Today: July 8, 2025
June 20, 2025
3 mins read

UK and Bahrain sign £2bn investment deal

The agreements were signed during an official visit to London by Crown Prince Salman bin Hamad, who held talks with Keir Starmer at Downing Street

Two landmark agreements were signed between Bahrain and the United Kingdom on Thursday, marking a significant step forward in bilateral relations during an official visit to London by Bahrain’s Crown Prince and Prime Minister, Salman bin Hamad Al-Khalifa.

The Crown Prince held high-level talks with British Prime Minister Keir Starmer at 10 Downing Street, where the two leaders oversaw the signing of a Strategic Investment and Collaboration Partnership (SIP2) and a Defence Cooperation Accord.

The SIP2 agreement, which officials described as a revitalised framework for mutual investment, will see £2 billion (approximately \$2.7 billion) of Bahraini private sector capital directed into key sectors of the UK economy. These include financial services, advanced technology, manufacturing, and decarbonisation efforts.

The agreement was formally signed by Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al-Khalifa, and the newly appointed British Chancellor of the Exchequer, Rachel Reeves. Government sources hailed the partnership as a demonstration of both countries’ confidence in each other’s economic futures and a concrete expression of their ambition to deepen commercial ties.

In a parallel development, a Defence Cooperation Accord was inked between the two nations’ defence ministries. Signed by Bahrain’s Minister of Defence Affairs, Lieutenant General Abdullah Al-Nuaimi, and British Defence Secretary John Healey, the agreement aims to enhance interoperability and joint training exercises between the Bahraini and British armed forces.

Officials said the accord builds upon an already robust maritime relationship and reflects a shared commitment to regional and global security. Both countries maintain a strategic naval presence in the Gulf, and the new accord is expected to reinforce this collaboration.
During the bilateral discussions, Prince Salman expressed Bahrain’s appreciation for the enduring partnership with the UK, noting that the relationship continues to flourish under the respective leaderships of King Hamad bin Isa Al-Khalifa and King Charles III, according to a statement by the Bahrain News Agency.

The two leaders also reviewed ongoing efforts towards a UK-Gulf Cooperation Council (GCC) Free Trade Agreement. The Crown Prince welcomed the UK’s decision to fully participate in the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), which was initiated in December by Bahrain and the United States. British participation in C-SIPA signals London’s broader strategic engagement with the Gulf region beyond traditional defence and trade ties.
The meeting also turned to urgent geopolitical developments. Both leaders expressed deep concern over the escalation of hostilities between Israel and Iran, with Prince Salman and Prime Minister Starmer agreeing on the need for immediate de-escalation, restoration of dialogue, and restraint by all parties involved.

They reaffirmed their shared position on the Gaza conflict, issuing a joint call for an immediate ceasefire, the unhindered delivery of humanitarian aid, and the release of all hostages held by Hamas. The statements reflect a growing chorus of international voices urging for a resolution to the humanitarian crisis in the territory.

In a further display of international cooperation, Prime Minister Starmer extended his congratulations to Bahrain on its recent election as a non-permanent member of the United Nations Security Council. The Gulf kingdom will assume the seat for a two-year term starting in January 2026. Both leaders agreed to closely coordinate their diplomatic initiatives at the UN during this period, with an emphasis on conflict resolution, sustainable development, and regional peace.

The Crown Prince’s visit marks one of the first major state-level engagements for Prime Minister Starmer, whose new government has pledged to strengthen the UK’s global alliances following the recent general election. For Bahrain, the agreements represent a dual strategy of economic diversification and enhanced security collaboration with key Western partners.

The series of high-level engagements underscore the evolving nature of UK-Bahrain ties, which have historically centred on defence and trade but are now expanding into broader strategic and diplomatic realms. As the UK seeks to redefine its international role post-Brexit, and Bahrain continues its programme of economic modernisation and regional engagement, both sides appear keen to position their partnership as a model of 21st-century bilateral cooperation.

Previous Story

Whitehall wakes up to industry’s energy crisis

Next Story

AI Whizz Quits No10!

Latest from Top News

Diplomats Tour UK to Strengthen Business

Foreign Secretary dispatches top diplomats to all parts of the UK to boost regional ties and deliver economic growth under the Government’s Plan for Change In a fresh initiative, British diplomats are

Croydon’s Weapon Amnesty

This comes as the government prepares to implement a Ninja Sword Ban on August 1st Croydon Council is throwing its full support behind a national government initiative to reduce the number of

Barnet’s Balsam Battle Continues

Volunteers Clear Silk Stream of Invasive Plants in Climate Action Effort Thirteen volunteers helped restore the Silk Stream by clearing 220 metres of invasive Himalayan balsam during Barnet Climate Action Month (BCAM),

£500m boost to give kids a better start

Government to invest £500 million in up to 1,000 one-stop centres offering parenting, health, education and emotional support by 2028. Hundreds of thousands of families across England are set to benefit from
Go toTop

Don't Miss

Kneecap’s Glasto slot sparks PM fury

Kneecap’s Glastonbury booking draws fire from Prime Minister and Tory

Training axed, NHS turns overseas again

Labour government’s education spending plans spark backlash over NHS workforce