Israel and Bahrain have agreed on a framework for economic cooperation to be submitted for government approval.
The agreement deals with developing economic relations and encouraging free movement of goods and services between the countries. It also states that they intend to encourage private sector cooperation, cooperate in matters of standardization and regulation, encourage joint R&D projects, hold joint business and professional seminars and exchange expertise and knowledge in diverse fields. The countries will also welcome each other’s professional and diplomatic delegations, and cooperate on commercial exhibitions.
The agreement will also establish a joint economic committee to promote the implementation of the agreement and examine ways to remove trade barriers and increase the volume of trade between the two countries.
“The geographical location of Bahrain, as well as the geopolitical importance of the kingdom, put this agreement on par with other agreements recently signed with Bahrain’s neighbors in the Gulf region,” said Economy Minister Orna Barbivay.
“The Economy and Industry Ministry will continue to cooperate with the Foreign Affairs Ministry to promote the economic interests of the State of Israel, to increase Israeli exports to the Bahraini market, to attract investment from Bahrain to Israel and to strengthen economic cooperation, in order to enable more and more Israeli companies to break into the Arab Gulf markets in particular and the international space in general.”
The potential for trade between the countries is in the hundreds of millions of dollars in the coming years, the ministry estimated.
An analysis conducted by the Economy and Industry Ministry’s Foreign Trade Administration found significant Israeli export potential in the fields of health and medical equipment, agro-tech, water technologies, communications, construction technology and cybersecurity. The study also found that Bahrain’s financial services sector may serve as an accessible gateway for Israeli companies to promote their businesses in the Persian Gulf region.
The agreement, which was signed by the ministry’s director-general several months ago, will take effect once it is ratified.
Last month, Khaled Yousef al-Jalahmah was appointed as Bahrain’s first envoy to the State of Israel, after the two countries signed a normalization agreement last September as part of the Abraham Accords.