Bahrain awards golden licenses to four projects worth USD 3.9 bn

Bahrain has granted golden licenses to two aircraft maintenance centers and two property developments worth a combined USD 3.9 bn. These were the two firm commitments inside the USD 22.3 bn in announced MoUs at the Gateway Gulf forum in Bahrain last week. Bahrain launched the Golden License program in 2023, offering incentives and streamlined processes for projects that create jobs and attract investment.

DHL and AirAsia took the Golden Licenses for the maintenance, repair, and overhaul centers, with AirAsia also planning a regional hub in Bahrain. The property projects are a waterfront development by a Meliá-Infracorp joint venture and a mixed-use development from Digital City Bahrain.

Also coming from the forum: India’s hotel company IHCL partnered with Kingdom Projects to invest USD 100 mn in Bahrain and introduce three flagship brands — Taj Hotels, Bombay Brasserie, and Reliance Retail’s Hamleys — to the kingdom. On the Islamic finance front, Bahrain EDB-backed regtech startup SITR Compliance Technology formally launched its operations, aiming to streamline and automate Shariah-compliant regulatory processes and transaction monitoring for regional financial institutions.

The announcements come as the war threw a wrench at the country’s economy. Bahrain entered the war with depleted fiscal buffers and record-high levels of debt. The country’s economy is expected to contract 11.3% this year, with reserves that fell to a record low of BHD 886.60 mn (USD 2.35 bn) and government debt now reaching 160% of GDP — the fourth highest globally. The country received a financing package from the UAE in the early weeks of the war, and reports now are speculating that another rescue package from its Gulf neighbors may be in the works.