Digital Economy

Bahrain’s Digital Economy

Are you ready to embrace Bahrain’s digital future? Discover how the Kingdom of Bahrain’s comprehensive digital transformation strategy, robust regulatory frameworks, and advanced infrastructure development are shaping the new digital economy. Bahrain is committed to fostering a sustainable, inclusive digital landscape that empowers communities and drives economic growth.

Bahrain's Digital Economy: Shaping a New Economic Era

The Kingdom of Bahrain is steadfastly progressing towards being a frontrunner in the digital economy of the Middle East. In this journey, the Bahraini government has initiated several key projects and strategies, specifically focusing on enhancing the digital sector. These efforts include establishing a robust regulatory framework, developing state-of-the-art infrastructure, and nurturing a skilled workforce.

Bahrain's strategy focuses on setting comprehensive regulations that encompass personal data protection, eTransaction laws and FinTech policies. These regulations form a solid bedrock for the Kingdom's burgeoning digital economy. Therefore, Bahrain's Digital Economy strategy, a pioneering initiative under the Economic Recovery Plan and part of the ICT strategy, is the first pioneering strategy that encompasses digitization in the public and private sectors focusing on key development areas such as Financial Services, Transport & Logistics, Oil & Gas, Training, Healthcare, and Industrial sector.

Bahrain's commitment to digital advancement is evident in its impressive rankings in various global indices. The country was lauded as the 4th in the Arab Digital Economy Report and 3rd among Arab states in the 2021 “Heritage” index for economic freedom, ranking 40th globally. Moreover, Bahrain leads in financial technology (FinTech) in the region and stands 25th globally in the World Competitiveness Ranking by the Institute for Management Development (IMD).

Bahrain aspires to be a regional leader in the digital economy, as it has launched many initiatives and projects aimed at supporting the growth of the digital sector, in line with the Bahrain Economic Vision 2030. Those efforts seek to consolidate Bahrain's standing in the development of digital infrastructure and as a regional hub for digital innovation and artificial intelligence (AI), as well as for developing cybersecurity skills and standards, in line with the Telecommunications, Information Technology, and Digital Economy Strategy (2022-2026).

Furthermore, Bahrain’s achievements in technological development and telecommunications are noteworthy. The kingdom ranked seventh globally and third regionally in the Information and Communications Technology Development Index (IDI) of 2023, becoming one of the top ten countries globally in the index issued by the International Telecommunication Union (ITU).

These recognitions reflect the success of Bahrain’s digital transformation strategy. Government initiatives have cultivated a business-friendly environment, drawing foreign investment and talent, thereby establishing Bahrain as a centre for digital innovation and enterprise.

Looking ahead, Bahrain's digital economy is poised for further growth, fueled by emerging trends such as the expansion of eCommerce, the integration of artificial intelligence, and the increasing prominence of FinTech.

With its solid foundations and proactive government policies, Bahrain is uniquely positioned to leverage these trends and continue its ascent in the digital economy, aiming not just for regional leadership but also for a significant global presence.