Bahrain attracted a record USD1.8 billion in investment through Bahrain Economic Development Board (EDB) in 2024, across 99 companies establishing or expanding operations in the country. More than half of that investment came from businesses already operating there and choosing to expand their presence.
That level of new and repeat investment gives a useful indication of current business confidence. For foreign companies considering the market, the more relevant question is where opportunities are developing and what is driving activity in different parts of Bahrain’s economy.
Financial Services Sector and Bahrain Fintech
Financial and insurance activities accounted for 17.6% of real GDP in 2025 and grew by 5.6% during the year, making financial services the country’s largest non-oil sector. Bahrain has recorded over 400 licensed financial institutions. A key part of Bahrain’s strategy is to modernise it’s financial services sector and attract even more fintech firms.
There is a long-established banking industry behind those figures, but the sector itself has changed considerably with fintech and digital financial services/digital banking developing alongside more traditional banking and insurance offerings.
An early move into open banking regulation and the introduction of a regulatory sandbox have helped create room for newer financial companies. The strength of the sector is also visible in recent enquiries, where financial and investment businesses feature prominently.
Professional and Business Services
Consulting and other business services feature regularly among companies considering Bahrain, and the economic growth figures show activity in this area growing strongly. Professional, scientific and technical activities grew by 9.5% in 2024.
Some of these businesses establish with the intention of working across the region rather than serving the domestic market alone. Recent enquiries include companies providing corporate services, payroll and HR outsourcing as well as consulting businesses.
Technology and Digital Transformation Services
The development of digital services has been supported by infrastructure put in place over several years. Bahrain introduced a nationwide Cloud First Policy, while AWS chose the country for its first Middle East cloud region.
That investment is now sitting behind one of the faster-growing parts of the economy. Information and communications technology expanded by 12.3% in 2024, making it the fastest-growing non-oil activity that year. Sovereign have supporting evidence of this with companies in telecommunications services, AI and other activities, strongly forming part of our client base.
For technology companies serving clients across the Gulf, the size of the domestic consumer market may be less important than the infrastructure and regional base available to them.
Manufacturing Sector Business Growth
Alongside the growth in newer industries sits a much larger manufacturing base than might be apparent from Bahrain’s profile as a financial and services centre. Manufacturing accounted for 15.1% of real GDP in 2025, making it the country’s second-largest non-oil sector.
Its industrial base extends from aluminium and downstream activities into other forms of export-oriented production. Bahrain International Investment Park has also brought international manufacturers and traded-service businesses into a dedicated industrial area.
Port infrastructure provides international connections, while the King Fahd Causeway gives manufacturers direct road access to Saudi Arabia. A company producing in Bahrain can therefore be serving customers well beyond the domestic market.
Logistics and Regional Trade
Those transport links naturally support logistics and trading as well. Khalifa Bin Salman Port, the international airport and the King Fahd Causeway provide different routes into surrounding markets, while Bahrain Logistics Zone supports distribution and re-export activity close to the port. Bahrain is able to connect to over 60 million consumers across the GCC markets.
Saudi Arabia is particularly relevant here. The ability to reach it directly by road means a logistics or trading operation can serve a much larger neighbouring market from a Bahraini base. Businesses in both areas also appear among recent enquiries.
Tourism and Key Sector Development
Some of the strongest recent growth has come from the visitor economy. Accommodation and food services grew by 6.4% in 2025, the strongest growth recorded among Bahrain’s major economic activities that year.
Investment in hotels, leisure facilities and other tourism projects has been part of that activity, with development around the sector also creating opportunities for specialist engineering and property businesses.
Recent enquiries extend into other specialist areas too, including energy and yacht services. It is another indication of how varied the businesses currently considering Bahrain can be.
For foreign companies, the reasons for establishing in the country will differ depending on the market they intend to serve and how they plan to operate. Bahrain may form the main market for some, while for others its role will be as a base for business elsewhere in the region.
There are many attributes attracting investors to Bahrain. 100% foreign ownership, no personal income tax and the multi-level government support across a wide range of established and evolving sectors. Bahrain is an accommodating and business friendly jurisdiction and Sovereign Bahrain supports entrepreneurs, startups and multinational corporates with their business operations.
If you are exploring setting up a business in Bahrain, Sovereign Bahrain provides foreign investors with support in establishing the company, licensing, visas and on-going company maintenance and compliance.
For further support, contact us.
