Bahrain & US Ink USD 17 Billion Private Sector Investment Pact

Bahrain and the United States private sectors have signed investment deals worth USD 17 billion in the areas of aviation, technology, industry, and finance, in a major boost to bilateral economic ties. This was made during the recent visit by Bahrain Crown Prince and Prime Minister Salman bin Hamad Al Khalifa to the US, reported the state-run Bahrain News Agency.

Bahraini banks and private entities will provide USD 10.7 billion of the amount, which will be ploughed directly into the US economy. The projects also involve constructing an 800-kilometre multi-fibre submarine cable that will link Bahrain, Saudi Arabia, Kuwait, and Iraq to global digital networks. US technology leader Cisco is one of the major partners in the initiative.

Key Highlights-

• USD 17 billion in bilateral private sector investments were signed between Bahrain and the US, targeting aviation, technology, industry, and finance
• Bahrain-based entities will contribute USD 10.7 billion to US projects, including a major 800 km submarine cable linking Gulf nations to global digital networks
• New agreements include direct flights between Bahrain and New York and a USD 2 billion aluminium industry job creation pact with Bahrain's Mumtalakat and US firms

Crown Prince Salman said, “The private sector of Bahrain and the US is an important partner in promoting further cooperation between the two nations, emphasizing the strategic value of public-private coordination in global economic outreach."

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A USD 2 billion agreement between Bahrain's state-owned wealth fund Mumtalakat and a number of US firms was also signed to advance job creation in aluminium-linked downstream sectors. The two nations also agreed to initiate direct flights between New York and Bahrain, further enhancing economic and logistical connections.

These deals are based on the current US-Bahrain Free Trade Agreement effective since 2006 and the 2001 Bilateral Investment Treaty, which have been both instrumental in promoting cross-border investment and trade.

The news comes after Bahrain signed USD 2.69 billion investment deal with the UK last month, underpinned by financial services, clean energy, and technology.