Bahrain has been identified as the most cost-competitive location to operate a financial services firm with a tech hub in the Gulf Cooperation Council (GCC), offering a 48% cost advantage.
This finding comes from a report published by Ernst & Young’s (EY) US office.
According to TradeArabia, the report examined the increasing significance of technology and innovation in shaping the financial services sector across the region.
The study compared direct and indirect annual operating costs across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
Key areas analysed included office space, talent acquisition, business set-up fees, taxes, and visa and residency costs.
“In today’s digital economy, establishing robust tech hubs is essential for financial services firms to innovate, compete, and stay ahead,”
said Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board.
“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.”
The report positions Bahrain as an emerging hub for financial technology and innovation, supported by international rankings and the presence of global financial institutions.
The IMD World Competitiveness Ranking placed Bahrain 4th globally for skilled labour and 6th for digital and technological skills.
Notable multinational firms have established a presence in the country, including Citi’s Global Tech Hub, which aims to employ 1,000 Bahraini coders, and JP Morgan’s Global Technology Centre, expected to create 200 high-skilled roles.
The EY report noted that in financial services tech hubs, over half of the workforce typically consists of software developers, web developers, and data analysts.
Labour costs in Bahrain were found to be up to 24% lower compared to other GCC countries.
Businesses can also save significantly on other operational costs, including an 85% reduction in annual business and licensing fees and up to 60% savings on office rental costs.
Al Mudaifa added:
“The country’s financial services sector not only provides cost advantages but also creates opportunities for sustainable growth and technological leadership in the GCC.”
Bahrain’s regulatory environment, overseen by the Central Bank of Bahrain, offers a category-based licensing structure that enables firms to engage in a range of activities under a single regulatory framework.
Featured image credit: Edited by Fintech News Middle East, based on image by user6702303 via Freepik
