Bahrain

Members: Tamkeen

Top 10

MENA Ecosystem in Funding

Top 10

MENA Ecosystem in Performance

Top 15

MENA Ecosystem in Knowledge

Bahrain positions itself as a prime destination for startups to ideate, launch, and expand into new markets. Its well-connected ecosystem, robust infrastructure, and highly-skilled tech talent provide a strong foundation for growth

Maha Mofeez

Chief Executive, Tamkeen

Highlights

Bahrain’s startup ecosystem continues to evolve, positioning itself as a leading ideation lab in the region. Its forward-looking regulations, skilled talent, and the innovation-driven environment support startups growth, complemented by a progressive digitally-enabled business landscape and a network of accelerators and investors providing easy access to funding, mentorship, and networking opportunities.

Bahrain leads in regulatory innovation, being the first to implement a Cloud First Policy and advanced Fintech regulations. It continues to introduce new frameworks to drive innovation, including the recently proposed stablecoin issuance regulation. In 2024, Bahrain ranked first globally in Islamic Finance Regulations (ICD-LSEG Islamic Finance Development Report) and ninth globally for business legislation (IMD World Competitiveness Ranking).

Startup funding and support is flourishing in Bahrain. In 2024, the Kingdom launched its largest Private Credit SME Growth Fund to date - $265 million - managed by Bahrain Development Bank. It also saw the launch of its first energy-focused VC, BeVentures. Key startup ecosystem players, such as Tamkeen, Tenmou, and Hope Fund, continued to play a crucial role through startup funding and program development, with financing platform Beban TV raising over $4 million in its third season.

Bahrain’s highly-skilled and tech-savvy workforce remains globally competitive. The Kingdom ranked among the top in tech talent and digital skills in the IMD World Competitiveness Ranking 2024 and WEF Future of Growth Report 2024. Bahraini talent continues to attract both local and global private sector companies, including JP Morgan. This is supported by the strong governmental commitment to fostering and upskilling digital talent, evident with Tamkeen training more than 25,840 Bahrainis in 2024.

Ecosystem by the Numbers

ECOSYSTEM VALUE

(H2 2022 - 2024)

$1.2 BN

GLOBAL AVG. $20.4 bn

NUMBER OF UNICORNS

(ACTIVE UNICORNS)

0

GLOBAL AVG. 4

SOFT. ENGINEER SALARY

(2024)

$66.5 K

GLOBAL AVG. $52 K

TIME TO EXIT

(2020 - 2024)

5 YEARS

GLOBAL AVG. 11.2 years

TOTAL EARLY–STAGE FUNDING

(H2 2022 - 2024)

$109 M

GLOBAL AVG. $514.8 m

MEDIAN SEED ROUND

(H2 2022 - 2024)

$750 K

GLOBAL AVG. $889 k

EARLY-STAGE FUNDING
GROWTH

(2021 - 22 VS. 2023 - 24)

9

Scale of 1 (lowest) to 10 (highest)

EXIT AMOUNT

(2020 - 2024)

$23 M

GLOBAL AVG. $8 bn

ECOSYSTEM VALUE GROWTH

(H2 2020 - H2 2022 VS H2 2022 - H2 2024)

13%

GLOBAL AVG. -14%

MEDIAN SERIES A ROUND

(H2 2022 – 2024)

$16 M

GLOBAL AVG. $6.8 m

TOTAL VC FUNDING

(2020 - 2024)

$409 M

GLOBAL AVG. $5.2 bn

EXIT COUNT (#)

(2020 - 2024)

2

0

2020

2

2021

0

2022

0

2023

0

2024

GLOBAL AVG. 86

Sub-Sector Strengths

Fintech

Bahrain is a Fintech pioneer in the region, supported by an advanced regulatory framework and a robust enabling environment. The Central Bank of Bahrain (CBB) spearheads regulatory adoption, including the early launch of a regulatory sandbox, MENA’s first open banking framework, and one of the GCC’s first-introduced crypto-asset regulations. Recent developments include the Kingdom’s first “Buy Now Pay Later” license granted to Tamara Bahrain, crypto asset licenses issued to Fasset Financial Services and BitOasis, and BENEFIT’s plan for an online insurance marketplace.

Cybersecurity

Cybersecurity innovation is thriving in Bahrain, driven by progressive national initiatives and regulations including the National Cyber Security Centre (NCSC) and CBB regulations. In 2024, several key partnerships formed to strengthen the Kingdom’s cybersecurity landscape, including collaborations between NCSC and Microsoft, GBM and Splunk, and CTM360 and AfricaCERT and ISACA Singapore. Specialized training programs by leading providers such as SANS Institute, BIBF, and Reboot Coding Institute (Reboot01) continue to develop local cybersecurity talent. Bahrain ranked #5 globally in Cybersecurity in the 2024 IMD World Digital Competitiveness Ranking.

AI, Big Data & Analytics

Bahrain’s focus on AI and Big Data is accelerating, with multiple initiatives driving their adoption. The Kingdom is implementing policies, including guidelines for AI procurement, while also fostering innovation through research initiatives, such as the UoB and the Benefit Company AI Lab. AI Training is advancing, with programs such as Bahrain Polytechnic’s AI Academy, and the recently launched MENA Innovation Academy by Bahrain Fintech Bay. AI adoption spans sectors, including education, medicine, and financial services, In 2024, Batelco partnered to develop Bahrain’s first-ever White Space Data Center.

Reasons to Move Your Startup to Bahrain

Ideation Lab

Bahrain thrives as an ideation hub, fostering a growing number of Bahraini-born tech startups expanding to other regional markets, including Tarabut, Lumofy, Calo, and Parcel. The ecosystem offers a range of acceleration and incubation programs, mentorship, co-working spaces, and funding, with regional and global scaleup opportunities supported by Tamkeen and Export Bahrain. Recent developments include the launch of the Riyada Business Acceleration Program, InspireU Accelerator Program, and the expansion of HQ by Hope Ventures.

Connected Ecosystem With Strong Startup Support

Bahrain is a well-connected ecosystem with a wealth of startup funding and support. Key regulatory developments supporting SME growth include CBB requirements for SME financing, the Mahali initiative, and a 10% SME advantage for government tenders. In 2024, Bahrain hosted 130+ startup events, including Startup Bahrain Pitch. Strategic partnerships, such as Startup Bahrain with Brinc and INK Corporate, a subsidiary of Hope Fund, with Tawaref, further support startup scaling. BENEFIT’s acquisition of Fintech Bay offers a systemic framework for collaboration.

Affordable Operations & Good Quality of Life

Bahrain is the ideal central location for access to GCC and MENA markets, offering powerful bilateral relationships and easy movement. Bahrain offers low startup operational costs compared to other countries in the region, attracting startups and established companies from around the world. A recent example is the expansion of Saudi-headquartered payment platform Tamara into Bahrain in 2024. Bahrain ranked 17^th globally for quality of life in the IMD World Talent Ranking 2024.

Selected Startup Organizations

Startup Genome Members

MEMBER

Tamkeen

Tamkeen empowers Bahrainis to become employees of choice and enables the private sector to become the key engine of economic growth. In November 2023, it launched its most extensive program offerings to date which led to setting a historic record in 2024 in supporting over 41,420 Bahrainis for employment and career development, and over 8,700 enterprises for growth and development. A key focus has been ICT training, where Tamkeen facilitated 4,400 training opportunities for Bahrainis in 2024 and more than 7,690 over the past three years.

Key Ecosystem Players

Bahrain Fintech Bay

Bahrain Fintech Bay, a leading MENA Fintech hub recently acquired by BENEFIT, offers incubation, acceleration, and education. It collaborates with stakeholders to develop the ecosystem and support local startups through initiatives such as the recently launched MENA Innovation Academy.

StartUp Bahrain

StartUp Bahrain, the national ecosystem for innovative startups, comprises various stakeholders. It offers a competition boot camp ‘StartUp Bahrain Pitch’ and hosts events for entrepreneurs to network, learn, and pitch their ideas.

Hope Fund

The Hope Fund's investment arm, Hope Ventures, co-invests in scalable Bahraini businesses, while its talent arm, Hope Talents, supports entrepreneurs. Its reality show, “Beban,” has raised over $10 million for youth entrepreneurs through three seasons.

Tenmou

Tenmou, Bahrain's first Business Angels Company, provides mentorship and capital to innovative Bahraini entrepreneurs. In 2023, it achieved five exits, funded 30+ startups, created 200 jobs, and enabled $10 million in follow-up funding.

Al Waha Fund of Funds

Al Waha Fund of Funds is driving the creation of a dynamic Venture Capital community in MENA, supporting fund managers that invest in innovative tech entrepreneurs across the region.

Central Bank of Bahrain

The CBB promotes fintech and innovation through an agile regulatory framework and dedicated fintech division, including a Regulatory Sandbox. Its FinHub973, the region’s first digital innovation platform, connects financial institutions with fintechs under central bank supervision.

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