AGP Executive Report

UN Security Council Emergency: Bahrain convened an emergency UN Security Council session after Iran resumed ballistic missile and drone strikes on civilian areas, with FM Abdullatif Al Zayani warning the attacks violate the June 17 Islamabad MoU and noting a near chemical disaster after a strike hit an ammonia storage tank at Gulf Petrochemical Industries. GCC Energy Integration: Bahrain chaired a GCC Petroleum Cooperation Committee meeting, pushing energy security through closer coordination and pipeline connectivity across member states. AI Governance: Bahrain will host the fifth World CIO200 Bahrain Edition conference on Sunday, focusing on AI governance and ethics with international policymakers and tech leaders. LMRA Digital Licensing: The Labour Market Regulatory Authority rolled out a faster, fully digital two-stage licensing process for recruitment agencies, cutting processing time and reducing required approvals. Strait of Hormuz Trade Focus: The US and 12 Middle East countries agreed in Bahrain to strengthen efforts to keep commerce flowing through the Strait of Hormuz, as Iran warns tankers to use approved routes. Telecom Investment: Zain won a 25-year Syria mobile licence worth $747m, planning major network upgrades including 5G and AI. Bahrain Courts & Compliance: An accountant was acquitted in a missing funds case, while another company was ordered to pay BD40,239 in unpaid contracting dues. Youth & Skills: Seef Properties launched the second Taasis program for university students, and General Assembly signed an MoU with Infiniteware to build national digital and AI talent. Public Services: EWA introduced an electronic inspection service for eligible new water connections, reducing processing time from five days to two. Entrepreneurship: StartUp Bahrain Pitch returned with new ventures seeking mentorship and investor support.

Bahrain Smart Cities & Digital Economy: Bahrain pushed ahead with its smart and sustainable urban agenda, with the Smart Cities Summit highlighting AI-enabled services, a “Cloud First” approach, and plans to test AI-powered surveillance cameras across more than 200 public sites to curb littering and vandalism. Youth & Skills Pipeline: Youth City 2030 returns on July 12 with a record 256 training programmes and 10,650 opportunities, while Tamkeen-backed initiatives continue to expand youth employability. Islamic Finance Standard: AAOIFI approved FAS 54 on “Direct Costs” for Sharia-compliant contracts, aiming to harmonise accounting and improve transparency across Islamic finance. Bahrain Bourse Momentum: The Bahrain Bourse All Share Index rose 3.2% in June, led by materials and finance, as investors rotated into heavyweight names. Retail Banking Recognition: National Bank of Bahrain was named Bahrain’s Best Retail Bank for a fifth straight year, citing digital loan origination and customer-focused housing and SME support. Fuel Prices Update: Bahrain’s Fuel Pricing and Monitoring Committee set July rates for Jayyid, Mumtaz, Super and diesel, keeping diesel subsidies for fishermen. Regional Energy & Trade Risk: With US-Iran talks ongoing but fragile, oil and shipping uncertainty remains a live issue for Gulf commerce, including Hormuz transit and LNG supply planning. MENA Pharma Deal: Daewoong signed a W145.2bn Envlo export deal with Acino to launch its diabetes drug across Saudi, UAE, Qatar, Kuwait, Oman, Bahrain, Iraq and Egypt.

Smart Cities & Digital Government: Bahrain is pushing ahead with smart urban transformation, with AI-powered surveillance cameras planned for rollout across 200+ public sites, alongside a broader push to modernise services through iGA’s integrated digital ecosystem (bahrain.bh, Cloud-First, and 800+ e-services). Youth & Skills Pipeline: Youth City 2030 returns on July 12 with a record 10,650 training opportunities across 256 programmes, while Tamkeen highlights the initiative’s role in linking youth skills to labour market needs. Tourism & Events: Exhibition World Bahrain is set for a packed July-August calendar, including the Bahrain Summer Toy Festival (July 2-Aug 5) and Youth City 2030 (July 12-Aug 20), plus Sports City and the “Albait Almaskoon” comedy run. Transport & Regulation: Bahrain plans new rules to test and operate self-driving vehicles, aiming to create a clear framework for autonomous mobility trials. Finance & Payments: Pay10 secured an Electronic Money Institution licence in Hungary, signalling EU expansion for its digital wallet and SME payment tools. Energy Trade Watch: Mercuria and Eni agreed a 50:50 joint venture to trade crude, refined fuels, and biofuels, reflecting growing interest in energy trading amid market volatility. Regional Security: GCC-US dialogue and EU-GCC coordination both kept focus on Iran-linked threats and Strait of Hormuz risks, as Iran again signalled it will not meet US envoys directly.

Bahrain’s Port Efficiency Push: Khalifa Bin Salman Port (KBSP) rolled out a new electric reach stacker, cutting up to 12,060kg of CO₂ per month while improving cargo handling reliability and reducing delays. Aviation Governance: Gulf Air Group Holding named a new board of directors for the group and key portfolio companies, with Khalid Hussain Taqi as chair, reinforcing governance under Mumtalakat’s aviation assets. Islamic Finance Innovation: Al Salam Bank became the first globally to implement JP Morgan Payments’ overnight murabaha solution, aiming to optimize USD nostro liquidity and treasury efficiency. Capital Markets Demand: The Central Bank of Bahrain’s six-month Ijara Murabaha Sukuk was oversubscribed by 255%, with BD127.291m tendered for a BD50m issue. Cybersecurity Milestone: Beyon Cyber (Beyon Group) secured CREST accreditation for its Security Operations Center, boosting confidence in SOC operations across Bahrain and the region. Islamic Finance Skills: Cibafi launched the Cibafi Academy, a digital training platform for capacity building and professional certifications in Islamic finance. Payments Ecosystem: SINNAD joined the Bahrain Association of Banks to strengthen collaboration and knowledge exchange for Bahrain’s digital payments growth. Regional Deal Uncertainty (Impact Watch): Iran refused to meet US envoys in Doha, clouding US-Iran talks and keeping Strait of Hormuz risk in focus for regional trade and energy flows.

US-Iran Talks in Doha Under Strain: Qatar says US envoys Jared Kushner and Steve Witkoff will hold only technical talks, not a high-level meeting with Iran, after weekend missile exchanges tested the June 17 interim accord—raising doubts over reopening the Strait of Hormuz and the wider truce. Bahrain Security & Regional Posture: A report says the US is considering revamping its naval base in Bahrain as part of a broader rethink of Middle East deployments after damage from the Iran war. Saudi Solidarity: Saudi Arabia’s Cabinet reiterated condemnation of Iranian attacks on Kuwait and Bahrain and backed measures to protect sovereignty and freedom of navigation. Gulf Markets Watch: Gulf bourses closed mixed as investors weighed uncertainty around Doha talks, while Emirates NBD faced pressure on reports it is in early talks to buy HSBC’s Turkey unit. Aviation Governance: Gulf Air Group Holding appointed a new board for Gulf Air and Bahrain Airport Company, reinforcing its push for sustainable growth. Healthcare Digitisation: Government Hospitals approved expanding the Tammini platform, rolling it out first across 16 critical departments to streamline patient communication. Bahrain Business & Growth: Export Bahrain said Bahraini firms reached 102 overseas markets with exports topping $1.3bn; a Bahraini man was cleared after a court found his bank account was exploited by an online fraud gang. Local Enforcement: Bahrain launched a major Northern Governorate cleanup to remove 5,000 illegal charity collection boxes within three months, and intensified summer food safety inspections.

Bahrain Capital Markets Modernisation: Bahrain Bourse has signed an agreement with Nasdaq to upgrade Bahrain Clear’s post-trade CSD to Nasdaq Eqlipse, aiming for full deployment by Q4 2028 and stronger links with international markets. Islamic Finance Education: The Bahrain Institute of Banking and Finance (BIBF) signed two cooperation deals with Russian universities to embed Islamic finance professional qualifications into academic programmes. Public Finance Liquidity: Central Bank of Bahrain government treasury bills worth BD70m were oversubscribed by 196%, with a 91-day maturity and a weighted average rate of 5.22%. Digital Trade & Healthcare Assets: Mazad and the National Health Regulatory Authority (NHRA) discussed collaboration to digitise and improve the transparent exchange of surplus medical goods. Banking Leadership Change: Khaleeji Bank appointed Razi Almerbati as CEO, effective August 17, 2026. Government Services Upgrade: Government Hospitals approved expanding the Tammini platform to roll out patient experience services across key departments. Regional Shipping Shock Watch: US-Iran talks for Doha remain clouded by conflicting signals after weekend strikes, keeping Strait of Hormuz uncertainty front and centre for regional trade and oil flows.

Energy & Trade Security: US-Iran talks are set to resume in Doha Tuesday after a weekend of strikes, but Iran warns it may halt negotiations and says any attempt to bypass its preferred Strait of Hormuz route would “increase tensions,” keeping shipping disrupted and oil-price nerves alive. Bahrain Foreign Policy: Iran’s senior adviser Ali Akbar Velayati issued a direct warning to Bahrain amid claims of attacks on US bases in the kingdom, while Bahrain denies violations of its sovereignty. Local Regulation: Bahrain’s Ministry of Industry and Commerce is pushing compliance ahead of a ban on single-use plastic bags thinner than 57 microns from August 20, urging businesses to clear stock and switch to approved alternatives. Digital & Governance: A Shura Council member says Bahrain is using AI and digital tools to boost legislative efficiency, citing the Digital Maturity Index ranking. Banking & Business: HBL marked five years of its Beijing branch, highlighting RMB intermediation links for clients across the region. Markets: Gold slipped as oil rose on renewed Gulf risk, while UK and regional equities traded cautiously on Middle East uncertainty. Clean Energy Pipeline: Bids for EWA’s 100MW Bilaj Al Jazayer solar IPP were submitted by Yellow Door Energy and ACWA Power, supporting Bahrain’s renewables target.

US-Iran Hormuz Truce: The US and Iran agreed to halt tit-for-tat strikes and resume talks in Doha on Tuesday, with officials saying vessels can move freely around the Strait of Hormuz while technical discussions continue under the interim memorandum. Bahrain in the Crosshairs: Iran launched drone and missile attacks targeting Bahrain and Kuwait after US airstrikes on Iranian military sites, warning negotiations could face a “complete halt” if attacks continue; Bahrain condemned the violations of sovereignty. Energy Markets: Oil prices rose on renewed shipping-risk fears, while gold slipped as traders weighed higher crude and renewed rate-hike expectations. GCC Economic Focus: Bahrain’s EDB pushed GCC-Asia investment links after a China and Hong Kong visit, while GCC ministers reviewed commerce and industry integration plans, including logistics coordination. Bahrain Tech & Finance: Bahrain reiterated its digital innovation push via the Pax Silica AI supply-chain initiative, and NBB highlighted efforts to develop Bahraini talent across a fast-changing banking sector. SME Support: UNIDO’s Bahrain office backed a proposed BD40m international fund to support startups and MSMEs in war-affected countries.

Gulf Security Shock: Iran’s IRGC claimed drone and missile attacks on Bahrain and Kuwait early Sunday, hours after fresh U.S. strikes on Iranian targets, damaging a residential building in Muharraq and prompting Kuwait to report interceptions—raising fears the latest U.S.-Iran memorandum of understanding is slipping fast. Hormuz Shipping Risk: The flare-up is tied to disputes over Strait of Hormuz shipping arrangements; Iran says it will run the strait under a 30-day management plan, while a U.S.-linked maritime body expands a route near Oman, creating a new flashpoint and adding uncertainty for global energy flows. Diplomacy Under Strain: Iran warned of a “complete halt” to negotiations if attacks continue, while Italy urged restraint after the Bahrain/Kuwait strikes. Islamic Finance Watch: Bahrain’s regional business angle also shows up in a separate story: a debut short-term sukuk was oversubscribed tenfold, highlighting liquidity pressure in Islamic banks—an issue that could matter if regional risk sentiment worsens.

Gulf Security & Trade: The US and Iran traded fresh strikes after a drone hit a tanker in the Strait of Hormuz, with Washington saying it targeted Iranian missile/drone storage and radar sites while Tehran accused the US of violating the interim ceasefire. Bahrain Impact: Bahrain reported Iranian drone attacks and condemned what it called a deliberate pattern of aggression, as Iran’s IRGC also claimed missile and drone strikes on US bases in Bahrain and Kuwait. Shipping Risk: Maritime authorities warned that the Strait’s reopening efforts are being undermined by renewed violence, keeping global oil and commodity flows exposed. Diplomacy Under Strain: The escalation threatens the fragile US-Iran MoU and raises doubts about the next steps in talks, with Trump issuing unusually stark rhetoric about Iran “no longer exist[ing]” if fighting resumes. Local Business Angle: Bahrain’s foreign ministry and regional partners are pushing for action to protect citizens and keep sea lanes open—an issue that can quickly spill into energy costs and regional trade confidence.

Geopolitics & Shipping Risk: Iran launched drones at Bahrain early Saturday, with Bahrain condemning the attack as a “flagrant violation” of sovereignty, while a separate incident in the Strait of Hormuz saw a tanker hit by an unidentified projectile; the attacks come amid fresh US-Iran strikes and mutual accusations of ceasefire breaches, raising new uncertainty for merchant traffic and insurers as the strait’s reopening remains uneven. Regional Diplomacy: Kuwait and the GCC Secretary-General also condemned the drone attacks, reiterating support for Bahrain and backing de-escalation efforts, even as maritime authorities report rising security threats. Business & Markets Angle: The renewed disruption threatens the region’s trade flow at a time when Bahrain’s economy is closely tied to Gulf logistics and energy shipping, with any delay in safe passage likely to feed into freight costs and risk premiums. Local Community Safety: ICRF Bahrain’s “Thirst Quenchers 2026” campaign continued at a Galali worksite, distributing hydration supplies to about 200 workers as part of summer heat safety efforts.

GCC-US Security Talks in Bahrain: US Secretary of State Marco Rubio met GCC foreign ministers in Manama, welcoming the US-Iran interim MoU but stressing “free, unconditional, and unrestricted” Strait of Hormuz navigation with no tolls or control; Iran immediately hit back, calling the joint statement “interventionist, irresponsible and provocative.” Hormuz Shipping Disruption: After an Iranian drone attack damaged a Singapore-flagged cargo ship, the UN maritime agency paused its evacuation plan for stranded vessels, while oil tanker traffic still resumed in parts of the Gulf. US Retaliation and Ceasefire Tensions: Trump accused Iran of a “foolish violation” after the attack; the US carried out strikes on missile/drone storage and coastal radar sites, keeping the fragile ceasefire under strain. Bahrain-US Military Posture Review: Reports say the US is considering relocating some assets from Bahrain to reduce exposure to drones and missiles after damage to the Fifth Fleet base. Bahrain SDGs and Capital Markets: Bahrain is on track to meet 2030 SDGs, while the Bahrain Association of Banks and Bahrain Bourse hosted a strategy session for capital market development 2026–2028 “Elevate.” Banking Innovation: Emirates NBD launched a UAE-first Visa personalised card art experience in its ENBD X app, including FIFA World Cup 2026-themed designs.

GCC-US Iran talks in Manama: GCC Secretary General Jasem Al Budaiwi says the much-circulated $300bn Iran reconstruction fund was not discussed with US Secretary of State Marco Rubio or GCC ministers, adding “we don’t know anything about it,” as Gulf states push for tighter conditions around any future engagement with Tehran. Strait of Hormuz pressure: Rubio told Gulf foreign ministers Bahrain’s meeting that navigation must stay “free, unconditional, and unrestricted,” rejecting any tolls or fees and warning that Hormuz charges would trigger “total chaos,” while Iran brands the US-GCC stance “interventionist, irresponsible and provocative.” Bahrain-US security fallout: A Wall Street Journal report says US officials are considering relocating parts of the Fifth Fleet after Iranian strikes caused about $400m in damage to the Bahrain base, with possible shifts toward Israel. Bahrain economy & policy: Bahrain’s third Voluntary National Review says the kingdom is on track for 2030 SDGs despite missile/drone attacks, and Bahrain and the US also advanced energy cooperation via Bapco Energies. Business & fintech: Emirates NBD launched a Visa personalised card art experience in its ENBD X app, letting customers apply FIFA World Cup 2026 and Pep Guardiola-themed designs across mobile wallets. Infrastructure & investment: Dubai Holding is reportedly weighing an investment in Bain-backed data centre builder Hscale as GCC sovereign investors accelerate hyperscale buildouts.

Strait of Hormuz Disruption: The UN’s International Maritime Organization paused its evacuation of stranded ships after a cargo vessel was hit by a projectile off Oman, with Iran warning it would only guarantee safe passage on its own routes—raising fresh shipping and oil-market jitters. GCC-US Talks in Bahrain: US Secretary of State Marco Rubio told Gulf leaders Washington won’t accept any Iran-linked tolls or fees on the waterway, warning it could trigger “total chaos,” as GCC ministers backed “free, unconditional, and unrestricted navigation” and urged action on Iran’s missiles, drones and proxy support. Bahrain-US Bilateral Focus: Rubio met Bahrain’s King Hamad to discuss bilateral ties and regional developments, while the GCC-US ministerial meeting in Manama also reiterated support for security and sovereignty. Venezuela Earthquakes’ Economic Hit: Twin quakes in Venezuela killed at least 188 and trapped hundreds, with analysts warning damage could reach up to 7% of GDP and a reconstruction push drawing on international support. FX Watch (Pakistan): Pakistan’s rupee held steady in the latest interbank and open-market update, with the US dollar quoted around Rs278.95–279.40.

US-GCC Diplomacy in Bahrain: US Secretary of State Marco Rubio wrapped up a Gulf tour in Manama, reaffirming Washington’s strategic partnership with GCC states and stressing that any Iran deal must protect Gulf security and prosperity, while Gulf leaders pressed for transparency on Hormuz and broader terms. Hormuz Free Passage Push: Oman said future Strait of Hormuz arrangements will not include transit fees, backing the US-Iran MoU’s aim to restore freedom of navigation; Rubio also warned that any Iranian attempt to impose tolls or fees would be unacceptable. Market Watch: Oil prices slid back toward pre-war levels as shipping flows neared normal, though Iran’s Revolutionary Guards warned vessels to use routes approved by Tehran, keeping uncertainty over maritime control and shipping costs. Maritime Flashpoint: A UKMTO alert reported a likely Iranian attack near Oman, and reports said some tankers turned back after Iranian warnings tied to a UN-promoted alternative route. Bahrain-US Tech Deal: Bahrain and the US signed a Joint Statement on an Artificial Intelligence Opportunities Partnership, aiming to boost innovation and private-sector investment in AI infrastructure and related sectors. Regional Politics: UAE adviser Gargash said “new geopolitical realities” can’t be imposed on Gulf states through aggression, as Gulf foreign ministers met Rubio amid skepticism over the interim Iran framework.

US-Iran Diplomacy & Gulf Security: US Secretary of State Marco Rubio landed in Bahrain as part of a UAE-Kuwait-Bahrain tour to win over skeptical Gulf allies over the proposed US-Iran accord, stressing Washington will not undermine partners’ security and reiterating that no country should charge tolls on the Strait of Hormuz. Bahrain-US Relations: Bahrain welcomed Rubio ahead of the GCC–US ministerial meeting, reaffirming ties under C-SIPA and backing continued diplomacy for a “peaceful and sustainable” resolution that protects sovereignty, non-interference and freedom of navigation. Lebanon Flashpoint: Israel’s Defence Minister said the IDF will not withdraw from southern Lebanon, complicating US-mediated efforts and raising doubts about how far the Iran peace track can go. Oil & Shipping Outlook: As more tankers transited the Strait of Hormuz, crude prices slid to multi-month lows, with Brent around $73.8/bbl, while UN-linked efforts to evacuate stranded sailors were reported. Bahrain Social & Governance: Bahrain’s authorities reportedly intensified a crackdown on the Shia community ahead of Ashura, including raids and arrests at religious gatherings. Sustainability & Capital Markets: Bahrain submitted its Third Voluntary National Review to the UN, while the Public Administration Institute hosted Bahrain Bourse leadership on capital market development.