Situated between India and China, Bhutan is renowned for its concept of “Gross National Happiness,” a unique metric believed to offer a more comprehensive view of economic progress compared to GDP. However, the country aspires to be recognized for more than just spiritual tourism and the majestic Himalayan mountains. Bhutan now aims to draw foreign investment, nurture new industries, and integrate into the global economy despite facing challenges such as geographical isolation and a dwindling population due to brain drain.
Ujjwal Deep Dahal, CEO of Druk Holdings and Investments (DHI), Bhutan’s sovereign wealth fund, acknowledges these challenges and emphasizes the need for Bhutan to engage with the world effectively. Despite its modest size in the global financial landscape, DHI seeks to capitalize on Bhutan’s strengths, particularly abundant and affordable hydropower, to drive investments in sectors like data centers and Bitcoin mining. A pivotal part of Bhutan’s strategy is the development of Gelephu Mindfulness City, a designated zone to facilitate business partnerships with South and Southeast Asia.
While major sovereign wealth funds like those of Norway, Saudi Arabia, or Singapore boast substantial assets under management, DHI operates on a smaller scale with around $3 billion in assets, investing in various Bhutanese companies. Dahal believes that DHI’s size is not a hindrance but an opportunity to prioritize efficiency and strategic growth. Drawing inspiration from Singapore’s Temasek, Dahal aims to align DHI’s governance and investment strategies with the unique challenges faced by Bhutan’s economy.
Notably, Bhutan’s Gross National Happiness index has shown improvement over the years, reflecting the population’s satisfaction levels. However, economic uncertainties have led to a brain drain, with a significant number of Bhutanese seeking opportunities abroad. With tourism being a key revenue source, Bhutan continues to grapple with the aftermath of the COVID-19 pandemic, striving to strike a balance between economic development and preserving its pristine environment through a sustainable tourism model.
DHI oversees several key firms in Bhutan’s economy, such as Bhutan Power Corporation, Bank of Bhutan, and Bhutan Telecom. Dahal sees DHI as a platform to establish Bhutan’s presence in the modern AI and internet economy. With a background in engineering and hydropower, Dahal envisions Bhutan as a hub for green energy innovation, focusing on technologies like pump storage and hydrogen power to test their viability and potentially scale them globally.
Hydropower is a major focus for Bhutan, currently generating 2.5 gigawatts with an additional 3 gigawatts under construction. In a unique move, Bhutan has invested in Bitcoin mining, becoming one of the largest sovereign holders. Utilizing hydropower and other green energy sources, Bhutan’s crypto mining operation aims to offset carbon emissions. Dahal sees Bitcoin as a digital gold alternative, part of Bhutan’s diversified investment strategy.
DHI also supports the development of Gelephu Mindfulness City, a special region aiming to be an economic gateway to South and Southeast Asia. Spanning 2,500 square kilometers, the City promotes economic growth alongside sustainability and holistic living, attracting businesses in healthcare, technology, and green energy. Dahal emphasizes fostering innovation within DHI, bringing together global founders, academics, and innovators to cultivate a startup culture and economy in Bhutan.
