As Gulf states compete more aggressively for international capital, Bahrain is betting that its smaller size can be an advantage rather than a limitation. According to Bahrain’s Economic Development Board, the kingdom is not trying to outspend larger neighbors on headline-grabbing deals. Instead, it is sharpening a strategy built around flexibility, specialist sectors, and a regulatory environment designed to appeal to companies looking for alternatives in the region.
H.E. Noor bint Ali Alkhulaif, who leads the EDB and also serves as Bahrain’s Minister of Sustainable Development, said the country is concentrating on five core areas: financial services, manufacturing, logistics, tourism, and information communications technology. Within those sectors, the board is narrowing its attention to the subsectors with the strongest potential and revisiting those priorities as conditions change. Financial services has become especially important, surpassing oil as the largest contributor to real GDP in the third quarter of 2025 and making up 17.6% of GDP in 2025.
That financial push now includes a stronger focus on wealth and asset management, along with efforts to attract family offices from Europe, Asia, and other markets where Bahrain already has established bilateral ties. The EDB has also been promoting the kingdom as an option for firms that may find Dubai crowded, while noting that Bahrain has recently accelerated reforms to trust laws, residency programs, and regulation after studying established wealth centers such as Jersey, Guernsey, Switzerland, and Singapore. Bahrain’s broader appeal rests in part on its long history as a banking hub and its willingness to move early on fintech, open banking, crypto regulation, and stablecoin legislation.
Technology is another pillar of the country’s pitch. Amazon Web Services has become a central partner in Bahrain’s digital development, operating two Cloud Innovation Centres in the kingdom and supporting training in AI and digital skills. Bahrain also remains the only country with a “Data Embassy” law, which allows foreign institutions to keep data hosted in Bahrain under their home jurisdiction. In addition, Bahraini tech group Beyon has an agreement with Oracle that will let customers access Oracle Cloud Infrastructure through local infrastructure without data leaving the country. H.E. Noor said the U.S. is a strategic market for Bahrain and that discussions are ongoing with AWS about expanding its AI presence in the country and the wider region.
Source: fortune.com
