Jurisdiction · Middle East

Bahrain

Bahrain is a long-established Gulf banking centre with a single integrated regulator, the Central Bank of Bahrain (CBB), which licenses banks, investment firms, specialised licensees, insurers and crypto-asset service providers under one rulebook. It is known for its large wholesale and Islamic banking sectors and for an early dedicated crypto-asset module and, since 2025, a stablecoin issuance module.

Risk flagStandard

FATFNot listed

EU AML high-risk listNot listed

EU tax listNot listed

Licence regimes6

CurrencyBHD

S&P ratingB

Next electiondue after December 2027

Bahrain is not on the FATF grey or black lists published after the June 2026 plenary (17 to 19 June 2026), not on the EU high-risk third country list (consolidated 29 January 2026) and not on EU tax list Annex I as updated 17 February 2026. Checked 7 October 2026.

Government and politics

Government: Constitutional monarchy
King: Hamad bin Isa Al Khalifa · since March 1999
Crown Prince and Prime Minister: Salman bin Hamad Al Khalifa
Governing parties: No political parties in government
Last election: Council of Representatives (first round), 12 November 2022
Next election: Council of Representatives, due after December 2027. Originally due November 2026; a royal order of 29 April 2026 extended the National Assembly's term by one year to December 2027
Legislature: National Assembly: Council of Representatives (40 elected seats) and Shura Council (40 seats appointed by the King)
Legal system: Mixed system of Islamic (sharia) law, English common law and Egyptian-derived civil, criminal and commercial codes

Economy and finance

Population: 1.6m (2025)
GDP: USD 47.5bn (2025)
GDP per person: USD 29,344 (2025)
Currency: Bahraini dinar (BHD), pegged to USD at 0.376 dinar per dollar
Central bank: Central Bank of Bahrain
Credit rating: S&P B (stable) · Moody's B2 (negative) · Fitch B (stable) (as of April 2026)

Oil revenue and aluminium smelting remain central to a heavily indebted economy, while Bahrain is a long-established regional banking, insurance and Islamic finance centre with the Central Bank of Bahrain as single regulator of the financial sector.

Bank

Conventional bank licence (retail or wholesale)

Minimum capitalUSD 266m

TimelineCBB gives a formal decision within 60 calendar days of a complete application (Article 44(e) CBB Law, LR-3.1.14); outstanding requirements must be submitted within 6 months

AuthorityCentral Bank of Bahrain

Bahraini conventional retail bank: minimum total shareholders' equity BD 100 million; Bahraini conventional wholesale bank: US$ 100 million

Law: Central Bank of Bahrain and Financial Institutions Law 2006, Article 40 et seq.; CBB Rulebook Volume 1 (Conventional Banks), Module LR, LR-2.5.2A and LR-2.5.2B
Fees: Application fee BD 100 (non-refundable). Annual fee: retail banks 1% of operating expenses (floor BD 30,000, cap BD 240,000); Bahraini wholesale banks 0.5% (floor BD 13,000, cap BD 100,000); wholesale branches of foreign banks 0.25% (floor BD 13,000, cap BD 100,000).
Passporting: No. Bahrain licence only.

Key requirements

Retail banks must have credit as a significant part of their business (broadly over 20% of assets)
Wholesale banks may deal in BD or with Bahraini residents only on a wholesale basis (broadly BD 7 million or more for credit or deposits)
Three-year business plan; paid-up capital must cover projected regulatory capital
Risk-based capital under Module CA; fit and proper approved persons

Sources(1)

CBB Rulebook Volume 1, Module LR (May 2026, PDF) · checked 2026-10-07

Bank

Islamic bank licence (retail or wholesale)

Minimum capitalUSD 266m

Timeline60 calendar days from a complete application, as for conventional banks

AuthorityCentral Bank of Bahrain

Bahraini Islamic retail bank: minimum total shareholders' equity BD 100 million; Bahraini Islamic wholesale bank: US$ 100 million

Law: Central Bank of Bahrain and Financial Institutions Law 2006; CBB Rulebook Volume 2 (Islamic Banks), Module LR, LR-2.5.2A and LR-2.5.2B
Fees: Application fee BD 100. Annual fee: retail 1% of operating expenses (BD 30,000 to BD 240,000); Bahraini wholesale 0.5% (BD 13,000 to BD 100,000); wholesale branches of foreign banks 0.25% (BD 13,000 to BD 100,000).
Passporting: No.

Key requirements

Shari'a compliant business with Shari'a supervisory arrangements
Same retail and wholesale split as conventional banks
Three-year business plan and risk-based capital

Sources(1)

CBB Rulebook Volume 2, Module LR (May 2026, PDF) · checked 2026-10-07

Payment service provider (PSP)

Ancillary service provider licence: payment service provider, card processing, AISP and PISP

Minimum capitalUSD 665k

TimelineNot published

AuthorityCentral Bank of Bahrain

Card processing and payment service providers: minimum core capital BD 250,000; account information service providers BD 25,000; payment initiation service providers BD 30,000

Law: CBB Rulebook Volume 5 (Specialised Licensees), Type 7 Ancillary Service Providers, Module AU, AU-1.2 and AU-2.5
Fees: Application fee BD 100. Fixed annual fee: payment service providers BD 2,000; card processing BD 1,000; AISP BD 1,000; PISP BD 1,000.
Passporting: No.

Key requirements

PSPs may act as intermediary for client money accounts, cash placement and withdrawal, direct debit settlement and related payment services
AISPs and PISPs operate under the Bahrain Open Banking Framework, with a third-party review before going live
Sufficient liquid assets to meet obligations as they fall due

Sources(1)

CBB Rulebook Volume 5, Type 7, Module AU (entire section) · checked 2026-10-07

Virtual asset service provider (VASP)

Crypto-asset service licence (Category 1 to 4)

Minimum capitalUSD 66k

TimelineNot published

AuthorityCentral Bank of Bahrain

Category 1: BD 25,000; Category 2: BD 100,000; Category 3: BD 200,000; Category 4: BD 300,000 paid-up share capital, plus any additional capital the CBB requires

Law: CBB Rulebook Volume 6 (Capital Markets), Module CRA, CRA-1.1 and CRA-3.1.2
Fees: Application fee BD 100. Annual fee 0.25% of relevant operating expenses with category minimums and maximums (Category 1: BD 2,000 to BD 6,000; Category 2: BD 3,000 to BD 8,000; higher categories per CRA-1.6.3).
Passporting: No.

Key requirements

Category 1: reception and transmission of orders and advice only; no client assets
Category 2: agency trading, portfolio management, custody and advice; no dealing as principal
Category 3: adds dealing as principal and digital token advisory; no exchange
Category 4: operating a licensed crypto-asset exchange, custody and token advisory
Minimum capital paid into a Bahrain retail bank

Sources(1)

CBB Rulebook Volume 6, Module CRA (May 2026, PDF) · checked 2026-10-07

Virtual asset service provider (VASP)

Stablecoin issuer licence

Minimum capitalUSD 665k

TimelineNot published

AuthorityCentral Bank of Bahrain

Minimum initial paid-up share capital BHD 250,000, plus additional capital requirements under SIO-4.3

Law: CBB Rulebook Volume 6 (Capital Markets), Module SIO (Stablecoin Issuance and Offering), SIO-4.1.1
Fees: Application fee BD 100.
Passporting: No.

Key requirements

Stablecoins referenced to the Bahraini dinar or US dollar, other fiat currencies at CBB discretion
Reserve assets in the same reference currency
Module first issued July 2025

Sources(1)

CBB Rulebook Volume 6, Module SIO (May 2026, PDF) · checked 2026-10-07

Investment firm

Investment firm licence (Category 1 to 4)

Minimum capitalUSD 66k

TimelineNot published

AuthorityCentral Bank of Bahrain

Category 1: BD 1,000,000; Category 2: BD 1,000,000 if acting as custodian, otherwise BD 250,000; Category 3: BD 25,000; Category 4 not stated in Module CA (April 2023 version)

Law: CBB Rulebook Volume 4 (Investment Business), Module AU, AU-1.1.13 to AU-1.1.18F; Module CA, CA-1.2.7
Passporting: No.

Key requirements

Category 1: all regulated investment services including dealing as principal and underwriting
Category 2: all services except dealing as principal
Category 3: arranging and advising only, must be independent and hold no client assets
Category 4: operating CIUs for accredited investors only (e.g. private equity, hedge and venture capital funds)

Sources(2)

CBB Rulebook Volume 4, Module AU (May 2026, PDF) · checked 2026-10-07
CBB Rulebook Volume 4, Module CA (April 2023, PDF) · checked 2026-10-07

Supervisors

Who regulates

Central Bank of Bahrain (CBB) · websitebanks, Investment firms, Payment service providers, Virtual asset service providers (VASPs), stablecoins, Insurance, specialised licensees

The CBB is the single regulator for all financial sectors. Licence application fees in the bank, ancillary and crypto modules were reset to BD 100 in May 2026 (earlier paragraphs deleted). Electronic money is not a standalone licence category in the rulebook modules reviewed; payment intermediation sits in the Volume 5 ancillary service provider regime. Minimum capital for Category 4 investment firms and annual fees for Category 3 and 4 crypto-asset licensees were not confirmed. Whether Bahrain has had any recent FATF listing history was not verified; it is not listed as of June 2026. Gaming is not covered.

General information

About Bahrain

Natural Earth boundaries. Map is indicative.

Status: Sovereign state
Capital: Manama
Area: 760 km²
Official languages: Arabic
Time zone: UTC+03:00

Main exports

refined petroleum
aluminium
iron ore
aluminium wire
jewellery
financial services

Main export partners

United Arab Emirates
Saudi Arabia
South Africa
United States
India

Sources for the country information(8)

Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.

Sources for the licensing information(4)

CBB Rulebook home · checked 2026-10-07
New Zealand DIA: FATF jurisdictions under increased monitoring, June 2026 · checked 2026-10-07
EUR-Lex: Delegated Regulation (EU) 2016/1675, consolidated 29 January 2026 · checked 2026-10-07
European Commission: EU list of non-cooperative tax jurisdictions update, 17 February 2026 · checked 2026-10-07