AGP Executive Report

GCC Economic Momentum: The GCC Common Market is gaining clout as an economic bloc, with GDP of about $2.4tn, sovereign wealth fund assets above $5tn and banking assets around $3.9tn, while Q2 2026 GCC-listed firms logged record $74.8bn net profits (+31.3% y/y) and first-half profits rose 23.1% to $142.81bn. Bahrain-Cyprus Trade Push: Bahrain Chamber’s first vice chairman met Cyprus Chamber leaders to revive business links, focusing on practical partnerships and investment opportunities. Oman-China Investment Zones: Oman and China discussed deeper cooperation across special economic zones and industrial clusters, with no specific deals announced. VAT Enforcement: A VAT evasion case involving unpaid dues totalling about BD52,507.6 was adjourned for judgment on Sept. 29, 2026. Traffic Rules for Takeaways: Muharraq municipal councillors proposed stopping restaurants from serving customers who double-park while waiting for orders, with fines or licensing action for repeat offenders. AI Culture in Bahrain: Bahrain’s economic affairs advisor met an AI group president to review AI initiatives aimed at building awareness and an entrepreneur-friendly AI culture. Finance & Markets: CBB’s Sukuk Al Salam issue was oversubscribed by 131%, and NBB launched a “Race from Bahrain to Malaysia” card campaign. Aviation Calendar: Bahrain International Airshow’s 8th edition was moved to Nov. 15–17, 2028. Cyber Threat Intelligence: Bahrain-based CTM360 is set to showcase next-gen cyber threat intelligence at Big SASIG 2026 in London.

Bahrain Healthcare & Digital Health: Bahrain is pushing deeper into genomics and digital healthcare, expanding the National Genome Program and eGovernment access to support earlier detection and prevention. Vocational Training Partnership: Nasser Centre and GARMCO signed an MoU to run a specialised apprenticeship for about 40 trainees in welding and mechanical engineering, combining classroom learning with hands-on work. Industrial Safety Milestone: Alba marked 50 million safe working hours without a Lost Time Injury, crediting safety leadership and contractor engagement. Airshow Reschedule: The Bahrain International Airshow’s 8th edition has been moved to 15–17 November 2028, citing the need for broader participation amid regional instability. Cross-Border Transport: Licensed taxis can now carry passengers between Saudi Arabia and Bahrain across the King Fahd Causeway under new regulations, aiming to boost travel and tourism links. AI for Business Licensing: Bahrain’s Ministry of Industry and Commerce is using AI to issue licences for promotional campaigns and commercial discounts faster, cutting processing time and steps. Regional Diplomacy: Foreign Minister Ayman Safadi chaired Arab League ministerial work on protecting Jerusalem’s holy sites and countering Israeli violations, warning of wider regional security risks. UK Trade Link: The UK appointed Alastair Long as Trade Commissioner for Africa, with a mandate that includes strengthening ties—he previously served as Bahrain ambassador. Business Tech Partnership: Velents is expanding in Bahrain via a strategic deal with stc Bahrain to deliver agentic AI products for business customers.

Tourism & Aviation: Bahrain’s tourism minister joined regional travel leaders at Dubai’s ATM 2026 planning, with sessions focused on resilience, AI, aviation connectivity and sustainability. Defence & Tech: L3Harris says it has completed the first 35 F-16 Viper Shield electronic warfare systems for allied buyers, with production ramping toward a 233-unit order. Cybersecurity: Bahrain-based CTM360 is set to showcase next-gen cyber threat intelligence at Big SASIG 2026, shifting focus from “indicators of compromise” to indicators tied to exposure, warning and attack. Finance & Fintech: BitOasis appointed Jonathan Rigg as CEO as it pushes deeper across the GCC; KFH-Bahrain joined Fintech Forward 2026 as a Diamond Sponsor, highlighting its digital banking and AI/cybersecurity investments. Capital Markets: BBK signed on as strategic sponsor for “The Market 2.0: Bahrain 2026” conference hosted by Bahrain Bourse. Public Spending: Government contract awards rose 30.4% in July to BD103.56m, led by housing and oil-related tenders. Labour & Courts: A medical centre was ordered to pay a doctor BD3,760 in unpaid wages plus leave compensation after wage-payment evidence was not provided. Crime & Compliance: Bahrain reported handing over 11 internationally wanted persons and receiving 19 fugitives in 2026 as it strengthens cross-border police cooperation. Human Trafficking: Bahrain will host a regional forum to combat trafficking in persons under LMRA. Maritime Cooperation: Cyprus and Bahrain signed an MoU expanding maritime safety, training, search and rescue and innovation. Regional Health: GCC health ministers met in Bahrain to discuss medicine supply, strategic stocks and joint preparedness amid regional security risks. Business Connectivity: Bahrain Chamber welcomed licensed taxi services across the King Fahd Causeway as a boost for trade and tourism.

GCC Health Cooperation: Bahrain chaired the GCC health ministers’ committee meeting in Manama, focusing on stockpiles, medicine supply continuity, expatriate screening and joint preparedness, while condemning “heinous” Iranian attacks and warning of knock-on risks to maritime navigation and energy, trade, food and medical supplies. Regional Finance Security: Bahrain’s central bank said GCC central-bank governors’ preparatory talks reviewed payment systems, banking supervision, fintech and stepped-up cybersecurity information-sharing. Causeway Connectivity: Bahrain Chamber welcomed licensed Bahrain-Saudi taxis allowed to cross the King Fahd Causeway, saying it should boost tourism, retail and business activity by improving land access. Fintech Push: KFH-Bahrain joined Fintech Forward 2026 as a Diamond Sponsor, backing the Oct 7-8 forum and highlighting its digital banking pavilion. Healthcare Talent Pipeline: Tamkeen launched a new healthcare training package with the Supreme Council of Health to support 520+ Bahraini doctors, nurses and students via residency, fellowships and specialization programmes. Human Trafficking Focus: Bahrain’s national committee reviewed research, coordination and an Interior Scientific Research Award to strengthen the fight against trafficking. Public Fundraising Rules: New regulations set fines up to BD10,000 and create a licensing office with powers to freeze or take control of funds raised in breach of the law. Family Budget Pressure: Back-to-school costs are squeezing Bahraini households, with surveys putting typical preparation bills around BD120 before extras like books, transport and private lessons. Student Transport Proposal: An MP proposed a regulated cooperative model using qualified jobseekers, retirees and housewives to drive pupils and university students, aiming to cut family costs and reduce cars at peak times. Aviation/Regional Disruption Watch: Commentary on the Strait of Hormuz said traffic is far below normal, with only around 10-15 ships passing daily, keeping supply-chain and shipping risk in focus.

Bahrain Airport Milestone: Bahrain International Airport picked up four Airports Council International (ACI) recognitions, including top-tier Airport Customer Experience Accreditation Level 5, Best Airport for Arrivals (ASQ) and renewed Public Health & Safety readiness, plus an accessibility upgrade for 2026. Banking & Markets: Bank of Bahrain and Kuwait (BBK) will back “The Market 2.0: Bahrain 2026” as a strategic sponsor, while Kamco Invest says Bahrain-listed firms’ Q2 net profits were broadly steady, down 0.4% to $572.2m, even as revenues rose. Digital Transformation: stc Bahrain launched “Bayan,” a fully integrated Arabic-first contact centre at LEAP 2026, aiming to resolve up to 70% of routine contacts without escalation, and also signed a TCS partnership to modernise IT operations. Sustainability at Ports: APM Terminals Bahrain said Khalifa Bin Salman Port won a GCC “Sustainable Institution” award, citing a BD3.8m solar project that powers port operations and cuts carbon footprint. Local Policy & Social Issues: MPs urged a review of rising housing instalments in Salman Town and proposed first-time marriage support to curb young couples’ loan spirals. Health Insurance Push: New studies argue Bahrain’s health insurance reform will succeed more with stronger public communication than tech alone. Trade & Compliance: Bahrain’s National Halal Mark is set to get tighter regulation to boost trust and competitiveness for Bahraini products.

US-Iran Shipping Clash: The US said it struck three Iranian oil tankers after Iran attacked two US Navy warships, warning it will sink “defenseless” tankers if ships are targeted; Iran vowed retaliation and condemned the moves, as the wider Hormuz standoff keeps disrupting regional trade and energy flows. Diplomacy to Cool Tensions: Egypt urged US-Iran talks to resume under the Islamabad memorandum, warning against wider escalation and stressing the need to protect maritime navigation and shipping. Bahrain Tech & Telecom: stc Bahrain launched Bayan, the Kingdom’s first fully integrated next-gen contact centre at LEAP 2026, aiming to resolve up to 70% of routine contacts and cut handling times by 30%, while also partnering with TCS to transform IT operations. Halal & Consumer Trust: Bahrain’s National Halal Mark framework is set to regulate licensing and boost confidence in locally produced halal goods for local and international markets. Infrastructure & Business: Diyar Al Muharraq topped Bahrain’s real estate sales ladder in Q2 2026 by both transaction count and value, while Bahrain International Airport earned four ACI awards for customer experience, arrivals quality, accessibility and health preparedness. Youth & Skills: Kooheji Group wrapped up its Aspire programme for Bahraini university students, and Ithmaar Bank continued its Ithmaar Guide internship for school students. Energy/Logistics Spotlight: APM Terminals Bahrain said Khalifa Bin Salman Port won a “Sustainable Institution” award, citing a solar project that covers the port’s electricity needs.

Sitra Power-and-Water Tender: Bahrain’s EWA has narrowed the Sitra Independent Water and Power Project to two bidders—ACWA Power and TAQA—competing to deliver up to 1,500MW plus 5,682 cubic metres of desalinated water per hour under a BOO model, with technical checks first and price as the key tie-breaker. Urban Development: The Capital Trustees Board approved a 2026-2027 plan for Manama covering heritage-preserving revitalisation, road and waterfront projects, green spaces, smart municipal services, and the planned relocation of the Central Market. Water Security Tech: A push for Atmospheric Water Generation highlights a potential eco-friendlier complement to desalination, aiming to reduce marine impacts while scaling drinking-water supply. Digital Finance: Beyon Money Business and BitOasis Bahrain launched a closed-loop wallet integration enabling direct, secure funding from Beyon wallets into BitOasis accounts under Bahrain’s crypto-asset framework. Youth & Community: ACME leadership visited Youth City 2030 to support Bahraini youth training across leadership, tech, arts, media and sports. Local Life & Safety: Muharraq residents complain commercial vehicles are taking over residential streets, squeezing parking and potentially blocking ambulances and Civil Defence access. Charity & Rights: Bahrain marked International Day of Charity with renewed emphasis on organised humanitarian giving, while MPs proposed tougher penalties for insulting Islamic religious figures and symbols. Regional Risk to Business: Renewed US-Iran strikes and retaliation targeting Kuwait, with Bahrain also reporting interceptions, are raising concerns for Gulf shipping and energy supply.

Digital Finance & Crypto: Beyon Money Business and BitOasis Bahrain launched a secure closed-loop wallet integration, letting customers fund BitOasis Bahrain crypto accounts directly from Beyon Money wallets under Bahrain’s CBB crypto-asset rules. Regional Trade & Policy: Saudi Arabia will host the second EU-GCC summit on Oct. 24, aiming to deepen political and economic ties; EU-GCC goods trade hit €165.6bn in 2025. Bahrain Business & Talent: Tamkeen backed Bahraini firms’ participation at LEAP Riyadh and channels BD 2.6bn into the economy, while Bahrain’s Digital Innovation Awards 2026 named an independent judging panel. Bahrain Corporate Governance: A royal edict reconstituted Mumtalakat’s board of directors for a four-year term. Energy & Shipping Risk: Renewed US-Iran strikes are again disrupting the Strait of Hormuz, with oil prices rising and shipping leaders warning that seafarers must not be used as geopolitical leverage. Travel Impact: EASA advised airlines to avoid Persian Gulf airspace over Bahrain, Kuwait, Qatar and the UAE until Sept. 30, with knock-on flight delays expected across the region. AI Infrastructure Watch: Gulf states continue pushing AI data-centre buildouts despite drone and conflict risks, underscoring the region’s shift beyond oil.

US-Iran Escalation and Bahrain Link: Iran fired missiles and drones at Kuwait after earlier US strikes, with Kuwait saying its air defences intercepted the attack; Bahrain was also cited among US allies whose systems intercepted Iranian attacks, while US VP JD Vance said Washington is investigating reports of a wedding strike in Iran and warned it won’t resume talks unless Iran stops targeting commercial shipping in the Strait of Hormuz. Energy and Markets: Renewed hostilities are pushing oil higher, with Brent on track for its biggest weekly gain since July as Hormuz risk premiums return and shipping remains below normal levels. Marine Insurance Pressure: Lloyd’s of London reported profit pressure in its marine business as the war expanded high-risk zones, including Bahrain, driving up premiums and forcing insurers to use war-risk facilities. Bahrain Tech and Finance: Bahrain’s Labour Fund (Tamkeen) backed 14 Bahraini tech firms at LEAP Riyadh, while Bahrain Association of Banks named an independent judging panel for the Digital Innovation Awards 2026. Retail Investment: LuLu Group marked 20 years in Bahrain and announced plans to invest BD62m in six new outlets.

Strait of Hormuz Shockwaves: Kuwait condemned fresh Iranian missile and drone attacks, saying air defences intercepted incoming threats and calling it a direct breach of sovereignty—while the wider US-Iran escalation kept oil markets jumpy, with Brent rising to about $96.98 and reports of record oil flows under US protection. Bahrain Labour Crackdown: LMRA carried out 3,152 inspection campaigns in August, detaining 77 irregular workers and deporting 543, as authorities step up enforcement to protect the labour market. Tamkeen Funding Push: Tamkeen outlined its strategy dialogue with Shura Council, highlighting BD 2.6bn channelled into Bahrain’s economy over 20 years and a renewed focus on youth employment and skills pathways. Digital Finance Move: Beyon Money Business and BitOasis Bahrain launched a secure closed-loop wallet integration, letting customers fund crypto accounts directly from Beyon wallets under Bahrain’s crypto-asset framework. Local Business Rules: Muharraq’s shisha café proposal was rejected as existing health and planning laws already govern licensing, while a trial kiosk scheme for productive families at Arad Fort seafront is being studied. GCC Food Security: Bahrain hosted the GCC agricultural cooperation meeting, with ministers pushing unified regulations and stronger supply-chain and food-safety coordination. Cybersecurity Warning: A Shura Council member urged GCC states to treat cyber attacks as modern warfare, calling for shared threat intelligence and AI-enabled defence.

Regional Energy Shock: Iran-US fighting flared again after a monthlong lull, with strikes hitting bases across the Gulf and renewed Hormuz supply fears pushing oil higher and keeping fuel-price pressure in focus. Hormuz Under Fire: Trump again floated renaming the Strait of Hormuz as “Trump Strait,” while Iran claimed it laid more naval mines, underscoring how quickly shipping risk can return. Civilian Toll Concerns: Reports of deaths and injuries from a US strike on a wedding in Iran drew UN alarm and renewed scrutiny of civilian impact as both sides trade accusations. Bahrain Business & Finance: Bahrain’s Diyar Al Muharraq topped the Kingdom in Q2 2026 real estate sales by both number and value, while Bahrain Bourse wrapped its “Emerging Talents” graduate training programme and Bahrain’s Red Crescent board reviewed plans to expand humanitarian action and youth participation. Enterprise & Tech: stc Bahrain signed a strategic UiPath deal to boost enterprise automation, and Gulf Cryo announced a major CO₂ capacity expansion to serve GCC demand. Sports & Travel (Local Interest): Bahrain’s men’s volleyball team is set for the AVC continental championship in Japan, and AirAsia launched its first codeshare with Pegasus, with Bahrain services still targeted for March 2027.

Maritime Security: Bahrain and Saudi Arabia condemned Iran’s attack on the Saudi-flagged tanker Sidr in the Strait of Hormuz, killing two Filipino crew members and raising fresh concerns for shipping safety and freedom of navigation. Regional Diplomacy: Kuwait also denounced fresh Iranian missile and drone attacks, including a drone strike that sparked a fire at a residential complex, while Bahrain intercepted incoming drones. Strait of Hormuz Politics: US President Donald Trump suggested renaming the waterway “Trump Strait,” insisting the US controls Hormuz even as clashes intensify and oil prices stay supported by disruption fears. Bahrain Finance & Markets: Bank ABC won multiple Global Finance awards for cash management and liquidity solutions, while Bahrain Bourse wrapped its inaugural “Emerging Talents” graduate programme and Ithmaar Bank completed its “Ithmaar Guide” student internship run. Fintech & Business Growth: BBK joined Fintech Forward 2026 as a Diamond Sponsor, backing the October 7-8 forum at Exhibition World Bahrain. Work Permits Crackdown: Bahrain’s Public Prosecution secured fines and deportation orders for expatriates convicted of using fictitious commercial establishments to obtain work permits without genuine need. Tourism & Events: Bahrain’s Tourism Minister met UFI leadership ahead of the 93rd UFI Global Congress in November, positioning the event as a boost for business tourism.

US-Iran Escalation Hits Bahrain: The US resumed strikes on Iranian targets, and Iran retaliated with missile and drone attacks that reportedly targeted US-linked sites including Bahrain, while Bahrain said it intercepted incoming drones. Energy Markets: Oil prices pushed higher above $95 as Strait of Hormuz disruption fears returned; shipping traffic through Hormuz reportedly fell sharply. Gold Slide: Gold futures dropped for a seventh straight session as investors weighed higher oil, inflation and rate-hike fears. Regional Security Alerts: Seven US embassies across the Middle East issued warnings about potential unforeseen escalation, including Bahrain. Payments Momentum in Bahrain: Benefit reported 261.2m electronic fund transfer transactions worth BD19.3bn in H1 2026, showing continued digital payments growth. GCC Trade Facilitation: Bahrain hosted GCC Customs Union Authority talks, with progress praised and steps discussed to keep goods moving despite Hormuz-related disruptions. Startup Spotlight: Cogman won first place and Luma second at StartUp Bahrain Pitch 27, highlighting Bahrain’s push in digital and AI-led ventures. Business & Community: Bahrain’s fuel prices for September were set under the kingdom’s pricing mechanism, while KFH-Bahrain sponsored the “Our Kids Are Gold” childhood cancer awareness campaign.

Digital Payments Boom: BENEFIT processed 261.2m EFTS transactions in H1 2026, up 7.6%, with transaction value rising 6.1% to BD19.3bn; BenefitPay and Fawri+ both recorded growth, underlining steady momentum in Bahrain’s electronic transfers. Banking Rewards: NBB launched a Multi-Currency Debit Card campaign (Sept 1–Nov 30) offering a travel package prize, with raffle entries tied to eligible international spending. Workforce Development: Alba celebrated 312 trainees completing its 2026 OJT programmes (up from 300 in 2025), with female trainees at about 38%, as the aluminium firm doubles down on practical Bahraini talent pipelines. Startup Spotlight: StartUp Bahrain Pitch Series (27th edition) crowned “Cogman” and “Luma” as winners, continuing Tamkeen-backed support for tech and digital ventures. Bahrain–UK Business Links: The UK Chargé d’Affaires met Bahrain EDB leadership to discuss strengthening trade and investment ties under the UK-GCC trade framework. Wildlife Protection Rules: New SCE decisions set a falcon passport system under CITES, update protected species lists, and ban import/possession/trade/breeding of mynas and crows (with a six-month amnesty). GCC Trade Facilitation: Bahrain hosted GCC Customs Union Authority talks, highlighting progress toward the customs union and referencing the temporary mechanism used during the Hormuz disruption. Energy Cooperation: Bahrain and Japan discussed expanding energy collaboration, focusing on expertise exchange and investment opportunities. Industrial Push: Bahrain will host the inaugural “Made in GCC 2026” Forum (Oct 6–8) at Exhibition World Bahrain, aiming to showcase local manufacturing and deepen GCC industrial integration. Compliance on Summer Work Ban: Bahrain reported 99.98% compliance with the outdoor summer work ban after 30,246 inspections, with only six companies found in violation. Travel Policy Impact: Thailand will cut visa-free stays for Bahrainis and other eligible nationals to 30 days from Sept 15, 2026 (down from 60).

Aluminium & Leadership: Alba named Layla Al Qassab as Director of Finance (from Sept 1), Taimur Tufail as Manager Legal (from Aug 23) and Aysha Salem as Manager Organisation Development & HR Analytics (from Sept 6), aiming to strengthen finance, legal and people analytics for its next growth phase. Industrial Integration: Bahrain will host the inaugural “Made in GCC 2026” Forum and Exhibition (Oct 6-8) at Exhibition World Bahrain, bringing GCC officials, CEOs and manufacturers to push industrial cooperation and a unified Gulf product brand. Workplace Compliance: Bahrain reported near-total compliance with the summer outdoor work ban, with a 99.98% rate after 30,246 inspections; the midday restriction ended yesterday. Biodiversity Rules: Bahrain banned the import, possession, sale and breeding of mynas and crows of all species, citing threats to native wildlife. Digital Finance & Cyber: SIO launched an IBAN verification service with BENEFIT to speed and improve benefit payments, while the CBB and NCSC ran a cybersecurity awareness workshop for financial services professionals. Banking & Fintech: NBB joined Fintech Forward 2026 as the first Diamond Sponsor, and BisB won “Best Islamic Bank in Bahrain” at the Euromoney Islamic Finance Awards 2026. Transport & Travel: Bahrain’s tourism and business calendar gets a boost as Exhibition World Bahrain won “Best Venue More Than 10,000 sqm” at the Middle East Event Awards. Regional Risk Watch: With the Iran-US conflict continuing to disrupt trade routes, Gulf states are focused on resilience as shipping chokepoints remain a key economic vulnerability.

Bahrain Digital Finance: Beyon Connect has integrated LuLu Exchange Bahrain into the revamped eKey 2.0 ecosystem, enabling eKYC identity verification via Bahrain’s Digital Authentication of National Identity platform. Islamic Banking Recognition: Bahrain Islamic Bank (BisB) was named “Best Islamic Bank in Bahrain” at the Euromoney Islamic Finance Awards 2026, highlighting its push for simpler, smarter Sharia-compliant services. Insurance & Healthcare: Bahrain Kuwait Insurance Company promoted Rajesh Babu to Chief Underwriting Officer for Bahrain operations, while Takaful International and Al Salam Specialist Hospital launched a month-long women’s health campaign for September. Business & Trade Events: Bahrain will host the inaugural “Made in GCC 2026” Forum and Exhibition (Oct 6-8), aiming to boost regional manufacturing links and GCC economic integration. Cybersecurity for Finance: The CBB and NCSC ran a cybersecurity awareness event for financial services professionals on securing data in the AI era. Legal & Social Policy: MPs proposed tougher penalties for publicly insulting Islamic figures, including up to five years in prison and BD20,000 fines. Regional Risk Mood: Gulf bourses slipped as US-Iran escalation around the Strait of Hormuz dented risk appetite.