With its unique positioning and connectivity to the Gulf region, Bahrain has become an ideal destination for businesses to expand and thrive.
Venture capital investments in Bahrain increased by 167% last year compared to the previous year, as startup funding in the Middle East reported an increase by 138%, recording $2.5 billion. In 2021, Bahrain attracted venture capital worth $52 million, according to an economic report. The robust startup environment in Bahrain enables entrepreneurs to expand and scale their ideas, thanks to its favorable business environment.
A report issued by Magnitt, said the UAE ranked first in attracting venture capital worth $1.1 billion, recording a growth of 93%, followed by Saudi Arabia with $548 million, recording a growth rate of 270%, then Egypt with a value of $502 million, an increase of 176%.
Bahrain’s ecosystem is moving towards maturity as its total valuation increased by four folds this year–from under $100 million to $564 million which marks 468% increase compared to the previous year. In addition, the average follow-on funding a startup receives doubled from $0.9 million to $3.1 million, which is an increase of 244% compared to 2021.
In 2020, Bahrain attracted $885 million in investments from local, regional, and companies from across the globe. The country has seen the birth of several companies in various industries, including financial services, manufacturing, logistical services, education, healthcare services, real estate, tourism, and ICT. Last year, Bahrain-based foodtech and meal subscription platform Calo raised $13.5 million in its funding round.
Bahrain’s 2030 Economic Vision aims to increase the country’s economic competitiveness by encouraging more foreign investments to fuel this growth.
The economic, social, and scientific development of various countries has benefited in recent years from venture capital funding. Following the trend, GCC countries, too, are keen on diversifying their economies and weaning themselves off of crude oil earnings by using venture capital investment as a tool.
Most Innovative Companies comes to the Middle East this October! Click here to know more.
Loading the player...
How can brands keep people and the planet at the center? Muna Al Gurg gives us an insight