Bahrain's Prime Minister Shaikh Khalifa bin Salman Al Khalifa said the kingdom's economy and financial sectors were sound and stable amid mounting regional and global concerns.

'Bahrain has adopted for decades clear, sound and systematic financial and economic policies,' the Premier said, according to a report in our sister publication, the Gulf Daily News.

'Such policies have always been tailored to meet the requirements of local growth and insulate national economy against potential global economic volatility,' the Premier said.

He was speaking as he assured His Majesty King Hamad at Sakhir Palace on the current economic and financial situation in Bahrain.

Confirming the stability of all Bahrain-based banks and their capacity to withstand global instability, the Premier highlighted the government's crucial role in the ownership of national banks.

The vital governmental support for the financial and banking sectors was also highlighted.

The pledge came as regional bourses tumbled for the fourth day running on Wednesday, but the Saudi bourse rebounded after an international rate cut.

Concerns mounted about the impact of the global crisis on the Gulf, where the seven stock markets in the GCC have lost more than $30 billion (BD11.3 billion) of capitalisation in the latest rout.

That brought their value down to around $770 billion, a loss this week of around $180 billion.

Most regional markets closed before the announcement by the world's major central banks of co-ordinated interest rate cuts.

However, stocks in Saudi Arabia, which was still trading when the cut was announced, rebounded strongly and the key shares index closed just 1.5 per cent down at 6,160.52 points.

In Dubai, shares have lost a quarter of their worth since the trading week began on Sunday. - TradeArabia News Service