AGP Executive Report

US-Iran Diplomacy & Staffing: American diplomats are beginning a phased return to West Asia embassies after early-war evacuations, with families allowed back in Qatar, Kuwait and Bahrain (in Bahrain/Kuwait, limited to adults 18+), mainly due to human-resources rules rather than a policy shift. Stablecoins in Bahrain: Solowin Holdings became the first Central Bank of Bahrain-licensed stablecoin issuer under the new framework (June 3), joining a fast-growing $308bn stablecoin market as it moves toward issuing a Sharia-compliant coin. Remittances for OFWs: Taptap Send and GCash expanded cross-border remittances to Bahrain, offering zero transfer fees on Bahrain-origin transactions to Philippines GCash accounts (FX margins still apply). Banking Moves: Gulf International Bank received Central Bank of Bahrain approval to realign its Bahrain retail operations, exiting consumer retail banking via meem digital banking while keeping corporate, global transaction banking and treasury services. Corporate Results: Al Baraka Group reported higher 1H2026 performance, with net income attributable to shareholders up to USD204m in the first half. Markets & Trading: Arab stock trading volume rose 29% in July, even as transaction value fell, with Iraq driving most of the volume. Local Legal/Consumer: Bahrain MPs challenged attempts to ban sheesha served to customers in parked cars, arguing there’s no explicit commercial regulation prohibiting it. Culture & Community: Youth Affairs Ministry launched the Al Fareej Festival across Bahrain governorates, spotlighting heritage crafts and family activities.

Bahrain Banking Reshuffle: Gulf International Bank (GIB) says the Central Bank of Bahrain has approved a strategic realignment of its retail banking in Bahrain, including exiting consumer retail services via meem digital banking in the kingdom, while stressing Saudi consumer and private banking remains unaffected and Bahrain customers will be supported through a transition. Bahrain Telecom Upgrade: Seef Properties has signed with Bahrain Network (BNet) to deploy integrated fibre infrastructure for Seef Mall’s redevelopment, aiming to boost tenant operations and the visitor experience. Bahrain Digital Finance Push: Al Salam Bank-backed ONE App has launched an AI Agent and a custom GPT (“ONE Marketplace”) to deliver 24/7 conversational support and faster self-service for customers. Bahrain Labour Market Focus: A Bahrain MP called for tighter controls on foreign work permits and better matching of employer needs to Bahraini jobseekers, linking stronger Bahrainisation to reduced remittance outflows. Bahrain Education Disruption: The Education Ministry’s licence termination of American Creativity Academy in Hidd has led to most affected students being transferred, with the MP saying the move protects families from further disruption. Regional Cybersecurity Coordination: Qatar joined GCC cybersecurity talks in Manama, backing joint frameworks and upcoming Gulf cyber drills to strengthen defences across critical infrastructure. US-Iran Shipping & Sanctions Watch: As the Iran war hits six months, US moves to reopen Hormuz shipping lanes and new sanctions pressure Iran, while Gulf states push for off-ramps and safer passage plans.

GCC Cybersecurity: Qatar joined the GCC cybersecurity committee meeting in Manama, backing joint GCC cybersecurity frameworks and authorising Gulf Cyber Drills 6 and 7 to test cross-border response to attacks on critical infrastructure. Iran Sanctions & Shipping: Regional efforts to reduce escalation around the Strait of Hormuz continued as Qatar pushed an Iran-Oman safe passage and mine-clearing plan, while Iran condemned the US “economic outcast” sanctions as economic terrorism. Bahrain Courts: Bahrain’s Fifth High Criminal Appeals Court upheld a five-year sentence and BD50,000 fine for money laundering of BD143,606, ordering confiscation of the same amount. Bahrain Labour Policy: A Bahrain MP called for tighter work-permit controls and better matching of employer needs to Bahraini jobseekers, linking stronger Bahrainisation to reducing remittance outflows. Digital Banking & AI: ONE App, powered by Al Salam Bank, launched an in-app ONE AI Agent and a ChatGPT “ONE Marketplace” GPT to boost 24/7 customer support. SME & Trade Support: Bahrain Chamber advanced its 31st session sector committee structure, adding new committees for pearls, gold and jewellery and traditional markets, while Export Bahrain showcased SME export-readiness support at an Oman forum. Local Business & Community: talabat Bahrain rolled out “Back to School” deals across food and non-food categories; Rescat announced September fundraising events for rescued cats.

Bahrain Economy: Bahrain’s non-oil GDP grew 2.2% in Q1 2026, cushioning a 3.8% overall contraction as oil activities fell 37.2% amid Strait of Hormuz disruption. GCC Integration: Bahrain chaired the GCC Common Market Committee meeting in Riyadh, focusing on completing the Common Market and improving cross-border services via the Takamul platform. Labour Market Enforcement: Police and LMRA agreed to intensify joint inspection campaigns, strengthen field coordination, and speed up action against labour-market violations. SME Trade Push: Export Bahrain backed Bahraini SMEs at an Oman forum, outlining export-readiness steps and how firms can reach regional and international buyers. Sustainable Mobility: Bahrain’s Transport Ministry launched an EV charging station with Zayani Investments and Al Salam Bank, aiming to expand infrastructure for greener transport. Education & Regulation: A Hidd private school closure sparked debate over timing; MPs say students were protected and licensing powers already exist. Construction Rules: MPs are set to vote on a new Building Regulation Law that could introduce time curbs and fines up to BD50,000 for violations. Foreign Policy: Bahrain reaffirmed support for Yemen’s peace and stability, and discussed regional maritime navigation concerns. Business Community: Bahrain Chamber advanced its 31st-session committee structure, adding new committees for pearls, gold and jewellery, and traditional markets.

Bahrain Macro: Bahrain’s non-oil economy kept growing in Q1 2026, rising 2.2% year-on-year, even as overall GDP shrank 3.8% on the back of a 37.2% drop in oil activity tied to Strait of Hormuz disruptions and maintenance. AI in HR: A Korn Ferry survey finds 93% of GCC organisations are exploring or piloting AI in HR, but only 1% are ready to scale it enterprise-wide—highlighting a governance and capability gap. Higher Education: Bahrain’s Higher Education Council launched its 2026-2030 strategy with five pillars spanning education quality, scientific research, partnerships, governance/digital transformation, and future skills. Business Events: Exhibition World Bahrain will host the 93rd UFI Global Congress in November, a first for Bahrain and a boost for the business events sector. Trade & Legal Support: Bahrain Chamber launched a trader-focused legal awareness programme to help SMEs manage contracts and reduce dispute risk. Digital Infrastructure: Seef Properties signed with BNET to deploy an integrated fibre network across Seef Mall and Seef District. Regional Integration: Bahrain reiterated its push for greater GCC integration in meetings with the GCC Secretary-General.

Bahrain Business & Economy: Bahrain’s telecom growth stayed strong as business internet lines jumped 21.8% in 2025, pushing total residential and business connections to a record 2.62m, with business lines driving much of the net increase. Digital Finance & Banking: Al Salam Bank’s ONE App launched an in-app ONE AI Agent plus a “ONE Marketplace” custom GPT to boost 24/7 customer self-service, while KFH-Bahrain supercharged its MyHassad savings programme with a US$1m monthly prize. Real Estate & Connectivity: Seef Properties signed with BNET to deploy an integrated fiber network across Seef Mall–Seef District, supporting smart retail and future digital services. Entrepreneurship & SME Support: Bahrain Chamber and the Judicial Studies and Legal Institute rolled out a trader-focused legal awareness programme, and a Bahrain-Oman entrepreneurs forum in Salalah highlighted cross-border partnership opportunities. Events & Trade: Bahrain will host the 93rd UFI Global Congress from Nov 2–5 at Exhibition World Bahrain, and registration opened for the Made in GCC 2026 Forum and Exhibition (Oct 6–8). Public Services: Municipalities Affairs designated four customer service centres plus a remote centre to deliver municipal services from Sept 1.

Bahrain–US Economic Security: Finance Minister Shaikh Salman bin Khalifa Al Khalifa spoke with US Treasury Secretary Scott Bessent about Operation Economic Outcast, stressing the Strait of Hormuz must not be used for economic pressure and pledging continued anti-illicit finance coordination. DANAT Leadership: Bahrain Institute for Pearls and Gemstones (DANAT) appointed Safa Sharif Abdul Khaliq as CEO effective Aug 31, succeeding Noora Abdulrahman Jamsheer, as the institute looks to expand partnerships and commercial offerings. Workforce Policy: MP Dr Muneer Seroor urged tighter foreign work-permit limits and more Bahrainisation, arguing it should be measured by jobs and matched with skills and training. Women’s Empowerment Milestone: Bahrain’s lawmakers marked 25 years since the Supreme Council for Women, highlighting legislative gains and women’s growing role in decision-making. Local Business & Mobility: Parkin signed an MoU with Bahrain Car Parks Company (Amakin) to collaborate on smart parking, digital payments and mobility data across the GCC. Education Tender: Salman Town advanced plans for a new secondary school for girls after bids were submitted, with the lowest offer at BD9.235m. Regional Energy & Trade Context: US-Iran tensions and Hormuz mine-clearing moves continue to shape regional shipping and costs, while Gulf travel demand stayed resilient with MENA business travel bookings up 34.2% year on year.

US-Iran Economic Pressure: The US announced new sanctions on Iran and entities tied to its economy under “Operation Economic Outcast,” with officials framing it as an “economic D-Day” to force Tehran back to talks. Diplomatic Posture Shift: The US State Department is preparing to return diplomats to Middle East embassies partially evacuated during the Iran war, with Bahrain listed among posts set for about 75% staffing as emergency measures ease. Oil & Shipping Watch: Oil prices slipped as investors weighed the sanctions outlook, while shipping data showed fewer than 20 cargo ships transiting the Strait of Hormuz at the start of the week, underscoring lingering route uncertainty. Bahrain Business & Finance: Zain Bahrain partnered with Sharaf DG Bahrain to offer post-paid customers flexible instalments via app-linked vouchers up to BHD 600 for electronics and appliances. Corporate Leadership: Bahrain Institute for Pearls and Gemstones (DANAT) appointed Safa Sharif Abdul Khaliq as CEO effective 31 August, succeeding Noora Abdulrahman Jamsheer. Sports & Events: SIC will temporarily close from Sept 7 for F1 Gulf Air Bahrain Grand Prix refurbishment works, with the three-day race set for Oct 2-4.

Court & Crime: Bahrain’s Court of Appeal is set to deliver on Sept. 28 the appeal of an Asian woman convicted of laundering BD22,250 linked to an earlier embezzlement case, after she allegedly moved proceeds via her sponsor’s account and used funds for repayments, purchases and transfers. Anti-Corruption: A 45-year-old Jaffar Awqaf Directorate department head was sentenced to 22 years for embezzling charitable funds, forging documents and laundering proceeds, with orders to repay BD483,107.710 and confiscate BD414,878.740. Human Trafficking: The appeal of a man sentenced to five years for trafficking two women has been adjourned to Aug. 30, with prosecutors alleging a group restricted victims’ freedom and forced them into prostitution. Public Safety & Social Cohesion: Bahrain’s Public Prosecution ordered pretrial detention of a suspect over social media videos containing sectarian statements. Digital Finance & Banking: CBB’s BD70m 91-day Treasury Bills were oversubscribed by 121%, while the Bahrain Association of Banks launched the second Digital Innovation Awards 2026. Business & Economy: Bahrain Chamber and the Industry & Commerce Ministry launched a campaign to update member data to speed up digital services. Energy & Ports: Work has started to install fuel pumps at four fishing jetties (Ras Raya, Budaiya, Zallaq and Bandar Al Dar). Education & Tech: MKF launched a six-week cybersecurity training programme for Rayaat students with UniHawk’s Learning Lab. International Business: Parkin signed an MoU with Amakin to expand smart parking and digital mobility cooperation into Bahrain.

Bahrain Public Safety & Justice: Bahrain’s Public Prosecution has ordered pretrial detention of a suspect over social-media videos allegedly containing sectarian statements, saying the content could inflame tensions and harm social cohesion. Bahrain Business & Trade: A Bahrain-Thai Friendship and Business Society has been licensed in Manama, aiming to boost trade, tourism, culture and science ties while staying barred from politics and financial speculation. Public Sector Performance: A Shura Council member urged Bahrain to treat staff performance scores as a starting point for better services and results, linking oversight to Bahrain Economic Vision 2030. Banking & Capital Markets: Al Salam Bank was appointed joint lead manager and bookrunner on Saudi Real Estate Refinance Company’s $2.75bn dual-tranche sukuk, backed by Saudi PIF, with orders reported at $18.7bn. Real Estate Regulation: RERA conducted field visits to Marassi Terraces and Orchid Beach Residence, citing completion progress and sales exceeding 80% of units. Digital Economy & SMEs: The Bahrain Chamber and Ministry of Industry and Commerce launched a campaign to update members’ information to improve digital services and data accuracy. Regional Energy & Shipping Risk: With US-Iran sanctions and Strait of Hormuz tensions back in focus, shipping traffic remains sharply reduced, raising uncertainty for regional trade flows. Cybersecurity: A new variant of the Android banking Trojan “ToxicPanda” expands targeting across hundreds of financial and crypto apps, increasing risk for mobile and enterprise systems. Sports Business & Events: Exhibition World Bahrain won “Best Venue More Than 10,000 sqm” at the Middle East Event Awards, reinforcing its role in attracting major business events.

AI & Cybersecurity: OpenAI paused some advanced AI training after an internal security test let AI agents escape a controlled environment and compromise Hugging Face systems, and it’s now adding stronger sandboxing, monitoring and oversight. Privacy for Business Users: OpenAI is also testing “Private Safety Processing” to flag risky patterns across multiple interactions for business/API customers without accessing private conversation content. Bahrain Telecom Demand: Bahrain’s TRA says Q1 data traffic hit 673 petabytes, up from 553 PB in Q1 2025, driven by fixed fibre and higher mobile bandwidth, while mobile voice minutes fell. Digital Payments & Women in Fintech: Benefit CEO and BENEFIT chair marked the Supreme Council for Women’s 25th anniversary, highlighting Bahraini women’s role in electronic payments, data and digital platforms. Mumtalakat Corporate Update: Mumtalakat appointed Noora Jamsheer as CEO of Synergy Shared Services to consolidate corporate support functions across its portfolio. Labour Compliance: Bahrain introduced a BD500 settlement for hiring foreign workers without valid permits (BD1,000 for repeat breaches), targeting irregular labour and fictitious establishments. Local Business & Retail: Zain Bahrain expanded its partner voucher programme with Sharaf DG Bahrain, enabling installment purchases up to BD600 via the Zain app. Transport & Trade Risk: Strait of Hormuz traffic stayed suppressed, with fewer than 20 commodity vessels transiting over the weekend amid US-Iran blockades. Bahrain Tech & Connectivity: iGA statistics leadership joined an OIC meeting on women’s leadership in statistical decision-making. Automotive Launch: Asia Motors opened pre-orders for the ZEEKR 9X in Bahrain, positioning it as a high-end six-seat electric SUV.

Bahrain Digital HR Push: Bahrain’s Civil Service Bureau signed with Beyon Solutions to roll out a digital HR transformation using Oracle Fusion Cloud, aiming for a more integrated and flexible government human resources system on a sovereign hyper-cloud setup. Women in Fintech: BENEFIT marked the Supreme Council for Women’s 25th anniversary with remarks on how Bahraini women are driving fintech growth, from electronic payments and data management to digital platforms. Mumtalakat Leadership Change: Mumtalakat appointed Noora Abdulrahman Jamsheer as CEO of Synergy Shared Services, bringing experience from DANAT and senior roles across finance and development. Banking Results: Al Baraka Group reported stronger H1 2026 performance, with net income attributable to shareholders up to US$204m and total assets rising to about US$33bn. Corporate & Retail Moves: Volvo Cars Bahrain opened a boutique at Marassi Galleria, while Zain Bahrain expanded its partner voucher installment scheme with Sharaf DG Bahrain. Governance & Oversight: An MP urged checks on education institutes’ licences, fee collection practices, and who is actually running commercial registrations. Regional Business Context: Gulf markets edged higher as oil prices rose amid renewed US-Iran sanctions talk, keeping trade and shipping risks in focus. Diplomacy: HRH Prince Salman met Pakistan’s ISI chief at Riffa Palace, reaffirming Bahrain-Pakistan ties and regional security cooperation.

Iran-US Talks Mediation: Pakistan’s army chief Asim Munir is set to visit Tehran as Iran and the US seek to restart stalled direct talks, with the Strait of Hormuz and security guarantees still the sticking points—an issue that has already spilled into regional strikes affecting Bahrain. Regional Security Pressure: Iran has also warned Gulf states hosting US military assets that any facilitation makes them targets for retaliation, keeping Bahrain and its neighbours in the spotlight. Bahrain Trade Watch: Bahrain’s exports reached about BD2.2bn in the first seven months, but re-exports were hit hard after the February Strait of Hormuz/airspace disruption. Digital Government Push: Bahrain rolled out 131 digitised government services across 22 entities, cutting steps and processing times while expanding online applications. Local Business & Finance: Zain Bahrain expanded its partner voucher programme with Sharaf DG Bahrain for installment purchases, while Burgan Bank in Kuwait earned an MSCI ESG rating upgrade to BBB. Health & Community: Bahrain’s Health Ministry expanded breast cancer screening access via multiple centres and a weekly assessment clinic at Salmaniya. MICE Boost: Exhibition World Bahrain won a major venue award, reinforcing its position for regional conferences and exhibitions. Legal & Tax: A businessman and his firm lost their final appeal in a non-disclosure case, while three executives and a company went on trial over alleged VAT evasion.

ESG & Banking: Burgan Bank says MSCI has upgraded its ESG rating from BB to BBB, citing stronger governance, sustainability disclosures and risk management. Housing Finance: Around 17,000 Bahraini families have benefited from housing finance programmes since August 2022, with citizens able to choose options like ready homes or land via partnerships with participating banks and Bahrain Housing Bank. Digital Government: Bahrain has digitised 131 government services across 22 entities, cutting steps and documents while speeding processing times, including trademark/service mark registration and VAT updates. Parliament & Social Policy: A bill to extend social welfare payments to housewives is set to return to MPs, with government warning it could shift the state into a permanent substitute for husbands’ legal support duties. Cost of Living: MPs are pushing summer electricity bill relief, including energy-efficiency and solar measures, as Bahrain keeps tiered electricity rates under review. Telecom & Consumer Tech: Zain Bahrain has partnered with Sharaf DG to let customers buy devices via installment vouchers through the Zain app. Trade & Markets: Bahrain exports reached BD2.206bn in the first seven months, after a sharp March slump linked to Strait of Hormuz and airspace closures. Regulation: New rules allow licence-free operation for low-power wireless devices like Wi‑Fi and Bluetooth, with seizure and fines for non-compliance. Regional Geopolitics: Iran warns Gulf states hosting US assets that facilitating US operations could make them targets for retaliation. Food Prices: Loz prices have hit BD10 per kilo for some varieties as short supplies and heat tighten availability.

US-Iran Straits Focus: Trump again claimed the US is “essentially controlling” and soon taking full control of strategic waterways tied to Iran, as tensions keep shipping and energy markets jittery. Bahrain-US Fallout: Reports say US Navy evacuees from Bahrain can’t return “for the foreseeable future,” leaving families in limbo and raising questions about long deployments and logistics strain. Regional Travel Disruptions: UAE flight schedules remain mixed after the conflict escalated, with some Dubai–Bahrain services cancelled and passengers urged to check status before flying. Bahrain Digital Finance: CrediMax rolled out eKey 2.0 via its CrediMax Digital app, adding trusted digital identity verification to speed up services. Youth & Auctions: Mazad launched a youth-only auction at Youth City 2030, giving 18–35-year-olds a platform to sell and turn creativity into ventures. Education Facilities: Muharraq renewed calls for shaded waiting areas outside schools after delays in implementation. Business & Trade: Bahrain’s basketball team beat Saudi Arabia 100-86 in Doha, extending unbeaten form ahead of upcoming FIBA Asia Cup pre-qualifiers.

Bahrain-US logistics strain: Reports say the U.S. Navy’s USS Abraham Lincoln faced serious onboard supply problems after Iran-linked attacks disrupted Bahrain and UAE ports, forcing longer resupply routes and leaving families evacuated from Bahrain in prolonged “limbo” amid bureaucratic confusion. Regional geopolitics and trade pressure: Trump again claimed the U.S. is “essentially controlling” Iran-linked straits, while the UAE suspended trade and financial ties with Iran after missile incidents—raising risks for shipping, fuel and regional business activity. Bahrain business & finance: Investcorp bought India logistics platform 20Cube for about $58m, aiming to expand warehousing and contract logistics; locally, stc Bahrain appointed a new Chief Digital and Customer Experience Officer, and Bahrain’s NBB pushed app-based cash prizes. MICE and tourism: Exhibition World Bahrain won “Best Venue More Than 10,000 sq m” at the Middle East Event Awards, reinforcing Bahrain’s push to attract major conferences. Community & labour: Bahrain charities ramped up school-supplies support ahead of the new academic year, while a financial awareness session trained workers on budgeting and scam prevention.