HK, Bahrain forge investment pact to strengthen economic ties

The agreement will come into effect once both sides have fulfilled internal procedures.

Hong Kong and Bahrain have signed an investment promotion and protection agreement (IPPA) in Manama, Bahrain, to boost investor confidence and strengthen economic ties.

As part of the agreement, both Hong Kong and Bahrain pledge to provide fair treatment to each other's investors, compensation for investment expropriation, and mechanisms for settling investment disputes.

Secretary for Commerce and Economic Development Algernon Yau and Bahrain Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa signed the agreement during Yau's visit to Manama.

“An IPPA enables investors of the two parties to enjoy corresponding protection of their investments in the host economies, and thus enhance investors’ confidence in making investments abroad,” said Yau.

He added that the signing ceremony marks Hong Kong's commitment to expanding economic ties with Middle Eastern economies. 

Moreover, the city’s Dedicated Fund for Branding, Upgrading, and Domestic Sales will now include Bahrain to support local enterprises in expanding their businesses.

The agreement will come into effect once both sides have fulfilled internal procedures.

Hong Kong is also negotiating an IPPA with Saudi Arabia and considering establishing an economic and trade office in Riyadh to enhance its economic and trade network in the Middle East.