Bahrain is aggressively repositioning its financial sector, making fintech a core driver of investment and economic resilience, according to Sustainable Development Minister and Bahrain Economic Development Board (EDB) chief executive officer Noor Al Khulaif.
The kingdom’s strategy is centred on deploying hyper-personalised digital solutions while championing ESG (Environmental, Social and Governance) principles and financial inclusion.
In a fireside chat with The Economist’s capital markets editor Joshua Roberts at the Fintech Forward 2025 event at Exhibition World Bahrain, Ms Al Khulaif stressed that Bahrain’s regulatory approach is designed to match swift innovation with safety.
“The biggest risk is not moving too fast, but being too slow to address real problems,” Ms Al Khulaif said. “We encourage rapid innovation once a gap is identified, but this must be firmly secured by strong regulation, regular monitoring and cross-border sharing of knowledge to maintain stability.”
She explained this stability is key to transforming the sector into a truly productive economic force that directly addresses evolving consumer needs.
“Our core mission is to transform the fintech sector into a productive part of the economy... This effort is driven by the need for hyper-personalisation in solutions that directly address real-life consumer issues,” she added.
According to the EDB chief, Bahrain’s greatest competitive edge is its people, fostered through a ‘whole of society’ approach to development.
“Human capital is Bahrain’s greatest asset and the cornerstone of our economic strategy,” Ms Al Khulaif affirmed.
“By emphasising our commitment to talent and education in every investment agreement, we are sending a clear signal to international companies: come here to grow with the best people.”
She confirmed this growth is driven by proactive partnerships, visible in initiatives like Bahrain Fintech Bay and the Central Bank of Bahrain’s regulatory sandbox, where regulators and startups partner directly.
Ms Al Khulaif confirmed that the kingdom’s long-term economic diversification now provides a solid shield against global instability.
“Our journey of reform has created a robust, diversified non-oil economy, where no single sector exceeds 20 per cent of our GDP,” she added.
“This agility is why our non-oil sectors grew by 3.5 per cent last quarter, demonstrating our resilience and ability to effectively weather global shocks.”
She concluded that fintech is vital for capitalising on the kingdom’s competitive advantages, making Bahrain the ‘optimal base for fintech growth across the GCC region’
avinash@gdnmedia.bh
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