The government of Bhutan is making significant efforts to attract investors and diversify its industries. It seeks to enhance its appeal beyond the renowned Gross National Happiness metric by leveraging its clean energy and designated economic zones to create employment opportunities within the nation. However, numerous obstacles remain on this path.

Concerns Over Talent Exodus

Recent statistics indicate that approximately 13,500 individuals from Bhutan—equivalent to 1.6% of the population of under 800,000—relocated to Australia in 2023. This trend highlights that the youth are pursuing larger markets, which exacerbates the shortage of skilled professionals in Bhutan during a critical period of need for innovation and entrepreneurial spirit. Its landlocked position, nestled between India and China, further complicates logistics, increasing both costs and time for transportation and infrastructure development.

Harnessing Hydropower for Future Initiatives

Electricity generated from rivers is Bhutan’s primary export. The country currently boasts a hydropower capacity of 2.5 gigawatts, with an additional 3 gigawatts in the pipeline. This abundant and eco-friendly energy source is poised to support manufacturing plants, data centers, and green technology experiments. Reports from Druk Holdings and Investments (DHI), Bhutan’s sovereign wealth fund, suggest that these sites could facilitate the practical testing of pump-storage systems and hydrogen production. Successful trials conducted in Bhutan may then expand regionally.

Expansion of Bitcoin Mining

As reported by Fortune, Bitcoin mining stands out as a unique investment opportunity. Bhutan entered the cryptocurrency mining space in 2019, when Bitcoin was valued at nearly $10,000. By May 7, 2025, its worth surged to approximately $97,400. DHI asserts that leveraging hydropower allows for low-emission mining, which enhances the fund’s portfolio currently valued at $3 billion. However, fluctuations in cryptocurrency prices pose risks; a significant decline could erase profits. Despite this, DHI refers to Bitcoin as “digital gold” and embraces a diversified strategy.

Gelephu Mindfulness City Initiative

Planning documents reveal that Gelephu Mindfulness City is set to span roughly 2,500 square kilometers adjacent to the Indian border. This special economic zone aims to connect Bhutan with South and Southeast Asia, providing space for health facilities, tech innovators, and renewable energy companies. It is envisioned as a harmonious blend of work and well-being. The construction of roads, digital infrastructure, and residential areas will take time and significant investment before businesses and hotels can thrive.

Bhutan’s Gross National Happiness index improved from 0.743 in 2010 to 0.781 in 2022. During the same period, the GDP per capita rose from $2,435 to $3,711, despite a sharp decline in 2020 due to the pandemic. The tourism sector is slowly recovering; 145,000 visitors arrived last year, a reduction from 315,599 in 2019 under the “high-value, low-impact” approach aimed at protecting the environment and infrastructure.

DHI looks to Singapore’s Temasek as a model for governance, which manages around $300 billion and has interests in major companies like Singapore Airlines. In contrast, DHI owns stakes in 24 Bhutanese enterprises, including Bhutan Telecom and the Bank of Bhutan. Leaders emphasize that rapid action, efficiency, and transforming renewable energy into economic growth are their priorities.

Bhutan’s vision is ambitious, integrating traditional principles with aspirations in technology and finance. If employment opportunities materialize domestically, it may encourage the youth to remain. Successful pilot projects could pave the way for broader development. However, any miscalculation regarding hydropower, cryptocurrency, or urban development could strain Bhutan’s limited resources. Consequently, both investors and citizens are keenly observing these developments.

Featured image from Unsplash, chart from TradingView