Bahrain: Open for Captives Business

Jaffer Mazaal, General Manager at Braxtone Insurance Management’s Bahrain office, argues that the Kingdom presents an attractive environment for captive insurance operations, citing regulatory openness, expertise, and favorable conditions that position Bahrain as a potential regional hub.

The Gulf region currently hosts approximately 15–20 captive entities — modest compared to Europe and North America. However, Mazaal notes significant change is underway.

The number of captives has recently started to increase, along with the awareness of the sector since COVID-19.

Jaffer Mazaal, General Manager, Braxtone Insurance Management

Regional context

Bahrain’s insurance sector is young — the first policy in the region was issued in 1950. Saudi Arabia maintains the most stringent regional regulations, while the UAE leads in market size. The hard insurance cycle has prompted greater interest in captive solutions among regional buyers.

Bahrain’s advantages

Mazaal points to several competitive strengths: zero tax on captives, a free trade agreement with the US, robust financial infrastructure, and digital government services.

We see Bahrain as Bermuda was, for the region and the world.

Jaffer Mazaal

Future growth

Braxtone operates across its divisions — outsourcing, claims management, advisory services, and insurance brokerage — with plans for continued expansion into Saudi Arabia and Kuwait as regional captive insurance adoption grows.

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