Market Insights Financial Wealth Management

Digital Investment - Bahrain

Bahrain

The Digital Investment market in Bahrain is expected to witness a significant increase in total transaction value, reaching US$173.90m in the year 2024.
Furthermore, it is projected to experience a steady growth rate with a compound annual growth rate (CAGR 2024-2027) of 8.01%, resulting in a projected total amount of US$219.10m by 2027.
Among the various players in the market, Robo-Advisors are anticipated to dominate, with a projected total transaction value of US$173.90m in 2024.
This showcases the immense potential and influence of automated advisory services in the digital investment landscape.
Furthermore, when considering the highest cumulated transaction value, in the United States emerges as the frontrunner, with an estimated value of US$1,782,000.00m in 2024.
This highlights the strong position of the United States within the global digital investment market.
Bahrain's digital investment market is flourishing, with a growing number of local startups attracting international attention and funding.

Key regions: Canada, United Kingdom, United States, United Arab Emirates, Europe

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Analyst Opinion

The Digital Investment market in Bahrain is experiencing significant growth and development.

Customer preferences: Customers in Bahrain are increasingly turning to digital investment platforms due to their convenience and accessibility. With the rise of smartphones and internet penetration, investors are now able to access investment opportunities and manage their portfolios at their fingertips. This shift towards digital investment platforms is driven by the desire for greater control and transparency, as well as the ability to access a wide range of investment options.

Trends in the market: One of the key trends in the digital investment market in Bahrain is the emergence of robo-advisory services. These platforms use algorithms and artificial intelligence to provide investment advice and manage portfolios on behalf of investors. Robo-advisors offer a low-cost alternative to traditional financial advisors and are particularly popular among younger investors who are comfortable with technology and prefer a hands-off approach to investing. Another trend in the market is the increasing popularity of crowdfunding platforms. These platforms allow individuals to invest in startups and small businesses, providing them with access to investment opportunities that were previously only available to institutional investors. Crowdfunding platforms in Bahrain are regulated by the Central Bank of Bahrain, ensuring investor protection and promoting transparency in the market.

Local special circumstances: Bahrain's position as a financial hub in the Middle East has contributed to the growth of the digital investment market. The country has a well-developed financial services industry and a supportive regulatory environment, which has attracted a number of digital investment platforms to establish their presence in Bahrain. The government has also taken steps to promote innovation in the financial sector, including the establishment of a regulatory sandbox that allows fintech companies to test their products and services in a controlled environment.

Underlying macroeconomic factors: The growth of the digital investment market in Bahrain is also influenced by underlying macroeconomic factors. Bahrain has a young and tech-savvy population, with a high level of internet penetration and smartphone usage. The country also has a strong economy, with a well-diversified financial services sector and a stable regulatory framework. These factors create a favorable environment for the development of digital investment platforms and contribute to the overall growth of the market. In conclusion, the digital investment market in Bahrain is experiencing significant growth and development, driven by customer preferences for convenience and accessibility. The emergence of robo-advisory services and crowdfunding platforms are key trends in the market, providing investors with new opportunities and options. Bahrain's position as a financial hub and its supportive regulatory environment are also contributing to the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.