Indian companies are making a strategic push into Bahrain, making a notable increase in investment. Bahrain Economic Development Board (EDB) has disclosed securing investment commitments from India valued at $16.65 million across the manufacturing and ICT sectors. This amount includes investments from Chemco, Bhageria Industries, and a notable ICT firm.
Additionally, the country is set to receive an investment exceeding $50 million from India in the healthcare sector. Historically, Bahrain has secured annual average investments of $102 million from India between 2019 and 2023.
India is now one of Bahrain’s top six investment partners, as noted by H.E. Noor bint Ali Alkhulaif, Bahrain’s Minister of Sustainable Development and Chief Executive, Bahrain EDB. Foreign Direct Investment (FDI) from India has shown a significant upward trend, increasing from $1.11 billion in 2019 to $1.52 billion in 2023. The country has witnessed significant contributions from the banking sector, which accounts for 66 per cent of Foreign Direct Investment (FDI) in Bahrain.
Notable Investments
Notable investments include contributions from ICICI Bank, LIC Insurance, and the State Bank of India. Looking ahead, India is poised to bring new and innovative investments into this space, noted Ali Al Mudaifa, Chief of Business Development, Bahrain EDB. He highlighted a fourfold focus: advancing fintech, enhancing the financial ecosystem, and attracting cutting-edge fintech companies.
In the ICT sector, Bahrain has seen investments from Tech Mahindra, and TCS, while in manufacturing, which contributes 14.5 per cent to nominal GDP, investments have come from Ultratech, Chemco, and Parle Foods. Growing interest is noted in sectors such as semiconductors, fintech, healthcare, and hospitality, with deals in the pipeline, as confirmed by Ali.
Currently, approximately 11,000 Indian companies and joint ventures are registered in Bahrain, with the numbers growing to over 60 per cent since 2019. Additionally, Bahrain is witnessing growing interest from Indian firms in manufacturing, semiconductors, and fintech.