtures the growth of financial institutions,” he added.

Source: https://www.gdnonline.com/Details/1291775