AI in Bahrain: Integrating AI Into Economic Visions, National Security and a Growing Workforce

Artificial intelligence (AI) could contribute up to 15.7 trillion USD by 2030 to the global economy and boost global GDP by 14%. In the Middle East, a race is underway as countries across the region work to establish themselves as leaders in this burgeoning technological frontier. One country well-positioned for the AI race is the Kingdom of Bahrain. A combination of factors, including movement in the financial technology (fintech) sector, national security infrastructure, and workforce development have Bahrain primed to jockey for a leadership role in capitalizing on AI in the Middle East and North Africa (MENA).  

While the country is working to codify a legal framework for AI usage, the larger part of Bahrain’s strategy is their Digital Government Strategy 2022 and, as described on their “Approach to Emerging Technologies” website, is integrated into various national plans, like the Economic Vision 2030 and Government Plan for 2019-2022. This aligns emerging technologies, including AI, with the country’s goal to diversify away from oil by strengthening its capabilities across sectors.  

Integrating AI Capabilities in FinTech 

Not only has Bahrain asserted itself as a leading fintech hub in the Middle East and North Africa (MENA), the Kingdom is particularly unique in acting as a “gateway” (per the Economic Development Board of Bahrain) to the rest of the Gulf region and its regional markets, making its technology innovation and regulation particularly influential. As part of its overall strategy for AI, Bahrain is leveraging public-private partnerships to further promote AI across various fields. Bahrain, which is home to robust financial, telecom and energy industries, is seeing AI integrated into these different sectors. Yet the sector seeing perhaps the most innovation when it comes to AI is Bahrain’s fintech sector.  

Bahrain’s digital transformation is high priority for its financial sector (see Economic Vision 2030). Banks in Bahrain have taken to automating and computerizing their financial services for customers to support Bahrain’s digital transformation and its goal of becoming cashless. For example, eWallet Benefit Pay facilitates all payments through a “national digital wallet” and personal bank accounts.  

In terms of AI, the government is working to promote its use in the digital transformation in the financial sector. The Central Bank of Bahrain (CBB) has issued directives on digital finance advice to provide guidance and encourage financial institutions to use AI digital advisory tools. However, the most common use of AI in Bahraini banks at the moment are AI assistants. To advance digital banks, Bank ABC launched their AI assistant in 2019, “Fatema,” and ASB Finance (formerly KFH Bahrain) also launched a similar digital loan assistant, “Baitak Assistant”. While these assistants are expediting processes and cutting costs, Bahrani banks have yet to fully utilize the wide range of AI applications. 

The CBB has had more success promoting AI adoption specifically in the fintech sector, as opposed to banks, and has launched numerous initiatives to promote Bahrain’s digital transformation and AI innovation in the fintech industry. In 2020, CBB established a digital fintech lab, FinHub973, and a regulatory sandbox, creating avenues for start-ups and established fintech firms to 1) collaborate with financial institutions on solutions, including AI-powered solutions, to various “challenges” and 2) test out their solutions in a contained environment, allowing companies to apply technical and regulatory tests to innovative solutions prior to scaling. 

Strengthening AI Capabilities in National Security  

While Bahrain is publicly promoting AI in their plans for economic development, the state has also slowly been integrating AI into their national security framework and amassing greater control over their own borders.  

In the context of implementing AI in national security, Bahrain has made several efforts to secure their borders. For example, Bahrain joined an international working group on the safe use of AI in the military. Alongside the US, Bahrain—a key US military partner—will lead the working group on AI assurance, looking at how to implement AI in the military in ways that are clearly defined, rigorously tested, and include safeguards. Additionally, the country worked with the UK-based SRT Marine Systems to implement AI in maritime surveillance in 2019. AI was used to sift through radar and CCTV as a means of alerting border control of suspicious activity, creating what the CEO of the company called a “ring of steel” around Bahrain. In these ways, Bahrain is looking to safeguard its country using AI. 

Building an AI Workforce 

To promote implementation of AI in both fintech and defense, Bahrain is working to cultivate local human capital. In an interview with tech outlet CIO, Dr. Jassim Haji, president of the Artificial Intelligence Society of Bahrain, noted, “Bahrain has a history of remaining largely self-dependent on local talent for technology.” The Kingdom of Bahrain continues to prioritize local workforce development when it comes to AI, leveraging public-private partnerships and once more demonstrating the value of those partnerships in achieving the Kingdom’s goals.   

Tamkeen, Bahrain’s Labor Fund, whose objectives are to promote national enterprise and train the workforce, established a partnership with Microsoft and Bahrain Polytechnic to launch the Artificial Intelligence Academy, a professional certification program. Additionally, Tamkeen, Bahrain Polytechnic, the University of Bahrain partnered with Amazon Web Services to create the Cloud Innovation Center to promote cross sector collaboration and problem-solving to advance Bahrain’s digital transformation, and openly publish research results for global benefit. Projects have included using AI to optimize airport resource allocation, using AI to monitor and report plant diseases, and using deep learning to develop a chatbot made to support the Ministry of Works, Municipalities Affairs, and Urban Planning. These are some examples of many of Bahrain’s approach to developing a localized AI workforce. 

Similar to Bahrain’s initiatives with promoting innovation in fintech, the government also promotes innovation competitions, i.e. hackathons, for students in AI more broadly. These reflect opportunities for those just starting in the field to develop creative approaches, sparking interest in students to innovate in this space. All these efforts complement the country’s broader economic strategy ensuring that Bahrainis reap the benefits of growth and development.  

What’s Next 

Parliament is set to review the formal version of the AI regulation approved by the Shura Council in the coming months, which will set the tone for future AI regulation in the country and further highlight the government’s priorities. The latest draft emphasizes provisions on privacy and protection against discrimination, and prohibitions on using AI for political unrest or disturbances. One the surface, this proposed framework for AI usage is promising for bolstering data privacy and ethical approaches to AI. However, there is significant concern that it also risks strengthening the state’s ability to suppress dissent, threatening the Kingdom’s civic space.  

With this potential regulation, Bahrain is not only taking a leading role in this space but defining the rules of the game in the MENA region. The final language will give more insight into how the country will balance protecting civic space, promoting data privacy, and using AI to amass greater control of their borders and citizens.   

Lastly, Bahrain’s initiatives promoting cross sector collaboration in the technology and finance industries will only solidify their position as a fintech hub in the region, paving the way for more and more innovation. Key to this success seems to be a combination of supporting innovation and private-public partnerships that will lay the groundwork for an integrated AI future.