Bahrain Bourse Issues New Investor Relations Guidelines for Mainboard- Listed Companies

4 min 41 sec

Written by

Rad El Treki

Partner, Head of Office - Bahrain

r.eltreki@tamimi.com View LinkedIn Profile

Sabeeha Moolla

S.Moolla@tamimi.com View LinkedIn Profile

The Bahrain Bourse (BHB) has issued new Investor Relations Guidelines (the Guidelines) for companies listed on its Mainboard Market. The Guidelines combine mandatory requirements with non-mandatory recommendations designed to enhance investor communication and disclosure standards. Listed companies are required to comply with all mandatory requirements by 31 March 2028.

The Guidelines provide a structured framework for investor engagement. They aim to promote greater transparency, strengthen shareholder and stakeholder communication, and support alignment with the BHB’s environmental, social and governance (ESG) strategy and sustainability goals.

The Guidelines are intended to operate alongside, and not in substitution for, Sections 4 and 5 of the BHB Listing Rules, which set out existing disclosure and ongoing obligations for listed companies. In this respect, the Guidelines introduce an additional layer of obligations and expectations for investor relations (IR), which will shape listed companies’ IR activities going forward.

Objectives of the Guidelines

The Guidelines seek to elevate the quality and effectiveness of IR across Bahrain’s capital market by pursuing several inter-related objectives. In particular, they aim to:

• promote effective engagement between shareholders, investors, and other stakeholders;
• ensure the timely dissemination of information, in accordance with high standards of transparency and disclosure;
• foster a corporate culture of continuous and meaningful communication with the investment community;
• support future capital-raising initiatives by listed companies; and
• advance alignment with the BHB’s ESG strategy and sustainability g

The Guidelines also seek to:

• improve the consistency and quality of listed companies’ responses to inquiries from investors, shareholders, and analysts;
• support fair market valuation; and
• encourage the establishment of structured communication channels with stakeholders.

Tiered mandatory requirements

The Guidelines adopt a tiered approach to mandatory compliance based on market capitalisation. All Mainboard-listed companies are required to implement the core mandatory requirements by 31 March 2028. Companies with a market capitalisation of BHD 100 million or more will be subject to additional obligations reflecting their broader investor base and heightened market scrutiny.

The BHB will assess market capitalisation annually using the closing share price at year end. Where a company is reclassified following this assessment, it will benefit from a one-year grace period from the date of the BHB’s written notification to comply with the requirements applicable to its new classification. The BHB also reserves the right to review and amend the market capitalisation threshold, with impacted companies similarly afforded a transition period to adjust.

Core requirements for all Mainboard-listed companies

Under the Guidelines, all Mainboard-listed companies must establish a dedicated IR section on their corporate website. This section is intended to serve as a central information hub for shareholders and investors and must, at a minimum, provide access to the company’s:

• news and press releases;
• financial reports;
• governance disclosures;
• other material information relevant to investment decisions;
• real-time or delayed share price information and at least one year of trading history;
• background and corporate structure;
• ordinary and extraordinary general meeting information, dividend policy, and historical investor presentations;
• governance structure, including board of directors and senior management details; and
• contact details for the IR

This requirement largely formalises existing good practice among well-governed issuers but, importantly, now establishes a uniform baseline standard across the Mainboard Market.

Additional requirements for larger issuers

Listed companies with a market capitalisation of BHD 100 million or more are subject to additional mandatory requirements, reflecting the enhanced market scrutiny and broader investor base typically associated with larger issuers.

IR function and officer

Companies must establish an IR function under the direct supervision of senior management, with appropriate segregation of duties, and adequate governance and oversight arrangements.

A designated investor relations officer (IRO) must be appointed who possesses the necessary knowledge and experience to establish and maintain effective communication channels with stakeholders. Notably, the IRO must be certified by the UK Investor Relations Society or the Middle East Investor Relations Association (MEIRA), or hold an equivalent qualification.

Annual earnings call

Companies must hold an annual earnings call after publication of their financial results, and in any event not later than 10 business days following such publication. The company must disclose the earnings call details on the BHB’s website at least five days prior to the call date, including, as a minimum, the date, time, and access details of the earnings call.

Furthermore, the company must publish the presentation and transcript of the earnings call in both Arabic and English on its website and on the BHB’s website as soon as practicable, and in any event no later than 10 business days from the date of the earnings call.

Non-mandatory recommended best practices

In addition to the mandatory requirements, the Guidelines set out a series of non-mandatory recommended best practices. These encourage listed companies to:

• strengthen communication channels with existing shareholders;
• broaden appeal to new and diverse investor segments;
• enhance visibility within the investment community through participation in capital market initiatives and events;
• support sustained analyst coverage of listed securities; and
• actively participate in capital markets roadshows and events.

While these recommendations are not currently binding, they serve as a clear indication of the BHB’s expectations regarding ‘best-in-class’ investor relations. Notably, all meetings with analysts and institutional investors must be conducted in a manner that ensures equal and timely disclosure of material information to the market. These practices may, over time, inform the evolution of binding regulatory standards as the market matures.

Regulatory context and market significance

The issuance of the Guidelines is consistent with the BHB’s broader efforts to develop Bahrain’s capital market ecosystem and align with regional IR initiatives. The BHB has previously collaborated with MEIRA on IR workshops and has contributed to the GCC Exchanges’ Unified Investor Relations Guideline, underscoring a GCC-wide commitment to harmonised IR standards.