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Bahrain's startup ecosystem has seen its value grow by 13 per cent compounded annually to reach $1.2 billion, according to the 2025 Global Startup Ecosystem Report (GSER) released yesterday by Startup Genome in partnership with the Global Entrepreneurship Network at VivaTech in Paris.
The report highlighted Bahrain’s strong performance, ranking it among the top 10 Mena ecosystems for both ‘Funding’ (encompassing early-stage funding and investor activity) and ‘Performance’ (measuring value created from exits and funding).
The kingdom also secured a spot in the top 15 Mena ecosystems for ‘Knowledge’.
The Labour Fund (Tamkeen) has collaborated with Startup Genome to monitor Bahrain’s startup growth, identifying opportunities for strategic development.
“Bahrain possesses a well-connected ecosystem, robust infrastructure, and highly skilled tech talent that provide a strong foundation for growth,” said Tamkeen chief strategy and data analytics officer Alya Alaali.
“We remain committed to foster innovation by enabling skill development and providing access to funding for entrepreneurs.”
Startup Genome Mena managing director Samantha Evans added that Bahrain’s consistent performance reflects a growing maturity and strategic focus on key sectors.
“The ecosystem offers startups a cost-effective, high-quality launchpad for early-stage innovation, underpinned by strong connectivity and accessibility. Tamkeen’s role remains pivotal,” she said.
Fintech, cybersecurity, and AI are highlighted as key strengths, bolstered by proactive regulation and targetted training. Bahrain has advanced open banking and crypto licensing, alongside new infrastructure and education initiatives for AI-driven innovation.
The report further noted Bahrain’s appeal as a startup destination, offering a compelling entry point into the GCC and wider Mena markets with low operational costs. The ecosystem benefits from targeted SME policies, active accelerators, and initiatives like the 130+ startup events held in 2024.
Bahrain’s robust support for startups includes its pioneering regulatory approach, such as the ‘Cloud First Policy’ and advanced fintech frameworks.
It was the first in the region to implement a regulatory sandbox and open banking, and continues to innovate with proposed stablecoin issuance regulations. In 2024, Bahrain ranked first globally in Islamic finance regulations and ninth worldwide for business legislation.
Startup funding remains strong, with Bahrain launching its largest private credit SME growth fund to date – a $265 million fund – managed by Bahrain Development Bank. The kingdom also saw the debut of BeVentures, its first energy-focused venture capital firm. Key players like Tamkeen, Tenmou, and Hope Fund actively provide funding, with financing platform Beban TV raising over $4m in its third season.
Bahrain’s highly skilled, tech-savvy workforce is globally competitive, attracting both local and international companies, including JP Morgan. This is supported by government initiatives like Tamkeen’s training of over 25,840 Bahrainis in 2024. The kingdom ranked 17th globally for quality of life in 2024.
The 2025 Global Startup Ecosystem Report (GSER) offers in-depth analysis of global and regional startup ecosystems, highlighting key trends, investment patterns, and policy strategies.
Based on more than a decade of research and contributions from 65+ countries, the report ranks the Top 40 global and Top 100 emerging ecosystems, providing data-driven insights and practical guidance for policymakers, ecosystem leaders, and founders to support startup growth and economic development.
Widely regarded as the world’s most comprehensive research on startup ecosystems, the GSER leverages the largest quality-controlled dataset in the industry, analysing data from over 5m companies across 350+ entrepreneurial innovation ecosystems worldwide.
avinash@gdnmedia.bh
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