Bahrain Emerges as the Most Cost-Competitive Hub for Financial Services Tech Firms in the GCC

Manama, Bahrain – Bahrain has been recognized as the most cost-efficient location for financial services firms with tech operations across the Gulf Cooperation Council (GCC), offering up to a 48% cost advantage over regional peers. This insight comes from the latest ‘Cost of Doing Business in the GCC – Financial Services Sector’ report by Ernst & Young LLP (EY), United States.

The study evaluates direct and indirect operational expenses, including labor, office rent, business setup and licensing, taxes, and immigration costs across six GCC countries: Bahrain, Saudi Arabia, the UAE, Qatar, Kuwait, and Oman. The findings highlight Bahrain’s unique value proposition for companies looking to establish or scale financial services technology hubs in the region.

Key Cost Advantages in Bahrain:

• 24% more competitive annual labor costs compared to the GCC average for financial services tech hubs
  
  
• 85% savings on business and licensing fees annually
  
  
• 60% better value on office space rental, a major factor in operational overhead
  
  

These cost savings not only enhance profitability but also allow financial firms to reallocate resources toward innovation, talent development, and strategic growth.

A Tech-Driven Financial Services Ecosystem

Bahrain’s competitive edge isn’t just about cost—it’s about building a thriving ecosystem for digital innovation. Supported by a streamlined regulatory environment under the Central Bank of Bahrain (CBB), the Kingdom enables category-based licensing, which provides firms flexibility to operate across multiple financial services activities with ease.

Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB), commented:

“In today’s digital-first world, robust tech hubs are crucial for innovation. Bahrain offers a rare combination of affordability, skilled talent, and forward-thinking regulation—positioning the country as a rising regional leader for financial services and fintech.”

Backed by Global Financial Giants

Bahrain’s status as a growing fintech hub is reflected in the presence of major global players.

• Citi’s Global Tech Hub aims to employ 1,000 Bahraini software developers and engineers.
  
  
• J.P. Morgan’s Global Technology Centre is projected to create 200 high-quality tech jobs for the local workforce.
  
  

These firms are attracted not only by cost-efficiency but by Bahrain’s deep pool of digital talent. According to IMD’s World Competitiveness Ranking, Bahrain ranks 4th globally for skilled labor and 6th for digital and technological skills—a testament to its rapidly evolving human capital landscape.

Andrew Phillips, Co-leader of EY’s Quantitative Economics & Statistics (QUEST) team, stated:

“Bahrain provides financial services tech hubs with a compelling business climate where firms can focus on building digital capabilities and attracting top talent—rather than just covering operational costs.”

About Bahrain EDB

The Bahrain Economic Development Board (EDB) plays a central role in promoting investment, facilitating business growth, and supporting key sectors of the economy. Through targeted initiatives in financial services, ICT, manufacturing, logistics, and tourism, Bahrain EDB continues to shape a sustainable and innovation-driven future for the Kingdom.