Bahrain and UK Agree Landmark Agreements on Digital Economy and Investment

Britain’s Prime Minister, Rt Hon Rishi Sunak MP, has hosted HRH Crown Prince Salman Bin Hamad

Al Khalifa, Prime Minister of Bahrain, for bilateral talks in London.

Following their talks held on 3 July 2023, the two leaders welcomed the signing of a new Strategic Investment and Collaboration Partnership between their two countries. The agreement aims to facilitate additional investment of more than £1 billion into the UK, support the diversification of Bahrain’s economy and drive greater cooperation between our countries in clean technology, business services and manufacturing.

Mr Sunak described the new agreement as marking a new chapter in the historic and close relationship between the UK and Bahrain, which spans security, defence and trade.

The meeting between the UK Prime Minister and the Crown Prince of Bahrain paved the way for a future characterised by prosperity and cooperation.

With the signing of the Strategic Investment and Collaboration Partnership, both nations have taken a significant step towards strengthening economic ties and attracting substantial investment.

The agreement, signed at 10 Downing Street, not only aims to support Bahrain’s economy and its diversification but also fosters collaboration in key sectors.

By facilitating a substantial investment of over £1 billion into the UK, the partnership intends to support the diversification of Bahrain’s economy while promoting collaboration in these vital sectors such as clean technology, business services, and manufacturing.

The agreement is designed to attract billions into the UK economy through Bahraini private-sector investment with Bahrain’s sovereign wealth fund Mumtalakat, Investcorp, GFH Financial Group and Osool Asset Management among other corporates expected to participate in the new initiative.

Coinciding with the talks, Mumtalakat announced that it had entered into talks with Investcorp towards establishing a joint venture that would be dedicated to investment and management of UK student housing assets.

During their meeting, the two leaders expressed a shared commitment to addressing global challenges and safeguarding international stability.

As the UK and Bahrain forge ahead, observers see this historic agreement as setting the stage for a brighter future of mutual growth and shared priorities.

The new UK-Bahraini agreement anticipates the signing later this year of a free trade agreement between the UK and the Gulf Co-operation Council countries, which could lay the basis for further mutually beneficial investment deals, news commentators report.

Ties between the UK and Bahrain have been further strengthened with the signing of a digital economic partnership which was agreed the day after the Strategic Investment and Collaboration Partnership.

This new digital partnership will help ensure bilateral trade continues to be modernised and streamlined in sectors like fintech, cyber and space. The partnership was sealed in a Memorandum of Understanding, signed by UK Business Secretary, Rt Hon Kemi Badenoch MP and Bahrain’s Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa.

In response, the UK Minister for Investment, Lord Dominic Johnson, commented: “Today’s agreement is the culmination of a flourishing relationship between the UK and Bahrain, strengthened by our many existing partnerships and synergies across logistics, technology, manufacturing, and more.

“With the next round of talks expected shortly a trade deal with the GCC will bring even greater trade and investment opportunities between our countries, helping to grow our economies and create high-skilled jobs in the sectors of the future,” the Minister stated.

Official statistics show that trade between the UK and Bahrain has nearly doubled year-on-year to a record high of £3.1 billion in 2022, an increase of 93.5 percent or £1.5 billion in current prices from the previous year. Bahrain was the UK’s 60th largest trading partner in 2022, accounting for 0.2 percent of total UK trade.

Sources: PM’s Office; Department for Business & Trade, news reports