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Bahrain Ranks Third in Arab Digital Economy Index

Bahrain Digital Economy performance has placed the kingdom third among 22 Arab economies in 2026. The ranking highlights Bahrain’s growing position within the region’s leading digital markets. The latest Arab Digital Economy Index measures progress across nine major areas of digital development. These areas include infrastructure, governance, human capital, electronic government services, cybersecurity and data sovereignty.

The fifth edition of the index launched during the Seamless Middle East 2026 conference in Dubai. The Arab Federation for Digital Economy publishes the report every two years under the Arab League’s auspices. This year’s assessment examined 22 Arab economies while placing particular attention on national data sovereignty. The index also measured how effectively countries develop digital systems, regulations and technological capabilities.

Bahrain achieved an overall digital sovereignty score of 66.75 points in the latest assessment. That result stood considerably above the Arab regional average of 44.33 points. The United Arab Emirates ranked first with 76.66 points, followed by Saudi Arabia with 73.64. Meanwhile, Bahrain narrowly surpassed Qatar, which recorded 66.66 points, and Oman, which reached 65.98.

Several factors contributed to Bahrain’s strong regional position within the index. These included extensive digital infrastructure, nationwide 5G adoption and government policies supporting cloud-based technologies. In addition, Bahrain has developed regulatory frameworks supporting financial technology and emerging digital services.

The report recorded particularly strong results across several individual digital indicators. Bahrain received a perfect score of 100 for the spread and use of information and communications technology. It also achieved 100 points for e-commerce legislation and its national artificial intelligence strategy. These results placed Bahrain significantly above regional averages across all three indicators.

Furthermore, Bahrain recorded strong results for government telecommunications infrastructure. The country scored 98.77 points, exceeding the Arab average by more than 31 points. Digital services usage intensity reached 93.60 points, while integrated electronic government services scored 90.31. The latter result exceeded the regional average by nearly 45 points.

Cybersecurity also represented a major area of strength for Bahrain in the assessment. The country recorded 97.52 points for its cybersecurity level, substantially above the regional average. Its score also came within two points of the international benchmark, which stood at 99.20.

At the same time, Bahrain achieved 76.30 points for emerging technology regulation. This result exceeded the regional baseline by more than 50 points. The figures indicate substantial progress in establishing regulatory structures for newer technologies and digital applications.

Bahrain also recorded strong results in civic participation and broader social development indicators. E-participation reached 89.85 points, exceeding the Arab average by more than 53 points. The country also scored 87.20 for good health and well-being under Sustainable Development Goal 3.

Quality education under Sustainable Development Goal 4 produced another strong result. Bahrain recorded 85.12 points, placing its performance more than 26 points above the regional average. Together, these indicators connected digital development with wider social and developmental outcomes.

Financial inclusion provided another important measure of Bahrain’s digital ecosystem maturity. Bank account ownership among people older than 15 reached 82 percent. That figure stood approximately 41 points above the Arab average for the same indicator. Debit and credit card ownership also reached 80 points, exceeding the regional average by nearly 49 points.

Overall, Bahrain’s strongest area involved cybersecurity and data sovereignty. The kingdom recorded an axis average of 82.52, compared with 53.19 across the Arab region. Digital infrastructure followed with an average of 81.42, while the regional average reached 46.91.

Developmental impact also contributed substantially to Bahrain’s overall result. The kingdom recorded an average score of 73.37 in this area. By comparison, the Arab regional average stood at 57.40 points.

Arab Federation for Digital Economy chairman Dr Ali Al Khouri highlighted broader changes affecting digital development worldwide. He said artificial intelligence, advanced data analytics and edge computing increasingly drive digital value creation. He also stressed that importing ready-made technologies alone cannot guarantee long-term digital security.

According to Al Khouri, countries need stronger domestic technology capabilities to maintain strategic independence. He pointed to local technology development, national data infrastructure and skilled domestic talent as important priorities. These capabilities can help countries operate increasingly complex digital systems with greater independence.

Looking toward 2030, the report recommends continued investment in domestic research and development. It also encourages high-performing countries such as Bahrain to expand their artificial intelligence ecosystems. In addition, the report calls for faster integration between regional digital markets.

The findings place Bahrain Digital Economy development among the strongest regional performances measured by the 2026 index. They also highlight the kingdom’s progress across infrastructure, cybersecurity, regulation and digital public services. Continued investment could further strengthen these areas as regional economies expand their digital capabilities.

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