Financial Services Firms Operating in Bahrain enjoy up to 48% cost advantage
Manama - Kingdom of Bahrain: Bahrain has been ranked as the most cost-competitive location to operate a financial services firm with a tech hub within the Gulf Cooperation Council (GCC) countries, with a 48% cost advantage, in the 'Cost of Doing Business in the GCC' financial services sector report published by Ernst & Young LLP's United States office.
In view of the growing importance of technology and innovation in developing the financial services industry in the GCC region, the in-depth study analysed key data, factoring in direct and indirect annual costs associated with yearly operating costs. The categories benchmarked included office space, talent acquisition, business set up fees, taxes, as well as visa, work authorisation and residency costs comparing locations in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Commenting on the findings, Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB), said, 'In today's digital economy, establishing robust tech hubs is essential for financial services firms to innovate, compete, and stay ahead. Bahrain is positioning itself as a regional leader in this space, offering a supportive environment that combines cost-efficiency, cutting-edge infrastructure, and a forward-looking regulatory framework. The country's financial services sector not only provides cost advantages but also creates opportunities for sustainable growth and technological leadership in the GCC. Our goal is to empower global financial institutions to leverage Bahrain's unique advantages and highly skilled talent to drive technological advancement across the region.'
The island nation of Bahrain is fast becoming a regional hub for financial services firms looking to set up global operations, providing significant savings in various operational areas. According to the EY report, annual labor costs for a financial services tech hub in Bahrain are up to 24% more competitive than the GCC. Additionally, businesses can save 85% on annual business and licensing fees and enjoy 60% better value for office space rental. Financial services in Bahrain are regulated by a single regulator, the Central Bank of Bahrain, that provides a simplified, streamlined process where the country's category-based licensing procedure for financial services firms allows companies the flexibility to engage in various activities.
Andrew Phillips, Partner/Principal & Co-leader of Quantitative Economics & Statistics (QUEST) at Ernst & Young said, 'Tech hubs are the heartbeat of modern financial services, enabling firms to develop innovative solutions, attract top talent, and expand their digital capabilities. Bahrain's competitive costs provide an advantageous business climate for financial services innovation. Bahrain's cost advantages relative to other GCC locations allow financial services tech hubs to direct their financial resources toward innovation rather than basic operating expenses.'
Bahrain's reputation as a regional hub for financial technology, tech talent, and innovation is exemplified by the Kingdom's performance in international rankings and the presence of several global financial institutions that have established or expanded their operations in the country. According to the World Competitiveness Ranking by IMD, Bahrain ranked 4th globally for skilled labour and 6th globally for digital and technological skills. Notable firms that have selected Bahrain for its tech talent include Citi's Global Tech Hub, which pledged to employ 1,000 Bahraini coders, and J.P. Morgan's Global Technology Centre, expected to create 200 high-quality job opportunities for the local workforce. In the financial services sector, talent is a major cost factor, in the EY case study of financial services tech hub, the most common occupations are highly skilled data analysts as well as software and web developers, who collectively represent over half of the total talent employed.
About Bahrain Economic Development Board (Bahrain EDB)
Bahrain Economic Development Board (Bahrain EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.
Bahrain EDB works with the government and both current and prospective investors to ensure that Bahrain's investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.
Bahrain EDB focuses on several economic sectors that capitalise on Bahrain's competitive advantages and provide significant investment opportunities. These sectors include financial services, manufacturing, logistics, ICT and tourism
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
25 minutes ago
- Khaleej Times
Dubai's Al Futtaim buys 49.95% stake in Saudi Arabia's Cenomi Retail for over Dh2.44 billion
Al Futtaim group on Sunday said it acquired a 49.95 per cent stake in Saudi franchise retailer Cenomi Retail for more than 2.5 billion riyals (Dh2.44 billion). The Dubai-based conglomerate acquired the stake from Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company. The shares are priced at SAR 44 (Dh43) each. Under the agreement, Al Futtaim and Cenomi Retail are currently negotiating a shareholder loan agreement. Under this, Al Futtaim will extend a shareholder loan of an amount not less than SAR 1.3 billion, upon completion of the transaction, to help strengthen Cenomi Retail's balance sheet and support its next phase of growth. Al Futtaim group's expansion into Saudi Arabia reflects the strong growth of the retail market in the GCC's largest economy. According to a recent report by Logic Consulting, the GCC retail industry is on track to reach $390 billion (Dh1.43 trillion) by 2028, led by digital transformation, evolving consumer preferences, and strategic government initiatives. Saudi Arabia and the UAE dominate, accounting for over 75 per cent of regional retail sales, a share set to expand further. Al Futtaim, one of the most diversified private groups in the UAE, is operating across 18 countries in the Middle East, North Africa and Asia in key sectors including automotive, financial services, real estate, retail, and health. It has a portfolio of over 200 brands, employing nearly 33,000 people. Cenomi Retail is the only listed business of its type in the Middle East. Its first store opened in 1991; it now trades in 808 stores across 165 shopping malls in 8 countries, with a retail platform covering a total gross leasable area (GLA) of about 332,000 square meters. All of this is managed by a workforce numbering more than 7,000. Cenomi Retail currently represents 47 brands, spanning womenswear, kids' and baby, department stores, shoes and accessories, cosmetics, in addition to operating a series of restaurants and coffee shops. 'This investment represents substantial foreign direct investment from the UAE private sector and underscores the robust economic partnership between our countries. It strengthens our presence and customer reach in Saudi Arabia, a strategic market with solid fundamentals and a clear national vision,' said Omar Al Futtaim, vice chairman and CEO of Al Futtaim. 'We see significant opportunities to support Cenomi Retail in enhancing operations, accelerating digital transformation, and expanding its brand portfolio. This partnership also paves the way for further collaborations in the dynamic Saudi market,' he said. Salim Fakhouri, CEO at Cenomi Retail, said this deal will firmly place Cenomi Retail 'on the right strategic path towards our next phase of growth, focused on scalable, high-performing global brands that drive long-term value to our shareholders.' The transaction is subject to customary regulatory approvals.
Zawya
2 hours ago
- Zawya
'Design Your Future' campaign cnnounces Seef Mall – Seef District as the official venue partner
Manama – Design Your Future (DYF) Campaign today announced Seef Mall – Seef District as the official venue partner for the 9th edition of the Annual Business Quiz Show Competition, scheduled to launch on August 24, 2025. This announcement coincides with the launch of the second season of the DYF Campaign in April 2025, held in strategic partnership with Mastercard, the Knowledge Partner for this edition. The campaign aims to support and encourage high school graduates, university students, and vocational training participants to take a more proactive and informed approach to designing their future. The 9th Annual Business Quiz Show Competition is one of the key initiatives under the DYF Campaign, aligned with its core objective of developing and showcasing national talent and Bahraini competencies across vital sectors in the Kingdom. As in previous editions, participating companies will engage in a series of challenges designed to test their knowledge and skills in sectors critical to Bahrain's positioning as a leading regional hub for business. This year's competition will span four evenings and will feature university students embedded within corporate teams, offering them hands-on exposure to leadership talent and team collaboration in a highly engaging and competitive environment. The competition will include three sector-focused evenings, with four teams from each sector competing against one another. Participants will be tested on their understanding of the national economy and relevant sectors through dynamic, interactive challenges. The evenings will focus on the following sectors: Banking & Finance, Fintech, Insurance, Industry, and Services. Winners from each sector will advance to the Grand Finale, scheduled for August 28, 2025. Commenting on the partnership, Mr. Ahmed Yusuf, CEO of Seef Properties, stated: 'We are proud to renew our partnership with the Annual Business Quiz Show Competition and support this impactful initiative that continues to elevate Bahrain's competitive business environment. Seef Mall – Seef District is pleased to host this important event, reinforcing our commitment to empowering the next generation of leaders and supporting their journey toward a successful future. We look forward to welcoming participants, professionals, and visitors from across the business community.' Ms. Zahraa Taher, Chairperson of the DYF Advisory Committee, added: 'We are delighted to renew our partnership with Seef Mall – Seef District for this year's edition of the Business Sector Competition. This platform provides university students with a unique opportunity to engage with top Bahraini professionals in a dynamic and real-world setting. We anticipate another exciting season filled with enriching challenges that highlight local talent and create a space for youth excellence to shine.' The DYF Campaign is supported academically by Knowledge Partner Mastercard, along with the backing of Advisory Committee members from the Higher Education Council, INJAZ Bahrain, Tamkeen, Lamea, and certified trainers in career coaching and skills development. This collaborative support enhances the overall impact of the campaign, guiding participants toward future career paths that match their ambitions and meet labor market demands. For more information, please contact:
Arabian Business
a day ago
- Arabian Business
Gulf Air orders 12 Boeing 787 Dreamliners with options for six additional aircraft
Boeing and Gulf Air have announced an agreement for the purchase of 12 787 Dreamliner jets with options for six more as the Bahrain-based airline seeks to develop its international network further. The order will bring the carrier's firm order book to 14 of the widebody jets and will support 30,000 jobs across the United States once finalised. Bahrain Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa and U.S. Commerce Secretary Howard Lutnick joined Boeing Commercial Airplanes President and CEO Stephanie Pope and Gulf Air Group Chairman Khalid Taqi to witness the signing. Boeing secures Gulf Air deal for 12 787 Dreamliners The flag carrier of Bahrain will grow its all-787 widebody fleet, adding up to 18 787 Dreamliners to its widebody fleet. 'This agreement marks a transformative step in Gulf Air's strategic growth journey as we expand our global footprint and modernize our fleet with one of the industry's most advanced and efficient aircraft,' Khalid Taqi, chairman of Gulf Air Group said in a statement. 'The Boeing 787 Dreamliner has proven to be an exceptional aircraft for our long-haul operations, and this new order reflects our confidence in its performance, passenger appeal and contribution to our sustainability goals. We are proud to deepen our partnership with Boeing and reaffirm our commitment to positioning Bahrain as a key global aviation hub,' he added. The 787 Dreamliner serves as the backbone of Gulf Air's long-haul operations, connecting over 50 destinations. With 10 787 airplanes in service, the airline is positioned to grow its network, serving new and existing markets across Asia, Europe and the United States. 'We are excited to build on our more than 60-year partnership with Gulf Air as we deliver the market-leading 787 Dreamliner to help the airline serve more passengers and connect more destinations,' Stephanie Pope, president and CEO of Boeing Commercial Airplanes explained, adding that this investment in the 787 Dreamliner 'demonstrates Gulf Air's commitment to new technology and sustainable development, reinforcing Bahrain's position in the aviation sector.' The 787 Dreamliner family has transformed global air travel by opening over 425 new nonstop routes and carrying more than 1 billion passengers worldwide since its commercial introduction in 2011. As Gulf Air's flagship airplane, the 787 features the largest windows of any widebody jet, air that is less dry and pressurised at a lower cabin altitude for comfort, and technology that senses and counters turbulence for a smoother ride. From its first DC-3 in 1961, Gulf Air has taken delivery of 37 Boeing airplanes, including the 787 jets currently in its fleet. Boeing is a leading global aerospace company and top U.S. exporter. The company develops, manufactures and services commercial airplanes, defence products and space systems for customers in more than 150 countries.
