Saudi and Bahrain Sign New Agreement to Expand Investments

Saudi Arabia and Bahrain have taken another important step to strengthen their economic partnership. On the sidelines of the fourth meeting of the Saudi-Bahraini Coordination Council in Manama, the Saudi Bahraini Investment Company (SBIC), a company owned by the Public Investment Fund (PIF), announced a new agreement with Bahrain Mumtalakat Holding Company. This agreement aims to expand future investment cooperation between both countries and open new opportunities for long-term growth.

The meeting was co-chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, and Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister of Bahrain. Their leadership reflects the strong commitment of both nations to deepen economic ties and support joint development programs.

The newly signed agreement will take effect after both sides complete required procedures, including detailed due diligence. Once finalized, the agreement will establish a joint investment program that focuses on projects supporting economic expansion and meeting the increasing demand for services and products in both Saudi and Bahraini markets.

The joint investment plans will cover a wide range of strategic sectors in Bahrain. These include information technology, media, telecommunications, financial services, education, logistics, manufacturing, aerospace services, real estate, advanced building materials, and major infrastructure projects. By targeting such diverse sectors, the agreement aims to support economic diversification and create strong foundations for future projects.

This partnership aligns with SBIC’s long-term strategy of identifying high-value opportunities across both markets. The company aims to build strong partnerships that not only generate sustainable returns but also support national development. The agreement also reflects PIF’s broader mission to drive economic transformation in Saudi Arabia, support private sector growth, and contribute to regional and global economic progress.

On Bahrain’s side, the agreement supports Mumtalakat’s vision of boosting economic diversification, increasing local market impact, and helping create more employment opportunities. By working together, both sides aim to launch new projects, invest in promising companies, and support industries ready for expansion.

SBIC was established in 2022 as part of PIF’s regional investment strategy. The company has already opened an office in Manama, the capital of Bahrain, making it easier to identify opportunities and support cross-border expansion. SBIC plays an important role in enabling the private sector in both Saudi Arabia and Bahrain to explore larger markets and build stronger economic partnerships.

This new agreement builds on a previous Memorandum of Understanding (MoU) signed in March 2024 between PIF and Mumtalakat. The earlier MoU aimed to enhance cooperation and explore broader areas of collaboration. The new agreement now takes those goals forward with a more direct and actionable investment plan.

Both Saudi Arabia and Bahrain view this agreement as a major step toward boosting shared prosperity. It represents a forward-looking approach that encourages innovation, supports private sector growth, and enhances economic stability across the region. As both nations continue to strengthen their partnership, the people and businesses of both countries are expected to benefit from new opportunities and sustainable development.

With this cooperation, Saudi Arabia and Bahrain are positioning themselves as powerful partners in regional economic advancement. The joint investment approach promises long-term benefits, stronger market connections, and continued support for strategic national visions.