A report from Ernst & Young (EY) in the US has named Bahrain as the most cost-effective place for financial services firms intertwined with tech hubs, primarily due to lower labour and office rental costs.
Locating in Bahrain can result in “total savings of 20% when compared to the average location”, the report concluded. The Kingdom is followed by Oman, where the estimated cost is estimated to be 16% below the average location.
The analysis benchmarks costs in six key categories important to establishing and operating a financial services firm with a technology hub within GCC nations. These categories include labour, office space acquisition, internet and utilities, taxes and fees, company formation and visa and work authorisation.
Labour costs in Bahrain were found to be up to 24% lower than what’s typical in the Gulf for tech hubs within the financial services scene. In the case of office rentals, savings reached as much as 60%. Finally, in the realm of business and licensing fees, businesses in Bahrain save up to 85%, the report found.
“In today’s digital economy, establishing robust tech hubs is essential for financial services firms to innovate, compete, and stay ahead,” said Ali Al Mudaifa, Chief of Business Development at Bahrain Economic Development Board (EDB).
“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 IMD World Competitiveness Ranking ranked Bahrain 4th for skilled labour globally and 6th for digital expertise.
