Almost 300 new funds were established in Bahrain during 2007.

Other parts of the industry also grew strongly over the past year. Foreign funds registered in Bahrain also recorded a 75 per cent rise in assets to $11.1bn. The value of Islamic funds grew by 87.5 per cent to $1.3bn, invested through 87 funds, compared to $750m invested through 80 funds in 2006.

"The growth during 2007 was across the board, in funds investing in the region, overseas and in Islamic products,” says Mohammed Ayman al-Tajer, director of financial institutions supervision at the Central Bank of Bahrain.