BNP Paribas, a European banking and financial group specialised in corporate, private and retail banking, has selected Bahrain as its regional headquarters, its chief of operations George Chaudron said.

The decision was based on the kingdom's sound banking system, based on legal rules and investor-friendly legislation in addition to being a centre for the development of systems, laws, studies and research, he noted.

This is in addition to its broad experience in Islamic banking, the availability of a strong control system and the flexibility of the regulations governing the issuance of licences, he added.

Chaudron said the bank was constantly reinforcing its economic position in the Gulf region, currently witnessing an unprecedented boom, which made it one of the most important markets for BNP Paribas.

The Gulf market enjoys huge financial capabilities and fast-paced openness on other markets, which increased the number of operating investment companies there, which according to studies will increase by 25 per cent in 2010, he said.

BNP Paribas will consolidate its presence in the Gulf region through its Manama-based branch, he said, pointing out that the bank ranked best in concluding loan agreements in the Gulf region by finalising 27 loans worth $15 billion by the end of last year.

He said that the bank had set up a special strategy for the most vibrant markets of the Red Sea, Middle East, America, China and Brazil to consolidate its investments outside France and Europe.