THE UK and Bahrain have signed a £2 billion investment and collaboration partnership aimed at supporting key sectors of the UK economy, including financial services, technology, manufacturing, and clean energy.
The Strategic Investment and Collaboration Partnership (SIP), announced on June 19, doubles the £1 bn investment committed in 2023.
The deal was signed during a meeting in London between prime minister Keir Starmer and Bahrain’s crown prince and prime minister Salman bin Hamad Al Khalifa.
Focus on growth sectors and job creation
According to the UK government, the investment will drive forward its “Plan for Change” and support the upcoming modern Industrial Strategy. The partnership is expected to create new jobs and contribute to growth across the UK.
Business and trade secretary Jonathan Reynolds said, “This £2 bn 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.”
Chancellor Rachel Reeves added, “This £2 bn 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.”
The agreement will also provide British companies with opportunities to benefit from Bahrain’s business environment and support innovation, productivity and development there.
UK joins Bahrain-US security agreement
As part of the same visit, the UK formally became a member of the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), a trilateral agreement between Bahrain, the US and the UK.
The UK had announced its intention to join the agreement in December 2024 during a ministerial visit to Manama.
The agreement supports regional stability and security cooperation, with the UK government stating that it will help strengthen defence ties and contribute to economic growth through strategic partnerships.
The UK and Bahrain also reiterated their defence cooperation, including ongoing work between the UK Armed Forces and Bahrain’s military.
Bahrain hosts the UK’s largest naval base outside the UK, and receives regular training support from British forces.
Investor delegation visits UK cities
During their UK visit, a delegation of Bahraini investors toured cities including Manchester, Leeds, and Sheffield.
The group explored business and project opportunities aligned with the UK government’s growth priorities.
Longstanding UK-Bahrain relations
The UK and Bahrain have maintained close political, military, and economic ties for decades.
Bahrain was a British protectorate from the 19th century until its independence in 1971.
The two countries have since signed multiple agreements covering security, trade and investment.
Bahrain continues to host British military facilities, and bilateral relations remain strong.
The UK government has identified Gulf investment and trade as a priority for boosting domestic growth and strengthening international partnerships.
