The UK and Bahrain have signed a landmark partnership agreement set to deliver £2 billion in investment into key sectors of the British economy. The deal represents a significant expansion of
the two countries’ economic relationship and a major endorsement of the UK’s long-term growth strategy.
The new Strategic Investment and Collaboration Partnership (SIP) – double the £1 billion commitment made in 2023 – will channel investment into critical growth sectors including financial services, clean energy, advanced manufacturing, and technology. These sectors are central to the UK Government’s forthcoming modern Industrial Strategy.
Business and Trade Secretary Jonathan Reynolds described the agreement as a “major vote of confidence” in the UK, stating that it will help create skilled jobs and drive economic growth across the country as part of the Government’s Plan for Change.
The deal was formally signed during a meeting between Prime Minister Rishi Sunak and His Royal Highness Crown Prince Salman bin Hamad Al Khalifa, Prime Minister of Bahrain, on Thursday, 19 June.
As part of the strengthened partnership, the UK has also officially joined the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), further reinforcing ties with Bahrain and the US in both economic and security cooperation. The agreement is intended to promote regional stability in the Middle East while fostering economic prosperity at home through closer defence and business collaboration.
The UK and Bahrain also reaffirmed their deep defence partnership. Bahrain hosts Britain’s largest naval base outside the UK, and the Armed Forces of both nations maintain strong ties, including ongoing training and joint initiatives.
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”.
A Bahraini delegation visiting the UK toured projects in Manchester, Leeds, and Sheffield to explore investment opportunities aligned with the Government’s economic priorities.
The agreement underscores the UK Government’s commitment to expanding trade and investment ties with Gulf nations—seen as pivotal to driving growth, creating jobs, and unlocking new economic opportunities across the country. Photo by Zairon, Wikimedia commons.