AGP Executive Report

Wage & Payroll Banking: Al Baraka Islamic Bank has joined Bahrain’s Wage Protection System (WPS), letting corporate and institutional clients manage salary payments through secure banking channels to improve payroll efficiency, transparency and compliance. Housing Allocation: MP Dr Muneer Suroor urged the Housing and Urban Planning Ministry to prioritise plots close to applicants’ home districts under the “Land and Loan” scheme to reduce disruption to jobs, schools and elderly care. IFRS 18 Prep: Bahrain businesses are being urged to start early preparations for IFRS 18 (effective for annual periods from Jan 1, 2027), with focus on how income/expense categories and management performance measures will reshape reporting. Corporate Finance & Compliance: Bahrain’s Finance Minister met UN ESCWA’s executive secretary, reaffirming cooperation on development and Sustainable Development Goals. Property Market Confidence: Marina West investors welcomed progress after the stalled project was auctioned and ownership transferred to Sumou Holding, but buyers say full confidence depends on settlement proceeds being distributed. Digital Payments & Talent: talabat Bahrain launched a “talabat Youth” internship programme for 10 Bahraini students, while CrediMax received a Visa award for highest average spend per card in Bahrain in 2025. Luxury Auctions: Mazad unveiled a curated luxury collection spanning watches, fashion, jewellery, marine craft and electric vehicles, with verified items and competitive starting prices. Energy & Shipping Shock (Regional): Oil prices climbed as Strait of Hormuz disruptions and geopolitical risks tightened supply, while the UAE suspended all trade with Iran following renewed missile fire—raising pressure on regional trade routes that matter to Bahrain-linked flows.

Regional Trade Shock: The UAE suspended all trade, commercial exchanges and financial transactions with Iran after it said Iran fired two ballistic missiles toward the country, a move that could further squeeze Iran’s access to a key re-export hub and raise costs for Gulf-linked commerce. Aviation Disruptions: Airlines across the region extended flight suspensions and advised travellers to check updates as security concerns persist around the UAE, Bahrain, Kuwait, Qatar and Saudi Arabia. Bahrain Banking & Youth: Bahrain Islamic Bank celebrated winners of its “We Write in Arabic” initiative at Youth City 2030, while the Ministry of Finance and National Economy met UN ESCWA leadership to discuss development and regional economic integration. Local Business & Safety: Bahrain Chamber of Commerce and Industry pushed for Muharraq Souq’s heritage-led development, and a labour workshop reported 200 work accidents and four deaths from January to August. Finance & Deals: ADIB provided £27m Sharia-compliant financing for a Glasgow logistics warehouse, and Al Salam Bank joined Hope Fund’s Employee Loyalty Rewards Programme. Tech & Security: Bluesky reported a second DDoS disruption in four months tied to Iran-linked hackers.

Bahrain Banking Jobs: Bahrain’s financial sector added net jobs in Q1 2026, with Bahrainis driving all net growth as Bahrainisation hit 70% despite digital banking reducing branch roles. Digital Lending Rails: Benefit launched a Digital Direct Debit service to automate loan repayments and insurance premium collections, linking directly with the Bahrain Credit Reference Bureau to speed credit assessment and collections. Payments Standards: KFH-Bahrain renewed its EFTS certification under ISO 20022 MX, reinforcing compliance and faster, more accurate electronic payments. Banking Results: NBK-Bahrain posted net profit of BD60.49m in H1 2026, with assets and deposits rising amid regional uncertainty. Capital Markets Tech: Bahrain Bourse ran an AI productivity workshop for staff, using tools like Copilot and Claude to streamline internal reporting. Maritime & Trade Security: A bulk carrier was reportedly struck in the Strait of Hormuz; UKMTO urged caution as attacks continue. Regional Shipping Shock: UAE suspended all trade and financial transactions with Iran after alleged missile attacks, adding pressure to Gulf commerce. Investcorp Deal: Investcorp acquired 20Cube’s India contract logistics arm for about Rs 500 crore, planning further bolt-on consolidation. Environment & Food: Bahrain consumed over 25,000 tonnes of fish in 2025, while shark conservation measures were urged to protect more than 40 species in local waters. Tourism & Expansion: Gulf Hotels Group signed an MoU to manage a Silva Gigiri Hotel & Residence project in Nairobi, a USD 30m push into East Africa. Maritime Governance: Saudi launched a 14-state Multinational Maritime Defense Coalition headquartered in Riyadh, with Bahrain among signatories.

US-Gulf posture shift: The Washington Post reports the Pentagon is weighing a major troop pullback from the Persian Gulf after damage to US bases in the Iran war, with options to relocate further west—an outcome that could leave Gulf hosts more exposed. Tamkeen Support: Tamkeen extended Musanada registration to 30 September 2026 and lengthened operational expenses support from three to six months for approved beneficiaries, aiming to protect local jobs amid regional disruption. Maritime consolidation: Bahrain Maritime Holding Company was set up under Mumtalakat, appointing a board and consolidating key maritime assets including H. Al Dhaen Boats and Masar Group to scale Bahrain’s shipping and passenger fleet footprint. Hormuz shipping hit: UKMTO says a vessel in the Strait of Hormuz was struck by an unknown projectile, damaging its engine room and injuring a crew member; authorities are investigating and urging caution. Digital lending payments: BENEFIT launched Digital Direct Debit in Bahrain, linking credit and payment capabilities to help banks collect recurring repayments more efficiently. Wealth/treasury tech: A report highlights how Gulf banks are upgrading transaction banking with cloud-native platforms, AI automation and cross-border payment ecosystems. F1 for Bahrain fans: The Bahrain Grand Prix is set for 2–4 October 2026 at Sepang, after earlier disruption to the Sakhir plan.

Red Sea Security: Saudi Arabia unveiled a 14-state Multinational Maritime Defense Alliance to protect shipping routes after Houthi threats to blockade tankers, with Bahrain among the signatories and Riyadh set to lead. Hormuz Fallout: A 60-day US-Iran MoU deadline expired with talks stalled and maritime traffic still disrupted, while Iran signals it may prefer continued pressure over concessions. Bahrain Courts & Labour: Bahrain’s High Labour Court ordered a women’s fashion company to pay a foreign designer BD2,300 for unpaid wages and leave after rejecting the firm’s documentation and witness claims. Drug Trafficking Case: Bahrain’s High Criminal Court is hearing charges against three alleged drug-trafficking suspects, including a Bahraini man and woman and a Moroccan woman, tied to importing materials and moving funds. Banking & Markets: CBB’s BD70m 91-day Treasury Bills were oversubscribed by 149%, and NBB ran Youth City 2030 workshops to boost financial literacy. Consumer Finance: Al Salam Bank launched Flexi Auto Finance with a guaranteed showroom buyback after three years for eligible Mercedes-Benz buyers. Tech & Cyber: Researchers flagged a Unisoc modem flaw that, chained with a prior issue, could let attackers gain privileged access via a video-call trigger. Business Growth: LG and stc tv expanded Smart TV integration across Saudi, Kuwait and Bahrain, adding “Quick Access” and a 3-month subscription offer.

Hormuz & Iran-US Standoff: The 60-day US-Iran peace window has expired with talks stalled and the Strait of Hormuz still restricted, while traffic has collapsed into single digits and hundreds of vessels remain backed up—keeping energy and shipping costs under pressure across the region. Regional Security & Trade Routes: Saudi Arabia has formed a 14-state maritime coalition (MMDA) to protect navigation across the Red Sea, Bab al-Mandeb and Gulf of Aden, with Bahrain among signatories—highlighting how security policy is directly shaping trade flows. Bahrain Youth & Skills: The Bahrain Chamber wrapped up its “Try Working” programme for 60 students, and NBB ran “Future Digital Banker” workshops plus “NBB Nights” at Youth City 2030, reinforcing Bahrain’s push to build job-ready skills. Hospitality & Tourism: Gulf Hotels Group signed an MoU to develop the Silva Gigiri Hotel & Residence in Nairobi (US$30m), while Seef’s Grand Swiss-Belhotel Waterfront transitions to Aqua Vista Bahrain ahead of brand integration. Banking & Payments: NBB delivered digital banker workshops at Youth City 2030, and LG integrated stc tv into webOS via a new “Quick Access” feature for Bahrain and the wider GCC. Sports Business: Muharraq and Al Khaldiya await their AFC Champions League Two 2026-27 draw in Kuala Lumpur, with new coaching leadership on both sides.

Bahrain Labour Update: A proposed amendment to Bahrain’s private-sector labour law would introduce a BD15 monthly transport allowance for workers who aren’t provided company transport, aiming to ease pressure from rising fuel and commuting costs. Industrial Reliability: John Crane renewed a six-year Managed Reliability Program at a major Bahrain refinery covering 1,833 pumps, targeting fewer seal failures, higher availability and more predictable maintenance costs. Digital Government Services: Bahrain’s Supreme Council for Environment upgraded its digital chemical purchasing service, cutting processing time from 20 working days to five via automation and tighter compliance checks. Banking & Payments: KFH-Bahrain renewed its EFTS services certification under ISO 20022 MX, while BisB became the first bank to offer Sharia’a-compliant financing through BENEFIT’s BenefitPay marketplace. Corporate & People: Alba promoted two managers as part of Bahrainisation, and BBK joined Hope Fund’s Employee Loyalty Rewards Programme. Regional Trade & Security: A US-Iran 60-day ceasefire deadline expired with talks stalled and Hormuz tensions rising, while Saudi Arabia formed a 14-state maritime defence coalition including Bahrain to protect Red Sea routes.

Hormuz & regional shipping: The US-Iran “Islamabad” maritime talks deadline expires with no extension in sight, as Iran hardens its stance and Gulf states—including Bahrain—condemn attacks on energy-linked vessels, raising risks for trade and energy flows. US policy & Gulf nerves: Reports say Gulf allies are increasingly frustrated with Washington’s Iran approach, with some even weighing whether to keep hosting major US bases. Banking & fintech: National Bank of Bahrain (NBB) posted H1 2026 net profit of BD43.1m, while Bahrain Islamic Bank (BisB) became the first in the kingdom to offer Sharia’a-compliant financing via BENEFIT’s BenefitPay marketplace; NBB also expanded its equal opportunities governance through a new committee. Consumer finance launches: Al Salam Bank rolled out Flexi Auto Finance with a guaranteed showroom BuyBack after three years. Payments for schools: LuLu Exchange Bahrain partnered with The Indian School to let parents pay fees via branches and the LuLu Money app. Corporate moves: BENEFIT announced CFO Layla Al Qassab’s departure; Alba promoted two managers to strengthen Bahrainisation. Aviation & travel: Gulf Air promoted fares to Kuala Lumpur ahead of the F1 Gulf Air Bahrain Grand Prix in Malaysia, while Navi Mumbai International Airport marked its first dedicated international freighter flight from Hong Kong. Youth & skills: Bahrainna ran Youth City 2030 field visits, and the European University of Bahrain wrapped up Euro Game Jam 2026 to boost gaming and esports skills. Sports & culture: Vatel Bahrain opened applications for 2026–2027 hospitality programmes until September 12.

Maritime Security & Trade: Bahrain condemned Iran’s attack on an ADNOC-linked vessel in the Strait of Hormuz, calling it a breach of international law and urging UN action to deter further strikes and fully reopen the waterway for global energy and food security. Regional Defence Realignment: A US report says Gulf states, including Bahrain, are growing frustrated with Washington’s handling of the Iran war and are accelerating alternative security partnerships, highlighted by the Saudi-Turkey-Pakistan “Mecca” defence framework. Banking & Inclusion: National Bank of Bahrain (NBB) appointed an expanded Equal Opportunities Committee to strengthen inclusion, women’s empowerment, youth development, staff wellbeing and fair access to career progression. Corporate Safety & Labour Rights: talabat Bahrain won a Private Sector Excellence Award for Combating Trafficking in Persons, citing its Rider App’s safety monitoring and rider feedback tools. Hospitality Education: Vatel Bahrain opened applications for its 2026–2027 intake (Bachelor’s and MBA), with the deadline set for September 12. Infrastructure & Urban Growth: Eskan invited bids for Madinat Salman community projects, including a central market, supermarket and sports facility, with a 12-month delivery target. Public Policy & Consumer Health: An MP backed a study into calorie labelling for restaurant meals, aiming to improve nutritional transparency for consumers. Cybercrime Alert: Bahrain’s Interior Ministry urged residents to freeze bank accounts and report immediately if a phone is hacked, including steps like factory resetting and changing passwords. Travel & Business Tourism: Gulf Air launched promotional fares to Kuala Lumpur ahead of the 2026 F1 race weekend, with one-way economy tickets from BD65 and packages via Gulf Air Holidays.

Strait of Hormuz Tensions: Bahrain condemned an Iranian attack on an ADNOC-linked vessel transiting the Strait of Hormuz, calling it a breach of international law and urging UN action to deter further attacks and reopen the waterway for global energy security. US Policy Shock: Donald Trump said the US will soon declare the Strait of Hormuz a US territory, while Iran dismissed the claims, keeping shipping and energy risk front and centre for the region. Regional Security Realignment: A US allies report highlights Gulf frustration over the Iran war’s drag on security guarantees, as Bahrain and others look to diversify partnerships beyond Washington. Cyber & Finance Safety: Bahrain’s Interior Ministry urged residents to freeze bank accounts and report immediately if a phone is hacked, including factory resetting devices and changing passwords. Infrastructure Update: Work has started on the Budaiya Highway widening project, with 6.7km of upgrades funded via the Kuwait Fund and aimed at easing traffic to Salman City. Banking Inclusion: National Bank of Bahrain appointed an Equal Opportunities Committee to strengthen governance on inclusivity, women’s empowerment, youth development and workplace wellbeing. Travel & Business: Gulf Air launched promotional fares to Kuala Lumpur ahead of the Malaysia F1 race, with tickets from BHD 65 and direct flights from Sept 29. Food Labelling Push: A Bahraini MP backed a study into restaurant calorie labelling to improve nutritional transparency for consumers. Sports Spotlight: Seef kept its Singapore Challenger hopes alive by advancing to the quarter-finals, while Bahrain’s youth volleyball and basketball teams posted key results in regional competitions.

Strait of Hormuz Tensions: US President Donald Trump said he will soon declare the Strait of Hormuz a US territory, while Iran’s deputy foreign minister rejected the claim and insisted the waterway can only be opened or closed under Iran’s authority. Bahrain’s Security Stance: Bahrain condemned an Iranian attack on ADNOC tankers in the Strait of Hormuz, calling it a threat to maritime safety and urging UN Security Council action to deter hostile acts. Bahrain-India Trade: Bahrain imported BD111.19m of goods from India in the first five months of 2026, led by alumina, aluminium products and steel. India-Bahrain Ties: India’s external affairs minister met Bahrain’s King and Crown Prince during a Gulf tour, highlighting cooperation on trade, investment and protecting critical maritime routes. Finance & Inclusion: National Bank of Bahrain appointed a new Equal Opportunities Committee to strengthen inclusion across operations and customer services. GFH Profit Update: GFH reported a 13.33% rise in net profit attributable to shareholders to US$76.20m for H1 2026, supported by wealth, investment and credit income. Regional Defence: Bahrain welcomed the Mecca Joint Defence Agreement signed by Saudi Arabia, Turkey and Pakistan, positioning it as part of the region’s broader defence architecture.

Maritime Security: Bahrain joined Qatar, Kuwait and Egypt in condemning an Iranian attack on two UAE-linked ADNOC tankers transiting the Strait of Hormuz, calling it a violation of UN rules and freedom of navigation. Regional Defence: Saudi Arabia unveiled a 14-state maritime coalition to protect Red Sea and Bab al-Mandeb shipping, with Bahrain among the signatories, as the wider Iran-linked risk keeps pressuring trade routes. Bahrain Health Policy: The Supreme Council for Health signed an agreement with Solidarity Bahrain to roll out Health Insurance for Residents under the National Health Insurance Programme, using an integrated digital platform and accredited providers. Municipal Digital Services: Bahrain’s Municipalities Affairs and Agriculture Ministry expanded its Benayat building-permit portal with new services like deposit refunds and building completion certificates, reporting faster permit issuance. Food Safety Enforcement: A Northern Governorate restaurant was shut down after inspections found it lacked required licences for selling food and drinks, including online operations without permissions. Trade & Logistics: DHL Express expanded China capacity at Shenzhen’s “super gateway” and launched a new Shanghai–Bangkok–Bahrain–Brussels route, reflecting shifting Asia trade flows. Bahrain–Pakistan Ties: As Pakistan marks Independence Day, coverage highlights plans to deepen cooperation with Bahrain across defence, security, trade and commerce.

Maritime Security: Bahrain condemned attacks on two UAE ADNOC tankers in the Strait of Hormuz, calling them a violation of international law as the waterway remains effectively closed amid the US-Iran standoff. Regional Defence: Saudi Arabia is moving toward operational activation of a 15-country maritime defense coalition to protect navigation and energy routes around Bab al-Mandab, with Bahrain among the signatories. Health Insurance Rollout: Bahrain’s Supreme Council of Health signed an agreement with Solidarity Bahrain to implement Health Insurance for Residents under the National Health Insurance Programme, using an integrated digital platform and standardized packages. Banking & Investment: GFH reported H1 2026 net profit attributable to shareholders of US$76.2m (+13.33%), citing stronger wealth/investment management and credit income. Trade & Logistics: Khalifa Bin Salman Port’s general cargo surged 224.2% in Q2 2026, with July the busiest month in nearly six years. Education Finance: Khaleeji Bank and British University of Bahrain (BUB) signed an MoU to offer Shari’a-compliant tuition fee financing solutions. Corporate Finance: GFH’s results and other regional banking updates also fed into mixed Gulf market sentiment as Hormuz disruption and US-Iran tensions weighed on risk appetite. Retail & Agriculture: LuLu Hypermarket and The Avenues launched the Bahraini Jumbo Loz Festival, spotlighting local farmers and homegrown brands.

Banking & Markets: GFH Bank reported net profit attributable to shareholders of US$76.20m for H1 2026, up 13.33%, driven by stronger wealth/investment management and credit/financing income; GFH also said it is minimising the impact of the regional geopolitical environment through diversified income and disciplined capital and risk management. SME Finance: Bahrain Development Bank (BDB) posted a sharp jump in Q2 comprehensive income to BD2.1m (up 1,363%) on improved fair value of debt securities, while H1 net profit fell 18% to BD793,000. Healthcare Reform: The Supreme Council of Health signed an agreement with Solidarity Bahrain to implement Health Insurance for Residents under Bahrain’s National Health Insurance Programme, using a digital platform and accredited insurers for primary/secondary and emergency coverage. Logistics & Trade: DHL completed a US$204m expansion of its Shenzhen gateway, tripling capacity to about 900 tons/day, and added a daily cargo flight linking Shanghai–Bangkok–Bahrain–Brussels. Retail & Food Security: LuLu Hypermarket and The Avenues launched the Bahraini Jumbo Loz Festival (13–15 Aug), spotlighting local farmers and homegrown brands. Sports Policy: Bahrain’s youth and sports council reviewed plans for a special visa for professional athletes and directed coordination with the Ministry of Interior and other authorities. Cyber & Courts: Bahrain’s courts handed three-year sentences to four defendants in a cyber fraud case involving fake email requests to change bank details.

Regional Security & Trade Routes: Saudi and Egypt coordinated on regional security after continued Iranian attacks, as Gulf leaders push diplomacy to contain tensions that are already disrupting shipping and energy flows. Bahrain-UAE Ties: King Hamad met UAE President Mohamed bin Zayed in Abu Dhabi, reaffirming fraternal relations and cooperation, especially on economic and development priorities. Iran-US Ceasefire Talks: Pakistan said it is making all-out efforts to revive US-Iran negotiations as a 60-day ceasefire extension deadline nears, with reports of talks continuing behind the scenes. Banking Results: Bank ABC posted $111m H1 profit, down 27% on higher provisions, while Bahrain’s Ithmaar Bank reported BD2.2m H1 net profit, down year-on-year. Market Liquidity: SICO marked the 10th anniversary of the Bahrain Liquidity Fund, reporting a 69% rise in average daily trading values since 2016. Digital Finance: stc pay Bahrain integrated with eKey 2.0 to streamline customer registration via Bahrain’s digital identity platform. Local Governance & Costs: Muharraq Municipal Council urged a new method to calculate electricity subsidy thresholds for joint families to curb soaring bills. Legal System: A defendant was referred to trial over alleged falsification of electronic records, while prosecutors reiterated enforcement steps for Safaqat judgments. Energy/Industry Event: AMEA Oman 2026 will bring bitumen, base oil, lubricants and logistics players to Muscat on Nov 23, reflecting shifting regional supply-chain focus.

Bahrain Capital Markets: Bahrain Bourse opened subscriptions for the BD200m Government Development Bond Issue 48, a two-year, 7% fixed-return paper guaranteed by the government, with trading expected from Aug. 31. Banking & Finance: National Bank of Bahrain (NBB) kicked off the university phase of EVOLVE after completing the school cohort, while Ithmaar Bank reported lower H1 2026 profits amid benchmark-rate pressure; Al Salam Bank also flagged record H1 net profit growth. Payments & Fintech: Beyon Money Business was named by Visa as Bahrain’s fastest-growing commercial card provider, and stc pay rolled out “Secure Approve” for in-app card payment authentication. Corporate Results: Bahrain Flour Mills approved six-month financial statements, reporting a sharp Q2 profit drop; SICO posted a higher Q2 net profit. SME & Entrepreneurship: The Ministry of Municipalities Affairs and Agriculture discussed joint initiatives with the Bahrain Association for SME Development to back entrepreneurs and agricultural businesses. Regional Trade Risk: With Hormuz and Red Sea disruptions continuing, the IEA warned of a sharp global oil-stock drawdown, keeping market sentiment cautious. Diplomacy: King Hamad met UAE President Mohamed bin Zayed to deepen economic and development cooperation.