Through careful planning and bold regulatory reforms, Bahrain is poised to become a major hub for finance, technology, and innovation, according to a new report by the Milken Institute.
However, it added that Bahrain needs to continue its efforts to overcome challenges and achieve the objectives laid out in the Kingdom’s Vision 2030 strategic plan launched in 2008.
The report, Bahrain and the Fourth Industrial Revolution is authored by Claude Lopez, Milken Institute director of research, together with research analysts Joseph Bendix and Cesar Servin.
“Bahrain has developed a business-friendly environment, regulatory framework, and support system that makes Bahrain an attractive destination for global companies, investors, and entrepreneurs,” said Lopez, citing a six-fold increase in foreign direct investment between 2016 and 2018.
With the skilled population, low cost of living, and continued investment in technology infrastructure, Bahrain is positioned to continue to achieve positive outcomes.
The Milken Institute report points to recent policy changes that increase transparency, protect investors, align with international standards, and modernize access to Bahrain’s capital markets, which have yielded measurable results.
Based on their analysis, the authors also identify several challenges, including the need for startups to grow into larger firms that will create more jobs, access to highly trained labour to satisfy these additional jobs, and assistance for existing firms transitioning to the new digital economy.
The report offers several recommendations, including assisting micro-firms to grow and offer more jobs, facilitating access to international talent and ensuring private-sector wages are competitive.
The report also recommends supporting small local firms with services that can help with the transition to digital.