Recent literatures on development studies focus on the notion of the fourth industrial revolution as an important driver of social and economic development of nations in the 21st century. If we agree with the fundamentals of the fourth industrial revolution and accept some of the challenges raised by the new era, what does this mean to Bahrain and how does it translate into Bahrain being ready for a more digital, innovative, creative and knowledge-based economy. In theory, defacement of new technologies, should allow countries such as Bahrain to move ahead some of the older established economies: in practice, it would take immense efforts of both public and private sectors to mobilize their resources and enable growth to foster. One may suggest, that building capabilities to cultivate the fruits of the fourth industrial revolution become essential to generate new ideas, expand productivity, create linkages, encourage entrepreneurship, transfer technology, disseminate innovation acquire skills, and absorb knowledge. You may ask: is Bahrain ready to absorb these new capabilities and apply to improve the economy, create jobs, reduce inequality and build capacity for a knowledge-based society. The above statements represent important features of the new economy. The new economy is an economy driven by ideas, innovation, knowledge and digital applications. In Bahrain, as well as the rest of the Gulf region, economic policies are directed toward transforming the economy into a diversified economy driven by the technologies of the fourth industrial revolution. You are requested to provide an overall assessment of Bahrain, or countries in the region, capabilities to deepen integration into the new economy and benefit from the fourth industrial revolution. Managerial economics could play an important role in reshaping the economy so that to facilitate technology transfer, knowledge acquisition and information diffusion. This assignment should be designed as a research paper.