Bahrain Feature: Problems for the Financial Sector? (French)

Bahraini financial firms face a tough task raising funding in 2012, as political tensions from last year's Arab Spring unrest fester and real estate investments show no sign of paying off.

Analysts say one option for banks in the tiny island kingdom is to look to neighbour Saudi Arabia, but getting a hearing is often a challenge because lenders there have enough local business on their hands.

The violent protests against Bahrain's rulers rattled Western banks operating there and equally importantly dealt a body blow to real estate prices, leading to impairments at Islamic banks in particular.

"Bahrain is a ghost town right now," said one Dubai-based banker who makes frequent trips to the island, speaking on condition on anonymity.

Click to read more ...