Finance & Capital Market

Bahrain powers into Mena’s Top 5 startup ecosystems

MANAMA
Bahrain powers into Mena’s Top 5 startup ecosystems
Alya Al Aali

The Kingdom of Bahrain has achieved strong rankings across several key indicators in the Global Startup Ecosystem Report (GSER) 2026 with the country’s startup ecosystem generating $1.6 billion in Ecosystem Value during the period from July 1, 2023 to December 31, 2025. 

This represents a 759% increase compared to the reporting period covered by the GSER 2021 report, which spanned July 1, 2018 to December 31, 2020. 

The kingdom ranked among the Top 5 Mena Ecosystems in Performance, which measures the size and performance of an ecosystem based on the accumulated tech startup value created from exits and funding. 

The Report delivers key insights into the world’s leading innovation ecosystems, highlighting trends, capital flows, and policy approaches shaping entrepreneurial success. 

According to GSER, Bahrain also secured positions among the Top 10 Mena Ecosystems in AI-Native Cluster, which measures the size and intensity of AI startup activity within the ecosystem, and among the Top 15 Mena Ecosystems in R&D Engine, which measures innovation through research activity.

On the key achievement, Alya Al Aali, Deputy CE of Strategy & Insights at the Labour Fund (Tamkeen), said: "The Kingdom of Bahrain’s distinctive advantage lies in its agile startup ecosystem, which enables entrepreneurs to develop and test their ideas within a supportive environment that facilitates expansion into regional markets."

"Tamkeen continues its efforts to support entrepreneurs and advance the startup ecosystem through initiatives that stimulate innovation, accelerate business growth, and expand access to financing and emerging technologies, thereby supporting their sustainability and competitiveness both locally and regionally," she noted.

Samantha Evans, Managing Director Mena at Startup Genome, said: "Rather than trying to compete on size, Bahrain has focused on precision, building depth in fintech and adjacent technologies where it can lead."

"With Tamkeen anchoring this approach, the ecosystem is proving that targeted investment and clear positioning can outperform broader, less focused strategies," she stated. 

As per GSER 2026, fintech, blockchain, and AI & Digital Innovation are the leading engines of Bahrain’s startup growth that remain consistent with last year, supported by progressive regulation and innovation-driven initiatives. 

The report also outlined several factors contributing to Bahrain’s attractiveness as a destination for startups and entrepreneurs. Bahrain offers a highly connected and agile ecosystem, competitive operating costs, and access to regional markets, in addition to a supportive regulatory environment and collaborative public-private sector initiatives that continue to strengthen innovation and entrepreneurial activity in the Kingdom, it stated.

Startup Genome, the Global Entrepreneurship Network, and the Labour Fund (Tamkeen) have continued their collaboration to monitor and benchmark Bahrain’s startup ecosystem, while identifying opportunities and growth areas that support the Kingdom’s innovation-driven economic development plans.

The Global Startup Ecosystem Report 2026 delivers key insights into the world’s leading innovation ecosystems, highlighting trends, capital flows, and policy approaches shaping entrepreneurial success. Building on last year’s analysis, the report expands its AI-Native factor to include emerging ecosystems, reflecting AI’s growing role in competitive advantage. Backed by over a decade of independent research and a global consortium spanning 65+ countries, it provides a data-rich view of startup activity and investment trends, equipping policymakers, ecosystem leaders, and founders with actionable strategies to drive economic growth.