Bahrain and Karnataka Sign Memorandum of Understanding Promoting Cooperation in Fintech AI IoT and Cyber-Security

The Bahrain Economic Development Board (EDB) – the Kingdom’s investment promotion agency – and the Department of Information Technology; Biotechnology; and Science & Technology, Government of Karnataka, have signed a Memorandum of Understanding (MoU) to promote cooperation in AI, FinTech and other emerging technologies while fostering innovation and startup growth.

The agreement, which was signed at the World Economic Forum’s 50^th Annual Meeting at Davos, aims to achieve three principal goals:

1. Build robust FinTech, Artificial Intelligence (AI), Internet of Things (IoT) and Cybersecurity ecosystems where startups and technology firms engage in external partnerships with corporates, universities, research institutions, technology experts and government agencies.
2. Develop education programmes and curricula relating to FinTech, AI, IoT and Cybersecurity, to benefit the sectors in their respective jurisdiction. This may include facilitating and enhancing cooperation between relevant authorities such as universities/research institutions, technology experts, and government agencies.
3. Nurture FinTech, AI and Cybersecurity startups and centres and collaborate to facilitate their growth through development and support.

Bahrain is one of the oldest and most established financial centres in the Gulf region. Bahrain has capitalised on its banking expertise to grow one of the most concentrated and advanced FinTech ecosystems in MENA. With its cutting-edge regulation, competitive costs of doing business and supportive ecosystem, Bahrain is an increasingly attractive destination for startups looking to take their first steps outside of their domestic markets and increase their international presence.

Karnataka is the leading technology hub in the world and has also emerged as the leading R&D and innovation ecosystem for start-ups. Home to over 1.2 million software professionals and over 80% of fortune 500 companies, Karnataka has a unique mix of rich technology talent and the cutting-edge R&D, which has made it the go to destination for IT, biotechnology and startups.

Bahrain will benefit from Karnataka’s expertise in emerging technologies such AI and Cybersecurity, while Karnataka will have access to Bahrain’s renowned FinTech prowess. Authorities from both parties will also collaborate on facilitating SMEs, including startups, through incubation and ecosystem exposure visits.

The agreement marks the latest chapter in one of the longest-running economic and trading relationships between India and Bahrain, which is shifting increasingly towards service exports, FinTech and ICT. Bilateral trade between the two nations currently stands at some US$ 1.3 billion.