Bahrain’s Thriving Fintech Industry

Government Initiatives Drive Growth

The fintech industry in Bahrain has witnessed significant growth due to government initiatives and regulatory frameworks that support innovation. The Central Bank of Bahrain (CBB) plays a crucial role in this development, with several key measures in place to promote fintech.

Key Developments in Fintech Regulation

• Fintech and Innovation Unit: The CBB has established a dedicated unit to regulate and supervise the development of financial technology.
• Regulatory Sandbox: In 2017, the CBB launched its first regulatory sandbox, allowing fintech companies to test their products and services in a controlled environment.
• FinHub 973: The CBB also introduced FinHub 973, a platform for cross-border digital innovation that facilitates collaboration between international financial institutions.

Open Banking and Digital Currencies Gain Traction

Bahrain has been at the forefront of open banking adoption, with the launch of the Bahrain Open Banking Framework in 2020. Additionally, the CBB has partnered with JP Morgan ONYX and Bank ABC to launch a settlement pilot for digital currencies in May 2021.

Priority Focus on Fintech

The government has identified fintech as one of its top priority areas in the Financial Services Development Strategy 2022-26. The strategy aims to increase digitalization within finance, enhance access to fintech solutions among small and medium-sized enterprises (SMEs), and drive economic growth.

Notable Players in Bahrain’s Fintech Scene

Several leading fintech outfits have found success in Bahrain, including:

• Rain: A licensed cryptocurrency exchange that raised $110m in Series-B funding in January 2022.
• Aion Digital: Sinnad: Eazy Financial Services
• Infinios