AI Regulation Bahrain

​This article examines how Bahrain's updated AI regulatory framework in 2025 integrates legal, ethical, and institutional measures to foster responsible innovation and align with international governance standards.

Bahrain's AI policy framework continues to consolidate its position as a regional leader in responsible AI adoption. Under the vision of His Majesty King Hamad bin Isa Al Khalifa and the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Kingdom is leveraging artificial intelligence to enhance public-sector performance, diversify its economy, and establish itself as an innovation hub for the Gulf. This strategic approach anchored in the Economic Vision 2030 combines governance, capacity-building, and cross-sector initiatives to ensure AI technologies are deployed transparently, ethically, and in the service of sustainable development.

 

Key Components of Bahrain's AI Regulation and Policy

Bahrain's approach to AI regulation now comprises several interlocking elements designed to enable innovation while maintaining ethical guardrails and governance oversight.

Legal & Policy Framework

In April 2024 the Kingdom's Shura Council unanimously approved a draft standalone AI regulation law consisting of 38 articles. This draft seeks to regulate development and deployment of AI systems, including the creation of an AI oversight unit, licensing, civil liability and administrative penalties. In May 2025, Bahrain published its General Policy for the Use of Artificial Intelligence (Version 1.0) which sets out broad objectives, pillars and responsibilities for public-sector AI use. The policy emphasises four main pillars:

• Legal compliance (including alignment with existing laws such as the Personal Data Protection Law)
• AI use and adoption
• Public awareness and education
• International and local cooperation.

 

Meanwhile, the Information & eGovernment Authority (iGA) announced the adoption of the Gulf Cooperation Council (GCC) "Guiding Manual on the Ethics of Artificial Intelligence Use" as part of its governance regime. At the same time, Bahrain maintains a set of specific mechanisms, such as procurement guidelines for AI in the public sector (in collaboration with the World Economic Forum), which address acquisition and deployment of AI systems by government ministries.

 

 

Ethical Governance and Standards

Bahrain's regulation isn't just technical: it embeds ethical values and oversight mechanisms. The frameworks emphasise fairness, non-discrimination, explainability, human oversight, transparency, data protection and accountability. The 2025 policy expresses a commitment to protecting human decision-making (rather than fully automated decisions), safeguarding privacy, promoting inclusion, and preventing algorithmic bias. Organizations seeking to understand regulating artificial intelligence can learn from Bahrain's balanced approach.

 

Institutional & Innovation Initiatives

In parallel with regulation, Bahrain has been active in building capability, oversight and innovation pathways:

• The national policy mandates training programmes and awareness workshops for government employees and AI users.
• The sandbox model for FinTech and AI continues to be a centerpiece: Bahrain's regulatory sandbox allows experimentation of AI-driven FinTech solutions under the supervision of the Central Bank of Bahrain (CBB).
• The policy emphasises local and international cooperation, R&D, and private-public partnerships to drive AI adoption aligned with ethical and governance standards.

 

Alignment with International Norms

Bahrain's framework reflects an effort to align with global AI governance trends while adapting to local context. The policy references international standards, cross-border cooperation and regional norms (via the GCC ethics manual).

 

Sectoral Applications of AI Regulation in Bahrain

The regulatory framework is translating into concrete sectoral applications:

• Government Services: Bahrain is automating public-sector decision-making and deploying AI to streamline service delivery, strengthen audit and oversight functions, and enhance transparency.
• Financial/FinTech Sector: AI and data-driven FinTech products are being piloted under the sandbox regime. Bahrain promotes responsible usage of AI in banking, payments, credit scoring, fraud detection.
• Education and Talent-Building: Training initiatives target government employees and youth alike, underlining the need for local capability to support AI management systems and applications.
• Cross-Sector Use-Cases: While less widely reported, Bahrain's regulatory backdrop supports applications in healthcare, urban planning and other public-interest fields in accordance with the policy's principled foundations.
• Procurement/Acquisition: The procurement guidelines help ensure that when government entities acquire AI systems, these are aligned with transparency, fairness and accountability requirements.

 

Challenges and Opportunities in Bahrain's AI Regulation Landscape

 

Challenges

• Maturity and enforcement: While the 2024/25 legal/policy frameworks are robust on paper, questions remain about enforcement, supervision and the practical functioning of oversight mechanisms.
• Talent & capability: Building local AI and governance expertise remains an ongoing challenge, as highlighted in comparative research for the GCC.
• Balancing innovation vs control: Bahrain, like many jurisdictions, must strike a trade-off between enabling experimentation and managing risk (bias, privacy, safety). The government itself has cautioned that simply layering new law on existing frameworks risks duplication or regulatory confusion.
• Clarity of scope and definitions: Some provisions in the draft law were criticised for ambiguous terminology (e.g. 'processor', 'user', 'extraterritorial reach').

 

Opportunities

• Bahrain has the potential to consolidate its role as a regional leader in AI governance by being early, clear and supportive of innovation.
• By combining regulation with a sandbox and procurement guidelines, Bahrain offers a model for risk-based, innovation-friendly governance.
• Transparent frameworks may attract international AI companies and startups seeking a Gulf hub with regulatory clarity.
• The alignment with the national economic diversification agenda (Vision 2030) positions AI regulation as a driver of growth, not just risk mitigation.

 

The Future of AI Regulation in Bahrain

Looking ahead, several trajectories stand out:

• The draft AI Regulation Law (38 articles) remains under finalisation and will likely be formally enacted or amended to clarify definitions, liability regimes and scope.
• The May 2025 policy provides the baseline; subsequent updates may introduce sector-specific regulations (e.g. healthcare, autonomous systems, governmental decision-making).
• As AI technologies such as generative AI and deep-learning systems evolve, Bahrain's framework will need to incorporate new risk categories (deepfakes, algorithmic decision-making, remote/automated operations).
• Bahrain's sandbox model will likely expand beyond FinTech into other sectors (education, health, mobility) under the oversight of dedicated regulatory units.
• Regional cooperation across the GCC on AI governance may accelerate, with Bahrain acting as a bridge given its early adoption of the GCC ethics manual.
• Private-sector and civil-society engagement will become more important: building trust, explaining AI decisions, and ensuring data governance standards are robust.

 

Regulatory Roadmap for AI in Bahrain

For organisations operating in Bahrain, the following roadmap may help navigate the evolving AI regulatory landscape:

1. Understand the existing legal and policy baseline: Review Bahrain's General Policy for the Use of AI (May 2025), existing data protection and cybersecurity laws.
2. Map your AI use-cases against risk domains: Determine if your application involves high-risk decisions (human life, rights, freedom), biometric/voice manipulation, or deep data-driven services.
3. Ensure compliance via procurement and deployment guidelines: If you're a public-sector entity or working with the government, refer to the AI procurement guideline developed with the WEF.
4. Embed ethical guardrails: Uphold transparency, human oversight, fairness, accountability, data protection. Make your AI decision-making explainable, auditable and adjustable.
5. Engage with regulators early: The regulatory sandbox under the CBB and other oversight units means early dialogue is advantageous. Regulatory engagement helps clarify licensing, risk frameworks and reporting obligations.
6. Invest in capability and governance: Build or acquire internal AI governance capability—not just technical teams but policy, ethics, compliance. Training and awareness across your organisation are key.
7. Stay informed and agile: The AI regulatory landscape in Bahrain (and the Gulf more broadly) is evolving. Monitor updates, regulatory consultations, new sector-specific rules and participate where possible. Understanding AI laws for businesses is crucial for compliance.

 

Ready to Navigate Bahrain's AI Regulatory Landscape?

As Bahrain refines its AI regulatory architecture, organisations must align with its governance, legal and ethical frameworks to both comply and innovate. For stakeholders wishing to act in Bahrain's AI ecosystem whether as government agencies, startups, or international corporations, a proactive strategy that integrates compliance, ethics and innovation is essential. Organizations can benefit from understanding how companies are adapting to AI regulation globally.

 

Conclusion

Bahrain's 2025 AI regulatory landscape demonstrates how a small but forward-looking nation can build a balanced governance model that protects rights while enabling innovation. By combining a dedicated AI policy, ethical standards, and institutional capacity-building, the Kingdom has established a coherent foundation for trustworthy AI deployment across public and private sectors. As the forthcoming AI Regulation Law takes effect, Bahrain is poised to deepen regional collaboration through the GCC, strengthen cross-border interoperability, and serve as a benchmark for human-centred, innovation-ready AI governance in the Middle East. The Kingdom's approach offers valuable insights for understanding Bahrain's AI landscape and its pioneering role in the region.

​As Bahrain's AI Regulation Law takes effect, non-compliance could cost you market access—secure your competitive edge by consulting with our certified AI governance experts today.