Bahrain's Tech Evolution: Past, Present, And Future

Bahrain has embraced technology and artificial intelligence as a means to diversify its economy and reduce its reliance on the oil and gas industry. The country has invested heavily in its banking and tourism industries, and has streamlined its information and technology infrastructure. Bahrain was the first Gulf country to liberalise its telecom sector, and it has the fastest-growing economy in the Middle East.

Bahrain has also been ranked first in the MENA region for ICT readiness by the World Economic Forum, and has a cloud-first policy to encourage the use of cloud services for technology solutions. The country offers 100% business ownership to foreign investors in the ICT sector, as well as 0% tax, making it the most liberal tax regime in the Gulf.

Bahrain has further strengthened its position as a regional financial hub by becoming the first country in the Middle East to adopt Open Banking. The country has also established a National Space Science Agency, with the aim of launching its first artificial satellite in 2020 to monitor gas emissions from industrial hubs using AI and IoT.

The Bahraini government has also implemented a range of digital initiatives, including the adoption of cloud technology in the public sector and the use of robotics in customer service delivery.

Bahrain's role in the Fourth Industrial Revolution

Bahrain is actively shaping its role in the Fourth Industrial Revolution, with a focus on emerging technologies such as artificial intelligence (AI), blockchain, robotics, and the Internet of Things (IoT). The country aims to reduce its economic dependence on the oil and gas industry and establish itself as a regional pioneer in technology. Bahrain's efforts are guided by its Economic Vision 2030, which emphasizes sustainability, competitiveness, and fairness.

The country has implemented several initiatives to foster innovation and create a favourable environment for technology-driven businesses. Bahrain was the first country in the Gulf region to liberalize its telecom sector, and its Information and Communications Technology (ICT) infrastructure is now among the most recognized in the Middle East. The government has also introduced policies like the "`cloud-first`" policy, which encourages the adoption of cloud services, and reduced capital startup requirements for businesses.

Bahrain is leveraging technology to enhance various sectors. For example, the country has implemented robotics technology projects to support customer service delivery, such as in the healthcare and financial industries. The use of AI is being explored in areas like crisis response, healthcare, cybersecurity, social justice, and education. Bahrain is also a leader in blockchain technology, with initiatives such as the Blockchain Vehicle Registration project and the adoption of blockchain for issuing academic certificates.

The country is also making strides in the financial technology (fintech) sector. The Central Bank of Bahrain launched the region's first on-shore FinTech Regulatory Sandbox in 2017, providing a safe environment for companies to test their technology-based solutions. Bahrain was also the first country in the Middle East to adopt Open Banking, further solidifying its position in the fintech industry.

Additionally, Bahrain is committed to developing smart cities, utilizing IoT and advanced digital and engineering technologies to improve the economic and social conditions of its residents. The country has also established the National Space Science Agency (NSSA) to support space science and technology initiatives, including the launch of Bahrain's first satellite.

Overall, Bahrain is actively shaping its role in the Fourth Industrial Revolution by embracing emerging technologies, fostering innovation, and creating a favourable environment for technology-driven businesses. These efforts contribute to the country's economic growth, job creation, and enhanced quality of life for its citizens.

The country's digital transformation

Bahrain has been undergoing a digital transformation, with the government implementing a range of initiatives to support technology-driven businesses and drive the economy. Here is an overview of the country's digital transformation journey:

Efforts to enhance digital transformation

Bahrain has been taking significant steps to enhance its digital transformation and establish itself as a regional pioneer. The country's Economic Vision 2030 and the Digital Government Strategy 2022 reflect its commitment to embracing emerging technologies and improving the lives of its citizens. Bahrain has also implemented several reforms to create a favourable environment for tech-driven businesses, resulting in economic growth, job creation, and human development.

Embracing emerging technologies

Bahrain has been quick to adopt emerging technologies such as artificial intelligence (AI), blockchain, cloud computing, and the Internet of Things (IoT). The country was the first in the Gulf to liberalise its telecom sector, and it boasts a well-established Information and Communications Technology (ICT) infrastructure. Bahrain also ranks highly in various global indices related to technology and innovation, such as the ICT Development Index and the Telecommunication Infrastructure Index.

AI and robotics

Bahrain has been leveraging AI and robotics to improve various sectors, including healthcare, finance, and customer service. For example, during the COVID-19 pandemic, the country deployed medical robots to reduce healthcare staff exposure to the virus. Bahrain has also been using robotics and AI in its FinTech industry, with innovations like emotionally intelligent digital employees and robotic assistants for loan applications.

Blockchain initiatives

The Bahraini government recognises the potential of blockchain technology to further develop its financial services industry and enhance transparency, security, and efficiency in various sectors. Initiatives such as the establishment of an electronic Know-Your-Customer (eKYC) platform and the Blockchain Vehicle Registration project demonstrate the country's commitment to exploring blockchain solutions.

Cloud-first policy

Bahrain has implemented a "cloud-first" policy, encouraging government entities and businesses to utilise cloud services. This has led to increased efficiency, improved citizen services, and reduced operational costs. Bahrain also collaborates with companies like Amazon Web Services (AWS) to enhance its cloud infrastructure and provide training opportunities for its professionals.

Internet of Things (IoT)

Bahrain has been an early adopter of IoT, issuing standards for IoT connectivity and supporting the use of frequency bands for IoT systems. Various government entities and private bodies in Bahrain use IoT to enhance their operations, such as the Ministry of Works automating its irrigation system and the Electricity and Water Authority using IoT for smart lighting and distribution automation.

National Space Science Agency (NSSA)

Bahrain established the NSSA in 2018 to promote space science, technology, and applications. The country is working towards launching its first artificial satellite, which will be used for projects related to IoT and AI, such as monitoring gas emissions from factories. The NSSA also organises workshops and events to foster a community engaged in space, science, and technology.

Financial Technology (Fintech)

With its established financial services sector, Bahrain understands the importance of innovation in this space. The Central Bank of Bahrain launched the region's first FinTech Regulatory Sandbox in 2017, providing a platform for companies to test their technology-based solutions. Bahrain has also introduced initiatives like Open Banking and electronic Know-Your-Customer (eKYC) platforms, further solidifying its position as a FinTech hub in the Gulf region.

Education and talent development

Bahrain recognises the importance of education and talent development to support its digital transformation journey. The country offers various training programmes and online coding platforms to upskill its citizens in fields like AI, programming, and coding. Bahrain also hosts competitions and events, such as the World Robotics Olympiad, to encourage innovation and creativity among its youth.

Regulatory support

Bahrain has been proactive in creating a business-friendly regulatory environment to attract foreign investment in the ICT sector. The country offers 100% business ownership and a tax-free regime for foreign investors. Additionally, Bahrain has reduced capital startup requirements and introduced a "sandbox" for startups in the FinTech space, exempt from regulation.

Digital economy and e-commerce

Bahrain has been fostering the growth of its digital economy and e-commerce sector. The country offers competitive advantages, such as talent pools, cost-effectiveness, and strategic location, making it an attractive hub for global IT companies. Bahrain's eWallet solutions and digital payment platforms further enhance its position as a leading digital economy in the region.

Bahrain's tech ecosystem

The Bahraini government has implemented several initiatives to support the growth of its tech sector. These include the "`cloud-first` policy, which encourages the use of cloud services for technology solutions, and the reduction of startup capital requirements for businesses. Bahrain also offers foreign investors in the ICT sector 100% business ownership and a tax-free environment.

The country has a well-established Information and Communications Technology (ICT) infrastructure and is ranked highly in various indices related to technology and innovation. Bahrain was the first country in the Gulf to liberalise its telecom sector, and it continues to be a leader in this field.

Emerging technologies such as artificial intelligence (AI), blockchain, robotics, and the Internet of Things (IoT) are being leveraged to drive economic growth and improve government services. Bahrain's Financial Technology (Fintech) industry is particularly notable, with the country establishing a Fintech Regulatory Sandbox to support and nurture innovative businesses in this sector.

The country has a strong focus on talent development, offering online coding training and STEM education in schools. Bahrain recognises the importance of a skilled workforce in driving innovation and creating a sustainable economy.

Overall, Bahrain's tech ecosystem is dynamic and evolving, with a focus on utilising emerging technologies to drive economic growth, enhance government services, and create a competitive and innovative business environment.

The role of technology in Bahrain's economy

Bahrain has been working to reduce its economic reliance on the oil and gas industry and has been investing in its banking and tourism industries. The country has also been streamlining its Information and Technology Infrastructure. Bahrain has been recognised for its efforts, ranking first in the Middle East and North Africa for ICT readiness by the World Economic Forum.

Bahrain has been encouraging the use of new and emerging technologies within the government and has been building relevant skills within the private and public sectors. The country has also been leveraging the potential of the Cloud and Big Data to encourage economic growth.

Bahrain was the first country in the Gulf to liberalise its telecom sector, and today, its well-established Information and Communications Technology (ICT) infrastructure is among the most recognised in the region. Bahrain ranked first in the Arab region on the ICT Development Index (IDI) by the International Telecommunication Union (ITU) report, and fourth globally in the Telecommunication Infrastructure Index (TII) as per the United Nation eGovernment Development Index.

Bahrain has also been investing in its financial technology (fintech) industry. In 2017, the Central Bank of Bahrain launched a pioneering on-shore FinTech Regulatory Sandbox, enabling companies to test their technology-based solutions for up to a year under supervision. Bahrain was also the first country in the Middle East to adopt Open Banking.

The country has also been investing in blockchain technology, with the government recognising its key role in further developing the financial services industry. One example of blockchain implementation is the establishment of an electronic Know-Your-Customer (eKYC) platform, which allows financial institutions to securely verify the identities of their customers.

Bahrain has also been focusing on the Internet of Things (IoT). The country was the first Gulf Cooperation Council (GCC) country to issue standards for IoT connectivity and support the use of the frequency band for IoT systems within international mobile communications systems. Several Bahraini government entities and private bodies use IoT technology to support the economic growth of the Kingdom.

Bahrain has also been investing in artificial intelligence (AI), robotics, and biotechnology. The country established the National Space Science Agency (NSSA) in 2018, with the aim of launching its first artificial satellite to utilise the capabilities of AI and IoT for monitoring gas emissions from industrial hubs in the country. Bahrain Polytechnic also launched an Artificial Intelligence Academy, in collaboration with Tamkeen and Microsoft, to offer resources and training to youth to increase their knowledge in the field.

Overall, Bahrain has been making significant strides in technology, with a focus on creating a world-leading tech ecosystem to drive economic growth and reduce reliance on the oil and gas industry.

The country's adoption of emerging technologies

Bahrain has been quick to adopt emerging technologies to drive economic growth and reduce its reliance on the oil and gas industry. The country has invested heavily in its banking and tourism industries and has streamlined its Information and Technology Infrastructure. Bahrain was the first Gulf country to liberalise its telecom sector, and it has the fastest-growing economy in the Middle East.

Bahrain has also been a pioneer in the use of blockchain technology, with the government recognising its key role in developing the country's financial services industry. One example of blockchain implementation is the establishment of an electronic Know-Your-Customer (eKYC) platform, which allows financial institutions to securely verify customer identities and share data digitally.

In addition, Bahrain has been at the forefront of the development of Artificial Intelligence. The country offers training and development programs in this field, and its leadership's vision to employ modern technologies has improved government services. Bahrain Polytechnic, in collaboration with Microsoft, launched the Artificial Intelligence Academy to provide a platform for youngsters to boost their innovation and creativity capabilities.

The country has also embraced the Internet of Things (IoT) to support economic growth. Several government entities and private bodies use IoT technology in areas such as irrigation system automation and distribution automation. Bahrain was the first Gulf Cooperation Council country to issue standards for IoT connectivity, supporting the use of frequency bands for IoT systems within international mobile communications systems.

Overall, Bahrain's adoption of emerging technologies has played a significant role in its economic growth, job creation, and human development, ultimately improving the lives of its citizens.

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