Bahrain ‘most cost-competitive in GCC for financial tech hubs’
Bahrain has been ranked the most cost-competitive location in the GCC for operating financial services firms with tech hubs, boasting a 48 per cent cost advantage.
The finding comes from the ‘Cost of Doing Business in the GCC’ report for the financial services sector, published by EY’s United States office.
The comprehensive study analysed direct and indirect annual operating costs, including office space, talent acquisition, business setup fees, taxes, and visa/work authorisation expenses across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
This in-depth analysis underscores the growing importance of technology and innovation within the GCC’s financial services industry.
Al Mudaifa
Commenting on the findings, Bahrain Economic Development Board (Bahrain EDB) business development chief Ali Al Mudaifa said, “In today’s digital economy, establishing robust tech hubs is essential for financial services firms to innovate, compete and stay ahead. Bahrain is positioning itself as a regional leader in this space, offering a supportive environment that combines cost-efficiency, cutting-edge infrastructure, and a forward-looking regulatory framework.”
He added that Bahrain’s financial sector not only provides cost advantages but also creates opportunities for sustainable growth and technological leadership across the GCC.
The island nation is rapidly becoming a regional hub for financial services firms seeking to establish global operations due to significant operational savings.
According to the EY report, annual labour costs for a financial services tech hub in Bahrain are up to 24pc more competitive than other GCC countries. Businesses can also save 85pc on annual business and licensing fees and enjoy 60pc better value for office space rental. Bahrain’s financial services are regulated by the Central Bank of Bahrain, offering a simplified, streamlined process and a category-based licensing procedure that provides flexibility for various activities.
Andrew Phillips, partner/principal and co-leader of quantitative economics and statistics (QUEST) at EY, added: “Tech hubs are the heartbeat of modern financial services, enabling firms to develop innovative solutions, attract top talent, and expand their digital capabilities. Bahrain’s competitive costs provide an advantageous business climate for financial services innovation, allowing tech hubs to direct financial resources towards innovation rather than basic operating expenses.”
Bahrain’s strong reputation as a regional hub for financial technology, tech talent, and innovation is evident in its international rankings and the presence of global financial institutions.
The IMD World Competitiveness Ranking places Bahrain 4th globally for skilled labour and 6th for digital and technological skills. Notable firms leveraging Bahrain’s tech talent include Citi’s Global Tech Hub, which plans to employ 1,000 Bahraini coders, and JP Morgan’s Global Technology Centre, expected to create 200 high-quality jobs.
The EY case study on financial services tech hubs identified highly skilled data analysts and software/web developers as key occupations, collectively representing more than half of the total talent employed.
Source: https://www.gdnonline.com/Details/1357897
