Day: July 17, 2025

By Isabella Egerton

Bahrain and the United States have announced over $17 billion in agreements to boost economic and investment ties across key sectors including aviation, technology, industry, and energy. The deals were unveiled during a high-profile meeting between Bahrain’s Crown Prince Salman bin Hamad Al Khalifa and US President Donald Trump at the White House.

Facilitated by President Trump and Commerce Secretary Howard Lutnick, the agreements are expected to create approximately 30,000 American jobs, according to a senior White House official. They signal Bahrain’s intent to deepen its economic partnership with Washington while diversifying its own economy.

Bahrain’s strategic importance in the Middle East is underscored by its role in the Abraham Accords, which have reshaped regional diplomacy and fostered unprecedented cooperation among Gulf states and Israel. The kingdom also hosts the US Navy’s Fifth Fleet, a cornerstone of America’s military presence in the Gulf and wider region.

President Trump highlighted the strength of the bilateral relationship, saying: “Anything they needed, we helped them. And anything we needed, they helped us.”

The agreements further demonstrate the Crown Prince’s influence in steering Bahrain’s economic diversification and strengthening ties with the United States.

Highlights of the agreements include:

·       Aviation: Bahrain’s national carrier, Gulf Air, signed a deal with Boeing and General Electric (GE) valued at around $7 billion, covering 12 Boeing aircraft purchases with an option for six more, plus 40 GE engines.

·       Technology: Bahrain will replace Chinese servers with Cisco technology for its government communications network and sign agreements with Oracle and other US tech firms to enhance digital infrastructure.

·       Subsea Connectivity: US company SubCom will build an 800-kilometre subsea cable linking Bahrain, Saudi Arabia, Kuwait, and Iraq to global internet networks.

·       Nonstop Flights: Direct flights between Bahrain and New York City will begin, improving business and tourism links.

·       US Investment: Bahraini financial institutions and private investors will commit $10.7 billion to US finance, industry, and real estate.

·       Industrial Partnership: Bahrain’s sovereign wealth fund Mumtalakat will enter a $2 billion deal with US companies to create jobs in aluminium manufacturing. Plans also include investment to increase US domestic aluminium production, support US LNG (liquefied natural gas) production, and purchase advanced AI chips in partnership with US cloud providers.

·       Energy and Nuclear: A civil nuclear cooperation agreement was signed at the State Department by US Secretary of State Marco Rubio and Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani, establishing a framework for Bahrain to explore commercial nuclear capabilities.

The nuclear pact supports Bahrain’s goal of carbon neutrality by 2060 and aligns with global climate and environmental efforts. Foreign Minister Al Zayani described the agreement as a “significant qualitative leap” and a milestone in bilateral cooperation.

A senior White House official said: “This comprehensive partnership reflects a shared vision for security, prosperity, and innovation. The Gulf states are critical allies in advancing American interests, stabilising the region, and fostering economic growth that benefits both sides.”

At the signing of the US-Bahrain Nuclear Cooperation Memorandum of Understanding (NCMOU), Ann Ganzer, Principal Deputy Assistant Secretary in the Bureau of Arms Control and Non-proliferation, described it as “an important step towards deepening a robust civil nuclear partnership… enhancing energy security, advancing mutual prosperity, and promoting the highest standards of nuclear safety, security, and non-proliferation.”

Secretary Rubio added: “This signing marks the first step towards deeper civil nuclear cooperation and demonstrates the US commitment to partner with nations pursuing peaceful nuclear programs. Bahrain is a trusted partner, and this strengthens our relationship.”

Foreign Minister Al Zayani emphasised the shared commitment: “This MOU on strategic civilian nuclear cooperation advances our partnership and underscores our dedication to the peaceful use of nuclear technology. It will contribute significantly to our countries’ prosperity and regional security.”

Mohammed Soliman, Senior Fellow at the Middle East Institute, noted Bahrain’s expanding strategic role: “From hosting the Fifth Fleet to joining the Abraham Accords, Bahrain has long been vital to US security in the Middle East. Now its role is evolving—from defence towards next-generation energy. Bahrain’s focus on small modular reactors reflects a strategic optimisation of energy and nuclear capabilities. This partnership with the Gulf will build critical infrastructure for AI computing and shape the region’s future while helping the US address competition with China.”

King Hamad bin Isa Al Khalifa is expected to visit Washington later this year, signalling continued high-level engagement between the two nations.