Bahrain startup ecosystem soars

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain’s startup ecosystem has demonstrated robust growth, with its value reaching an impressive $1.2 billion, marking a 13% compound annual growth compared to 2023, according to the 2025 Global Startup Ecosystem Report (GSER) released yesterday by Startup Genome in partnership with the Global Entrepreneurship Network at VivaTech. The report highlights the Kingdom’s strong performance across several key metrics.

MENA Region Recognition

The GSER 2025 features Bahrain prominently, ranking it among the Top 10 MENA Ecosystems in both Funding, which assesses early-stage funding and investor activity, and Performance, which measures value created from exits and funding. The Kingdom also secured positions in the Top 15 MENA Ecosystems for Knowledge, reflecting its expertise and innovation.

Strategic Partnerships Fueling Growth

Startup Genome, the Global Entrepreneurship Network, and The Labour Fund (Tamkeen) have collaborated closely over recent years to monitor and benchmark Bahrain’s startup ecosystem. This partnership aims to identify challenges and opportunities, informing strategic development plans to further foster ecosystem growth.

Official Insights

“ Bahrain possesses a well-connected ecosystem, robust infrastructure, and highly skilled tech talent that provide a strong foundation for growth,” stated Alya Alaali, Chief Strategy & Data Analytics Officer at The Labour Fund (Tamkeen). She affirmed Tamkeen’s commitment to “foster innovation by enabling skill development and providing access to funding for entrepreneurs through various programs and initiatives.”

Samantha Evans, Managing Director MENA, Startup Genome, echoed this sentiment, noting that “Bahrain’s consistent performance reflects a growing maturity and strategic focus on sectors like AI, Fintech, and Cybersecurity.” She added that Tamkeen’s role remains “pivotal - anchoring a supportive, entrepreneur-friendly environment that continues to strengthen Bahrain’s innovation landscape and long-term competitiveness.”

Key Sector Strengths

Fintech, Cybersecurity, and AI were identified as crucial drivers for startup growth in Bahrain, underpinned by proactive regulation and targeted training programs. In 2024, the country advanced open banking and crypto licensing, and launched new infrastructure and education initiatives specifically to scale AI-driven innovation.

Attractive Destination for Startups

The report also highlighted Bahrain’s appeal as a destination for startup expansion. The Kingdom offers a compelling entry point into the GCC and broader MENA markets, combining regional accessibility with comparatively low operational costs for startups. The ecosystem benefits from targeted SME policies, active accelerators, and a steady stream of new initiatives, including over 130 startup events in 2024 and recent expansions by regional tech players such as Tamara.