Bahrain and the UK committed to a £1 billion ($1.3 billion) round of investments in Britain on Monday at a meeting between Crown Prince Salman bin Hamad Al Khalifa and British Prime Minister Rishi Sunak.
The agreement signed at Downing Street aims to take the historic ties between the two countries to new levels.
Prince Salman looked on as Bahrain's Finance Minister Shelikh Salman bin Khalifa Al Khalifa signed the agreement to establish a Strategic Investment and Collaboration Partnership, which is designed to unleash billions for the UK economy through Bahraini private-sector investment.
The country's sovereign wealth fund Mumtalakat as well as Investcorp, GFH Financial Group and Osool Asset Management are expected to participate.
“The leaders welcomed the signing of a new Strategic Investment and Collaboration Partnership today between the UK and Bahrain,” Downing Street said.
“The agreement aims to facilitate additional investment of more than £1 billion into the UK, support the diversification of Bahrain’s economy and drive greater co-operation between our countries in clean technology, business services and manufacturing.
“The Prime Minister said the agreement marks the next chapter the historic and close relationship between the UK and Bahrain, which spans security, defence and trade.”
The two countries expect a free trade agreement to be signed this year between the UK and Gulf Co-operation Council nations, which could form the basis of more mutual investment accords.
Bahrain has been an ally of the UK since its inception in the 1970s and hosts a Royal Navy base at the head of the Arabian Gulf.
“The leaders discussed the situation in Ukraine, noting the threat to international stability and norms posed by Russia’s invasion, and agreed on the importance of a strong united stance in the face of Iran’s destabilising regional activity,” a statement from Mr Sunak's office said.
“The Prime Minister also welcomed progress on domestic reforms in Bahrain, particularly in relation to the judiciary and legal process, and looked forward to working closely with the Crown Prince on our shared priorities going forward.”
