, requires the adoption of strong corporate governance practices, and the standards developed both by aaoifi and by the islamic financial services board, are vital components of the solution. to conclude, although the islamic financial services industry has been insulated to - date from the effects of the global financial crisis, there are many lessons that shari ’ a compliant institutions can learn. the global financial crisis has been a reminder of the importance of risk diversification, of good liquidity management, and sound corporate governance. these are all lessons which the islamic financial industry needs to bear in mind if it is to continue to enjoy the framework for stability that is essential for its future prosperity.

rasheed mohammed al maraj : toward a more integrated arab insurance market address by his excellency rasheed mohammed al maraj, governor of the central bank of bahrain, at the general arab insurance federation general conference 2008, manama, 26 february 2008. * * * your highness sheikh khalifa bin salman al khalifa, the prime minister, your excellencies, ladies and gentlemen i am pleased to welcome your highness to the opening session of the 27th general arab insurance federation conference. i am also honored to express my most sincere thanks and appreciation to your highness for the kind patronage of this important event. the care and attention which your highness granted to the financial sector in the kingdom of bahrain, has always reflected the pioneering role and relentless efforts exerted by your highness in the further development of this vital sector, as one of the key segments of the national economy. please accept our heartily thanks for the blessed efforts of your highness, as we have always opted for your guidance and support to further develop the financial sector in the kingdom of bahrain. i also welcome the participants and guests wishing them a pleasant stay in bahrain, and success in their endeavors. it goes without doubt that the presence of this large number of distinguished arab and foreign insurance companies shall give this conference a new positive dimension, and constitutes a qualitative leap in exploring the best methods to develop the arab insurance businesses, in order to cope with the immense developments observed by arab economies. i also wish to extend my thanks and appreciation to the organizers for their excellent preparations of this vitally important conference, which is truly one of the significant regional and international activities in which over 1000 leading elite participants are taking part. ladies and gentlemen, today ’ s conference is being held under the title “ toward a more integrated arab insurance market ”. the agenda reflects topics important to all industry players and the cbb. the development of the insurance industry in bahrain has continued its growth in line with the cbb ’ s strategic objectives. the financial services sector in bahrain accounts for 27 % of the country ’ s gdp. following the assumption of the supervisory and regulatory responsibilities for the insurance sector in august 2002, the central bank of bahrain viewed this as an opportunity to undertake several initiatives, aimed a creating a qualitative regulatory framework for the further development of the insurance sector. the cbb issued directives and regulations in line with international standards as promulgated by the international association of insurance supervisors ( iais ) while at the same time keeping in mind recognized international insurance