Manama-Decypha: Bahrain has introduced the Investments Limited Partnership (ILP) Law in its legal system, allowing investors to create nationwide partnerships, to be the first Gulf country issuing that law.
The law is expected to expand Bahrain’s financial sector as it supports growth in real estate funds, private equity funds, technology funds, venture capitals, startups, captive insurance and Shariah-compliant finds, Bahrain Economic Development (EDB) said in a 3 April statement.
Bahrain investors will be allowed to contribute to the investment fund while having no active management role.
Covering collective investment undertakings, private investment undertakings, securitisation and insurance captives, the law will allow existing partnerships to convert into an ILP.
The law will make Bahrain more competitive for investors looking for opportunities in the Gulf region, according to the Chief Executive of the EDB, Khalid Al Rumaihi.
Offering higher flexibility degree to investors, the newly-introduced law completed other two laws, the Trusts Law and Protected Cells Companies Law that aim to improve the regulatory environment in the kingdom.
The EDB is a public agency promoting investment in Bahrain focusing on tourism, manufacturing, ICT, and logistics and transport sectors, as well as the financial services sector.
By Decypha Editorial Team
