Page 7 – Invest in Bahrain

HRH the Crown Prince and Prime Minister meets U.S. Secretary of State to sign historic Bahrain-U.S. bilateral agreement

Posted on September 18, 2023September 18, 2023 by edbuser

Washington, Sept. 13 (BNA): His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, today met with U.S. Secretary of State, Antony J. Blinken, at the State Department, as part of his official visit to the United States.

During the meeting, HRH Prince Salman bin Hamad and Secretary Blinken signed a historic bilateral agreement, the Comprehensive Security Integration and Prosperity Agreement, which forms a cornerstone for cooperation not only for Bahrain and the U.S., but also globally as it represents a new architecture for bilateral and multilateral cooperation.

The Comprehensive Security Integration and Prosperity Agreement will enhance Bahrain-U.S. cooperation across a range of areas, from defence and security to emerging technology, trade, and investment.

Secretary Blinken welcomed Bahrain’s role as one of the U.S.’ longest standing and closest partners in the Middle East, as both a non-NATO ally and a Major Security Partner, noting that the agreement will strengthen coordination between both nations’ armed forces and further integrate intelligence capacity to deter and respond to threats as they arise.

The Secretary of State emphasised the agreement’s role in identifying new bilateral investment opportunities, which build on the two nations’ 2006 Free Trade Agreement, which has more than tripled trade and investment to $3 billion per year.

Secretary Blinken noted that the agreement further enhances scientific and technical cooperation and information exchange in areas such as health security and digital technology, adding that the agreement is also the first binding U.S. international agreement of its kind in developing and deploying trusted technologies.

Looking to the future, the Secretary of State also noted that the U.S. and Bahrain look forward to using this agreement as a framework for additional countries that wish to join the U.S. and Bahrain in strengthening regional stability, economic cooperation, and technological innovation.

HRH the Crown Prince and Prime Minister praised the critical importance of the historic bilateral agreement, noting the profound global challenges and choices that are faced between the rise of authoritarianism and libertarianism and the international rules-based order that manifested itself in the early 19th century.

His Royal Highness said this rules-based order was the foundation of freedom of trade, the movement of ideas, and the movement of people all over the world, and that Bahrain and the U.S. are beneficiaries of those common values.

HRH the Crown Prince and Prime Minister welcomed the agreement’s role in focusing not only on security and defence, but also on economic and technological cooperation, and that the signing will be the foundation for a new global architecture given the open-ended nature of the agreement.

His Royal Highness reaffirmed Bahrain’s commitment to further deepening Bahrain-U.S. relations and steadfastly implementing the new Comprehensive Security Integration and Prosperity Agreement.

Source: Bahrain News Agency

Spire Technologies Obtains Open Banking License from Central Bank of Bahrain

Posted on September 18, 2023September 18, 2023 by AliaAlalawi

Spire Technologies has obtained Account Information Service Provider (AISP) and Payment Initiation Service Provider (PISP) licenses from the Central Bank of Bahrain (CBB), authorising it to operate as a fully regulated open banking ancillary service provider in the Kingdom. This milestone approval from the CBB will effectively enable Spire Technologies to expand its offerings, delivering expert financial insights and swift digital solutions to the market with increased operational efficiency, which include the provision of open banking use cases to retail customers and Micro Small and Medium Enterprises (MSME) in addition to open banking enabled services to banks and fintechs.

A graduate from the CBB’s regulatory sandbox, the Bahrain-based open banking fintech is keen to contribute to the growth of the digitally-led national financial ecosystem and expand into the region and is set to launch its open banking solutions to MSMEs across Bahrain. The solutions aims to provide its users with full agency over business cashflows, offering a rich user experience as well as faster, secure account-to-account payments at a competitive cost.

Dalal Buhejji, Executive Director of Financial Services at Bahrain EDB, said: “As of 2022, the financial services sector is the largest contributor to our GDP standing at 17.5%, which forms a major driver to the sustainable economic growth and diversification of the national economy, thereby boosting Bahrain’s international competitiveness on a global playing field. We take pride in witnessing the expansion journey of Spire Technologies, which reiterates Bahrain’s track record of success in giving rise to one success story after another owing to a pioneering pro-innovation regulatory framework and the unwavering support of Team Bahrain operating as a dynamic, collaborative collective, working in step with the private sector.”

Aamir Janjua, Co-founder and Chief Product Officer at Spire Technologies, added, “Open banking has enabled the next generation of fintechs to introduce innovative, personalised, competitive and inclusive financial services to the fintech landscape. We are gratified at how far we’ve come and to be licensed as an ancillary service provider, enabling us to deliver innovative data and payments driven open banking solutions in Bahrain as part of a growing fintech ecosystem. We are thankful to the CBB for their continuous drive to build a robust open banking ecosystem, and to the Bahrain Economic Development Board for their exceptional support throughout our journey.”

With an agile, future-forward regulatory framework, a dependable digital infrastructure, and a recognised history of innovation in the financial services sector which comprises a growing fintech ecosystem, Bahrain is home to a balanced portfolio of leading banks, fintech firms, and financial players cementing its reputation as the ideal destination for businesses to set up and tap into a high growth region. Celebrating over 100 years of banking, Bahrain’s well established financial services sector has secured many firsts for the Middle East and North Africa region driving unmatched regulatory reform, paving the way for emerging industries including robo-advice and crypto-asset platforms.

The CBB has been quick to embrace open banking, providing banks with a sound and ever-evolving regulatory framework to meet the demand for digital payment and credit services, launching pioneering initiatives in the likes of the regulatory sandbox, a virtual space for both CBB-licensed financial institutions and fintech startups to test pilot innovative solutions to effectively scale up their operations from Bahrain and across the region in a safe, regulated space.

For the 5th consecutive Year Bahrain’s Capital City Manama Ranks 1st globally in Financial Attractiveness

Posted on September 12, 2023September 12, 2023 by AliaAlalawi

Manama, the capital of Bahrain has been ranked 1^st globally in Financial Attractiveness on the AIRINC Global 150 Cities Index 2023, which evaluates financial opportunities in achieving the ideal combination of highly-paid salaries, low taxation rates and cost of living, and overall quality of life. Maintaining its position on the acclaimed sub-index for the fifth consecutive year, Bahrain’s capital outperformed several other cities which competed for first position within the top ten rankings, including Zurich (2^nd), Geneva (4^th), Riyadh (5^th), Kuwait (7^th), and Abu Dhabi (8^th).

This achievement is yet another milestone for Bahrain, reminiscent of its ranking 1^st in the Middle East and North Africa (MENA) region in Financial Freedom (7^th globally), and Investment Freedom (8^th globally), on the Heritage Foundation’s 2023 Index of Economic Freedom. Bahrain performed well across key pillars measuring economic freedom affecting investment attractiveness owing to its attractive investment climate and openness to global commerce.

Nada Al Saeed, Chief of Strategy at Bahrain Economic Development Board, said, “This milestone ranking consolidates Bahrain’s position as a globally coveted investment destination. Owing to TeamBahrain’s united front in nurturing a business-friendly environment backed by best-value operating and living costs, the Kingdom provides an ecosystem that encourages growth and prosperity.”

Known for its ease of doing business and highly skilled workforce, Bahrain offers foreign and local investors high-yielding opportunities owing to its competitive operating costs, and unparalleled financial freedom with 100% foreign ownership across most sectors with no free zone restrictions. Beyond offering a favourable tax climate with 0% corporate and income tax as well as no restrictions on repatriation of capital, profits, or dividends; Bahrain has cemented its reputation as a pro-innovation, economically dynamic environment, boasting streamlined business and commercial processes, backed by the Team Bahrain approach where government bodies work closely with businesses and regulators to explore opportunities that nurture optimal conditions for business growth.

Bahrain has taken solid steps towards introducing key initiatives that have contributed to the consistent growth of its investment ecosystem, further enabling businesses to thrive, the latest of which includes the introduction of the Golden License awarded to large-impact investment projects in line with Bahrain’s Economic Recovery Plan (ERP).

Launched in 2021, the ERP aims to sustainably grow and diversify the national economy in order to maintain the country’s standing on an international playing field. The ERP outlines key economic sectors as areas of strategic priority to develop and drive in Foreign Direct Investment (FDI), where the non-oil priority sectors of financial services, information communications and technology (ICT), manufacturing, logistics, and tourism, have demonstrated positive growth.

Bahrain Tops Global Destinations for Expats Living and Working Abroad in 2023

Posted on July 11, 2023July 16, 2023 by AliaAlalawi

Bahrain ranks 1^st Globally for Expat Essential Index
Bahrain ranks 1^st Globally for Low Language Barriers
Bahrain is the only country across the Middle East and North Africa region positioned within the top 10 global rankings

Bahrain secured a milestone earning 1^st place globally on the Expat Essentials Index for the second consecutive year, additionally securing a coveted position within the top 10 best destinations for expats in the 2023 Expat Insider Survey by InterNations. Of the 53 countries surveyed, Bahrain ranks 9^th globally and 1^st in the Middle East and North Africa. Affirming the island nation’s competitiveness as the leading destination of choice for living and working abroad on an international playing field.

The Expat Essentials Index measures the ease of setting up daily lifestyle services when settling abroad, as stated in the 2023 Expat Insider Survey by InterNations report: “Administrative topics are not a reason for concern in Bahrain, nearly nine in ten (86%) say that opening a local bank account is easy (vs. 62% globally). ..59% do not struggle when dealing with bureaucracy and the local authorities (vs. 39% globally).”

Beyond outperforming the global average on the Ease of Settling In Index, Bahrain was recognised for its ease of settling in, despite being unable to speak the local language, in addition to its innovative and creative business culture. Respondents remarked improved career prospects and positive results across the board in terms of the friendliness of the Bahraini society and social life, earning Bahrain 6^th place globally in finding friends.

Nada Al Saeed, Chief of Strategy at Bahrain Economic Development Board, said, “It is rare to find a country that goes a step further than work-life balance. Owing to Bahrain’s 4,000 plus years of legacy as a centre of trade, hospitality is in our DNA. As such, it comes as no surprise that respondents described Bahrain as a welcoming place where one can excel career-wise, easily make friends, and find a sense of belonging within a tolerant and forward-looking community.”

The Chief of Strategy added: “With the rise of international trade, the growth of multinational corporations, and the increasing interconnectedness of the world, today’s global economy demands a diverse workforce. Ranking 1^st globally with a negligible language barrier is a testament to Bahrain’s highly skilled, bi-lingual talent pool, which is backed by a digitally-driven regulatory framework that offers streamlined services essential to expats settling in, earning Bahrain’s position as the destination of choice to work and live in across the region at large.”

Marking its 10^th edition, the annual InterNations Expat Insider survey is one of the world’s largest expat surveys based on data from 12,065 expats representing 171 nationalities, living in 172 countries or territories around the world.

Bahrain Secures a Record USD 1.95 Billion in FDI Inflows in 2022 According to UN Report

Posted on July 6, 2023July 9, 2023 by Fatima Fedaie

A testament to Bahrain’s earned success in emerging as a competitive international player and attracting investment projects in line with the diversification and growth directives as part of the ERP
This milestone achievement in FDI inflows reflects the robust level of local and foreign investor confidence in Bahrain’s value proposition

Securing a new record, Bahrain’s Foreign Direct Investment (FDI) inflows increased by USD 1.95 billion in 2022 while global FDI fell by 12%, according to the latest World Investment Report (WIR 2023) by the United Nations Conference of Trade and Development (UNCTAD).

Commenting on this achievement, H.E. Khalid Humaidan, Chief Executive of Bahrain Economic Development Board, said: “This milestone achievement of almost USD 2 billion in FDI inflows reflects the robust level of investor confidence in Bahrain’s value proposition, encouraging local and international investments that are backed by a highly skilled workforce and best value operating costs serving as a gateway to the region.”

The Chief Executive added: “This record increase in FDI inflows is supported by Team Bahrain’s swift agility in successfully driving in solid investments and securing value-adding projects across priority sectors. I am confident in our ability to maintain a strong pipeline of investments in 2023 and beyond.”

Bahrain has made laudable progress in diversifying its economy, growing opportunities for local and international businesses and maintaining steady investor confidence, as well as consistently increasing the Kingdom’s FDI inflows.

While economic diversification efforts have long been underway in Bahrain, the Economic Recovery Plan (ERP) formed in 2021 embraced a focused development plan with an overarching aim of enhancing Bahrain’s competitiveness on an international level by reprioritising the economy and underscoring strategies across high value sectors.

To ensure the Kingdom remains an attractive destination for investment, Bahrain has recently launched the Golden License as well as continues to maintain an ongoing commitment to streamline commercial procedures on a regulatory front, further boosting Bahrain’s business-friendly environment.

The full version of the UNCTAD World Investment Report 2023 report is accessible at the following website https://unctad.org/publications

Bahrain set to unveil PwC Middle East’s latest regional service centre

Posted on July 5, 2023July 9, 2023 by Fatima Fedaie

The Bahrain-based service centre marks a new milestone for the Kingdom’s financial services sector
The new centre anticipates 250 new job opportunities for Bahrainis

PwC Middle East, is set to establish a new service delivery centre in Manama, Bahrain during the first quarter of 2024. The service centre will offer strategic compliance and advisory services to a wide range of global institutions. In line with PwC Middle East’s objective to expand its market presence regionally, this new centre will strengthen PwC’s global network of 328,000 people working in 152 firms around the world. Located at the heart of the Gulf and providing an accessible gateway into Saudi Arabia, Bahrain is strategically placed to facilitate the regional success of the new service centre.

As a leading global firm, specialising in taxation, legal, deals, assurance (audit) and consultancy services, the new delivery centre will continue supporting its diverse client portfolio, comprising of the public sector, financial institutions, healthcare providers, manufacturers, Telco providers, and more from its Bahrain office.

Leveraging on its established international strategies as an extension of its capabilities from its global network, PwC Middle East anticipates 50 new job opportunities for Bahrainis for the launch, with an overall operational target of 250 for the centre. The regional service centre in Bahrain will be working closely with the other centres in the region, with initial plans already in place to serve the region’s client base.

Hani Ashkar, Middle East Senior Partner at PwC Middle East, said, “Beyond its competitive operating costs and strategic location providing facilitated access to serve the region, Bahrain’s highly talented bi-lingual workforce is an undeniable asset against the backdrop of a growing economy that is witnessing impressive and consistent growth.”

He added: “We are a community of solvers combining human ingenuity, expertise, technology and innovation to deliver sustained outcomes.”

His Excellency Khalid Humaidan, Chief Executive at the Bahrain Economic Development Board, added, “PwC’s decision to establish its regional service centre in Bahrain is a testament to the Kingdom’s thriving financial ecosystem. Over the years, Bahrain has built solid financial foundations that today enable the efficient delivery of established business services. Owing to a world-class infrastructure and a talented workforce that merges local insight with global perspectives, Bahrain continues to create global success stories and support the expansion plans of leading industry players. We look forward to supporting PwC’s latest initiative throughout their investment journey.”

In line with the Economic Recovery Plan (ERP, 2021) which aims to develop Bahrain’s economy with a focus on strategic high-impact sectors, the regional hub is set to emerge as an influential contributor to diversification efforts. Recently overtaking the oil and gas industry as the highest contributor to GDP growth at 17.5% as of 2022, Bahrain’s financial services sector continues to showcase steady growth and is home to a balanced portfolio of leading local, regional, and global financial institutions.

HRH the CP, PM, and Chairman of the Bahrain Economic Development Board chairs the Bahrain EDB Board Meeting

Posted on June 20, 2023June 20, 2023 by Isa Ali

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Prime Minister, and Chairman of the Bahrain Economic Development Board (EDB), today chaired the EDB’s Board of Directors Meeting, at its headquarters in Bahrain Bay.

During the meeting, Bahrain’s economic indicators, the EDB’s milestones in the first six months of 2023, and the SME Development Board Key Performance Indicators were reviewed.

HRH Prince Salman bin Hamad highlighted Team Bahrain’s achievements in furthering economic growth and attracting investments, in support of Bahrain’s Economic Recovery Plan and Economic Vision 2030, led by His Majesty King Hamad bin Isa Al Khalifa.

His Royal Highness noted the role of Bahraini citizens in supporting the Kingdom’s wide-ranging development and in building a prosperous present and brighter future for all.

His Royal Highness emphasised the EDB’s role in attracting direct investments across vital priority sectors and creating quality opportunities for Bahraini citizens. This has helped to position Bahrain as an attractive investment destination, in line with Economic Vision 2030.

His Royal Highness commended existing public-private partnerships and the legislative authority’s cooperation, which helped expand the Kingdom’s economic development.

His Royal Highness underlined national efforts to further economic and investment successes and provide quality opportunities for Bahraini citizens.

For his part, the Chief Executive of Bahrain EDB, HE Khalid Ebrahim Humaidan, presented the EDB’s key achievements noting a USD 1.1 billion direct investment attracted in 2022. As of June 2023, the EDB attracted direct investments of USD 1.1 billion, in line with the Economic Recovery Plan’s goals that aim to attract more than USD 2.5 billion in investments by the end of 2023.

The investments attracted for 2023, stemming from 42 investment projects, are expected to create more than 2,900 jobs for Bahraini citizens over the next three years.

HE Humaidan then reviewed Bahrain’s economic indicators in the non-oil sector, which was the largest contributor to Bahrain’s overall economic growth.

HE Humaidan indicated that the data showed that the Kingdom of Bahrain recorded an average annual nominal GDP growth of 8% over the last 20 years, in comparison to a world average of 5.5% over the same period.

The data also revealed that the sector contributed 17.5% to real GDP, while the oil and gas sector contributed 16.9% and the manufacturing sector contributed 14%.

HE Humaidan also noted positive indicators regarding the Kingdom’s real GDP growth for the rest of 2023.

The Minister of Industry and Commerce, HE Abdulla bin Adel Fakhro, then presented the latest developments of the SME Development Board’s strategic plan and highlighted key performance indicators that demonstrated a 14% growth, corresponding to an increase in the GDB from USD 13.6 billion to USD 15.4 billion of the SME sector between 2021-2022.

HE Fakhro concluded on initiatives adopted to increase SMEs’ contributions to the national economy.

The Deputy Prime Minister, HE Shaikh Khalid bin Abdulla Al Khalifa, the Minister of Finance and National Economy, HE Shaikh Salman bin Khalifa Al Khalifa, several senior officials, and members of the board of directors of the EDB, also attended the meeting.

Bahrain Grants Inaugural Golden Licenses to Five Projects with a Cumulative Investment of Upwards of USD 1.4 Billion

Posted on June 15, 2023June 15, 2023 by Fatima Fedaie

The Kingdom of Bahrain has granted the first five Golden Licenses to projects presented by Citi, Eagle Hills Diyar W.L.L, Infracorp, Saudi Telecommunication Company (stc), and Whampoa Group. With a collective investment of upwards of USD 1.4 billion into Bahrain, the greenfield projects and expansions are expected to create more than 1,400 job opportunities within the next three years in support of the Kingdom’s Economic Recovery Plan goals.

The licenses were presented at the headquarters of each company to Michel Sawaya, Bahrain CEO for Citi; Dr. Maher Al Shaer, Managing Director of Eagle Hills Diyar W.L.L.; Majed AlKhan, CEO of Infracorp; Nezar Banabeela, Chief Executive Officer (CEO) of stc Bahrain; and Shawn Chan, Group CEO of Whampoa Group. and a virtual signing event was organised for Singapore-based Whampoa Group.

The Golden License will enhance Bahrain’s competitiveness for investment, and economic growth, and encourage the digital transformation of Bahrain’s economy. The Golden License targets local and international companies by providing a set of advantages and facilities for investment projects.

Companies eligible to obtain the Golden License must create more than 500 local jobs or make an investment of over USD 50 million in their first years in the Kingdom while contributing to strengthening the Kingdom’s overall development.

In recognition of the Golden licenses’ launch, HE Abdulla Adel Fakhro, Minister of Industry and Commerce, said, “The Golden License is a pivotal step towards successfully achieving the objectives of Bahrain’s Economic Recovery Plan, which aims to attract $2.5 billion in foreign investment by the end of 2023.”
The Minister of Industry and Commerce added, “Bahrain possesses an attractive and flexible investment environment in addition to its advanced legislative system, which contributes to making this country one of the best investment destinations globally.

HE Khalid Humaidan, Chief Executive at the (Bahrain EDB), said, “The Golden License is a successful public-private partnership that has created bespoke solutions for investors and start-up companies. It has provided them with fast-tracked approvals and several features and facilities that have enabled them to secure a global footprint from Bahrain.”

The Chief Executive added, “New investment projects are expected to create over 1,400 new job opportunities across Bahrain’s financial services, tourism, and ICT sectors, cementing Bahrain’s position on an international playing field.”

A number of senior officials also attended the ceremonies.

Bahrain Ranks 2nd in The Arab World& 34th Globally as ‘Most Improving Country in GCC’ on the World Bank’s Logistics Performance Index 2023

Posted on May 24, 2023May 24, 2023 by Isa Ali

Bahrain cemented new rankings on the Logistics Performance Index 2023 published by World Bank as the ‘Most Improving Country in the GCC’, ranking 2nd in the Arab World, and 34th globally, climbing 25 positions since 2018. Owing to the milestone projects and initiatives delivered within the logistics sector across the past year, the Kingdom advanced 58 positions on the ‘Timeliness Subindex’ to reach 2nd in MENA (10th globally) in view of the least aviation import dwell time on average. Moreover, Bahrain ranked 1st in the GCC in terms of minimal number of delay observations in import and exports.

The World Bank report offers a comprehensive review of the trade logistics performance, collecting data from May to October 2022 across 139 countries, using six components assessing namely efficiency of customs clearance, quality of trade & transport infrastructure, ease of arranging competitively priced international shipments, quality of logistics services, the ability to track consignments, and timeliness.

Commenting on the occasion, Ahmed Sultan, Executive Director of Business Development of Manufacturing, Transport, and Logistics at the Bahrain Economic Development Board, said: “Bahrain’s high ranking and favourable performance was earned in view of its robust supply chain and advanced logistics infrastructure. Bahrain serves as a gateway to the Gulf, with unparalleled access to MENA and beyond, where companies can benefit from Free Trade Agreements covering 22 countries offering privileged, duty-free access to 30% of the world’s GDP.”

“In line with the Economic Recovery Plan, this milestone ranking is a step in the right direction in achieving the targets outlined in the Logistics Services Sector Strategy which seeks to secure the Kingdom’s position among the leading global logistics services hubs.”

The logistics sector is a priority sector under the Kingdom’s Economic Recovery Plan, which aims to position Bahrain as one of the top 20 global destinations for logistics services and increase the sector’s GDP contribution in 2030 to be 10%. Launched in November 2021, the key pillars under the four-year Logistics Services Sector Strategy’s (2022-26) are backed by strategic initiatives, which focus on reviewing laws and regulations, developing infrastructure facilities, enhancing policies and procedures, providing incentives for investors, and promoting investment opportunities, all while strengthening regional and international engagement.

Bahrain Welcomes Singapore’s Whampoa Group’s New Digital Bank Initiative

Posted on May 18, 2023May 22, 2023 by AliaAlalawi

The Bahrain Economic Development Board (Bahrain EDB) announced that Singapore-based Whampoa Group has selected Bahrain to be the headquarters of its new digital bank. With an intended launch date of end of 2023, the digital bank aims to provide secure and integrated financial solutions to serve institutions, innovators, and sophisticated investors globally, including digital banking services and the trading, custody, and asset management of digital assets; with the ultimate objective of supporting the growing adoption of digital assets worldwide.

Khalid Humaidan, Chief Executive of the Bahrain Economic Development Board, said: “We are delighted that Whampoa Group intends to set up the headquarters of their new digital bank in Bahrain as they would benefit from Bahrain’s pro-innovation environment and forward-looking regulatory framework. The establishment of these types of institutions are vital to further strengthen the existing digital assets industry and this milestone opportunity directly aligns with Bahrain’s Economic Recovery Plan, which prioritises digitisation across the financial services sector.”

Shawn Chan, Group Chief Executive Officer of Whampoa Group, expressed his excitement to launch the bank in the Kingdom of Bahrain, commenting: “We were impressed by Bahrain’s solid reputation in the financial services sector, transparent regulatory framework, and ongoing pledge to collaborate and innovate. We are committed to providing secure and innovative digital financial solutions in line with global best practices and are confident that our digital bank will set a new benchmark for the industry. Whampoa is grateful for the support from the Bahrain EDB and the broader Team Bahrain ecosystem throughout the entire process.”

Bahrain, a pioneering hub for digital asset regulation among Gulf Cooperation Council (GCC) countries, was among the first to issue crypto-asset licenses in the region, cementing itself as a leading hub for crypto services and fintech innovations in the region. The Kingdom’s well-established financial services and innovation hub, fast-growing diversified economy, and strategic location at the heart of the Arabian Gulf make it an ideal destination for the new digital bank. Bahrain’s financial services sector, which contributes 17.5% to the GDP, remains the highest contributor to the economy, surpassing oil and actively supporting economic diversification.

Mr. Chan added that the long-term outlook for digital assets remains bright as blockchain and other Web 3.0 technologies continue to drive the next evolution of the internet.
He noted that a World Economic Forum survey showed that 58% of 800 respondents expected up to 10% of global GDP would be stored and transacted via distributed ledger technology by 2027, and that the global tokenised market would potentially be worth as much as US$24 trillion by 2027. The number of crypto users, estimated currently at 320 million, is also slated to grow to as many as one billion by 2030, with 75% of merchants expected to accept cryptocurrency payments within the next two years.