MUSCAT: Bahraini and US companies have signed a series of agreements valued at approximately $17 billion to strengthen economic ties and the advancement of bilateral cooperation across multiple strategic sectors.
The scope of the agreements is notably diverse, encompassing aviation, technology, industry, and investment—sectors that are essential for sustainable economic growth and innovation.
A key highlight is the collaboration with Cisco Systems, which will provide advanced digital solutions to enhance Bahrain’s government information and telecommunications infrastructure.
The initiative is poised to accelerate Bahrain’s digital transformation agenda, fostering greater efficiency and resilience in public services while reinforcing the kingdom’s position as a regional technology hub.
Moreover, the announcement of plans to establish an 800-kilometre multi-fibre submarine cable connecting Bahrain with Saudi Arabia, Kuwait, and Iraq is indicative of the broader regional integration efforts underway.
Diversifying investment portfolios
The infrastructure project is expected to enhance connectivity to global networks, promoting faster and more reliable telecommunications across the Gulf. Such connectivity is crucial for the digital economies of the region, enabling enhanced trade, communication, and cooperation.
On the investment front, Bahraini financial institutions and private-sector entities have pledged to invest $10.7 billion in the United States, signaling a strategic bid to diversify investment portfolios and forge deeper economic linkages.
Additionally, Bahrain’s sovereign wealth fund Mumtalakat’s commitment of $2 billion towards downstream aluminum projects in the US highlights a focus on industrial collaboration and job creation. These investments reflect a pragmatic approach to economic diplomacy, where capital flows are leveraged to stimulate growth and employment in both countries.
The timing of these agreements, coinciding with Bahraini Prime Minister and Crown Prince Salman bin Hamad Al Khalifa’s visit to Washington, underscores the high-level political support underpinning these endeavors.
His advocacy for expanding cooperation with the United States reflects a clear strategic vision: harnessing bilateral relationships to unlock new economic opportunities through investment and collaborative ventures.
These developments build upon the already robust foundation of Bahrain-US relations, which in 2023 saw the signing of a comprehensive security and economic agreement.
Bahrain’s hosting of the US Navy’s Fifth Fleet and the headquarters of the US Naval Forces Central Command further cements its role as a critical security partner in the Gulf region. The dual emphasis on security and economic cooperation highlights the multidimensional nature of this partnership.
