Bahrain is setting the pace in the Middle East and North Africa (MENA) as a frontrunner in the adoption and integration of artificial intelligence (AI). With an ambitious strategy encompassing financial technology, national security, and workforce development, the Kingdom is primed to capitalize on AI, which is projected to contribute up to $15.7 trillion to the global economy by 2030.
Under its Digital Government Strategy 2022 and aligned with the Economic Vision 2030, Bahrain is advancing its AI capabilities significantly. The strategy’s integration into various national plans emphasizes AI’s role in diversifying the economy beyond oil, enhancing sectors like fintech, where Bahrain has already established itself as a hub and gateway to the Gulf’s broader markets.
Fintech Innovation and Digital Transformation
In the fintech sector, Bahrain is leveraging AI to transform financial services, aiming to support the Kingdom’s shift towards a cashless society. Initiatives like the eWallet Benefit Pay facilitate transactions through a national digital wallet, showcasing significant progress in Bahrain’s digital transformation efforts. The Central Bank of Bahrain (CBB) is also guiding financial institutions to adopt AI in their digital advisory services, although the most widespread use of AI currently is in customer service through AI assistants like Bank ABC’s “Fatema.”
The CBB’s establishment of FinHub973 and a regulatory sandbox exemplifies Bahrain’s proactive approach to fostering AI innovation in fintech, providing a testbed for AI solutions and promoting collaboration between startups and financial institutions.
Enhancing National Security with AI
Bahrain is also integrating AI into its national security framework, utilizing advanced technologies to bolster border control and surveillance. Collaborations with international and regional partners enhance Bahrain’s capabilities, such as its partnership with the UK-based SRT Marine Systems for AI-driven maritime surveillance, creating a “ring of steel” around the nation.
Cultivating a Skilled AI Workforce
To support its AI initiatives, Bahrain is focused on developing local talent through partnerships with global tech leaders like Microsoft and Amazon Web Services. The Artificial Intelligence Academy and the Cloud Innovation Center are pivotal in training Bahrainis in AI applications, preparing them to lead in sectors from airport management to agricultural technology.
Future Directions and Regulatory Frameworks
As Bahrain moves forward, it awaits the formalization of AI regulations that promise to secure data privacy and ethical AI usage, though concerns about potential restrictions on civic space persist. The upcoming legislation will likely set precedents for AI governance in the region.
Bahrain’s holistic approach to AI, emphasizing public-private partnerships and cross-sector collaboration, positions it not only as a regional leader in fintech but as a pioneering nation in the digital era. The Kingdom’s strategic initiatives are paving the way for a sustainable, AI-integrated future, promising substantial economic and social benefits.
