Reforms Ignite Fintech

Bahrain’s flexible framework drives change

TDT | Manama

Email: mail@newsofbahrain.com

Regulatory agility and fastpaced policy reforms are powering Bahrain’s fintech transformation, Her Excellency Noor bint Ali Al Khulaif , Minister of Sustainable Development and Chief Executive of Economic Development Board (EDB), said, stressing that the Kingdom’s flexible framework is helping new technologies move from concept to operation within months.

Speaking at a press meet at the venue of Fintech Forward 2025 yesterday, the Minister said Bahrain’s lighter touch regulatory environment, led by the Central Bank of Bahrain (CBB), allows startups to test their technologies for up to a year under the national sandbox initiative. “This two-way conversation between innovators and regulators ensures that we stay agile and responsive to market change. When there’s a demand for reform, the ecosystem acts together,” she said, citing how trust law updates were completed within a month following consultation with the private sector.

Bahrain’s model, she noted, ensures that emerging technologies have “a higher chance of success, and that success translates directly into jobs.” The system, which combines innovation with oversight, has helped position Bahrain as a regional leader in fintech governance and talent-driven growth, she explained.

Global Testbed

During the press meet, in which Bader Sater, CEO of Bahrain Fintech Bay, and Dalal Buhejji, Executive Director of Business Development at Bahrain Economic Development Board (EDB), were also present, it was also revealed that Bahrain has been selected by Google to pilot next-generation instant payment technology, targeting the first international transactions by 2026. The project aims to enable near-instant cross-border remittances, a development that could redefine the region’s payment infrastructure.

Bahrain’s accessibility to regulators and decision-makers, coupled with its small but advanced financial ecosystem, made it the ideal testing ground for global fintech players, Bader Sater revealed. Her Excellency the Minister said Bahrain’s century-old banking legacy and highly skilled workforce continue to attract international institutions. The financial sector is now 70 per cent Bahraini, with strong female participation and a growing base of tech-trained professionals. “We’re proud that our people are not only shaping the sector at home but also leading it across the GCC,” she said.

Global banks have recently chosen Bahrain for digital banking and innovation hubs, with one bank alone planning to recruit 1,000 coders over the next decade for its new tech centre, she noted, adding that upskilling programmes led by Tamkeen are ensuring that the local workforce remains competitive in a rapidly evolving sector.

Fintech Growth Sectors

H.E. Al Khulaif said Bahrain continues to expand its financial ecosystem through digital assets, wealth management, and insurtech. The Kingdom remains one of the few global jurisdictions with comprehensive crypto and digital asset regulations. Having all financial verticals under one regulator allows us to move quickly and coordinate sector growth, she said.

AI and Future Focus

Turning to future priorities, H.E. Al Khulaif said Bahrain is already embedding artificial intelligence in education, workforce training, and digital services. The government has issued ethical AI guidelines and launched training programmes targeting 50,000 Bahrainis by 2030. She described artificial intelligence as a major disruptor and said Bahrain is positioning itself to lead regional transformation through early adoption, training, and innovation partnerships. Further, the Minister noted that upcoming events such as Gateway Gulf 2025 in November will expand investment opportunities, including in Islamic fintech, AI, and other emerging technologies.

Bahrain’s fintech story, once experimental, is fast becoming the region’s blueprint for innovation with purpose.