Bahrain and the United Kingdom have taken significant steps to bolster their economic collaboration, solidifying their ties through two pivotal agreements. Just a day after signing a substantial £1 billion ($1.27 billion) investment deal, the countries have entered into a digital economy partnership, aimed at enhancing and modernizing trade between the two nations. This collaboration encompasses various sectors such as fintech, cybersecurity, and space technology.
The Memorandum of Understanding, signed by Kemi Badenoch, the UK’s Business Secretary, and Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, serves as the foundation for this digital economy partnership. Simultaneously, a Strategic Investment and Collaboration Partnership has been established to support Bahrain’s economic diversification, with a particular focus on clean technology, business services, and manufacturing.
Lord Dominic Johnson, the UK Minister for Investment, expressed his satisfaction with the MoU, stating, “Today’s agreement is the culmination of a flourishing relationship between the UK and Bahrain, strengthened by our existing partnerships and synergies across logistics, technology, manufacturing, and more. Anticipating further discussions in the near future, a trade deal with the Gulf Cooperation Council (GCC) will unlock even greater trade and investment prospects, fostering economic growth and generating high-skilled employment in future-oriented sectors.”
The trade volume between the UK and Bahrain witnessed remarkable growth, nearly doubling year-on-year to a record high of £3.1 billion in 2022. This represents a significant increase of 93.5 percent or £1.5 billion in current prices compared to the previous year. In 2022, Bahrain ranked as the UK’s 60th largest trading partner, constituting 0.2 percent of the total UK trade.
Prime Minister Rishi Sunak, along with Bahrain’s Crown Prince Salman bin Hamad, sealed the investment deal during their meeting. The £1 billion investment originates from Bahraini sovereign wealth fund Mumtalakat, Investcorp, GFH Financial Group, and Osool Asset Management. These partnerships are expected to contribute significantly to the economic prosperity of both nations, forging a path toward mutual growth and prosperity