Bermuda is likely to see the first Islamic financial institution to be up and running by the year end, a development which will boost the chances for Bermuda to become an emerging hub for the Islamic banking and finance in the Western Hemisphere.

The Deputy Premier and the Minister of Finance Paula A. Cox, on the sidelines of the Bahrain-Bermuda seminar, said that she was positive about the outcome of efforts aimed at establishing the first Islamic bank or Takaful Company by the fourth quarter of the year.

Links between the two countries were strengthened considerably recently when Bermuda signed a Double Taxation Agreement (DTA) with the Kingdom of Bahrain on April 22 of this year at a ceremony in Washington, DC.

Bermuda and Bahrain have agreed to work together to develop a multi-faceted relationship and to explore numerous opportunities covering investment, insurance and re-insurance. Moreover, both countries have also committed to establish a joint economic committee that will meet annually to further develop economic ties that will facilitate further outreach to other countries within the Gulf Cooperation Council.

Bermuda entities with Bahrain interests are expected to grow significantly as local service providers expanding their offerings to the Middle East and the North African market utilizing the Kingdom of Bahrain as a gateway jurisdiction, in addition to offering Middle Eastern clients immediate access to Bermuda. "Many of our local service providers have an extensive experience of Islamic structured finance including both conventional and Shar'iah investment funds. Moreover, it is likely that the global market for Islamic insurance or Takaful, will continue to grow, opening exciting possibilities for Bermuda reinsurers," Minister Cox said.