India’s economic footprint in the Gulf Cooperation Council (GCC) region has been steadily expanding in recent years. Bahrain, a key member of the GCC, has emerged as a strategic partner for India, attracting substantial investments from Indian companies.
In a significant boost to bilateral economic ties, Bahrain has secured $16.65 million in investments from three Indian companies. This latest development underscores the growing confidence of Indian businesses in the Bahraini market and its potential for economic growth.
H E Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, expressed enthusiasm about the new investments, stating, “We at Bahrain EDB are proud to welcome these companies to our business-friendly island nation.” The minister highlighted the favorable business environment and infrastructure in Bahrain that have made it an attractive destination for foreign investors.
According to Bahrain EDB, India’s Foreign Direct Investment (FDI) stock in Bahrain has witnessed a remarkable growth of 36.6 percent between 2019 and 2023. This translates to an average annual increase of $102 million, bringing the total FDI stock to $1.52 billion in 2023.
Among the Indian companies investing in Bahrain, Chemco is making significant strides. The company is gearing up for its third expansion in the Kingdom since it first established its factory there in 2013. Chemco’s continued investment is a testament to the favorable business environment and opportunities available in Bahrain.
Bhageria Industries is another Indian company making a strategic move in Bahrain. The company plans to develop an 11.40 MW solar project, contributing to Bahrain’s efforts to promote renewable energy and achieve sustainable development goals.
In addition to manufacturing and energy sectors, India’s presence in Bahrain is also expanding in the technology and information and communications technology (ICT) sectors. One of the three companies investing in Bahrain is an ICT firm that is establishing its regional headquarters in the Kingdom. This move further strengthens Bahrain’s growing capabilities in technology and artificial intelligence (AI).
India’s growing economic clout in Bahrain is driven by several factors. The strong bilateral relationship between the two countries, coupled with Bahrain’s strategic location and business-friendly policies, have made it an attractive destination for Indian investors. Moreover, the complementarity of their economies, with India’s strengths in manufacturing and services and Bahrain’s strategic location and access to regional markets, has created opportunities for mutually beneficial partnerships.
Beyond its economic influence, India’s strategic partnership with Bahrain extends to the realm of security. As a major maritime power with a significant stake in the region’s stability, India has been actively enhancing its security cooperation with the GCC countries.
India’s growing security influence in the GCC is evident in several areas. First, India has been strengthening its military ties with GCC countries through joint exercises, intelligence sharing, and defense cooperation agreements. These initiatives aim to enhance interoperability and bolster regional security.
Second, India has been playing an increasingly important role in addressing regional security challenges, such as piracy, terrorism, and maritime security threats. India’s navy has been actively involved in counter-piracy operations in the Gulf of Aden and has been providing security assistance to GCC countries.
Third, India’s presence in the GCC region is also seen as a counterbalance to other regional powers, particularly Iran. As the GCC countries seek to diversify their security partnerships, India has emerged as a reliable and trusted partner.
The recent investments from Indian companies demonstrate the growing confidence and potential for further collaboration between the two nations.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance
