Capital preservation the key in the Middle East, says Ahli United Bank

Drastically low interest rates coupled with high implied volatility in turbulent financial markets have made structuring a product in Bahrain a difficult task. Magda Ali talks to Ahli United Bank's Raghid Mneimne about the feasibility of capturing a secure investment solution

When financial dislocation hit world markets, investors were surprised at the high levels of correlation found in portfolios they thought were broadly diversified. In Bahrain, the country with the widest funds in the Gulf's trillion-dollar market, interest rates rapidly declined and implied volatility sky rocketed.

"Low interest rates give you very little room to manoeuvre when you need to create enough for the option premium," says Raghid Mneimne, group head of wealth management and product