Unbreakable Brotherhood: UAE and Bahrain's Exemplary Strategic Partnership

The UAE celebrates alongside Bahrain today as the kingdom marks its National Day on December 16. What started as brotherly ties between two Gulf neighbors has grown into one of the region's strongest economic partnerships, with non-oil trade jumping 23% to reach 34 billion dirhams in 2024.

The relationship between these two countries goes way beyond typical diplomatic relations. It's built on shared history, family connections, and cultural bonds that run deep between both peoples. The foundation was laid by the late Sheikh Zayed bin Sultan Al Nahyan and Sheikh Isa bin Salman Al Khalifa, and today's leaders continue to strengthen this partnership with a clear shared vision.

President Sheikh Mohamed bin Zayed Al Nahyan and King Hamad bin Isa Al Khalifa of Bahrain maintain direct support for this strategic partnership. The collaboration spans politics, economics, and culture, serving mutual interests and helping both nations achieve their sustainable development goals.

Foreign Policy Alignment

Both countries follow a balanced, open foreign policy based on respecting state sovereignty, good neighborly relations, and international law. They put dialogue and understanding at the center of how they build relationships worldwide.

Regular high-level visits and meetings keep this cooperation alive. The Joint Supreme Committee meets periodically to develop existing cooperation and strengthen the strategic partnership across political, economic, social, cultural, and other sectors of mutual interest.

Since the Gulf Cooperation Council's establishment in 1981, both nations have been key pillars of joint Gulf action. This strategic alignment forms a cornerstone for supporting regional security and stability. The cooperation includes continuous coordination on political and security issues, support for humanitarian and relief initiatives, plus close collaboration to boost regional stability.

Deep Cultural Connections

The two peoples share deep cultural ties and significant cultural harmony reflected in common heritage, arts, and literature. Similar customs and traditions between both peoples strengthen the unified Gulf identity. These bonds grow stronger through tourism exchange and cultural visits.

Easy movement and tourism between the UAE and Bahrain reinforces the social and brotherly ties between both nations' peoples.

Economic Growth Story

The economic relationship shows continuous, sustainable growth backed by strategic partnerships, agreements, and investments in vital sectors. Non-oil bilateral trade reached 34 billion dirhams in 2024 compared to 27.6 billion dirhams in 2023 - that's growth of over 23%.

Between 2015 and 2024, non-oil bilateral trade recorded 11% annual growth - the fastest rate among the UAE's Gulf trading partners. From 2010 to 2022, total non-oil trade between both countries reached about 231.6 billion dirhams, rising from 9.1 billion dirhams in 2010 to 25.7 billion dirhams in 2022 - growth of 182.4%.

The UAE's direct investment stock in Bahrain represents about 10% of total foreign investments in Bahrain for 2024. The UAE ranks as one of Bahrain's top three investing countries with a balance of 16.5 billion dirhams (4.5 billion dollars).

Going the other way, Bahraini investment in the UAE reached 5.1 billion dirhams as of December 2023. Bahrain has 689 registered trademarks in the UAE, 4 commercial agencies, and 41 registered companies.

The Abu Dhabi Fund for Development plays a major role in developing infrastructure and sustainable development projects in Bahrain. It has financed 33 development projects worth 33 billion dirhams, covering key sectors including housing, energy, transport, and health.

Major Investment Deals

In January last year, Emirates Steel Arkan (ESA) signed a 5-year iron ore pellets supply contract with Bahrain Steel worth 2 billion dollars. In 2024, UAE real estate company Eagle Hills announced a 4 billion dollar investment in property development projects in Bahrain. UAE's Foundation Holdings is a major investor in Bahrain's healthcare and education sectors.

The number of licenses granted to UAE citizens for economic activities in Bahrain rose 7% in 2024 compared to 2023, reaching 2,229 licenses total by end-2024, according to Bahrain's Open Data Portal.

More than 1,500 UAE investors now operate in Bahrain across various sectors and fields. On average, there are about 20 to 25 direct daily flights between the UAE and Bahrain through both countries' national carriers.

The bilateral economic relationship continues growing and thriving, supported by major, ongoing efforts to strengthen the strategic partnership between both countries across various vital sectors. This partnership shows how shared vision and consistent cooperation can build lasting economic ties that benefit both nations.