By Faisal Al-Darazi ~
At the center of the Gulf, Bahrain is sparking a low-key revolution in tech startups. From being a small player in the digital economy, it is becoming one of the most dynamic and innovation-focused startup ecosystems in the region—owing to assertive regulatory reform, young-people-led drive, and an evolving ecosystem of fintechs, incubators, and venture capital firms.
Today, the Kingdom’s capital, Manama, is overflowing with co-working offices abuzz with startup entrepreneurs coding for mobile applications, pitching investors, and launching concepts to transform everything from electronic payments to online schooling. Leading the way here is Bahrain’s focus on empowering business: one of the most effective ease of doing business champions in the region, the nation has become a magnet for Gulf tech startups.
Bahrain FinTech Bay, the leading innovation center in the region, has become the incubator of hundreds of early-stage startups. “We have a compact but nimble ecosystem,” says FinTech Bay CEO Khalid Dannish. “That allows founders to experiment, iterate, and scale rapidly.”
Firms like Rain, the first licensed crypto exchange in the region, and Tarabut Gateway, the region’s first and largest regulated open banking platform, are testaments to Bahrain as a digital finance incubator. They have each drawn tens of millions in foreign capital and regional partnerships, making Bahrain a regulation leader and fintech champion.
Supported by this initiative is Tamkeen, Bahrain’s labor fund, which has continued providing specialized assistance to young entrepreneurs—offering funding, mentorship, and capacity building that has generated hundreds of new start-ups and employment in the tech sector.
“We’re creating not only startups, but an innovation mindset,” says Reem Al-Sharqi, a 27-year-old business owner who started an AI-powered HR platform from a garage in Manama. “Bahrain provided me with the tools, the liberty, and market access I required.”
This cooperative tendency is transborder in nature. Bahrain is also seriously developing regional partnerships, engaging in Gulf-wide digital transformation councils, and trying to entice international technology investors to capitalize on its highly connected digital infrastructure—bolstered by national 5G coverage, a solid cloud-first government initiative, and forward-looking data protection legislations.
As the Gulf transitions towards a knowledge-based economy, Bahrain’s startup sector is emerging as the pride of the region as a model of what can be achieved when policy, youth, and innovation cross. No longer is the nation’s vision one of catching up, but of front-running.
Sources:
