Central Bank of Bahrain in funds inquiry

The Central Bank of Bahrain is investigating Global Investment HouseGlobal Investment House, a top Kuwaiti investment bank, over transactions the bank had entered into with funds it manages.

Various funds in Global's hedge fund group, some domiciled in Bahrain, entered into at least $25.75m of so-called murabaha transactions - a kind of short-term Islamic debt financing structure - with their parent towards the end of last year, shortly after the bank defaulted, according to documents seen by the Financial Times.

One $9m murabaha contract between Global's Japan Asia Hedge Fund and Global Bahrain, the bank's wholly-owned subsidiary, was dated December 4 and signed by Maha Al-GhunaimMaha Al-Ghunaim, the chairwoman and managing director of Global and Omar El-Quqa, formerly a senior executive and now an adviser to the bank.