By admin 
Bhutan, the small landlocked nation wedged between India and China, is maybe greatest recognized for “Gross Nationwide Happiness,” the alternate measure that the nation claims provides a fuller understanding of financial growth than GDP.
However the nation desires to be recognized for extra than simply religious tourism and Himalayan mountains. Bhutan now hopes to draw overseas funding, foster new industries, and enter the worldwide economic system.
It’s a steep hill to climb for the remoted Himalayan nation, which has lately grappled with a brain drain downside as younger Bhutanese journey overseas for brand new alternatives.
“Geography is a problem for us, demography is a problem for us,” mentioned Ujjwal Deep Dahal, CEO of Druk Holdings and Investments (DHI), Bhutan’s sovereign wealth fund. Bhutan and DHI must “study to interact with the world as we transfer,” he added.
But Bhutan and its sovereign wealth fund–tiny by international requirements–hope to leverage the nation’s strengths, together with low cost and widespread hydropower, which in flip can feed investments in knowledge facilities and Bitcoin mining. Key to the nation’s plan is the Gelephu Mindfulness Metropolis, a brand new zone to attach Bhutan with companies in South and Southeast Asia.
‘Measurement doesn’t matter’
Essentially the most outstanding sovereign wealth funds—like these from Norway, Saudi Arabia or Singapore—are gigantic international traders. These funds transfer lots of of billions of {dollars} of funds, garnered from pensions, pure assets or overseas alternate reserves, to hunt excessive returns and spend money on strategic industries.
DHI is smaller in comparison with these international giants. Loads smaller.
Based in late 2007, DHI has round $3 billion in belongings below administration, and owns stakes in 24 completely different Bhutanese corporations.
By comparability, Singapore’s Temasek has $300 billion in belongings below administration, with stakes within the nation’s most outstanding corporations, like Singapore Airways and DBS.
However Dahal sees alternative in DHI’s small measurement. “Measurement doesn’t matter,” he mentioned; as an alternative, DHI can deal with “effectivity and the way we develop.” Nonetheless, he sees Temasek as a task mannequin for DHI.
“We have a look at Temasek to a big extent, by way of governance, by way of divestments. However having mentioned that, Bhutan’s economic system and Singapore’s are utterly completely different,” Dahal mentioned. “We have to have a look at operating DHI in a means that’s complementary to the challenges.”
Bhutan’s happiness and mind drain
Bhutan calculates Gross Nationwide Happiness by way of a survey of 300 questions administered each few years. The most recent GNH index, launched in Might 2023, reported a rating of 0.781 for 2022, larger than the 0.743 reported in 2010.
The nation’s GDP per capita grew from $2,435 to $3,711 over the identical interval—but skilled a steep decline in 2020, the peak of the pandemic.
Pessimism concerning the economic system has meant that the nation, with a inhabitants of lower than 800,000, is at present going by way of a mind drain. Round 13,500 Bhutanese, equal to 1.6% of the nation’s total inhabitants, moved to Australia in 2023. The nation, which remains to be largely coated in forest, has battled declining earnings, an absence of job alternatives, and rising youth unemployment.
Tourism is considered one of Bhutan’s essential sources of earnings, however has but to recuperate from the COVID pandemic. The nation reported 145,000 vacationer arrivals final yr, lower than half of the 315,599 arrivals recorded in 2019. The nation additionally has a combined view of the tourism business, selling a “high-value, low-impact” tourism mannequin to keep away from stressing the nation’s infrastructure.
Massive bets
DHI manages a number of companies which can be key to the nation’s economic system, like Bhutan Energy Company, Financial institution of Bhutan, and Bhutan Telecom. And Dahal thinks DHI is usually a platform to carve out a distinct segment for Bhutan in at the moment’s AI and web economic system.
For instance, Dahal, who has a background in engineering and hydropower, hopes that Bhutan is usually a place the place inexperienced vitality companies can discover “attention-grabbing applied sciences,” like pump storage and hydrogen energy, and take a look at their business viability.
“We are able to shortly check it out in Bhutan, clear up the issue in Bhutan and take it international or regional,” Dahal argued.
He’s significantly targeted on hydropower, now Bhutan’s main supply of electrical energy technology. Bhutan currently has 2.5 gigawatts of present capability, and a further 3 gigawatts below building.
DHI’s additionally making some extra unconventional bets. Bhutan is among the world’s largest sovereign holders of Bitcoin. The nation began mining the cryptocurrency again in 2019, when it was value slightly below $10,000. It’s now value round $97,000 as of Might 7, 2025.
Bitcoin mining is often vitality intensive, however Dahal claims that Bhutan’s crypto mining, as a result of its use of hydropower and different inexperienced vitality, helps offset carbon emissions elsewhere.
“Bitcoin is a parallel to digital gold,” Dahal mentioned, noting that the nation’s cryptocurrency technique is a part of a diversified method for various investments.
DHI, as Bhutan’s funding arm, can be supporting the event of Gelephu Mindfulness Metropolis, a particular administrative area that hopes to be an financial hall to South and Southeast Asia. The Metropolis, which spans about 2,500 sq. kilometers, tries to mix financial progress with sustainability and holistic residing, and presents area to companies like healthcare, expertise, and inexperienced vitality.
“We’re attempting to deliver an innovation technique into DHI to construct startups with international founders, academicians and innovators, and convey them collectively to construct a startup tradition and economic system,” Dahal mentioned.
This story was initially featured on Fortune.com
Source link