Bahrain’s startup ecosystem has gained significant ground, securing a top-five position in the Middle East and North Africa for performance, according to the 2026 Global Startup Ecosystem Report (GSER) by Startup Genome. The report reveals the ecosystem’s total value reached $1.6 billion for the period from July 1, 2023, to December 31, 2025, marking a remarkable 759% increase from the valuation recorded in the 2021 report.
Quick Facts
- Ecosystem Value: $1.6 billion
- Value Growth: 759% increase since 2021 report
- MENA Performance Rank: Top 5
A Focused Strategy Over Scale
The report highlights Bahrain’s strategic decision to specialize rather than compete on sheer size. This approach has paid dividends, particularly in FinTech, Blockchain, and AI, where the Kingdom has established a strong foundation supported by progressive regulations and innovation-focused initiatives.
Samantha Evans, Regional Manager for MENA at Startup Genome, commented on this approach, stating, “Instead of focusing on competing in terms of ecosystem size, Bahrain has concentrated on building a specialized ecosystem in the FinTech and IT sectors, areas where it has the potential to lead. Through the pivotal role played by Tamkeen in entrenching this approach, it has proven that targeted and specialized investment can outperform general, less-focused strategies.”
Tamkeen’s Role in Fueling Growth
The Kingdom’s labor fund, Tamkeen, was identified as a key driver of this success. The organization’s efforts to support entrepreneurs and foster startup growth have been central to building an integrated and agile ecosystem.
“What distinguishes Bahrain is its integrated and flexible startup ecosystem that allows entrepreneurs to develop and test their ideas at a rapid pace in a supportive environment that facilitates expansion into regional markets,” said Aliya Al-Aali, Deputy Chief Executive of Strategy and Insights at Tamkeen. She added that Tamkeen continues to launch initiatives to stimulate innovation, accelerate business growth, and expand access to financing and modern technologies.
Performance Across Key Innovation Metrics
Beyond its overall performance, Bahrain also demonstrated strength in specific high-growth sectors. The Kingdom ranked among the top 10 ecosystems in MENA for its AI-Native Cluster, which measures the volume and activity of AI startups.
Additionally, Bahrain placed in the top 15 in the region for its R&D Engine, an index that assesses innovation through research activities. These rankings underscore the Kingdom’s growing capabilities in deep-tech and knowledge-based industries. The report also pointed to a well-connected ecosystem, competitive operating costs, and strong public-private collaboration as key factors making Bahrain an attractive hub for founders.
About Startup Genome
Startup Genome is the world-leading policy advisory and research organization for public and private organizations committed to accelerating their startup ecosystems. Its GSER is the world’s most comprehensive, data-driven research on startup ecosystems, analyzing data from over 4.5 million companies across more than 300 ecosystems globally. The report provides insights into global trends, investment flows, and policies that contribute to entrepreneurial success.
Source: Alayam
