In a move reflecting the depth of the growing economic ties between the two kingdoms, the Saudi Bahrain Investment Company (SBIC) , the investment arm wholly owned by the Saudi Public Investment Fund, and Bahrain Mumtalakat Holding Company (Mumtalakat) , the sovereign wealth fund of the Kingdom of Bahrain, announced the signing of a significant agreement aimed at expanding the prospects for joint investment cooperation.
This important announcement came on the sidelines of the fourth meeting of the Saudi-Bahraini Coordination Council, which was held on Wednesday under the joint chairmanship of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister of the Kingdom of Bahrain.
Objectives of the agreement and joint investment program
The new agreement aims to establish an ambitious joint investment program, primarily focused on seizing opportunities that foster sustainable economic growth in both countries. Through this collaboration, the two sides seek to meet the growing demand for goods and services in the Saudi and Bahraini markets, primarily through two avenues:
- Investing in established companies with high growth and expansion potential.
- Launching new and innovative projects that serve common interests.
This agreement is subject to meeting a number of regulatory and legal requirements, including the completion of feasibility studies necessary to ensure the success of the targeted projects.
Vital sectors and a promising future
The agreement identified a wide range of strategic sectors targeted in the Kingdom of Bahrain, which form a key pillar of economic diversification, including:
- Information and Communication Technology and Media.
- Financial services and the banking sector.
- Education and training.
- Logistics and supply chains.
- Advanced building materials and the industrial sector.
- Infrastructure, air services, and the real estate sector.
Economic context and strategic impact
This step comes in the context of the integration of economic visions between the two brotherly countries, as it is consistent with the Kingdom’s Vision 2030, which is led by the Public Investment Fund to drive economic transformation and shape the future of the regional economy, and is in line with Bahrain’s Economic Vision 2030, which Mumtalakat seeks to achieve through diversifying sources of income.
This collaboration is expected to contribute to creating new job opportunities, enhancing local content, and raising the efficiency of the private sector in both countries, thus strengthening the region’s position as an attractive global investment destination.
Historical background of the partnership
It is worth noting that the Saudi-Bahraini Investment Company was established in 2022 as part of the Public Investment Fund's regional expansion strategy, and opened an office in Manama to serve as a bridge for investment communication. This agreement is an extension of the memorandum of understanding signed between the two parties in March 2024, reaffirming their commitment to building long-term economic partnerships that generate sustainable returns and create a tangible developmental impact.
