The Saudi Bahraini Investment Co., which is owned by the Public Investment Fund of the Kingdom, has agreed with Mumtalakat, which is Bahrain’s sovereign wealth fund, to increase the level of cooperation and investment in areas of strategic sectors.
The press statement reported that the agreement is intended to open new investment opportunities to Bahrain, subject to the fulfillment of a set of conditions, including conducting the required due diligence.
The contract is based on an earlier memorandum of understanding that was signed in March 2024 between PIF and Mumtalakat and is intended to expand the opportunities to cooperate between the two parties.
The press statement stated that “The agreement seeks to establish a joint investment program, focused on opportunities that contribute to economic growth and address the growing demand for goods and services in both the Saudi and Bahraini markets.”
It also said that “This includes investing in existing companies with strong expansion potential and launching new projects.”
The statement further added that the joint investment prospects will cut across various strategic areas within Bahrain, such as technology, media and telecommunications, financial services, and education.
Other areas of potential cooperation include logistics, high-technological construction materials, manufacturing, infrastructure, aerospace services, and real estate.
The SBIC was established in 2022 as part of PIF’s regional investment strategy. The company has established an office in Manama, the capital of Bahrain, and one of its aims is to have the private sector increase its investments in both markets.
It further added that the agreement is in line with the objective of SBIC to seek opportunities and establish long-term strategic economic partnerships, to play a role in ensuring sustainable returns and creating developmental impact within the Bahraini and Saudi markets.
The investment strategy of PIF also aligns with the new deal, as the investment aims at bringing economic change in Saudi Arabia and helping shape the future of the regional and global economy.
It also portrays the continued efforts at Mumtalakat to form partnerships that encourage economic diversification, greater impact at the local level, and employment.
Saudi Arabia and Bahrain introduced the second phase of their industrial integration program in June, which will contribute to the expansion of bilateral trade and investment as well as cooperation in the sphere of cross-border supply chains.
The Ministry of Industry and Mineral Resources in the Kingdom stated at the time that the second stage of industrial integration between the two countries aims at establishing certain goals, among them, increasing intra-trade within the industrial goods range, and drawing industrial investments.
