AGP Executive Report

Geopolitics & Energy Risk: Iran and the US traded strikes after Washington blamed Tehran for the downing of a US Apache helicopter near the Strait of Hormuz. Iran’s IRGC claimed drone and missile attacks on US-linked sites including Bahrain’s US Fifth Fleet, while Bahrain sounded air-raid sirens and urged residents to shelter; the US said it hit Iranian air defence, ground control and surveillance radar sites and later said the operation was completed. Regional Business Impact: The escalation is again rattling markets and raising oil prices, with fresh concerns about inflation and possible disruption to the Hormuz chokepoint that carries a large share of global energy flows. Policy & Finance Watch: The US is also weighing economic pressure options, including allowing Gulf allies to tap frozen Iranian assets to cover war damages—an issue that could shape regional fiscal planning and cross-border financial flows. Local Digital & Services: Bahrain continues consolidating digital services into the MyGov app, signaling ongoing government push to streamline access for residents and businesses. Security & Compliance: Bahrain also reported enforcement activity via LMRA inspection campaigns, underscoring continued regulatory focus amid regional instability.

Gulf Security & Trade: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with Bahrain saying intercepts took place early Saturday as the fragile ceasefire faces fresh strain; the U.S. also weighs using frozen Iranian assets to help Gulf allies pay for war damages, while Pakistan’s interior minister is in Tehran for mediation. Bahrain Digital Government: Bahrain’s iGA is migrating services from the Islamiyat app into the unified MyGov platform, aiming to simplify access to public services and consolidate apps under fewer gateways. Business & Finance: Investcorp launched an AI-powered investment methodology across private markets, while Al Baraka Group reported a 12% rise in Q1 net income to US$52m; Bahrain’s Investcorp also continues to push AI into deal-making. Policy & Compliance: Bahrain studied a proposal to record used-car odometer readings during annual inspections to curb mileage fraud, and updated customs rules add fines for seal tampering and expand electronic clearance options. Transport & Infrastructure: Bahrain is moving toward a first fully digital bus station in Sitra, supported by stc Bahrain, as part of wider transport digitisation. Local Economy & Growth: Capital Governorate and BCCI pledged closer ties to back sustainable development, and Bahrain’s tourism ministry met hotels to strengthen GCC visitor attraction plans. Regional Markets: Gulf bourses rebounded after Iran and Israel said attacks were halted, though investors remain cautious amid volatility.

Gulf Security & Trade Disruption: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with Bahrain reporting interceptions and calling for an end to attacks that test a fragile ceasefire; the renewed shelling also fed into wider market stress as the Strait of Hormuz remained a key risk for shipping and energy flows. US-Iran Economic Pressure: The US Treasury is considering using frozen Iranian assets to help Gulf allies pay for war damage, while Trump said a potential Iran deal could be reached in “two or three days,” keeping negotiations and asset-release terms at the centre of regional business uncertainty. Port & Logistics Fallout in Bahrain: Global ocean carriers froze bookings and rerouted cargo away from Bahrain’s Khalifa Bin Salman Port after Hormuz shutdown fears and war-risk insurance pullbacks, forcing higher surcharges and complex land-bridge routing. Bahrain Digital & Telecom Push: Bahrain discussed next-generation connectivity with Huawei, focusing on 5G-Advanced to support the kingdom’s digital transformation and economic diversification. Banking Innovation: Khaleeji Bank launched “Sheikha,” Bahrain’s first AI-powered smart voice assistant for 24/7 customer support, while Khaleeji and other lenders continued sustainability messaging. Labour Market Enforcement: LMRA reported 4,003 inspection campaigns in May, detaining 129 workers and deporting 324 for labour and residency violations. Corporate & Investment Signals: Bahrain’s Cabinet welcomed Alba’s acquisition of Aluminium Dunkerque, and the Crown Prince met Atlas Merchant Capital’s CEO to stress fintech and financial-sector innovation. Tourism & Skills: Gulf Hotels Group opened registration for its 2026 summer internship programme, and Bahrain’s tourism ministry met hotel sector representatives to strengthen GCC visitor attraction plans.

Regional Risk & Energy: Iran says it halted attacks on Israel after the first exchange of fire since April’s ceasefire, while the U.S. and Israel trade strikes and Gulf markets react to renewed Middle East tensions; with the Strait of Hormuz still a flashpoint, analysts warn oil and LNG flows could swing fast if shipping resumes. Bahrain Finance & Markets: Bahrain Bourse listed companies posted a 17.6% Q1 profit rise, led by strong materials performance, as investors weigh geopolitics. Islamic Finance Legal Boost: Cibafi and the OIC Arbitration Centre signed an Islamic finance pact to strengthen alternative dispute resolution and legal certainty. Corporate Banking & Payments: Arnifi launched an AI-powered banking and payments setup platform for corporates, partnering with major regional banks. Startups & Digital Economy: stc Bahrain opened applications for the 2026 inspireU programme to back Bahraini entrepreneurs with mentorship and market access. Trade & Exports: Bahrain’s non-oil exports rose 6.7% to about BD4.12bn in 2025, led by aluminium and iron/steel. Insurance Credit Rating: AM Best upgraded LIC (International) to “bb+” with a stable outlook. Energy Talent Pipeline: Bapco Energies set June 15 for applications to its NBH Future Energy Leaders scholarship and career programme.

Gulf Risk & Markets: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with Bahrain saying intercepts happened early Saturday as the wider US-Iran ceasefire stayed fragile; Gulf bourses mostly slipped, while oil jumped on renewed escalation and Strait of Hormuz fears. US Reconstruction Funding: Reuters reports Washington is considering letting Gulf allies access frozen Iranian assets to pay for war damages, a move that could raise tensions if talks stall. Bahrain Business Resilience: Local firms are restructuring supply chains and business continuity plans to cope with trade-route disruptions, higher costs, and delayed projects, shifting away from single-source procurement. Bahrain Digital Government: iGA fully migrated “Islamiyat” services into the unified MyGov app as part of a broader platform consolidation push for easier access for residents and businesses. VAT Cash-Flow Relief: MPs are studying a bill to make payment timing the VAT “tax point” for supplies to government bodies, aiming to ease cash-flow strain on suppliers waiting months for invoice settlement. Tourism & Retail Momentum: Bahrain’s hotel sector and Tourism Ministry discussed summer GCC visitor packages, while FIFA World Cup finals are already driving bookings and demand for team merchandise across cafés, restaurants and retailers. Education Links: University of Bahrain and RCSI Medical University Bahrain signed an MoU to expand education, research, faculty development and community service.

Gulf Security & Markets: The Iran–US war hit its 100th day as Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with Bahrain saying intercepts took place; the US also shot down drones over the Strait of Hormuz, while Pakistan’s interior minister Mohsin Naqvi was in Tehran to push mediation. Reconstruction Funding: Washington is reportedly weighing redirecting frozen Iranian assets to help Gulf allies pay for damage and repairs, a move that could further complicate stalled talks. Bahrain Digital Government: iGA completed the migration of Islamiyat app services to the unified MyGov app, as part of Bahrain’s smart apps merger plan. Tourism Push: Bahrain’s Tourism Minister met the hotel sector to align on preparations for upcoming seasons and events, stressing closer coordination to boost GCC visitor numbers. Banking Expansion: Al Baraka Islamic launched a cross-border banking service enabling customers to open and manage accounts in Egypt, building on similar moves with Türkiye. Airline Recovery: Gulf Air said it has restored 100% of its network after regional airspace reopened, with a focus on rebuilding bookings and revenues.

Gulf Security & Trade Disruption: Iran fired ballistic missiles and drones at Bahrain and Kuwait, with Bahrain saying it intercepted seven missiles and the US reporting drone shootdowns and strikes on Iranian coastal radar sites—raising fresh fears for the fragile ceasefire and the Strait of Hormuz, a key oil and shipping artery. US-Iran Financial Fallout: The US Treasury is considering using frozen Iranian assets to fund Gulf reconstruction and repairs, a move that could complicate ongoing US-Iran truce talks amid Iran’s demand for asset releases. Bahrain Diplomacy: Bahrain and Kuwait condemned the attacks as “blatant aggression” and “dangerous escalation,” warning that missile strikes threaten regional stability. Bahrain Business & Investment: Bahrain’s EDB wrapped up a Spain and Switzerland investment tour, pitching the kingdom’s pro-business ecosystem to European corporates and investors. Bourse Watch: Bahrain Bourse listed companies reported a 17.6% Q1 profit rise to $549.8m, led by strong materials and diversified financials while telecom, banking and retail weighed. Youth & Innovation: The GCC Youth Forum highlighted Bahrain’s push to grow youth leadership in innovation, entrepreneurship and the digital economy. Urban Development: A proposal would redevelop a Manama car park near Bab Al Bahrain and Bahrain Financial Harbour into a modern public square with underground parking. Culture & Craft: A Bahraini handloom weaver is keeping traditional textile skills alive through a home-based loom and local training. Aviation Demand: Gulf Air expects summer travel demand to recover after Iran-war disruptions, though load factors remain slightly down.

Gulf Security & Energy Risk: Iran fired ballistic missiles and drones toward Bahrain and Kuwait early Saturday, with Bahrain reporting interceptions and activating air raid sirens; Kuwait said there was material damage but no injuries. The flare-up followed US strikes on Iranian coastal surveillance radar sites near Qeshm Island and Sirik after drones were shot down near the Strait of Hormuz, further testing a fragile ceasefire and raising fears for regional stability and oil flows. US-Iran Diplomacy Stalls: Despite Trump’s claims of “great success” and openness to talks, negotiations remain stuck on issues including frozen Iranian assets and broader ceasefire conditions, while both sides keep trading strikes. Oil Market Watch: With Hormuz disruption still a live risk, Bloomberg reports workarounds have kept crude below $100 despite the worst supply shock in modern history, but the duration of buffers remains the key wild card for global growth. Bahrain Business Impact: A Bahrain private-sector leader warned at the ILO that escalating Middle East tensions could threaten around 36 million jobs worldwide by 2027, as firms face higher energy, transport and insurance costs and weaker investor confidence.

Gulf Security Escalation: The US and Iran traded fresh strikes in the Gulf despite a ceasefire, with CENTCOM saying it intercepted six Iranian ballistic missiles aimed at Kuwait and Bahrain and shot down four one-way drones toward the Strait of Hormuz, then hit Iranian coastal surveillance radar sites on Qeshm Island and in Goruk. Local Fallout in Bahrain & Kuwait: Kuwait reported air-defence interceptions after new missile/drone attacks, while Bahrain sounded an air-raid alert and urged residents to shelter; both sides traded claims, including Iran denying damage to US Fifth Fleet headquarters in Bahrain. Business & Trade Risk: Bahrain Chamber board member Sonya Janahi warned that the widening regional instability could wipe out about 36 million global jobs by 2027, stressing pressure on trade, investment, energy and labour markets—especially SMEs. Legal/Finance Watch: A Bahrain High Court ruling backed Awal Bank’s liquidator, rejecting $2.8bn in contested claims and finding connected parties owe the bank $2.56bn. Aviation & Tourism Push: Bahrain’s transport minister backed a low-cost airline model via partnerships with carriers like AirAsia and coordination with Gulf Air to add destinations and boost passenger traffic. Environment & Community: Bahrain marked World Environment Day with beach clean-ups and recycling drives, while Japan-Bahrain talks in Tokyo focused on energy, industry and climate resilience cooperation.

Gulf Ceasefire Reality Check: Israel and Lebanon announced another ceasefire, even as strikes continue in southern Lebanon and Iran–US exchanges of attacks persist, raising questions about what “ceasefire” means when there’s no enforcement mechanism. Bahrain in the Crosshairs: Iran’s missile and drone activity has targeted Gulf states including Bahrain, while the US denies claims of attacks on its destroyers after reports of “warning missiles” in the Gulf of Oman. Payments Integration: Qatar Central Bank expanded HIMYAN card acceptance to Bahrain, and CoinMENA partnered with INFINIOS to power CoinMENA’s virtual and physical card program under Central Bank of Bahrain oversight. Digital Government Upgrade: Bahrain’s Survey and Land Registration Bureau (SLRB) launched faster online map purchase and enquiry services, cutting processing time and steps. Corporate Tech Leadership: Beyon appointed Bahraini Rashed Mohamed as Group CTO, aiming to accelerate AI and digital platform development. Green Agenda Push: Bahrain’s Shura Council committee highlighted World Environment Day progress, including renewable energy, water sustainability and net-zero 2060 efforts. Business & Community: NBB and NIAD joined a World Environment Day planting activity in Isa Town, while Motorcity Bahrain ran a free health drive with Al Hilal Hospital for 200+ employees.

Bahrain Housing & PPP: Bahrain’s Housing and Urban Planning Ministry has started foundation works for 69 new homes in Salman Town under the Government Land Development Rights Programme, with unit sizes set to match ministry financing needs and delivery tied to a public-private partnership model. Green Transition & World Environment Day: Bahrain marked World Environment Day with renewed emphasis on climate progress, including submissions to the UN climate framework and a national roadmap to 2035, while the Supreme Council for Environment highlighted steady gains in balancing development with resource protection. Bahrain Environment on the ground: National Bank of Bahrain (NBB) teamed up with NIAD for a tree-planting event at Isa Town Jogging Track to boost afforestation and community participation. Heritage & Tourism Idea: MPs backed a proposal for Bahrain’s first dedicated interactive pearl and diving museum, aiming to turn the kingdom’s pearling legacy into hands-on education and training. Travel Curbs: Bahrain Tourism and Exhibitions Authority ordered travel agencies to halt ads and programmes to Iran and Iraq following a government travel ban for Bahrainis. Digital Services for Real Estate: Bahrain’s Survey and Land Registration Bureau upgraded its online system for requesting and buying cadastral maps, cutting processing time and steps and enabling fully electronic tracking via the national portal. Finance & Payments: QCB expanded HIMYAN card acceptance in Bahrain, and Bahrain’s financial cooperation with regional partners also featured in recent coverage. Regional Risk to Markets: Iran–US tensions and attacks affecting Kuwait and Bahrain continued to rattle oil, equities and crypto sentiment, with US travel advisories keeping Bahrain at Level 3 “Reconsider Travel.”

Regional Diplomacy: Saudi Arabia’s foreign minister Prince Faisal bin Farhan called for coordinated Gulf efforts to protect security and stability, stressing Riyadh’s full solidarity with Bahrain after recent Iranian attacks. UN & Legal Moves: Bahrain notified the UN Security Council and UN chief over Iran’s April 5 drone attack on GPIC, warning of potential chemical catastrophe and reserving rights to self-defence and compensation; the UN Security Council also scheduled a closed-door session on the Middle East including Palestine, requested with Bahrain’s support. Bahrain Business & Finance: Qatar Central Bank expanded acceptance of its HIMYAN national payment card in Bahrain, enabling purchases and cash withdrawals via Bahrain ATMs and POS; separately, Bahrain’s LMRA launched a faster digital service for labour supply licences, cutting processing time and streamlining steps. Industrial Expansion: Alba agreed to acquire France’s Aluminium Dunkerque for about $2.2bn, aiming to build a global low-carbon aluminium platform and strengthen access to the EU market. Corporate & Economy: Mumtalakat partnered with French firm TRAIL to invest in the SLAM private equity fund focused on sport, luxury, arts and music, with a Manama office as a GCC hub. Safety & Operations: BNET reported over 1.008m safe work hours with zero Lost Time Injuries. Markets & Energy Backdrop: Oil and equities stayed jittery as US-Iran tensions and a Kuwait airport strike fed risk-off sentiment, while Tokyo stocks fell on crude-price pressure.

Gulf Security & Markets: Iran–US tensions flared again as Iranian strikes hit Kuwait and Bahrain and the US carried out “self-defence” actions near the Strait of Hormuz, pushing Brent above $98 and rattling global stocks. Ceasefire Watch: Israel and Lebanon agreed to implement a conditional ceasefire tied to Hezbollah’s halt and withdrawal from the South Litani area, while US–Iran talks reportedly faced friction over terms. Bahrain Response: Bahrain condemned the attacks, with reports also saying Bahrain intercepted Iranian missiles and drones and detained people over alleged Iran-linked ties. Bahrain Finance: Bahrain launched a benchmark 10-year USD bond with initial pricing thoughts around 7.5%, as the kingdom looks to shore up finances amid regional uncertainty. Banking Cooperation: CBB Governor Khalid Humaidan met UAE counterparts to deepen financial and banking coordination, including digital and stability initiatives. SME Policy: Bahrain broadened the MSME classification framework, with the Bahrain Chamber saying it will expand targeted support for the sector that makes up 93.4% of active commercial registrations. Air Connectivity: Gulf Air outlined a growth strategy through 2035, saying its network is fully restored and positioning the airline as a key driver for Bahrain’s tourism and investment. Trade Policy Shock: The US proposed new Section 301 tariffs on imports from Bangladesh and 59 other economies over forced-labour concerns, raising export-sector worries.

Higher-Ed Quality: Bahrain Institute of Banking and Finance (BIBF) says all its Bachelor’s and Master’s programmes were reviewed by the Bahrain Education & Training Quality Authority (BQA) and received the top “Confidence” rating, with delivery partners including Bangor University, University of London, Strathclyde Business School and DePaul University. Capital Markets & Governance: Bahrain Bourse joined the pledge of allegiance to His Majesty King Hamad bin Isa Al Khalifa, reinforcing its role in supporting Bahrain’s capital market development. Regional Finance Cooperation: The UAE and Bahrain central bank governors met in Abu Dhabi to discuss deeper financial and monetary cooperation, including coordination mechanisms, banking stability and digital transformation. Gold vs Oil: Gold slipped as Middle East tensions pushed crude higher and rate-hike expectations rose, while silver also fell amid a firmer dollar and inflation concerns. Geopolitics Hitting Markets: Fresh US-Iran clashes again tested a fragile ceasefire, with Iran targeting Bahrain and Kuwait and the US striking Qeshm Island—sparking oil price gains and risk-off moves across Gulf markets. Bahrain’s Defence Posture: Bahrain said it intercepted Iranian missiles and drones amid the escalation, as regional airspace and security concerns intensified. Industrial Deal Watch: Bahrain’s Alba agreed to buy Europe’s largest aluminium smelter, Aluminium Dunkerque, in a deal valued at about $2.2bn, as Gulf aluminium players expand abroad to secure supply chains amid Hormuz disruption.

US-Iran Escalation Hits Bahrain: Iran fired missiles and drones toward Kuwait and Bahrain after US “self-defence” strikes on Iran’s Qeshm Island; CENTCOM said the Bahrain-bound attacks were intercepted and that US forces hit a Qeshm ground-control station. Oil & Gold Volatility: Fresh Gulf hostilities pushed crude up (Brent near $97) and rattled inflation expectations, while gold prices slipped as investors weighed higher oil against rate fears. Trade Pressure on Bahrain: The US Trade Representative proposed forced-labour import measures under a Section 301 probe, naming Bahrain among 59 economies facing potential tariffs. Bahrain Banking & Sustainability: BBK reported BD188m in sustainable finance assets and a 39% cut in paper use in its 2025 sustainability report. Digital Services Upgrade: University of Bahrain launched an upgraded digital document verification status inquiry, cutting processing to an immediate automated response. Maritime Skills Link: Abu Dhabi Maritime Academy signed an MoU with Bahrain Polytechnic to expand training, internships and applied research. Aluminium Deal Watch: ALBA’s $2.2bn acquisition of France’s Aluminium Dunkerque underlines how regional supply disruptions are lifting aluminium prices.

Alba Deal Boost: Aluminium Bahrain (Alba) has agreed to buy France’s Aluminium Dunkerque in a $2.2bn transaction, as part of a push to build a global low-carbon aluminium platform, with Bpifrance taking a minority stake. Sovereign Wealth Move: Mumtalakat and French investor TRAIL announced a strategic partnership to back the SLAM private equity fund, with TRAIL opening a Manama office as its GCC hub. Capital Markets: Bahrain Bourse will host “The Market 2.0: Bahrain 2026” on Dec 3, aiming to draw 500+ participants on trading modernisation, liquidity and market infrastructure. Digital Government: BCFC rolled out eKey 2.0 integration into its Sahel App, enabling biometric onboarding and eKYC data retrieval to strengthen secure access. Tourism Lift: Eid visitors helped drive strong hospitality growth, with the Tourism Minister citing the “We Miss You” campaign and renewed GCC demand. Regional Security Impact: Bahrain has banned citizens from traveling to Iraq and Iran, citing ongoing security tensions. Shipping Risk: MSC said its MSC Sariska V was hit by projectiles off Iraq, with a fire contained and crew reported safe. Policy Oversight: Shura Council committee work advanced on decree-laws and bills, including updates tied to Bahrain’s international commercial court framework.