Bahrain, UAE announce entry into force of Investment Promotion and Protection Agreement
Manama, May 8 (BNA): A joint statement was issued between the Kingdom of Bahrain and the United Arab Emirates on the entry into force of the Investment Promotion and Protection Agreement.
The statement read as follows:
The Kingdom of Bahrain and the United Arab Emirates announced the entry into force of the Investment Promotion and Protection Agreement, signed between the governments of both countries, effective Thursday, 8 May 2025. This follows the completion of the required legal procedures by both sides, in accordance with the provisions of the agreement.
The step reflects the strong ties and growing economic partnership between the two countries, and their commitment to enhance investment cooperation in a way that serves the interests of investors from both sides and supports the sustainable development goals of both nations.
The agreement provides a comprehensive legal framework that ensures full protection for investments and enhances mutual investor confidence by guaranteeing fair and equitable treatment and offering clear dispute resolution mechanisms.
In light of rapid developments in the digital economy, the agreement underscores the importance of enhancing cooperation between the two countries in areas related to digital trade, including data protection, privacy, cybersecurity, intellectual property rights, and electronic signatures and authentication, in addition to exchanging best practices and building technical capacities. This marks a significant step towards providing a modern and advanced investment environment that reflects both countries’ aspirations to support digital transformation and strengthen economic competitiveness.
His Excellency Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, emphasised that the Kingdom places great importance on opening new avenues of cooperation with the UAE, given the strong and longstanding relations between the two countries.
He highlighted the role of bilateral agreements in advancing joint cooperation in line with the visions and aspirations of His Majesty King Hamad bin Isa Al Khalifa and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, who represent a model of enduring ties based on deep-rooted connections and shared history.
He also noted Bahrain’s ongoing efforts to enhance investment cooperation at regional and international levels, with nearly 40 agreements signed to promote and protect investment, contributing to economic growth and creating more promising opportunities.
For his part, His Excellency Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs of the UAE, said that the agreement’s entry into force reflects the shared will to deepen bilateral economic relations and represents a new milestone in Gulf economic integration. He added that it also reflects a flexible and aware response to changes in the regional and global economic environment, especially in light of current global challenges that require greater efforts to create a more stable and attractive investment environment.
He underlined the importance of continued coordination between the relevant authorities in both countries to activate and follow up on the implementation of the agreement to ensure its intended objectives are achieved. He said the agreement would enhance the competitiveness of both economies and open new avenues for high-quality investments, particularly in priority economic sectors.
He further emphasised that the agreement serves as a foundation for expanding the strategic partnership between the two countries by encouraging mutual investments, facilitating capital flows, and providing an investment environment based on transparency, fairness, and institutional integration. He noted that the agreement is one of the pillars that reflects the shared vision of both nations for a diversified, competitive, and innovation-driven economy.
