Banking
From The Report: Bahrain 2024
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Bahrain has established itself as a global financial services destination, with the financial sector being the largest contributor to the economy, accounting for 17.8% of GDP in 2023. The kingdom’s financial technology infrastructure is expanding banking access to underserved demographics, and its financial services authorities are adopting policies to keep Bahrain influential in global banking development. The sector has also seen technological innovation in recent years with regulations introduced that cover open banking, payment systems, crowdfunding and crypto-assets. The kingdom’s central bank sandbox plays a key role in maintaining regulatory agility and consumer confidence. Bahrain’s banking system, guided by far-sighted policies and growing collaboration between start-ups and banking companies suggests sustained growth for the kingdom’s financial services industry.

This chapter includes an interview with Abdulwahed AlJanahi, Chief Executive, Benefit.

Articles from this Chapter

Overview

Continued prosperity: Strong fundamentals amid global headwinds help financial services retain a central position in Bahrain’s economy
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Bahrain has worked hard over the years to position itself as a global financial services centre. The financial sector is the highest contributor to GDP by sector, and its development is integral to the success of national strategies such as Bahrain Economic Vision 2030 and the Economic Recovery Plan (ERP). Bahrain is also a globally competitive market in Islamic banking, with the segment witnessing significant consolidation and investment in recent years. The kingdom’s banks have remained profitable…

Interview

Proactive evolution: Abdulwahed AlJanahi, Chief Executive, Benefit, on realising key objectives through technology adoption and regional integration
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Interview:Abdulwahed AlJanahi In what ways do you see digital payment solutions maturing in Bahrain over the next decade? ABDULWAHED ALJANAHI: The continued progression of digital payment solutions is set to align with Bahrain’s national development agenda, which focuses on competitiveness, creativity and sustainability. As we move towards 2030 and beyond, the emphasis will be on enhancing the convenience, security and interoperability of payment systems. Emerging technologies such as mobile…

Analysis

Future focused: Regulatory sandbox initiatives are supporting the growth of financial technology within a dynamic market
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Bahrain’s financial technology (fintech) ecosystem has undergone significant changes in recent years as the country seeks to enhance its reputation for innovation in the financial services sector and stimulate the growth of start-ups. In September 2023 Benefit, a Bahraini fintech company providing electronic financial transaction services, finalised its acquisition of Bahrain FinTech Bay (BFB), which at the time of the deal had incubated over 116 start-ups since its inception in February 2018.…

Analysis

Streamlined transactions: Digital payment platforms see growth in emerging markets due to higher consumer demand and increased remittances
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Despite the ongoing macroeconomic and geopolitical headwinds experienced by the global economy, one area of the international financial system that has shown steady progression is digital payments. Since the Covid-19 pandemic, they have been spurred by a jump in remittance flows, and the greater availability of digital infrastructure and services, as well as higher demand for fast and seamless non-physical transactions. The trend is even more notable across low- and middle-income countries. While…