News / Economy

Bahrain Financial Center Pays Price of Political Turmoil

Men stand in front of closed shops near Pearl Square in the center of Manama, Mar 15 2011
Men stand in front of closed shops near Pearl Square in the center of Manama, Mar 15 2011
TEXT SIZE - +

Several international bank branches remained shut for a second day on Thursday while a handful reopened on a limited basis. Bahrain's stock market also reopened.

But news agencies reported that some banks have sent their workers to Dubai to escape the unrest in Bahrain, home to a $66 billion Islamic finance industry. On Wednesday, security forces drove pro-democracy protesters out of the main square in the capital of Manama and then on Thursday arrested several opposition leaders. Gulf Air, Bahrain's national carrier, closed its ticket offices except for those at the airport serving the island nation and canceled all flights to Iran and Iraq. Flights to other destinations were still operating.

Vitol Group, the world's largest independent oil trader, also moved about a dozen of its workers to Dubai in the United Arab Emirates.

The Reuters news agency reported that some wealthy account holders have started to send their cash out of Bahrain - to other Mideast financial centers or to London and other European destinations - so they have more access to it.

Reuters quoted one banking source as saying that some of Bahrain's richest people had withdrawn 15-20 percent of their deposits and investments in the last few days.

In response to the turmoil, two major international financial services firms, Fitch Ratings and Standard & Poor's, have both downgraded the country's credit rating.

You May Like

Pakistan Reiterates Opposition to US Drone Strikes

Day earlier US President Barack Obama justified 'constrained' drone usage to save lives More

Study Identifies Risks of Human Spread of H7N9 Bird Flu

Study suggest that international measures to contain the H7N9 influenza, in the event of severe outbreak, will need to be targeted in Asia More

Violence Continues in Conakry Over Upcoming Elections

Opposition has called for boycott of elections More

Video Syria's Civil War Fuels Violence in Iraq

Analysts say al-Qaida-linked militants are flowing back and forth from both countries More

Video Star Trek Influence Lives Long and Prospers

As new movie thrills, many are once again discussing the iconic franchise's influence on society, science and technology More

OECD: Developing Green Cities Key to Sustainable Future

OECD suggests strategies to mitigate rapid growth, industrialization in urban centers, which produce about two-thirds of greenhouse gas emissions More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video

Video Volunteers Help Revive LA's Concrete River

The Los Angeles River is a concrete drainage channel through much of its 80-kilometer length. It channels waste-water from storm drains and has become a receptacle for much of the city's trash. But as Mike O'Sullivan reports, the river is slowly being restored with the help of volunteers, who take part in an annual clean-up.

World Currencies

EUR
USD
0.7155
JPY
USD
79.677
GBP
USD
0.6315
CAD
USD
0.9720
INR
USD
44.714

Rates may not be current.