Bahrain and US firms sign investment deals worth $17bn

Agreements cover aviation, technology, industry and investment

Bahrain's Crown Prince and Prime Minister Salman bin Hamad Al Khalifa at the US Chamber of Commerce. Photo: Bahrain News Agency

Private sector companies from Bahrain and the US have signed investment deals worth $17 billion amid the strengthening of economic ties between the two countries.

The deals cover aviation, technology, industry and investment and were signed during the visit of Bahrain’s Crown Prince Salman bin Hamad Al Khalifa, who is also Prime Minister, to the US on Tuesday, the Bahrain News Agency reported.

The deals include several financial institutions and private firms from Bahrain investing $10.7 billion in the US.

Communications giant Cisco will provide digital solutions for Bahrain government’s information and telecoms network as part of the deals, BNA said.

US and Bahraini companies have also agreed to establish an 800km multi-fibre submarine cable link that will connect Bahrain, Saudi Arabia, Kuwait and Iraq with global networks.

A deal was also signed for co-operation between Bahrain’s sovereign wealth fund Mumtalakat Holding and several US companies, with a total investment value of $2 billion, aimed at creating jobs in aluminium-related industries.

A deal related to the launch of direct flights between Bahrain and New York was also signed.

During a reception hosted by the US Chamber of Commerce in Washington, Prince Salman said that strengthening co-operation between the two countries was “crucial to create opportunities for development through joint investments, expertise exchange and partnerships that advance mutual interests”.

Bahrain is continuing to strengthen its position as a leading investment destination and a strategic partner for the US in the Gulf region through the kingdom's open economic environment, advanced legislative framework and established trade agreements that allow American companies to access regional markets, Prince Salman said.

The countries have had a free-trade agreement in place since 2006, according to the Office of the US Trade representative.

In 2021, the US also signed a preliminary agreement to establish a free-trade zone in Bahrain to boost bilateral relations.

The countries will promote the free zone as a regional centre for trade, manufacturing, logistics and distribution between US companies in Bahrain and the rest of the Gulf region, the Bahrain government said at the time.

Bahrain is the latest among Gulf countries to boost economic relations with the US. Saudi Arabia, the UAE and Qatar signed deals worth billions of dollars during President Donald Trump’s visit to the three countries in May.

Bahrain's economy is forecast to grow by 3.5 per cent this year amid diversification of its economy, the World Bank said last month.