Gulf One has carved out a niche in infrastructure and energy projects, while avoiding significant real-estate exposure. This has helped the bank avoid collateral damage from the regional property market downturn, while placing it in a strong position to benefit from the region’s state-led capital investment drive.

Gulf Bank’s management independence is another unique feature. It was founded as an independent investment bank, meaning that no single institution or individual shareholder owns more than 5 per cent of the bank’s capital. Only two institutional shareholders, which have added strategic value to the bank, own 6.5 per cent and 8 per cent of the equity respectively. However, none of the shareholders has a right to a seat on the board.

Gulf One has shown steady profit growth over the past four years, a period when investment banks have been hard hit by the global financial turmoil. Net income has doubled each year since it first reported accounts in 2006. The bank doubled its profit in 2009 to $6.5m, up from $3.2m in 2008. This represents a return on equity of 5.7 per cent, up from 3.1 per cent the previous year, and places Gulf One as the third-best performer for 2009 among banks in Bahrain.

In terms of return on assets, Gulf One was ranked first among Bahrain banks with a return of 5.2 per cent in 2009, up from the 2.9 per cent in 2008. The figures represent a strong showing for a relatively young bank. However, the big challenge will be to establish a stronger presence in regional financings as Gulf projects activity ramps up.