Bahrain's startup ecosystem generated $1.6 billion in value between July 2023 and December 2025, marking a 759 per cent surge compared to the period covered by a 2021 review, according to a report launched today.
The Global Startup Ecosystem Report (GSER) 2026, released at the VivaTech conference in Paris, placed Bahrain among the top five Middle East and North Africa (Mena) ecosystems in performance, a metric tracking tech startup value from exits and funding.
The report, produced by research firm Startup Genome and the Global Entrepreneurship Network in collaboration with the Labour Fund (Tamkeen), also ranked the kingdom among the top 10 Mena ecosystems for artificial intelligence activity and the top 15 for research and development.
Fintech, blockchain, and digital innovation were identified as the primary drivers of Bahrain's startup growth, supported by regional market access and competitive operating costs.
"Rather than trying to compete on size, Bahrain has focused on precision, building depth in fintech and adjacent technologies where it can lead," said Startup Genome Mena Managing Director Samantha Evans.
Alya Al Aali, deputy chief executive of strategy and insights at Tamkeen, said the country's agile ecosystem allows entrepreneurs to test ideas before expanding regionally.
Tamkeen plans to continue funding initiatives aimed at improving startup access to financing and emerging technologies, she added.
The GSER 2026 report indexes innovation hubs across more than 65 countries to track venture capital flows and policy trends.
This year's edition expanded its AI metrics to include emerging ecosystems, reflecting the technology's accelerating role in global competitiveness, the authors said.
More details in tomorrow's GDN
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