Bahrain has emerged as the Gulf’s most cost-effective home for financial-services tech hubs, a new Ernst & Young study shows, promising big savings for firms eyeing regional expansion.

Bahrain’s combined operating outlays for a mid-size technology hub come in 48 percent below the GCC average, with developer and data-analyst salaries up to 24 percent cheaper, according to EY’s “Cost of Doing Business in the GCC” benchmark. The study compared six Gulf markets and found Bahrain also delivers 60 percent lower office rents while slashing annual licensing fees by 85 percent. Crucially, the Central Bank of Bahrain’s single-regulator model lets firms obtain category-based licences covering multiple activities, trimming red tape and onboarding times. The report argues that tech hubs are the heartbeat of modern finance, and locating them in Bahrain lets firms channel savings into research, product development and regional hiring rather than fixed overheads.

These fundamentals are already attracting global players: Citi’s Global Tech Hub plans to employ 1,000 Bahraini coders, while J.P. Morgan’s forthcoming Technology Centre will create 200 high-skill jobs. Financial services now contribute over 17 percent of Bahrain’s GDP, and the kingdom’s cloud-first mandate plus open-data policies offer an innovation sandbox for banks, fintechs and payment providers. International rankings reinforce the appeal—IMD places Bahrain fourth worldwide for skilled labour and sixth for digital skills—showing the kingdom couples talent depth with cost efficiency.

“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.”

Download the full study and connect with the Bahrain Economic Development Board to explore setup options.