Abu Dhabi: The United Arab Emirates and the Kingdom of Bahrain have announced the activation of the Investment Promotion and Protection Agreement, effective from May 8, 2025. This development follows the completion of necessary legal formalities by both nations, as stipulated by the agreement.
According to Emirates News Agency, this agreement signifies the robust relationship and expanding economic partnership between the two countries. It underscores their dedication to fostering investment cooperation, benefiting investors and supporting the sustainable development goals of both nations.
The agreement establishes a comprehensive legal framework to ensure full protection for investments, enhancing investor confidence through the guarantee of fair and equitable treatment and clear mechanisms for dispute resolution.
In response to the swift advancements in the digital economy, the agreement highlights the importance of collaboration in digital trade, emphasizing data protection, privacy, cybersecurity, intellectual property rights, and electronic signatures and authentication.
It also encourages the exchange of best practices and the development of technical skills, marking a significant step towards creating a modern investment environment that supports digital transformation and economic competitiveness.
Sheikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, stressed the importance Bahrain places on expanding cooperation with the UAE, reflecting the strong fraternal relations between the two nations. He highlighted that bilateral agreements are crucial for advancing joint cooperation aligned with the visions of Bahrain’s King Hamad bin Isa Al Khalifa and UAE’s President Sheikh Mohamed bin Zayed Al Nahyan.
He further noted Bahrain’s commitment to strengthening regional and international investment cooperation, having signed nearly 40 agreements to promote and protect investments, which contribute to economic growth and open new opportunities.
Mohamed bin Hadi Al Hussaini, UAE’s Minister of State for Financial Affairs, emphasized that the agreement’s enforcement reflects the shared intent to deepen economic ties, marking progress towards greater Gulf economic integration. He pointed out the need for ongoing coordination between both countries’ authorities to effectively implement the agreement.
Al Hussaini stated that the agreement will enhance the competitiveness of both economies, offering new avenues for high-quality investments, particularly in key economic sectors. He concluded that the agreement is foundational for expanding the strategic partnership between the nations, encouraging mutual investments, and fostering an investment environment based on transparency and fairness, aligning with a vision for a diversified, competitive, and innovation-driven economy.
