Al-Othman to Al-Watan: 500 active Kuwaiti companies operating in Bahrain in various sectors

Anas Al-Aghbash – Photography: Suhail Wazir

Two billion dollars are the volume of direct Kuwaiti “private” investments in Bahrain

He moved to establish a consulting office in Bahrain to provide services to foreign investors

The financial sector in Bahrain ranks first in terms of Kuwaiti investments

The Bahraini market provides suitable opportunities for business expansion and implementing growth strategies

The merger of Kuwait Finance House with Ahli United Bank is a practical model for financial cooperation

A prominent role for women in the field of investment and economic advisory services

Bahraini and Kuwaiti businesswomen have achieved success in several economic sectors

Converting agreements between Bahraini and Moroccan investors into implementable projects

The head of the Kuwaiti Qarar National Economic Consulting Company, Dr., revealed. Salah Al-Othman, about the presence of more than 500 active Kuwaiti companies operating in the Kingdom of Bahrain in the financial, real estate and other sectors, indicating that the volume of direct investments by the Kuwaiti private sector in the Kingdom of Bahrain amounts to about two billion dollars.

He added in an interview with Al-Watan that the high-level economic forum, which brought together representatives of the government and private sectors from the Kingdom of Bahrain and the Kingdom of Morocco, and which Bahrain recently hosted, and which was organized by Qarar National Company and commissioned by Al-Shall Consulting Company from Kuwait and the National Federation for Food Industries from Morocco, formed an important platform for enhancing cooperation between Gulf and Moroccan investors, and enabled them to showcase their products and learn about investment opportunities in different sectors.

The head of Qarar National Company explained that the financial sector in Bahrain comes first in terms of Kuwaiti investments, followed by the services and real estate sectors, with a growing interest in financial technology and consulting services.

He added that cooperation between Kuwaiti and Bahraini investors has been ongoing for decades, and includes joint projects and successful mergers between large financial institutions, such as the recent merger of Kuwait Finance House with Ahli United Bank, which is a clear model for the integration of the financial sectors in the two countries.

Al-Othman pointed out that Bahrain is a strategic platform for attracting investments, not only from within the Gulf Cooperation Council, but also from foreign investors who are keen to have a presence in the region, especially to benefit from the facilities and financial services provided by the country.

He stressed that the company seeks, through its advisory office, to serve investors, pointing out at the same time that there is a tendency to establish a consulting office in Bahrain to provide advisory services to foreign investors, whether from the Gulf Cooperation Council countries or from outside the region.

Below is the text of the meeting:

Could you explain to us the size of Kuwaiti investments in Bahrain?

According to official data, the volume of direct investments by the Kuwaiti private sector in the Kingdom of Bahrain amounts to about two billion dollars, a number that represents only part of the complete picture, as there are indirect investments and personal and real estate assets that have enhanced the volume of economic exchange between the two countries.

Kuwait usually exports financial and advisory services and some industrial products, and the bulk of these investments are concentrated in the financial sector, including banks, financing institutions, and investment banking services.

We can say: “These investments reflect the confidence of the Kuwaiti investor in the Bahraini business environment,” as the Bahraini market provides suitable opportunities for business expansion and the implementation of growth strategies, especially after successful joint projects such as the merger of Kuwait Finance House with Ahli United Bank, which represented a practical model of cooperation of Kuwaiti financial sector institutions with its Bahraini counterpart, and reflected the ability of the Bahraini market to absorb large investments and achieve joint gains.

Official data provided by international institutions, such as the United Nations Conference on Trade and Development (UNCTAD), often measure the volume of registered foreign direct investment only, while there are other means of economic cooperation that do not appear in those numbers, such as some personal real estate investments, small and medium enterprises, and indirect financial partnerships, which constitute a large part of the economic relations between Kuwait and Bahrain.

What sectors are most attractive to Kuwaiti investors in Bahrain?

– The financial sector is at the forefront of the sectors in which Kuwaiti companies invest in Bahrain, whether through banks, financing companies, or investment banking services, as this sector represents a major driver of economic relations between the two countries.

There is also a noticeable interest in the real estate and industrial sectors, such as aluminum products, oil derivatives, and logistics services, which demonstrate the ability of Kuwaiti investors to participate in productive sectors, in addition to some investments in the food and real estate sectors, which are often linked to long-term initiatives.

On the other hand, indirect investment includes real estate assets and investments in small and medium projects, which reflects Bahrain’s economic diversity and its ability to attract investors.

There is also a focus on joint projects that represent opportunities to integrate expertise between Kuwaiti and Bahraini investors, whether in the financial or industrial field, which contributes to the development of innovative and diverse projects that benefit from the capabilities of both parties.

Do you have plans to open an office or headquarters in Bahrain soon?

– Yes, there is a trend to establish a consulting office in Bahrain to provide advisory services to investors, whether they are Gulf or from outside the region.

The office aims to provide support to the investor’s decision in the field of studying the investment opportunity and evaluating it according to the investor’s capabilities and the characteristics of the local and international economic sector and what is appropriate for the continued survival and growth of the investment project in the face of market challenges and risks. The office also evaluates and studies the private wealth management model and the extent of its compatibility with the goals and quality of life of its owners.

The office also aims to deal with the nature of the Gulf investor, who differs in his expectations from the non-Gulf investor, especially in assessing risks and returns, how to distribute assets, and investment decision strategies.

This trend reflects Qarar National Company’s keenness to provide integrated services that allow Gulf investors to view new opportunities and benefit from the Bahraini investment environment.

What is Bahrain’s ranking among the Gulf Cooperation Council countries in terms of Kuwaiti investment?

According to the latest statistics in 2024, the Kingdom of Bahrain occupies an advanced position in terms of the volume of Kuwaiti investments, a consideration that confirms the importance of the Bahraini economy and its characteristics as a platform for financial services and the exchange of interests.

This reflects the great confidence that the Kuwaiti investor places in the Bahraini market, as there are diverse growth opportunities and an advanced investment environment compared to some other Gulf markets.

However, it is important to emphasize that official figures often measure the volume of direct investment only, while there are other investments that do not appear in these data, such as personal real estate assets, joint projects, and advanced financial services, which constitute a large portion of economic activity between the two countries.

This means that the actual estimates of the size of Kuwaiti investments in Bahrain are greater than what is currently reflected in the data available, especially with the continuation of joint projects and financial mergers between institutions of the two sectors.

How do you explain the importance of the Bahraini-Moroccan Economic Forum?

– The Bahraini-Moroccan Economic Forum, which brought together representatives of the government and private sectors from the Kingdom of Bahrain and the Kingdom of Morocco, and which Bahrain recently hosted and organized by Qarar National Company, commissioned by Al-Shall Consulting Company from Kuwait and the National Federation for Food Industries from Morocco, constituted an opportunity to enhance cooperation between Moroccan manufacturers and producers and their counterparts in Bahrain and the Gulf Cooperation Council countries. It also contributed to expanding the circle of economic relations between the participating parties.

The forum provided a platform for direct communication and exchange of experiences, and opened channels for cooperation in the sectors of industry, logistics and agriculture.

The forum also contributed to enhancing understanding among investors about how to benefit from investment opportunities in different sectors, and exchanging information about best practices in business management and joint projects.

He played a major role in activating the framework agreements between Morocco and the Gulf Cooperation Council countries, and transforming them into practical projects on the ground, which enhances opportunities for future partnerships and mutual benefit for all parties.

Did the forum witness the signing of new agreements or memorandums of understanding?

The framework agreements between the Gulf Cooperation Council countries and the Kingdom of Morocco previously existed, and the forum came to activate these agreements in practice.

It also provided an ideal space for direct communication between investors in both countries, enhancing opportunities for future partnerships, especially in the manufacturing, agricultural and logistics sectors.

It can be said: “This practical activation represents an important step to transform bilateral agreements into projects implementable on the ground, while monitoring performance and achieving economic benefit for all parties.”

The forum also helped build a strong network of relationships between Gulf and Moroccan investors, which can be used in the future in various joint projects.

How are joint investments between Kuwait and Bahrain evaluated?

Joint investments between Kuwait and Bahrain are clearly successful, especially in the financial sectors, such as the merger of Kuwait Finance House with Ahli United Bank, as I mentioned previously, which reflects the success of cooperation between the banking sectors in the two countries, and helps enhance the confidence of the Kuwaiti investor in the Bahraini market.

This type of project demonstrates that the economic relations between the two countries are not just numbers, but rather are ancient integrated partnerships that go beyond direct investment to include administrative expertise, financial innovation, and institutional integration.

Joint projects also provide opportunities to expand business into new fields and enhance the competitiveness of participating institutions at the regional and international levels.

What is the nature and size of Bahraini investments in Kuwait?

Most Bahraini investments in Kuwait are concentrated in the financial, real estate, and services sectors, as the Bahraini market benefits from Kuwaiti experience in financing and major investment projects.

There is a growing interest from Bahraini investors in benefiting from Kuwaiti experiences in joint projects, especially in sectors that require advanced financial management and long-term growth strategies.

Cooperation between Bahraini and Kuwaiti investors also includes exchanging experiences, training, and monitoring the financial performance of joint projects to ensure the sustainability of investment returns.

What are the most prominent challenges facing Gulf investors in Bahrain?

The most prominent challenges relate to regulatory differences and laws related to investment, as well as the need to understand the nature of the Bahraini market and its economic priorities.

But these challenges can be managed through economic consulting, which helps the investor identify his target market and provide an accurate assessment of risks and returns, ensuring the success of projects and achieving the desired investment goals.

Investors also need to understand tax regulations, laws related to ownership, licensing requirements, and how to deal with regulatory authorities.

Qarar National Company works to provide this information and services in an appropriate manner that allows the investor to build his investment decision of the highest quality before entering into any investment project.

How do you see the economic future of Bahraini-Kuwaiti relations?

The future is promising, especially with the continuation of trade exchange and the expansion of joint investments. There are significant opportunities in the financial, services and industrial sectors, and relationships continue to grow through joint ventures and financial mergers.

Bahrain is considered a strategic platform for investment in the Gulf region, and Kuwait is a natural partner with extensive experience in the field of financial services, which makes cooperation between them sustainable, diversified and achieves mutual benefit for both countries and investors.

Expanding economic relations also includes enhancing trade exchange, joint infrastructure projects, and benefiting from the expertise of both parties in developing markets, especially with the entry of foreign investors who want to benefit from the expertise and financial services available in the two countries.

How do you see the role of women in the field of investment and economic advisory services?

The role of women in the field of investment and economic advisory services has had a clear impact on the growth of various economic activities in recent years. We have witnessed a major transformation in the professional community that has become more encouraging of empowering women in this field, which has been reflected in the growth of women’s participation in leadership positions in financial and consulting companies.

Today, women use this sector as a strong platform to enhance their capabilities in making economic and strategic decisions, and to contribute to formulating financial policies that affect the markets.

In Bahrain and Kuwait, for example, there are many businesswomen who have distinguished themselves in the field of investment, achieved remarkable successes in several economic sectors and contributed to the sustainable growth of companies and the development of social responsibility projects.

Do you consider women’s investment decisions different?

– Yes, with many details. Women deal with money with a different mindset and look at the future and its needs in a way that is different from what is prevalent in the investment models produced by Western financial markets.

We, at Qarar National Company, specialize in serving women in building women’s investment decisions, and we continue to provide advice to them according to what serves their culture in dealing with money and its role in serving the quality of their lives.

Our activities also continue to spread investment culture for women, through specialized advisory meetings and special awareness lectures for them.

Next week, Qarar Company will present a lecture in the Kingdom of Bahrain specifically on “Women’s Investment Culture.”