Bahrain

Bahrain

#10

MENA ECOSYSTEM
Members: Tamkeen

#5

MENA Ecosystem in Performance

Top 10

MENA Ecosystem in AI-Native Cluster

Top 15

MENA Ecosystem in R&D engine
Bahrain’s distinctive advantage lies in its startup environment, which combines a compact market structure with a well-connected, agile, ecosystem that enables rapid development, early validation, and scaling across regional markets.
Maha Mofeez
Maha Mofeez
Chief Executive, Tamkeen

Highlights

Bahrain stands out as a leading launchpad for startups in the region, offering a well-integrated ecosystem that enables low-friction setup and validation, accelerating commercialization and regional scale.

Founders benefit from an enabling environment, with streamlined business setup, low operating costs, and strong ecosystem connectivity. In 2025, Bahrain ranked 14th globally in business efficiency (IMD World Competitiveness Report) and 7th in entrepreneurship policies (Global Innovation Index).  Several recent initiatives have strengthened startup support, including the launch of an online bank account opening service to accelerate access to financial infrastructure and the establishment of the HQ Industrial project, an integrated industrial innovation center for entrepreneurs.

Startup development is reinforced by a suite of incubation and acceleration programs, including Mashroo3i, StartUp Bahrain Weekend, and Riyada Business Accelerator. These are supported by a coordinated network of public and private enablers, such as Tamkeen, Mumtalakat, Tenmou, and Hope Fund, providing mentorship, digital enablement, and access to funding.   In 2025, this was further strengthened by the launch of a $185 million SME Fund to expand financing for startups and small and medium enterprises (SMEs). Corporates and academic institutions also play an active role in promoting entrepreneurship through initiatives such as Zain Great Idea and the Investcorp Entrepreneurship Innovation Lab, launched in 2025.

A strong and growing talent base, particularly in technology, underpins the ecosystem. Bahrain ranks among the top GCC countries in ease of finding skilled employees (Global Talent Competitiveness Index), with access to talent supported by a steady pipeline of education and training initiatives, including Reboot01 Coding Institute and MENA Innovation Academy. In 2025, more than 3,300 Bahrainis received ICT training through Tamkeen programs.

Progressive regulation and targeted programs, such as Tamkeen’s Overseas Expansion Program delivered with AstroLabs, supported startups through structured pathways for regional expansion, with recent examples of Bahraini scaleups including Unipal, Calo, and Flooss.

Ecosystem by the Numbers

ECOSYSTEM VALUE

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$1.6 BN
GLOBAL AVG. $25 BN
REGIONAL AVG. $20 BN

ECOSYSTEM VALUE GROWTH

Growth is calculated based on the Ecosystem Value from H2 2018–2020 vs. H2 2023–2025.
(H2 2018 - 2020 VS. H2 2023 - 2025)
759%
GLOBAL GROWTH 149%
REGIONAL GROWTH 230%

AI-Native Ecosystem Value

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025 for AI-Native. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$12 M
GLOBAL AVG. $4.4 BN
REGIONAL AVG. $2.1 BN

AI-Native Ecosystem Value Growth

Growth is calculated based on the AI-Native Ecosystem Value from H2 2021–2023 vs. H2 2023–2025.
(H2 2021 - 23 VS. H2 2023 - 25)
NA
GLOBAL GROWTH 161%
REGIONAL GROWTH 47%

EARLY-STAGE FUNDING GROWTH

Early-Stage Funding Growth is based on number of Seed and Series A rounds raised between 2022-2023 vs. 2024-2025 and calculated on a scale of 1 (lowest) to 10 (highest).
(2022-23 vs. 2024-25)
10
Scale of 1 (lowest) to 10 (highest)

AI-Native Early Stage Funding Growth

AI-Native Early-Stage Funding (ESF) Count Growth Tier evaluates the growth in the number of Early-Stage Funding rounds between 2022–23 and 2024–25. Ecosystems are scored on a scale from 1 to 10, where 1 represents the lowest growth and 10 represents the highest.
(2022-23 vs. 2024-25)
NA
Scale of 1 (lowest) to 10 (highest)

TOTAL VC FUNDING

The Total VC funding (Seed, Series A, Series B+) in tech startups in 2021–2025.
(2021 - 2025)
$458 M
GLOBAL AVG. $5 BN
REGIONAL AVG. $4 BN

TOTAL EARLY–STAGE FUNDING

The total Seed and Series A funding in tech startups in H2 2023–2025.
(H2 2023 - 2025)
$68 M
GLOBAL AVG. $554 M
REGIONAL AVG. $497 M

EXIT AMOUNT

The total value of exits from the ecosystem.
(2021 - 2025)
$258 M
GLOBAL AVG. $7.6 BN
REGIONAL AVG. $4.9 BN

EXIT COUNT (#)

The number of exits from the ecosystem.
(2021 - 2025)
5
1
2021
0
2022
2
2023
0
2024
2
2025
GLOBAL AVG. 103
REGIONAL AVG. 47

TIME TO EXIT

The average age at the time of exit in the ecosystem in 2021–2025.
(2021 - 2025)
4.2 YEARS
GLOBAL AVG. 11.1 years
REGIONAL AVG. 9.2 YEARS

NUMBER OF UNICORNS 

The number of startups that meet our definition and have been valued at more than $1 billion and have not exited.
(ACTIVE UNICORNS)
NA
GLOBAL AVG. 11
REGIONAL AVG. 16

MEDIAN SEED ROUND

The median of seed rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 - 2025)
$180 K
GLOBAL AVG. $1 M
REGIONAL AVG. $853 K

Median Series A Round

The median of Series A rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 – 2025)
$10.1 M
GLOBAL AVG. $6.2 M
REGIONAL AVG. $5.9 M

Top Funded Startups

Top startups identified based on funding amount from July 2023 to December 2025.
(H2 2023-2025)
1: Calo
2: Tarabut Gateway
3: Aion Digital
4: Ahlan
5: Sellou

SOFT. ENGINEER SALARY

Average software engineer salary informed by data from Glassdoor, Salary.com, and PayScale, as well as local sources when available.
(2025)
$69.4 K
GLOBAL AVG. $54 K
REGIONAL AVG. $40 K

Sub-Sector Strengths

Fintech
Fintech

Fintech remains a central pillar of Bahrain’s startup ecosystem, underpinned by pioneering regulation and strong institutional support. In 2025, Bahrain continued to attract new players, including Fasset Financial Services and BPay Global.  The year also saw significant ecosystem collaboration, with 38 agreements signed during Fintech Forward and several partnerships supporting Fintechs’ technology development and regional market entry, such as between Bahrain FinTech Bay and Jeel. A pilot was also concluded between BENEFIT and local banks in 2025, strengthening instant payments through Google Cloud infrastructure. Recent funding rounds include FLOOSS ($22M) and Fintologya ($1M).

Blockchain
Blockchain

Bahrain has been an early mover in Blockchain, becoming one of the first in the region to introduce crypto-asset regulations in 2019. The Central Bank of Bahrain has continued to expand its regulatory framework, issuing dedicated modules on Digital Token Offerings (2023) and Stablecoin Issuance and Offering (2025). The crypto landscape continues to evolve, with new market entrants such as BitOasis and partnerships supporting Blockchain pilots and innovation, including Bahrain FinTech Bay’s agreements with Ripple and Tether.  Recent crypto-related transactions include Rain’s $250 million funding round and Paribu’s $240 million acquisition of CoinMENA.

AI, Big Data & Analytics
AI, Big Data & Analytics

Artificial Intelligence (AI) is a national priority in Bahrain, supported by a growing set of initiatives. In 2025, Bahrain introduced a National Policy for the Use of AI, establishing a clear framework for responsible deployment. The Kingdom also became the second country in the region to receive UNESCO’s AI Readiness Assessment Methodology report. Bahrain aims to train 50,000 Bahrainis in AI by 2030, underpinned by targeted initiatives such as Tamkeen’s AI Training Program, launched in 2025. Emerging AI-Native startups include DOO, Servable (acquired by Tarabut in early 2026), and Array Innovation.

Selected Startup Organizations

Startup Genome Members

MEMBER

Tamkeen is Bahrain’s national labor fund, which focuses on enabling the private sector to become the engine of a productive and sustainable economy, while strengthening the competitiveness of Bahraini talent as a key contributor to long-term national prosperity. Over the past two decades, Tamkeen has contributed to the development and readiness of national talent, while supporting the growth and competitiveness of enterprises. In 2025, it delivered 44,300+ employment and career opportunities and supported 8,600+ enterprises. Tamkeen's 2026-2030 Strategy emphasizes its role as a proactive, data-driven national thought leader, focused on areas of highest return to Bahrainis and the national economy.

Work with us

If you are interested in working with us to drive global attention to your ecosystem, please get in touch with Marina Krizman, Director of Business Development.

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