UK-Bahrain agree £2bn investment partnership in huge boost for UK economy
Source: gov.uk (2025-06-19)

The UK and Bahrain have signed a partnership agreement which will deliver £2 billion of investment into key growth sectors in a huge boost to the economy.

- UK has signed a new partnership with Bahrain, which will see £2 billion investment into key growth sectors.
- Agreement will increase investment in financial services, clean energy, manufacturing and tech – all growth sectors in Government’s modern Industrial Strategy.
- Business Secretary Jonathan Reynolds: investment is ‘major vote of confidence’ that will increase jobs and create growth across UK as part of the Government’s Plan for Change.
- UK becomes member of the US-Bahrain Comprehensive Security Integration and Prosperity Agreement which supports economic growth at home.
The UK government and Bahrain have signed a new investment and collaboration partnership that will unlock £2 billion of investment into Britain, boosting economic growth and driving forward the Government’s Plan for Change.

The Strategic Investment and Collaboration Partnership (SIP) is double the £1 billion commitment made in 2023 and will focus on investing in key growth sectors including financial services, technology and decarbonisation – as the Government prepares to publish the upcoming modern Industrial Strategy.

The Partnership is a sign of a strengthened bilateral relationship with Bahrain and will help create new jobs and boost growth across the UK. It will also provide British companies opportunities to take advantage of Bahrain’s business environment, providing support on innovation, productivity and development in the country.

Yesterday [Thursday 19 June], the Prime Minister met with His Royal Highness Crown Prince Salman bin Hamad Al Khalifa, Prime Minister of the Kingdom of Bahrain, where the deal was formally signed.

At a time of great importance for regional stability both leaders reaffirmed the strength of the relationship between the two countries, as the UK became a full member of the Comprehensive Security Integration and Prosperity Agreement (C-SIPA) after announcing its intention to join in December 2024. This demonstrates the UK’s continued efforts to strengthen security cooperation with key partners in Bahrain and the US and together, to foster long-term regional stability across the Middle East while bolstering economic growth at home through new security and defence partnerships.

The UK and Bahrain leaders yesterday reiterated their commitment to defence relations and continuing the already strong cooperation between our Armed Forces and those of the Kingdom of Bahrain. This includes our strong naval partnership, which has seen Bahrain host the UK’s largest naval base outside of the UK and training offered by UK Armed Forces to Bahrain military personnel.

Chancellor of the Exchequer Rachel Reeves said:

In a changing world, Britain is increasingly seen as a place for investment and growth - thanks to the stability we have brought to the economy and our pro-business approach.

This £2 billion investment into the growth-driving sectors where Britain thrives will create good jobs paying decent wages in all corners of our country, putting more money in people’s pockets as part of our Plan for Change.

Business and Trade Secretary Jonathan Reynolds said:

This £2 billion commitment is yet another major vote of confidence in the UK economy, backing the key growth sectors we’ve identified in our upcoming modern Industrial Strategy.

We have the most open, stable and connected economy in the world – and our Plan for Change will encourage more countries to invest here, delivering long-term growth that supports good, skilled jobs across the country.

During their visit to the UK, a delegation of Bahraini investors visited growth projects and business in Manchester, Leeds, and Sheffield, in order to explore opportunities to support the UK Government’s growth agenda.

This government is committed to driving economic growth, and growing trade and investment with the Gulf is pivotal to this mission, delivering higher wages, supporting increased investment and economic opportunity, and strengthening relationships with important partners.

Notes to editors:
- The UK announced its intention to join C-SIPA during the Minister for the Middle East and North Africa’s visit to Manama in December 2024. UK joins US-Bahrain agreement to build security across the Middle East - GOV.UK (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fnews%2Fuk-joins-us-bahrain-agreement-to-build-security-across-the-middle-east&data=05%7C02%7CMegan.Bevan%40businessandtrade.gov.uk%7C994070d30067485ab2fb08ddafd40769%7C8fa217ec33aa46fbad96dfe68006bb86%7C0%7C0%7C638860047390417893%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=bDi8cHMUzk9B3QtIxKlJ314bwfkKopyCxTQgeCumt1A%3D&reserved=0)