Arab News Japan

TOKYO: Bahrain and Japan signed the “Agreement Between Japan and the Kingdom of Bahrain for the Reciprocal Promotion and Protection of Investment” in Manama on Monday.

The agreement stipulates comprehensive and detailed matters concerning the promotion and protection of investment between Japan and Bahrain.

Japan and Bahrain have built a good relationship for many years, and currently have a wide-ranging cooperative relationship, including in the economic field.

Against the backdrop of Bahrain’s simple business approval procedures and preferential tax policies, Japanese companies – mainly in the manufacturing, financial, and trading industries –have already entered the market.

It is expected that through the agreement, investment will be promoted and the economic relationship between the two countries will be further developed.

The purpose of the agreement is “to further create stable, equitable, favorable and transparent conditions for greater investment” and “to contribute to the further development of the overall relationship between the Contracting Parties.”

The two countries are encouraged to create favorable conditions for investors in the opposite country as it would within their own country.

The agreement will run for an initial period of 10 years.