al Kalifa woes continue along with brutal crackdown, Credit Agricole Bahrain headquarters set to shut

Credit Agricole will not be last bank to shut shop in Bahrain
Reuters/Bloomberg/Dubai 15 August, 2011

Credit Agricole Bahrain headquarters which is set to shut down. The French lender’s move is a blow for the one-time regional financial hub of the Arabian Gulf

The consequences of Bahrain’s turbulent spring are mounting.

First, the Formula 1 Grand Prix was cancelled, now Credit Agricole has decided to shift its regional headquarters to Dubai.

The French lender’s move is a blow for the one-time regional financial hub of the Arabian Gulf region. But the Shia led protests earlier this year and subsequent crackdown by Bahrain’s Sunni-ruling minority – with the help of troops from its Arab neighbours – is only one reason why financial institutions are saying bye-bye to Bahrain.
International banks are rushing to cut costs as revenue falls and risk grows. That makes it harder for them to maintain their previous practice of keeping multiple bases in the Middle East – a region that still generates relatively little revenue.

The political instability, combined with a growing presence in Dubai, will have made Credit Agricole’s decision easier. …more