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The article explains that the regulatory sandbox environment in the fintech sector, launched by the Kingdom of Bahrain in June 2017, allows startups and licensed institutions to freely and securely test their financial solutions aimed at fostering innovation and achieving commercial applications. By the end of December 2025, 11 companies, mostly from Saudi Arabia and Bahrain, had participated in this environment to test solutions such as digital payments, lending, and cashless technologies. Regulatory efforts are focused on protecting consumers and combating financial crimes, with regulatory updates aimed at enhancing efficiency and effectiveness. The payments sector accounts for 37% of activity, followed by investments and lending, each at 18%.
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