Bahrain has spent the past decade quietly but deliberately building the foundations of a competitive digital economy. Today, the Kingdom is accelerating that momentum, placing technology and digital transformation at the centre of its national vision to become a leading regional hub for investment, innovation and high-value industries.
“Technology is not viewed as a standalone sector in Bahrain, but as a key enabler of growth across all priority industries,” said Musab Abdullah, executive director of ICT at the Bahrain Economic Development Board (Bahrain EDB). “Digitalisation has long been a national priority, supported by progressive regulation, strong infrastructure and forward-looking policies.”
That approach has already attracted global technology players. Bahrain was the first country in the Middle East to host a hyperscale cloud region, with Amazon Web Services (AWS) launching its datacentre in 2018 underpinned by the Kingdom’s Cloud-First Policy and modern data regulations.
More recently, Oracle expanded its presence through a partnership with Beyon Solutions and the Information and eGovernment Authority to establish Bahrain’s first sovereign hypercloud.
“These investments underscore Bahrain’s role as a trusted and secure hub for global technology companies,” said Abdullah.
The impact of digital adoption is particularly visible in financial services. Early fintech regulation and innovation have helped transform the sector into the Kingdom’s largest contributor to GDP, overtaking oil in 2022.
“This milestone demonstrates Bahrain’s ability to harness advanced technologies to drive diversification and create scalable opportunities for international firms,” he said.
Strong digital infrastructure underpins this ambition. Bahrain was the first Middle East and North Africa (MENA) country to achieve nationwide 5G coverage and today boasts one of the world’s highest internet penetration rates, with connectivity reaching 100% of the population. The Kingdom is also investing heavily in international subsea cable systems.
“This level of connectivity ensures hyperscalers, fintech firms and data-driven industries benefit from fast, stable and secure access to global markets,” Abdullah said, reinforcing Bahrain’s role as a regional digital gateway.
Beyond infrastructure, Bahrain EDB is working with public and private partners to strengthen the wider digital ecosystem across fintech, smart cities and industrial technology. Through the “Team Bahrain” approach, investors are connected directly to regulators and decision-makers, helping to streamline market entry and growth.
“Bahrain’s size and agility are advantages. They allow us to move quickly, adopt forward-looking policies and serve as a launchpad for innovation across the region”
Musab Abdullah, Bahrain EDB
In fintech, the Central Bank of Bahrain has introduced comprehensive regulatory frameworks covering open banking, crypto assets, stablecoins, robo-advisory and sustainable finance. “This progressive environment has attracted global players such as Binance and Crypto.com, consolidating Bahrain’s position as a regional fintech leader,” said Abdullah.
Bahrain Fintech Bay continues to support innovation through accelerators and industry programmes, including a recent collaboration with Google on instant payments using cloud-based ledger technology.
Industrial technology is also gaining momentum. National initiatives such as iFactories are supporting the shift to Industry 4.0, while companies including Bapco Energies and Racing Force are deploying advanced digital and engineering technologies from Bahrain to serve global markets.
Startups and scaleups form another pillar of the strategy. Bahrain combines low operating costs, access to talent and funding, and progressive regulation. “According to KPMG, Bahrain offers an annual cost advantage of up to 28% for ICT companies compared to other GCC [Gulf Cooperation Council] markets,” Abdullah noted.
Regulatory sandboxes run by the Central Bank of Bahrain and the Telecommunications Regulatory Authority allow firms to test and refine new technologies in a controlled environment, accelerating innovation while managing risk.
Talent development remains central. Through Tamkeen, Bahrain’s Labour Fund, the Kingdom is investing heavily in upskilling, including a National AI Upskilling Programme targeting 50,000 Bahrainis by 2030. “Human capital development is critical to ensuring Bahrain remains agile, competitive and future-ready,” said Abdullah.
Looking ahead, artificial intelligence (AI) is expected to be the defining force shaping Bahrain’s technology landscape over the next five years. AI-driven cloud infrastructure, datacentres, smart manufacturing and AI-enabled education are all set to expand, alongside growth in creative digital sectors such as gaming and immersive media.
“Bahrain’s size and agility are advantages,” said Abdullah. “They allow us to move quickly, adopt forward-looking policies and serve as a launchpad for innovation across the region.”
By combining infrastructure, regulation, talent and global partnerships, Bahrain is positioning itself not just as a consumer of technology, but as a place where digital innovation is developed, tested and scaled for regional and international markets.