MPs back investment deal with South Korea

TDT | Manama

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MPs have ratified a new agreement with the Republic of Korea to protect and support investment, tying Bahrain more closely to one of Asia’s leading economies as trade between the two countries surges past BD170 million. The move, passed yesterday, is part of Bahrain’s push to strengthen its economic ties and build a setting more open to foreign money.

Speaking in Parliament, MP Maryam Al Dhaen said the treaty would shield investors and sharpen Bahrain’s appeal as a hub for finance and trade.

Trust

“Experience shows that such agreements build trust among investors and protect their interests,” she said. “This, in turn, draws in foreign capital, opens new investment opportunities, and brings jobs for Bahrainis.”

The pact sets out a number of safeguards. It bars discrimination between investors, ensures free movement of profits and capital in convertible currencies, and guarantees fair pay in cases where property is taken for public need.

Footing

Disputes are to be settled either by Bahrain’s courts or through international arbitration, offering a stable and open footing for business.

Trade figures tell their own story. Bahrain’s non-oil trade with South Korea grew to about BD172.5 million in 2024, a marked rise from the BD60 million recorded across 2022 and 2023.

Al Dhaen said the agreement deepens ties with “a country at the forefront of technology, manufacturing, and new ideas” and fits into Bahrain’s 2030 economic plans.

Question

Second Deputy Speaker Ahmed Qarata questioned why the agreement did not clearly spell out which Korea it concerned.

He pointed out that Bahrain has no cultural attache in Seoul, nor a commercial one, despite the surge in trade between the two countries. “We base our remarks on proof drawn from government answers and official numbers,” Qarata said.

He urged the authorities to appoint a Bahraini attache to manage trade and economic ties with Korea. Minister for Parliamentary Affairs, His Excellency Ghanim Al Buainain, replied that country names are set by international custom.

South Korea, he said, is officially recognised at the United Nations as the “Republic of Korea”, while North Korea is named the “Democratic People’s Republic of Korea”.

Doubts

“There is no reason to stir doubts about agreed names,” Al Buainain said. “The Republic of Korea, a major economic force, would not have signed this agreement if it did not see a true chance to work with Bahrain.”