Arab News Japan

TOKYO: Japan and Bahrain recently signed an economic agreement that not only aims to protect the interests of both parties, but also allows for greater exchanges between the two countries.

Bahrain’s Ambassador to Japan Ahmed Mohamed Aldoseri said the agreement will protect the interests of companies doing business between the two countries, including fair and equitable treatment, freedom of transfers, and procedures for settling disputes.

In an interview with Arab News Japan, Ambassador Aldoseri pointed out that Japanese companies were already active in manufacturing, finance, and trade in Bahrain and he anticipates further expansion of investment that will contribute to stronger and closer economic ties between Bahrain and Japan.

The Ambassador noted that the agreement is part of the Kingdom’s efforts to enhance economic and financial relations with countries worldwide, and to create a conducive environment for attracting direct foreign investments.

He explained that Bahrain has signed 36 agreements to promote and protect investments with countries including the United Kingdom, the United States of America, France, India, China, Russia, Singapore and Germany.

Bahrain and Japan have had a wide-ranging and cooperative relationship over many years and the agreement seeks to expand on that relationship.

The Ambassador pointed out the unique advantages Japanese companies can expect from investing in and expanding their operations in Bahrain. He pointed out that the Kingdom is currently well advanced in diversifying its economy, with a clear Economic Recovery Plan that places top priority on attracting foreign investment and achieving growth in non-oil sectors.

The ambassador highlighted the Kingdom’s welcoming environment for companies looking to expand or set up a regional presence, noting that in addition to the Kingdom’s strategic location, Bahrain offers great value for any company looking to expand there, including 100 percent foreign ownership of companies. He also noted that in 2021, Bahrain’s FDI stock relative to GDP stood at 86% compared to a global average of 47%.

Ambassador Aldoseri emphasized Bahrain’s continued diversification away from oil towards sectors such as financial services, industry, telecommunications, IT and the digital economy. He said he had observed first-hand that Japan was a leading innovator in these fields, and this had allowed Japan to rise to prominence in the financial, industrial and IT fields, and had established the country as one of the world’s largest and most successful economies.

In highlighting the long-standing friendly diplomatic and trade relations between the two countries, the Ambassador was confident that the agreement would also foster cultural exchanges and people-to-people connections. He underlined that working together towards common goals creates a sense of shared purpose, leading to increased understanding and cooperation on cultural matters as well as in the economic and commercial fields.

Ambassador Aldoseri concluded by saying that by integrating cultural exchange initiatives alongside economic investments, countries can create a holistic approach that fosters mutual respect, understanding and cooperation between their citizens.