AGP Executive Report

Bahrain Labour Update: A proposed amendment to Bahrain’s private-sector labour law would introduce a BD15 monthly transport allowance for workers who aren’t provided company transport, aiming to ease pressure from rising fuel and commuting costs. Industrial Reliability: John Crane renewed a six-year Managed Reliability Program at a major Bahrain refinery covering 1,833 pumps, targeting fewer seal failures, higher availability and more predictable maintenance costs. Digital Government Services: Bahrain’s Supreme Council for Environment upgraded its digital chemical purchasing service, cutting processing time from 20 working days to five via automation and tighter compliance checks. Banking & Payments: KFH-Bahrain renewed its EFTS services certification under ISO 20022 MX, while BisB became the first bank to offer Sharia’a-compliant financing through BENEFIT’s BenefitPay marketplace. Corporate & People: Alba promoted two managers as part of Bahrainisation, and BBK joined Hope Fund’s Employee Loyalty Rewards Programme. Regional Trade & Security: A US-Iran 60-day ceasefire deadline expired with talks stalled and Hormuz tensions rising, while Saudi Arabia formed a 14-state maritime defence coalition including Bahrain to protect Red Sea routes.

Hormuz & regional shipping: The US-Iran “Islamabad” maritime talks deadline expires with no extension in sight, as Iran hardens its stance and Gulf states—including Bahrain—condemn attacks on energy-linked vessels, raising risks for trade and energy flows. US policy & Gulf nerves: Reports say Gulf allies are increasingly frustrated with Washington’s Iran approach, with some even weighing whether to keep hosting major US bases. Banking & fintech: National Bank of Bahrain (NBB) posted H1 2026 net profit of BD43.1m, while Bahrain Islamic Bank (BisB) became the first in the kingdom to offer Sharia’a-compliant financing via BENEFIT’s BenefitPay marketplace; NBB also expanded its equal opportunities governance through a new committee. Consumer finance launches: Al Salam Bank rolled out Flexi Auto Finance with a guaranteed showroom BuyBack after three years. Payments for schools: LuLu Exchange Bahrain partnered with The Indian School to let parents pay fees via branches and the LuLu Money app. Corporate moves: BENEFIT announced CFO Layla Al Qassab’s departure; Alba promoted two managers to strengthen Bahrainisation. Aviation & travel: Gulf Air promoted fares to Kuala Lumpur ahead of the F1 Gulf Air Bahrain Grand Prix in Malaysia, while Navi Mumbai International Airport marked its first dedicated international freighter flight from Hong Kong. Youth & skills: Bahrainna ran Youth City 2030 field visits, and the European University of Bahrain wrapped up Euro Game Jam 2026 to boost gaming and esports skills. Sports & culture: Vatel Bahrain opened applications for 2026–2027 hospitality programmes until September 12.

Maritime Security & Trade: Bahrain condemned Iran’s attack on an ADNOC-linked vessel in the Strait of Hormuz, calling it a breach of international law and urging UN action to deter further strikes and fully reopen the waterway for global energy and food security. Regional Defence Realignment: A US report says Gulf states, including Bahrain, are growing frustrated with Washington’s handling of the Iran war and are accelerating alternative security partnerships, highlighted by the Saudi-Turkey-Pakistan “Mecca” defence framework. Banking & Inclusion: National Bank of Bahrain (NBB) appointed an expanded Equal Opportunities Committee to strengthen inclusion, women’s empowerment, youth development, staff wellbeing and fair access to career progression. Corporate Safety & Labour Rights: talabat Bahrain won a Private Sector Excellence Award for Combating Trafficking in Persons, citing its Rider App’s safety monitoring and rider feedback tools. Hospitality Education: Vatel Bahrain opened applications for its 2026–2027 intake (Bachelor’s and MBA), with the deadline set for September 12. Infrastructure & Urban Growth: Eskan invited bids for Madinat Salman community projects, including a central market, supermarket and sports facility, with a 12-month delivery target. Public Policy & Consumer Health: An MP backed a study into calorie labelling for restaurant meals, aiming to improve nutritional transparency for consumers. Cybercrime Alert: Bahrain’s Interior Ministry urged residents to freeze bank accounts and report immediately if a phone is hacked, including steps like factory resetting and changing passwords. Travel & Business Tourism: Gulf Air launched promotional fares to Kuala Lumpur ahead of the 2026 F1 race weekend, with one-way economy tickets from BD65 and packages via Gulf Air Holidays.

Strait of Hormuz Tensions: Bahrain condemned an Iranian attack on an ADNOC-linked vessel transiting the Strait of Hormuz, calling it a breach of international law and urging UN action to deter further attacks and reopen the waterway for global energy security. US Policy Shock: Donald Trump said the US will soon declare the Strait of Hormuz a US territory, while Iran dismissed the claims, keeping shipping and energy risk front and centre for the region. Regional Security Realignment: A US allies report highlights Gulf frustration over the Iran war’s drag on security guarantees, as Bahrain and others look to diversify partnerships beyond Washington. Cyber & Finance Safety: Bahrain’s Interior Ministry urged residents to freeze bank accounts and report immediately if a phone is hacked, including factory resetting devices and changing passwords. Infrastructure Update: Work has started on the Budaiya Highway widening project, with 6.7km of upgrades funded via the Kuwait Fund and aimed at easing traffic to Salman City. Banking Inclusion: National Bank of Bahrain appointed an Equal Opportunities Committee to strengthen governance on inclusivity, women’s empowerment, youth development and workplace wellbeing. Travel & Business: Gulf Air launched promotional fares to Kuala Lumpur ahead of the Malaysia F1 race, with tickets from BHD 65 and direct flights from Sept 29. Food Labelling Push: A Bahraini MP backed a study into restaurant calorie labelling to improve nutritional transparency for consumers. Sports Spotlight: Seef kept its Singapore Challenger hopes alive by advancing to the quarter-finals, while Bahrain’s youth volleyball and basketball teams posted key results in regional competitions.

Strait of Hormuz Tensions: US President Donald Trump said he will soon declare the Strait of Hormuz a US territory, while Iran’s deputy foreign minister rejected the claim and insisted the waterway can only be opened or closed under Iran’s authority. Bahrain’s Security Stance: Bahrain condemned an Iranian attack on ADNOC tankers in the Strait of Hormuz, calling it a threat to maritime safety and urging UN Security Council action to deter hostile acts. Bahrain-India Trade: Bahrain imported BD111.19m of goods from India in the first five months of 2026, led by alumina, aluminium products and steel. India-Bahrain Ties: India’s external affairs minister met Bahrain’s King and Crown Prince during a Gulf tour, highlighting cooperation on trade, investment and protecting critical maritime routes. Finance & Inclusion: National Bank of Bahrain appointed a new Equal Opportunities Committee to strengthen inclusion across operations and customer services. GFH Profit Update: GFH reported a 13.33% rise in net profit attributable to shareholders to US$76.20m for H1 2026, supported by wealth, investment and credit income. Regional Defence: Bahrain welcomed the Mecca Joint Defence Agreement signed by Saudi Arabia, Turkey and Pakistan, positioning it as part of the region’s broader defence architecture.

Maritime Security: Bahrain joined Qatar, Kuwait and Egypt in condemning an Iranian attack on two UAE-linked ADNOC tankers transiting the Strait of Hormuz, calling it a violation of UN rules and freedom of navigation. Regional Defence: Saudi Arabia unveiled a 14-state maritime coalition to protect Red Sea and Bab al-Mandeb shipping, with Bahrain among the signatories, as the wider Iran-linked risk keeps pressuring trade routes. Bahrain Health Policy: The Supreme Council for Health signed an agreement with Solidarity Bahrain to roll out Health Insurance for Residents under the National Health Insurance Programme, using an integrated digital platform and accredited providers. Municipal Digital Services: Bahrain’s Municipalities Affairs and Agriculture Ministry expanded its Benayat building-permit portal with new services like deposit refunds and building completion certificates, reporting faster permit issuance. Food Safety Enforcement: A Northern Governorate restaurant was shut down after inspections found it lacked required licences for selling food and drinks, including online operations without permissions. Trade & Logistics: DHL Express expanded China capacity at Shenzhen’s “super gateway” and launched a new Shanghai–Bangkok–Bahrain–Brussels route, reflecting shifting Asia trade flows. Bahrain–Pakistan Ties: As Pakistan marks Independence Day, coverage highlights plans to deepen cooperation with Bahrain across defence, security, trade and commerce.

Maritime Security: Bahrain condemned attacks on two UAE ADNOC tankers in the Strait of Hormuz, calling them a violation of international law as the waterway remains effectively closed amid the US-Iran standoff. Regional Defence: Saudi Arabia is moving toward operational activation of a 15-country maritime defense coalition to protect navigation and energy routes around Bab al-Mandab, with Bahrain among the signatories. Health Insurance Rollout: Bahrain’s Supreme Council of Health signed an agreement with Solidarity Bahrain to implement Health Insurance for Residents under the National Health Insurance Programme, using an integrated digital platform and standardized packages. Banking & Investment: GFH reported H1 2026 net profit attributable to shareholders of US$76.2m (+13.33%), citing stronger wealth/investment management and credit income. Trade & Logistics: Khalifa Bin Salman Port’s general cargo surged 224.2% in Q2 2026, with July the busiest month in nearly six years. Education Finance: Khaleeji Bank and British University of Bahrain (BUB) signed an MoU to offer Shari’a-compliant tuition fee financing solutions. Corporate Finance: GFH’s results and other regional banking updates also fed into mixed Gulf market sentiment as Hormuz disruption and US-Iran tensions weighed on risk appetite. Retail & Agriculture: LuLu Hypermarket and The Avenues launched the Bahraini Jumbo Loz Festival, spotlighting local farmers and homegrown brands.

Banking & Markets: GFH Bank reported net profit attributable to shareholders of US$76.20m for H1 2026, up 13.33%, driven by stronger wealth/investment management and credit/financing income; GFH also said it is minimising the impact of the regional geopolitical environment through diversified income and disciplined capital and risk management. SME Finance: Bahrain Development Bank (BDB) posted a sharp jump in Q2 comprehensive income to BD2.1m (up 1,363%) on improved fair value of debt securities, while H1 net profit fell 18% to BD793,000. Healthcare Reform: The Supreme Council of Health signed an agreement with Solidarity Bahrain to implement Health Insurance for Residents under Bahrain’s National Health Insurance Programme, using a digital platform and accredited insurers for primary/secondary and emergency coverage. Logistics & Trade: DHL completed a US$204m expansion of its Shenzhen gateway, tripling capacity to about 900 tons/day, and added a daily cargo flight linking Shanghai–Bangkok–Bahrain–Brussels. Retail & Food Security: LuLu Hypermarket and The Avenues launched the Bahraini Jumbo Loz Festival (13–15 Aug), spotlighting local farmers and homegrown brands. Sports Policy: Bahrain’s youth and sports council reviewed plans for a special visa for professional athletes and directed coordination with the Ministry of Interior and other authorities. Cyber & Courts: Bahrain’s courts handed three-year sentences to four defendants in a cyber fraud case involving fake email requests to change bank details.

Regional Security & Trade Routes: Saudi and Egypt coordinated on regional security after continued Iranian attacks, as Gulf leaders push diplomacy to contain tensions that are already disrupting shipping and energy flows. Bahrain-UAE Ties: King Hamad met UAE President Mohamed bin Zayed in Abu Dhabi, reaffirming fraternal relations and cooperation, especially on economic and development priorities. Iran-US Ceasefire Talks: Pakistan said it is making all-out efforts to revive US-Iran negotiations as a 60-day ceasefire extension deadline nears, with reports of talks continuing behind the scenes. Banking Results: Bank ABC posted $111m H1 profit, down 27% on higher provisions, while Bahrain’s Ithmaar Bank reported BD2.2m H1 net profit, down year-on-year. Market Liquidity: SICO marked the 10th anniversary of the Bahrain Liquidity Fund, reporting a 69% rise in average daily trading values since 2016. Digital Finance: stc pay Bahrain integrated with eKey 2.0 to streamline customer registration via Bahrain’s digital identity platform. Local Governance & Costs: Muharraq Municipal Council urged a new method to calculate electricity subsidy thresholds for joint families to curb soaring bills. Legal System: A defendant was referred to trial over alleged falsification of electronic records, while prosecutors reiterated enforcement steps for Safaqat judgments. Energy/Industry Event: AMEA Oman 2026 will bring bitumen, base oil, lubricants and logistics players to Muscat on Nov 23, reflecting shifting regional supply-chain focus.

Bahrain Capital Markets: Bahrain Bourse opened subscriptions for the BD200m Government Development Bond Issue 48, a two-year, 7% fixed-return paper guaranteed by the government, with trading expected from Aug. 31. Banking & Finance: National Bank of Bahrain (NBB) kicked off the university phase of EVOLVE after completing the school cohort, while Ithmaar Bank reported lower H1 2026 profits amid benchmark-rate pressure; Al Salam Bank also flagged record H1 net profit growth. Payments & Fintech: Beyon Money Business was named by Visa as Bahrain’s fastest-growing commercial card provider, and stc pay rolled out “Secure Approve” for in-app card payment authentication. Corporate Results: Bahrain Flour Mills approved six-month financial statements, reporting a sharp Q2 profit drop; SICO posted a higher Q2 net profit. SME & Entrepreneurship: The Ministry of Municipalities Affairs and Agriculture discussed joint initiatives with the Bahrain Association for SME Development to back entrepreneurs and agricultural businesses. Regional Trade Risk: With Hormuz and Red Sea disruptions continuing, the IEA warned of a sharp global oil-stock drawdown, keeping market sentiment cautious. Diplomacy: King Hamad met UAE President Mohamed bin Zayed to deepen economic and development cooperation.

Skyro Expansion: Bahrain-based fintech Skyro says it will expand into Saudi Arabia, opening a Riyadh office and appointing former Mastercard executive Maria Medvedeva as managing director for the Middle East, with consumer and SME financing planned subject to regulatory approval. Fintech Security: stc pay Bahrain launched “Secure Approve,” letting customers approve online card payments inside the app instead of using OTPs, aiming to cut phishing and SIM-swap risks. Capital Markets: Bahrain Bourse opened subscription for Government Development Bond Issue 48 (BD200m), offering a 7% fixed return over two years, with trading expected after listing. Banking Results: SICO reported 48% YoY growth in Q2 net profit to BD2.2m, while Bahrain Duty Free Shop Complex posted lower H1 net profit of BD2.25m (-24.8%). Infrastructure & Trade: DHL expanded its Shenzhen Super Gateway (capacity ~900 tonnes/day) and added a daily Boeing 767 rotation linking Shanghai–Bangkok–Bahrain–Brussels. Transport Planning: Bahrain’s Ministry of Works received bids from KPMG, EY and PwC to act as transaction advisor for the Bahrain Northern Link Road PPP. Public Safety & Compliance: Interior Ministry warned residents about scams impersonating officials; Bahrain also designated eight food-truck locations and launched an online permit platform.

Fintech & Compliance: BENEFIT signed a service agreement with Bahrain’s AMAN to use its compliance platform (powered by Themis) for onboarding, due diligence, screening and financial crime risk management. Capital Markets: Bahrain Bourse opened subscriptions for the 48th Government Development Bond issue (BHD 200m) with a 7% fixed return, trading expected after listing. Banking Results: SICO reported a 48% jump in Q2 net profit to BD2.2m, driven by higher net investment income and improved market valuations. Fintech Events: Bahrain gears up for Fintech Forward 2026 (Oct 7-8) at Exhibition World Bahrain, backed by the Central Bank of Bahrain and Bahrain Fintech Bay. Digital Assets: ARP Digital secured a Dubai VARA broker-dealer license to enable regulated conversions between digital assets and the UAE dirham. Regional Trade & Logistics: DHL Express launched a direct Shanghai–Bangkok–Bahrain–Brussels freighter route to boost Asia–Middle East–Europe cargo flows. Shipping Security: A Panama-flagged container ship was hit by a missile in the Gulf of Oman; UKMTO (based in Bahrain) is monitoring and advising caution. Tourism & Governance: BTEA reviewed tourism growth priorities, with emphasis on MICE; Bahrain also issued decrees to implement the unified GCC land transport law and board appointments.

Bahrain Courts & Justice: A man was jailed in absentia for burning a woman’s car over a BD800 debt; the High Criminal Court appointed a lawyer for his appeal and set an August 16 hearing. Bahrain Foreign Policy: Bahrain’s FM congratulated Pakistan’s Ishaq Dar on the signing of the Makkah Joint Defence Agreement with Saudi Arabia and Türkiye, a pact treating an attack on any as an attack on all. Banking Results: National Bank of Bahrain posted record Q2 profit of BD22.5m, up 16%, driven by higher net interest income and favourable bond portfolio mark-to-market moves. Retail & Consumer Demand: Bahrain card spending hit BD1.69bn in the first five months of 2026, with a shift from food in March toward restaurants, shopping and leisure later. Tourism & Events: The Bahrain Tourism and Exhibitions Authority reviewed Q2 performance and pushed forward plans for MICE and upcoming events. Energy & Policy: Crown Prince Salman reaffirmed Bahrain’s energy efficiency drive and renewable cooperation with ACWA Power. Regional Trade Logistics: DHL launched a direct Shanghai–Bangkok–Bahrain–Brussels route to boost Asia–Middle East–Europe cargo capacity. Business & Youth: Bahrain Chamber ran an Innovation Camp with Youth City 2030 and ASRY to develop youth problem-solving and pitching skills.

Energy & Renewables: Bahrain’s Crown Prince and Prime Minister Prince Salman met ACWA Power’s chairman, reiterating plans to boost energy efficiency, diversify supply and expand renewables, with Saudi cooperation highlighted as a key pillar. Tourism & MICE: The Bahrain Tourism and Exhibitions Authority reviewed Q2 tourism performance, marketing priorities and the Exhibition World Bahrain pipeline, with a push to strengthen private-sector partnerships and MICE growth. Banking & Payments: stc pay Bahrain launched “Secure Approve,” an in-app authentication feature for online card payments that replaces SMS/email OTPs with real-time merchant and amount review; Ithmaar Bank also ran its “Ithmaar Energy” internship programme for 17 students. Youth & Innovation: Bahrain Chamber hosted an “Innovation Camp” with Youth City 2030 partners and ASRY to develop practical innovation skills; Zain Bahrain rolled out the Zain Esports Academy and launched a OneCX customer experience training programme with The CX Clinic. Corporate Results: NBB reported record Q2 profit with 10% dividends and 16% growth in attributable profit; Bahrain Kuwait Insurance posted BD2.9m net profit with 7% growth; Trafco disclosed half-year results; KFH-Bahrain handed over BD1.1m to the MyHassad grand prize winner. Regional Trade & Finance: Cyprus and Bahrain discussed deeper defence, shipping and investment cooperation, including maritime security and fintech/logistics links. Geopolitics Watch: Ongoing Strait of Hormuz disruption continues to rattle shipping and energy expectations across the Gulf.

Hormuz Disruption Costs Gulf Households: With the Strait of Hormuz effectively closed to commercial shipping since March, Gulf states including Bahrain have spent about five months rerouting food and household goods by air, pushing up resident costs as necessities still move mainly by sea. Bahrain Backs UN Condemnation of Houthi Attacks: Bahrain’s foreign ministry welcomed a UN Security Council statement condemning Iranian-backed Houthi missile strikes on Saudi Arabia and attacks on commercial vessels, reaffirming support for maritime navigation and international law. Bahrain Marina West Gets New Lease of Life: The stalled Marina West development in Budaiya has been formally awarded to Sumou Holding for BD19.8m, with steps to register the property and issue a title deed expected to unlock years of investor uncertainty. TRA Consumer Protection Scorecard: Bahrain’s telecom regulator says Batelco and stc Bahrain topped 2025 compliance with 92% each, while Zain scored 87%, with regulators urging clearer retail package transparency and billing. LIC International Appoints New CEO in Bahrain: LIC International will welcome Veena Khan as CEO and executive director in Bahrain on Aug. 10, bringing over 30 years of experience from India’s LIC. Bahrain Anti-Fraud Warning: Authorities warned residents about scam text messages tied to fake traffic-fine payment links, urging people to use official channels only. Cyber Growth: Beyon Cyber became the first Bahraini cybersecurity firm to exhibit at Black Hat USA 2026, showcasing its Orryx AI security operations platform. Local Economy Notes: Fish prices in Bahrain are rising as warmer weather reduces fishing activity and market supply.

Retail & Lifestyle Expansion: Knowledge Economic City’s Apparel Group deal will bring 24 retail and dining brands to Multaqa Al Madinah Mall in Madinah, including Nando’s, Wagamama, Levi’s and Rituals, as the project ramps up Saudi Vision 2030-style lifestyle development. Bahrain Telecom Oversight: TRA published its 2025 Compliance Priorities Program Scorecard, with Batelco and stc Bahrain scoring 92% and Zain Bahrain 87%, highlighting strong results on number portability and contract summaries but calling for more clarity on retail package transparency and billing. Cybersecurity Push: Beyon Cyber became the first Bahraini cybersecurity firm to exhibit at Black Hat USA 2026, showcasing Orryx AI, an AI-powered security operations platform aimed at speeding investigations and incident response. Finance Results: Takaful International reported higher earnings for the six months ended 30 June 2026, with net profit attributable to shareholders rising year-on-year, driven by stronger investment income. AI Research Growth: BENEFIT’s Advanced AI & Computing Lab at the University of Bahrain said it produced 53 papers and 269 citations from 2022-2025, with output up 47% in 2025. Youth & Export Skills: The Future Exporters Program concluded at Youth City 2030, training young entrepreneurs on global branding, marketing and export readiness to support non-oil growth. Regional Risk Watch: Bahrain welcomed UN Security Council condemnation of Houthi missile attacks on Saudi Arabia and threats to commercial vessels, while separate reports also flagged new foot-and-mouth disease-related animal import bans affecting Bahrain among other countries.