France and Bahrain have signed a bilateral defense agreement that includes strategic information sharing, the office of French President Emmanuel Macron said on Friday.

"This agreement will also open up new opportunities for industrial cooperation in defense, and strengthen solidarity between our two countries in a global and regional geopolitical context marked by increasing tensions," it said.

Bahrain is one of Israel's closest allies in the Middle East, signing the Abraham Accords in 2020 alongside the United Arab Emirates.

It's also home to the headquarters of the US Navy's Fifth Fleet, whose area of responsibility includes the Gulf, Red Sea, Arabian Sea, and parts of the Indian Ocean.

Bahrain's King Hamad bin Isa Al Khalifa and France's President Emmanuel Macron meet at the Elysee Palace in Paris, France, February 6, 2026.
Bahrain's King Hamad bin Isa Al Khalifa and France's President Emmanuel Macron meet at the Elysee Palace in Paris, France, February 6, 2026. (credit: THIBAULT CAMUS/REUTERS)

Bahrain unveils massive reform package to tackle $50 billion debt crisis

Earlier in January, Bahrain launched the largest financial and tax reform package in its history, liberalizing fuel prices and linking them to global markets for the first time.

The move aims to address a soaring $50 billion public debt, equivalent to 109% of Bahrain’s GDP.

Announced by the Bahraini government on December 29, 2025, the reform package includes higher electricity and water tariffs, with an exception for citizens’ first homes, which will continue to receive subsidized rates up to a specified limit. It also includes a new 20% wastewater fee to be implemented in January 2026.

Hudhaifa Ebrahim/The Media Line contributed to this report.