ARTICLE Bahrain’s Banking and Finance Sector: Navigating Transformation and Growth

Grant Thornton Bahrain is pleased to present its latest Banking and Finance Industry Report, offering focused insights into one of the Kingdom’s most influential economic sectors. As part of our ongoing commitment to thought leadership, the report
provides a clear perspective on key market developments shaping Bahrain’s banking landscape. Bahrain’s financial sector is primarily anchored by its banking system, which accounts for over 85% of total financial assets.

BD 94.9 billion

As of June 2025, the total assets held by the banking industry were of BD 94.9 billion. Of this, the Islamic banking industry assets account for 25.6% accounting to BD 24.3 billion.

• The sustained growth of the banking sector is a result of several key factors:
• – Regulatory framework that adheres to international standards
  – Bahrain’s open market economy
  – Stable macroeconomic environment
  – Significant investment in digital banking services
  – Regional hub for Islamic finance and wealth management

Bahrain’s banking and finance sector remains a cornerstone of national economic development, supported by a diversified financial ecosystem and a progressive regulatory environment led by the Central Bank of Bahrain (CBB). This has reinforced Bahrain’s position as a competitive and well regulated regional financial hub.

The sector is undergoing transformation, driven by strategic mergers and acquisitions, accelerated digital adoption, and regulatory initiatives to enhance efficiency and customer experience, alongside exploration of emerging opportunities such as a Central Bank Digital Currency (CBDC).