AGP Executive Report

FDI & Tourism: Bahrain has won the bid to host the FDI World Dental Congress in 2028, with the bid led by Exhibition World Bahrain and the Bahrain Dental Society—another boost for the kingdom’s MICE push. Business & Finance: The National Bank of Bahrain (NBB) wrapped up its fifth EVOLVE summer internship programme, expanding training across schools and universities and adding modules on AI, fintech and cybersecurity. Islamic Banking: Moody’s says Bahrain’s Islamic banks are better placed than conventional lenders to handle regional stress, citing strong capital buffers and resilient financing. Entrepreneurship: EO Bahrain inaugurated its first dedicated headquarters, aiming to build leadership and help entrepreneurs scale regionally and globally. Regional Risk: The US issued fresh security and travel alerts across Bahrain and several Middle East countries, warning of rapid escalation tied to Houthi attacks and Iran-linked risks, including possible flight cancellations and airspace closures. Energy & Trade: US Central Command said it escorted 1 billion barrels of oil out of the Strait of Hormuz, while warning the effort continues to protect shipping flows. Automotive & Events: Toyota was confirmed as an Automotive Partner for the Royal Bahrain Concours 2026, adding to Bahrain’s growing events calendar. Public Finances: Bahrain’s non-oil revenues rose 15% in 2025, with the state reporting a budget deficit and detailing VAT and other collections.

Retail & Tourism: Jollibee officially opened a flagship outlet at Bahrain City Centre, bringing its Chickenjoy, Jolly Spaghetti and Peach Mango Pie to one of Manama’s highest-footfall hubs, with senior group executives and the Philippines’ ambassador among the guests. Maritime Security & Trade: Bahrain and Greece used high-level meetings in Athens to stress freedom of navigation and secure sea lanes, including the Strait of Hormuz and Bab Al Mandab, with both sides calling for arrangements to follow international law. Cruise Growth: Bahrain Tourism and Exhibitions Authority joined Seatrade Cruise Med 2026 in Spain under a “Cruise Arabia” pavilion to court cruise lines and build Bahrain’s presence on regional itineraries. Banking & Youth: NBB wrapped up its EVOLVE summer internship programme, training students across schools and universities with modules spanning AI, fintech, cybersecurity and entrepreneurship. Talent & Skills: Chery Bahrain highlighted Bahraini winners at the 2nd Chery International Skills Contest, with top performers set to represent Bahrain in China. Policy & Tax: MPs will debate a VAT zero-rating proposal for social care services supplied to charities, clubs and youth/sports bodies, despite government concerns about revenue impact. Regional Energy Context: CENTCOM said over 1 billion barrels have cleared Hormuz in two months with support for more than 2,000 commercial transits, underscoring the ongoing Gulf shipping risk backdrop.

VAT Policy: MPs will debate a bill to zero-rate VAT on social care services supplied to charities, clubs and youth/sports bodies, despite government warnings it could cut tax receipts without a cost study. EU-Bahrain Ties: Bahrain’s EDB chief Noor bint Ali Al Khulaif met EU ambassadors to discuss stronger economic and sustainable development cooperation. Youth & Skills: Bahrain’s Youth Affairs Minister highlighted the “Youth Dividend” push at Brain Bar 2026, stressing long-running institutional support for youth empowerment. Maritime Security & Trade: Bahrain urged the UN Security Council to protect freedom of navigation and reduce unequal disruption costs to shipping, as tensions around Hormuz and Bab al-Mandab continue to hit energy and food supply chains. Regional Diplomacy: Bahrain and Greece agreed to deepen cooperation in ports, shipping and trade, with both sides stressing navigation security under international law. Bahrain Business & Finance: Khaleeji Bank’s “Al Waffer” account won a best raffle account award, while ila Bank launched a seamless personal loans initiative with chances to win up to BD20,000. Standards & Regulation: GCC standardisation approved 812 draft standards and nine translation projects to support trade and consumer protection. Environment: Cleanup Bahrain said it has collected about 62,245kg of waste from shores since 2018 ahead of World Cleanup Day.

Strait of Hormuz Tensions: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer near the Strait of Hormuz, as maritime traffic remains disrupted and Brent jumps above $107. Gulf Diplomacy: Trump tells Axios he’s weighing renewed large-scale attacks on Iran ahead of a UN General Assembly meeting with Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman. Regional Economic Hit: A UN ESCWA official says the Iran war and shipping disruption cost Arab economies about $150bn in the first month (around 4% of regional GDP), with Bahrain convening an Arria-formula session on safe navigation. Bahrain Maritime Enforcement: Bahrain’s Coast Guard ran a joint inspection campaign in Muharraq to check safety equipment, licences, AIS use, and fishing compliance, taking legal action over violations. Youth & Skills: Bahrain’s Youth Affairs Minister highlights the country’s youth empowerment strategy and AI upskilling push, including training ambitions for Bahrainis. Tourism Investment: Bahrain will host the International Tourism Investment Forum (ITIF) in January 2027 with UN Tourism, aiming to attract ministers, investors and project financing. Banking & Fintech: ila Bank launches fully digital personal loans via its app, with a campaign offering customers a chance to win back up to BD20,000; Khaleeji Bank’s “Al Waffer” wins Best Raffle Account in Bahrain 2026. Local Business Expansion: Ramsis Engineering opens a Basra office to expand mechanical engineering and oilfield services for Iraq’s energy and industrial sectors.

Iran-Gulf Security Shock: Iran’s IRGC says it destroyed a US Saildrone Explorer near the Strait of Hormuz, adding to a fast-escalating maritime crisis as Brent pushed back above $107 and shipping disruption worries return. Economic Cost of Blockades: ESCWA estimates the US-Iran war has already cost Arab economies about $150bn in the first month (around 4% of regional GDP), with threats to Hormuz and the Red Sea hitting energy, food and trade. US Iran War Crossroads: Trump tells Axios he faces a “big decision” on whether to resume large-scale attacks on Iran, ahead of a UN General Assembly meeting with six Gulf leaders including Bahrain. Bahrain-China Parliamentary Ties: Bahrain’s Speaker met China’s ambassador, stressing deeper economic and investment cooperation and activating parliamentary friendship committees. Local Governance, Muharraq: BACA tenders will repair ageing facades and vacant shops in historic Muharraq ahead of December cultural programming, while Ramli Housing residents may see leaking water tanks replaced across the scheme after early failures. Digital Payments & Fintech: BENEFIT announced Platinum sponsorship of Fintech Forward 2026, aligning with Bahrain’s push for intelligent infrastructure and safer electronic transactions. Tourism Momentum: ATM 2026 in Dubai wrapped with optimism and deals, with Bahrain among participating markets, while Club Hawaii @ Bahrain Surf Park hit a key construction milestone with its lagoon filling completed.

Strait of Hormuz Flashpoint: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer near the Strait of Hormuz, adding to a fast-escalating maritime standoff that’s already rattling energy flows and shipping risk. Bab al-Mandeb Risk: Qatar warned that losing Bab al-Mandeb would be “catastrophic,” as Houthi advances in Yemen’s Red Sea coast raise fears of wider disruption to global trade routes. AWS Data Shock for Bahrain: Amazon Web Services confirmed permanent loss of some customer data after Iranian strikes hit AWS facilities in Bahrain and the UAE, underscoring how war damage is now reaching critical digital infrastructure. GCC Policy & Integration: Bahrain hosted GCC education talks focused on aligning strategies and expanding student and teacher exchange initiatives across member states. Bahrain-EU Investment Push: Bahrain’s finance minister met EU heads of mission to discuss deeper economic and investment cooperation, highlighting Bahrain’s diversification drive and investment-ready environment. Diplomacy for Business: The U.S., Morocco and Israel agreed to upgrade diplomatic missions to full embassies and restore direct flights, alongside plans aimed at boosting investment protections and trade ties. Regional Markets: Gulf bourses mostly rose after Fed rate action, though investors stayed cautious amid Hormuz-linked shipping disruption and geopolitical uncertainty.

Strait of Hormuz Tensions: Iran’s IRGC released video claiming it destroyed a U.S. Saildrone Explorer near the Strait of Hormuz, adding to a fast-escalating maritime standoff that’s already pushing Brent above $107 and raising fresh shipping and energy risk. Regional Diplomacy: Bahrain is among GCC states expected to join a Trump-led meeting with Gulf leaders on UN General Assembly sidelines to shape a postwar Iran strategy, as Washington signals hopes for an endgame. Bahrain Monetary Policy: The Central Bank of Bahrain raised the overnight deposit rate by 25 bps to 4.50%, effective immediately, citing global financial developments. EU Trade Push: Bahrain Chamber (BCCI) met EU ambassadors accredited to Bahrain to boost trade, investment and technology transfer, positioning the kingdom as a GCC gateway for European firms. Fintech & Banking Events: Visa joined Fintech Forward 2026 as a Diamond Sponsor, while the Bahrain Association of Banks will host its annual Bahrain Banks Reception in Bangkok on Oct 15. Digital Economy & Governance: Bahrain’s push for safer e-commerce and fraud controls was discussed as part of a drive to build an AI-ready regulatory framework that protects rights. Tourism Investment: Bahrain will host the International Tourism Investment Forum in January 2027, aiming to connect investors with projects and showcase the kingdom’s tourism pipeline. Local Development: A’ali’s upgraded, cooler walkway opened to the public with solar lighting, cameras and mist cooling—an example of municipal recreation upgrades. Charity Scam Warning: Authorities warned of bogus charity collectors using “the charity card” to fund scams or terrorism, urging people to verify licensing before donating. Cloud Disruption: AWS told customers some data in Bahrain and UAE facilities hit by Iran strikes is permanently unrecoverable, underscoring ongoing business continuity risks for the region.

Central Banking: The Central Bank of Bahrain raised its Base Rate on the Overnight Deposit Facility by 25 basis points to 4.50%, effective September 17, following the US Fed’s move. Digital Economy & Cyber-Resilience: Amazon Web Services says some customer data and resources in Bahrain and the UAE hit by Iranian strikes cannot be restored, citing damage that exceeded its multi-zone design limits. Labour & Private Sector: Bahrain’s Labour Ministry and the Bahrain Chamber of Commerce and Industry agreed to deepen coordination to support businesses and expand quality jobs for Bahrainis. Trade & EU Links: The BCCI pushed for wider commercial access to the EU, meeting ambassadors to explore trade delegations and joint business events. Digital Transformation: Bahrain’s ICT committee reviewed plans to strengthen e-commerce rules, protect digital transactions, and accelerate delayed digital economy initiatives, including digital identity and startup support. Aviation & Drones: Bahrain introduced tougher civil aviation and drone regulations under a new decree-law, with prison terms for privacy breaches, unsafe operations, and hacking drone systems. Tourism Investment: Bahrain will host the International Tourism Investment Forum in January 2027, aiming to attract global tourism investment. Geopolitics & Shipping Risk: The Strait of Hormuz remains tense after Iran-linked incidents and renewed maritime disruption fears, with knock-on effects for regional energy and trade.

Cloud Resilience Under Fire: AWS says it cannot restore access to its Bahrain cloud facility and one UAE data-hosting zone after Iran-war damage, raising fresh alarm over the region’s growing AI and banking tech exposure. Regional Trade Pressure: The UN Security Council warned of a second major threat to global commerce as Houthis advance toward Bab al-Mandeb, risking disruption to the Red Sea route that feeds Suez. Strait of Hormuz Escalation: Iran’s IRGC released video claiming it destroyed a US Saildrone Explorer near Hormuz, following earlier claims of capturing a US undersea drone—while oil prices jumped on renewed shipping fears. Local Governance: Northern Municipal Council councillors demanded clarity on how road and infrastructure projects are prioritised, funded and queued. Business & Finance: Ebdaa Microfinance won “Best Microfinance Company in Bahrain 2026,” while NBB opened a double-entry window for its Thara’a December grand draw. Bahrain-US Ties: US Ambassador Stephanie Hallett highlighted expanding cooperation in trade, security, AI, space and critical minerals as the countries mark 250 years of independence. Tech Talent Pipeline: Mazad-Reboot Coding Institute partnership will recruit local graduates into engineering and product roles. Energy Sector Spotlight: Sarens Nass Middle East detailed how it delivers continuous rig relocation services for Bahrain’s oil field operations.

Cloud Resilience Under Fire: Amazon Web Services says it cannot restore access to its Bahrain cloud region and one UAE data-hosting zone after Iran-war damage, warning the damage exceeded multi–availability zone protections and pushing customers to migrate elsewhere. Regional Energy Shock: Oil markets react to renewed Strait of Hormuz and Red Sea disruption, with Brent jumping above $107 as shipping and pipeline risks deepen. Defense Cost Pressure: A Pentagon watchdog and CBO assessment put the US Iran-war bill at $33.4bn (through June) and at least $38bn (through July), flagging weapons shortages and industrial bottlenecks that could take years to fix. Bahrain Business Moves: BCFC appoints Shireen Zulaikh as Chief Internal Audit Officer to strengthen governance and internal controls. Fintech Expansion: Bahrain-founded Tarabut secures $50m strategic financing to deepen Saudi embedded finance and SME lending infrastructure. Tourism & Trade: Bahrain highlights tourism at ATM 2026 and Indonesia’s embassy hosts a Bahrain business info night for Trade Expo Indonesia 2026, while Tanami closes a new funding round to expand across Gulf markets.

Maritime Security & Energy: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer spy drone near the Strait of Hormuz, escalating a fresh cycle of drone and shipping confrontations as Brent jumps above $107 amid wider disruption. Defense & Procurement: A U.S. Pentagon inspector general report pegs the Iran war’s cost at about $33.4bn and warns of ammunition shortfalls and industrial bottlenecks, with aircraft losses including MQ-9 Reapers. Fintech & SME Lending: Bahrain-based Tarabut raised US$50m to expand embedded finance and SME lending across Saudi Arabia, UAE and Bahrain, using real-time cash-flow data to speed credit decisions. Banking Products: KFH–Bahrain launched a “Silver Account” for Shari’a-compliant silver buying and selling via its app, with optional physical delivery. Digital Identity & Crypto: Beyon Connect integrated Rain into the revamped eKey 2.0 ecosystem, enabling faster identity verification and first trades. Regional Finance Cooperation: CBB Governor Khalid Humaidan chaired the 87th GCC Central Bank Governors Committee meeting in Bahrain, focusing on payments, cybersecurity and AML/CFT coordination. Tourism & Business Links: Bahrain’s Tourism Minister joined ATM 2026 in Dubai to push partnerships and resilience, while Bahrain Tourism showcased its pavilion to attract investment and visitors. Sports Administration: Bahrain’s General Sports Authority approved a new Khalid bin Hamad award to raise club governance standards and boost youth sports pathways. Capital Markets: Bahrain Bourse hosted a Muscat Stock Exchange delegation to deepen GCC capital market cooperation and market operations know-how.

GCC Central Banking: Bahrain chaired the 87th GCC Committee of Central Bank Governors meeting in Manama, with discussions covering GCC payment systems, banking supervision, financial technologies, cybersecurity information sharing, and anti–money laundering/terror financing cooperation. Regional Finance: GCC Secretary-General Jassim Al-Budaiwi said Gulf banking remains solid and stable, citing rising deposits and assets across the region. Bahrain Tourism Push: Bahrain is promoting its tourism investment case at Arabian Travel Market 2026 in Dubai, with a 420-square-metre pavilion featuring 28 entities and a focus on partnerships and sustainable growth. Energy Shock Risk: Oil markets stayed jittery as Saudi shut its East-West pipeline after attacks, while Strait of Hormuz tensions escalated further with reports of an IRGC strike on a U.S. unmanned vessel and renewed shipping disruption. KPMG Leadership: KPMG in Bahrain announced a leadership succession, appointing Jalil AlAali as Managing Partner effective 1 October 2026, succeeding Jamal Fakhro.

Strait of Hormuz Flashpoint: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer near the strait, following the capture of a U.S. underwater drone, as shipping risks keep rising and energy markets react. Oil & Markets: Brent jumped back above $107-$108 a barrel after Saudi shut a key East-West pipeline used to bypass Hormuz, while a planned Iran-GCC diplomatic meeting in Oman was postponed over lack of consensus. Bahrain in the Middle: Bahrain said it will not attend the Oman Hormuz talks, citing the wider disruption; Bahrain also pushed for stronger international cooperation to protect maritime routes at the BRICS summit. Trade & Industry: Bahrain reported June national-origin exports of BD259m, with aluminium, iron and steel making up 77% of exports. Finance & Fintech: Thunes expanded cross-border payouts to Bahrain and five other Middle East markets. Environment & Compliance: Bahrain cut HCFC consumption by 74% vs baseline by 2025 and is on track for an import ban by 2030. Business & Policy: TRA highlighted its participation in ITU meetings on ICT indicators and data-driven digital regulation.

Maritime Risk to Bahrain’s Energy Links: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer near the Strait of Hormuz, as fresh strikes and attacks around the waterway keep shipping disruption front and centre; Iran also reports a cargo vessel hit near Qeshm Island, killing one and injuring four, while Oman-led talks on a temporary passage framework are delayed and Bahrain has ruled out participation. Regional Transport Policy: Saudi Arabia’s Transport General Authority has lifted rules to let licensed taxis transit directly into Bahrain under new regulations, aiming to ease cross-border travel and support GCC connectivity. Bahrain Digital Labour Services: LMRA launched a new digital service for employers to update permissions for authorized persons, submit applications, pay invoices and print work permits within one working day, cutting documentation needs by 50%. Fintech & Innovation Pipeline: Central Bank of Egypt launched the fourth FinTech Got Talent 2026 competition for university students, while Bahrain’s TRA joined ITU work on ICT indicators and Bahrain Space Agency opened registration for NASA Space Apps Challenge 2026. Markets Watch: GCC stock markets logged about $618bn in trading value in 2025, with Bahrain Bourse among the exchanges where 100% of listed companies’ shares are eligible for GCC citizens. Business Growth: Export Bahrain backs seven firms at Jewellery and Gem World Hong Kong 2026 to expand export reach.

Hormuz Flashpoint: Iran’s IRGC says it destroyed a U.S. Saildrone Explorer drone near the Strait of Hormuz, as maritime tensions keep pushing energy prices higher, with the U.S. not confirming the loss. Bahrain’s Foreign Policy: Bahrain says it will not attend a proposed Oman meeting with Iran on Hormuz until ties are restored, citing alleged attacks on civilian and economic assets, including an ammonia tank incident in Bahrain. Energy Infrastructure Shock: Saudi Arabia shut its East-West oil pipeline after an aerial attack, with regional condemnation and fears of further supply disruptions as Brent swings back above $100. Regional Diplomacy: Iran and Oman are set to discuss a navigation route in Muscat, but reports suggest no signed Hormuz deal is expected soon. Business & Finance (Bahrain): Ithmaar Development Company (IDC) unveiled a new corporate identity and website as part of its growth push; KKM delivered seven more JAC vehicles to Bahrain Gas, lifting the fleet to 34. Labour & Regulation: Bahrain’s LMRA carried out 21,000+ inspection visits in H1 2026 and says e-services now account for 85% of its services. Sports (Local): Bahrain’s national team begins Gulf Cup preparations with a preliminary 37-man squad ahead of the final selection.

Bahrain’s Foreign Policy: Bahrain says it will not join a proposed Oman ministerial meeting on Strait of Hormuz talks with Iran, and won’t take part in any collective Iran-including forum until diplomatic ties are restored, citing recent attacks on civilian and economic assets, including an ammonia tank incident and the Saudi East-West pipeline strike. Maritime Flashpoint: The wider crisis escalated as Iran’s IRGC said it destroyed a U.S. Saildrone Explorer near Hormuz, while the U.S. has not confirmed the loss; Brent jumped above $107 amid shipping disruption fears. Energy Shock Ripple: Saudi Arabia temporarily shut its East-West oil pipeline after a drone attack, with the move aimed at bypassing Hormuz disruption; regional groups including Bahrain and Qatar condemned the strike and urged action against launch sources. Banking Deal: In a separate business update, UGB shareholders approved a trade-name change to “Burgan Bank Bahrain,” aligning the Bahrain platform with Burgan Bank’s regional strategy, with remaining approvals pending. Labour Oversight: Bahrain’s LMRA reported more than 21,000 inspection visits in the first half of 2026, with electronic services making up 85% of its offerings. Education Upgrade: Bahrain’s first government school students have started IB classes under the new programme, with an initial batch of 400 students across selected schools.