RIYADH: Bahrain’s economic ties with the UK have been further strengthened after the countries signed a digital economy partnership just a day after they struck a separate £1 billion ($1.27 billion) investment deal.

The new partnership will help ensure trade between the UK and Bahrain continues to be modernized and streamlined in sectors including fintech, cyber and space.

The Memorandum of Understanding, signed by the UK’s Business Secretary Kemi Badenoch and Bahrain’s Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa, came after a Strategic Investment and Collaboration Partnership was inked to support the diversification of the Middle Eastern country’s economy, particularly in clean technology, business services and manufacturing.

Reflecting on the MoU, UK Minister for Investment Lord Dominic Johnson said: “Today’s agreement is the culmination of a flourishing relationship between the UK and Bahrain, strengthened by our many existing partnerships and synergies across logistics, technology, manufacturing, and more.

“With the next round of talks expected shortly, a trade deal with the GCC (Gulf Cooperation Council) will bring even greater trade and investment opportunities between our countries, helping to grow our economies and create high-skilled jobs in the sectors of the future.” 

Trade between the UK and Bahrain has nearly doubled year-on-year to a record high of £3.1 billion in 2022, an increase of 93.5 percent or £1.5 billion in current prices from the previous year.

Bahrain was the UK’s 60th largest trading partner in 2022, accounting for 0.2 percent of total UK trade.

UK Prime Minister Rishi Sunak met with the Crown Prince of Bahrain Salman bin Hamad to sign off the investment deal on Monday, with the money coming from the Bahraini sovereign wealth fund Mumtalakat, Investcorp, GFH Financial Group, and Osool Asset Management.