As many euro area countries already have high public debt levels, and some have seen their market access threatened, credible fiscal consolidation ensures that debt can be refinanced at affordable rates in the future, and fiscal crises avoided.
This initiative by the CBB is the first of its kind in the Middle East region, aiming to fulfill the insurance needs of major industrial, oil, and service firms that seek to establish their own insurance companies. Bahrain succeeded in 2006 in attracting Tabreed Company as the first captive insurance company, licensed in the GCC.