The GCC’s most established financial centre
Acknowledged as the GCC’s financial capital, Bahrain has built a financial services sector comprising 367 local, regional and global institutions.
A regional financial services hub in Bahrain will put you at the centre of a growing concentration of wealth. The regional market is valued at USD 1.67 trillion and Bahrain finance companies are at the heart of the GCC as well as the wider MENA region. Whether you are an international or Bahrain finance company, financial services company, banking company, or exchange company, the Kingdom’s progressive regulatory environment ensures the region’s longest established financial centre remains its most innovative.
The financial industry is the largest non-oil contributor to Bahrain’s real GDP
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17.9%
Sector contribution to GDP (Q3 2021)
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$217.5bn
Banking sector assets (2021)
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$28.76bn
Market capitalisation (2021)
Total cost of doing business in Dubai and Abu Dhabi is observed to be 20 to 30 percent higher than that in Bahrain
(Source: KPMG Cost of Doing Business report FS, 2021)
Job creation
The financial sector total workforce is 13,737 (Bahraini nationals represent 68% of the total workforce).
(Source: Central Bank of Bahrain, 2020)
Central Bank of Bahrain (CBB)
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Regulatory leadership
Setting the framework for the financial services sector in the Kingdom.
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Single regulator
Bahrain’s single source of governance for the entire financial system since 2002.
Islamic Finance
Bahrain is a global leader in Islamic finance and banking, offering FinTech companies and banking institutions deep levels of industry expertise. The Bahrain Islamic Bank and other financial services companies help lead the way in Islamic finance in the GCC and beyond.
Bahrain is 1st in GCC in Islamic Banking & Corporate Governance (2nd Globally) based on based on the Refinitiv Islamic Finance Development report 2021.
FinTech & Payments
Bahrain is also home to MENA’s leading FinTech hub, Bahrain FinTech Bay, which provides a dedicated coworking space, innovation labs, advisory services and more.
The transformation of our FinTech ecosystem has been driven by unmatched regulatory reform, paving the way for emerging industries including robo-advice and crypto-asset platforms. FinTech establishments can expand their industry offerings thanks to the country’s flexible markets, and strong technology infrastructure.
In particular, the CBB has been quick to embrace open banking, providing banks with a sound and ever-evolving regulatory framework to meet the demand for digital payment and credit services. In 2020, the CBB launched FinHub 973, the region’s first cross-border, digital innovation platform that connects and facilitates collaboration between financial institutions and fintechs under the supervision of the central bank.
Who’s Here:
From banking services to FinTech innovators, companies in Bahrain are moving the industry forward. Here are just a few of those whose investment in Bahrain’s finance industry has been instrumental to their success.
Bahrain EDB makes it quick and straightforward to set up and operate in Bahrain for financial services, FinTech, and other financing and exchange institutions. The EDB guides each new or existing entity through the process with crucial information and resources about future business opportunities in Bahrain to help financial services companies thrive and grow.
Additional resources
A compilation of Bahrain finance industry resources is available to download. Discover opportunities in Bahrain whatever your specialism with the financial services industry.
FinHub 973
FinHub 973, launched by the Central Bank of Bahrain (CBB), is the region’s first cross-border, digital innovation platform that connects and facilitates collaboration between financial institutions and fintechs under the supervision of the central bank.
CBB regulatory sandbox
A framework to facilitate FinTech innovations and encourage financial inclusion.
Investment Limited Partnership Law
Bahrain’s Investment Limited Partnership Law introduces new forms of structures and finding mechanisms for companies to benefit from.
Protected Cells Companies Law
Strengthens investors’ rights by separating private assets from the protected cell company and legally regards each cell individually.
Trusts Law
The Trust Law is designed to facilitate estate planning, charitable activities, and financial activities.
Cost of Doing Business Report (Financial Services Sector)
