*** Shura Council approves Bahrain investment protection deal with UAE to boost trade ties | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Shura Council approves Bahrain investment protection deal with UAE to boost trade ties

TDT | Manama

Email: mail@newsofbahrain.com

The Shura Council yesterday waved through an investment protection deal with the UAE, tightening legal cover for investors and laying the groundwork for deeper trade ties.

The agreement, pitched as a move to draw in foreign funds and firm up existing business links, was passed in one session.

It now heads to the Speaker of Parliament before landing on the Prime Minister’s desk, the last stop before it reaches His Majesty King Hamad bin Isa Al Khalifa.

Business hub

Hamad Al Nuaimi, the committee’s rapporteur, said the agreement would give investors the legal certainty they needed while strengthening Bahrain’s standing as a business hub.

He pointed to the well-worn links between the two countries, framing the deal as a natural step in expanding those ties.

“This is about reinforcing what is already there,” he said.

Safer The deal is designed to make investment between Bahrain and the UAE smoother and safer.

It lays down rules to encourage private enterprises, open new avenues for trade, and keep businesses on steady ground.

According to Al Nuaimi, such agreements were key in drawing investment while making sure businesses had the assurances they needed to expand.

Global economy

Dr Ali Al Rumaihi, who chairs the Foreign Affairs, Defence, and National Security Committee, described the agreement as part of a broader effort to keep pace with a fast-changing global economy.

“Things are moving at a breakneck speed,” he said. “We need these agreements to make sure we stay in the running.”

He called the deal a “model of cooperation”, reflecting the strong relations between Bahrain and the UAE, which he said had set a high bar for others.

Investment, he noted, was a fast-moving field that thrived on confidence.

“Investors want to know they’re protected. They want certainty. That’s what this delivers,” he said, urging fellow councillors to approve the agreement.

The Ministry of Finance and National Economy’s Assistant Undersecretary for International Cooperation Nawaf Al Sada described the deal as another brick in the wall of Bahrain’s bid to court foreign investors.

“We are laying down the right conditions for money to flow into the country,” he said. “These deals don’t just attract investors — they create jobs.”

He pointed out that agreements like this weren’t drawn up in a vacuum but built on discussions with major firms in Bahrain, as well as interest from foreign partners.

“The UAE is a natural fit,” he said. “We’ve got deep ties, and this will only strengthen them.” Al Sada noted that Bahrain had been on this path for some time, pointing to a string of similar deals signed over the years.

Agreements

“Both councils have signed off on many of these agreements — most recently with Hong Kong,” he said.

Dr Mohammed Al Khuzai, Chairman of the Human Rights Committee, called the agreement a natural extension of the close bond between Bahrain and the UAE.

“This is a long-standing relationship that has only grown over the years,” he said.

Decree

The agreement, he noted, built on a 2024 decree and reaffirmed Bahrain’s push to expand investment ties with its Gulf neighbour.

“This isn’t the first deal of its kind between our two countries,” he said. “We’ve signed agreements on everything from double taxation to land transport. This is just another step in that ongoing cooperation.”

He added that Bahrain’s appeal to foreign investors rested on more than just agreements.

“We’ve got the right mix — skilled workers, steady economic growth, and the infrastructure to support long-term investment,” he said. “That’s what keeps the money coming in.”

Khalid Al Maskati, Chairman of the Financial and Economic Affairs Committee, gave his backing but asked whether these agreements were making a real difference to everyday Bahrainis. “Bahrain’s economy is growing,” he said, citing figures showing the non-oil sector accounted for 84 per cent of GDP in 2023.

Growth But he was quick to point out that growth alone wasn’t enough. “It’s one thing to sign agreements — it’s another to make sure they actually benefit the people who live here,” he said.

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