Bahrain Ratifies Investment Treaty with Hong Kong

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain has ratified a new investment protection and promotion agreement with Hong Kong, a move that reinforces the Kingdom’s commitment to fostering international economic cooperation.

His Majesty King Hamad bin Isa Al Khalifa has ratified and issued Law (6) of 2025, officially approving the treaty after its endorsement by the Shura Council and the Council of Representatives.

The agreement is set to take effect following its publication in the Official Gazette.

Economic Benefits

The treaty is part of Bahrain’s broader strategy to attract investment and ensure a transparent and fair tax environment.

By eliminating double taxation and addressing tax regulations on income from natural resources, the agreement creates a more predictable framework for businesses and state-backed ventures in both regions.

Government investments and revenue from natural resources will be exempt from taxation in the other contracting state, a key provision designed to facilitate smoother economic collaboration.

Officials have highlighted the treaty’s role in strengthening economic ties and encouraging cross-border investment flows.

The Ministry of Finance and National Economy has stated that this agreement complements Decree-Law No. (11) of 2024, which regulates the taxation of multinational businesses, ensuring a cohesive and balanced tax framework.

Global Positioning

Bahrain has signed 45 similar agreements with other nations, aligning with its vision to establish itself as a global investment hub.

The Ministry of Foreign Affairs linked the ratification to Bahrain’s diplomatic approach of mutual respect and non-interference, underscoring how economic partnerships can drive shared growth.

With this agreement, Bahrain continues to position itself as an attractive destination for investment while reinforcing its commitment to financial transparenHM the King cy and economic development.