Bahrain's offshore investment houses raked in the money during a five-year long oil boom, but the impact of the global financial crisis on the Gulf Arab region has swept away a business model that relied on fees from raising money for property and private equity projects.
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WHAT HAPPENED?
Dubai's real estate bubble burst late in 2008, with prices falling sharply in the Emirate and at least capping growth in other markets in the region, including Bahrain.
As oil prices dwindled, investors held on to their money for much of 2009, leading to the collapse of the regional placement market for property and real estate projects.
The lack of corporate transparency in the region, highlighted by debt woes at Saudi groups Saad [SAADG.UL] and Ahmad Hamad Algosaibi & Bros (AHAB) that surfaced in May, has worried investors.
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