Nine fintech firms have invested a total of $72.7 million (BD27.5m) in Bahrain during the first nine months of 2022, according to the Economic Development Board, the national investment promotion agency.
They include the launch of binance.bh, home-grown open banking firm Spier Technologies making its debut, and Gulf Insurance Group (GIG) choosing to set up its new regional headquarters in the kingdom.
The nine projects comprise new ventures and expansion of existing players with the investments expected to generate over 840 jobs over the next three years.
Global blockchain services provider Binance announced last week that binance.bh is a new and fully regulated platform where users can access its full range of products and services – including direct deposits and withdrawals – in local currencies.
In September, the Mena region’s first fintech venture studio that plans to co-found startups and streamline fundraising was set up in the kingdom.
Resulting from a collaboration between Al Waha Fund of Funds and international investment firm Hambro Perks, HP Spring Studios aims to be an active member of the local fintech ecosystem, investing, developing talent, participating in events, and promoting Bahrain as an investment destination.
Announcing the EDB’s participation in the Singapore Fintech Festival from tomorrow to Friday, financial services business development executive director Dalal Buhejji said yesterday it was aimed at supporting fintech and financial services companies tap into the Mena market through Bahrain.
“We are delighted to see more and more investors entering Bahrain’s financial services sector, benefiting from a strong and agile ecosystem led by a forward-thinking regulatory body. Financial services is a priority sector for us to grow investments and create jobs, in line with the objectives set out in the Economic Recovery Plan,” she added.
Bahrain’s financial services sector is the most significant contributor to the kingdom’s GDP after oil and is the oldest and most established in the region.
Today the sector accounts for over 17 per cent of the national GDP and employs over 13,600, with Bahrainis representing almost 70pc.
Through the Economic Recovery Plan, the kingdom aims to grow the financial services sector’s contribution to GDP to 20pc by 2026.
The financial services sector development strategy focuses on five main priorities: creating job opportunities, developing capital markets, strengthening legislation and regulatory policies, growing the insurance sector, and developing financial services and fintech.
Overall, the EDB attracted $921m (BD348m) in direct investment from 66 companies during the first nine months of the year.
The investments are expected to generate over 4,700 jobs over the next three years in key sectors, including financial services, ICT, logistics, manufacturing, and tourism.
avinash@gdnmedia.bh
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