Bahrain‘s Crown Prince Salman bin Hamad Al Khalifa is set to announce a significant investment of over $17 billion in the United States(US) during a meeting with President Donald Trump.
The investment is part of a broader effort to strengthen economic ties between the two nations, with the White House outlining the new deal before the meeting. President Trump described Bahrain as a “fantastic ally” and expressed enthusiasm for discussing trade and other topics with the crown prince.
The investment package includes a substantial agreement between Gulf Air and Boeing/GE valued at approximately $7 billion, covering 12 aircraft with an option for six more, along with the sale of 40 GE engines. This deal is expected to support 30,000 American jobs, according to the White House. The crown prince emphasized that the investments build upon a legacy they are proud of, highlighting the growing economic partnership between Bahrain and the US.
Bahrain is expected to sign deals with Oracle and Cisco, with plans to replace Chinese servers with Cisco products. The kingdom also seeks to increase its investments in US energy, tech, and manufacturing sectors. The White House says the crown prince intends to deploy capital to increase US domestic aluminum production, invest in US LNG production to secure energy supplies, and buy cutting-edge AI chips, partnering with US hyper-scalers.
One notable agreement creates a framework for Bahrain to begin discussions towards developing commercial nuclear capabilities. Later this year, the king of Bahrain will visit Washington to finalize these agreements and solidify the progress made in building the two nations’ economic prosperity.
US markets remained relatively flat on the announcement, with the S&P 500 down 0.1 percent, the tech-heavy Nasdaq down 0.09 percent, and the Dow Jones Industrial Average down 0.04 percent. Boeing stock was down 0.3 percent from the market open, while GE trended upwards, up 0.1 percent.
The new investment agreement comes as the White House’s tariff strategy remains in the spotlight. The Trump administration had aimed to secure 90 deals in 90 days after pausing country-specific tariffs in April, but has only solidified three deals so far, including with Vietnam, the UK, and Indonesia.
The investment deal between Bahrain and the US presents opportunities for growth in various sectors. Bahrain’s strategic location, business-friendly regulatory framework, and the US-Bahrain Free Trade Agreement (FTA) make it an attractive destination for investors. The FTA, in effect since 2006, eliminates tariffs on 98% of bilateral trade, reducing costs for US exporters and Bahraini importers alike.
Investors can explore opportunities in tech, infrastructure, and aviation, with companies like Cisco, Oracle, and Boeing poised to benefit from the growing economic partnership between Bahrain and the US.