Innovation and technological growth play an important role in every organization the idea of Industry 4.0 is a new reality in the modern economy. Industry 4.0 has changed the design, procedures, activities and infrastructure of goods and production systems substantially. Yet rapid economic and industrial changes and population growth in Bahrain are related to rises in energy demand and emissions of greenhouse gases. In contrast, emerging technologically driven technological innovations like Augmented Reality (AR), and Virtual Reality (VR) were new drivers of progress in industries. Certainly, the implementation of the concepts has further consequences for sustainable development of Kingdom of Bahrain. Hence, the objective of the present paper is to investigate the effects of industry and reality on sustainable development. Additionally, not enough research has been conducted to ascertain the effects of industry and augmented reality on sustainable development in Bahrain. To do so, a structured survey was conducted for receiving observations of 210 entrepreneurs in Bahrain and to analyse the effect. The data is analysed and hypothesis is tested by using IBM-SPSS-AMOS package 25.0. The study found that the direct effects of industry and augmented reality on sustainable development in Bahrain are positive and significant. The originality of the manuscript goes back to studying the concept in the Arab world. On the basis of the result, this research endorsed that, the development in Bahrain is heavily in line with consistent growth of industrialization and augmented reality model implementation though there is some environmental consequences.
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