T o some, the idea of another financial exchange in the Gulf will be unwelcome. Another small market alongside already competing exchanges in small-ish economies is not what is needed, argue sceptics. But Bahrain is preparing for another sally against rival financial centres with an overhaul of its capital market and the launch of the Bahrain Financial Exchange.

The BFX will help lure investors away from the likes of Qatar and Dubai, say officials, by offering a broader range of products. The government has also drawn up plans to overhaul local market regulation and privatise the existing Bahrain Stock Exchange.