Baku: The Government of Bahrain and the Islamic Development Bank (IsDB) have signed two significant financing agreements targeting the King Faisal Highway Development Project and the Salman Industrial City Expansion Project. These agreements, along with a framework agreement, were finalized on the sidelines of the 2026 Annual Meetings of the Islamic Development Bank Group in Baku, Azerbaijan.
According to Bahrain News Agency, the agreements were signed by Yusuf Abdulla Al Humood, Undersecretary for Financial Affairs at Bahrain's Ministry of Finance and National Economy, and Dr. Rami Ahmed, Vice President for Operations at IsDB. Al Humood emphasized that these agreements are aligned with Bahrain's strategic goals to develop essential infrastructure, enhancing the competitiveness of the Kingdom's industrial and logistics sectors and contributing to economic growth.
Al Humood acknowledged the Islamic Development Bank's pivotal role in supporting development across the Arab and Islamic regions and confirmed Bahrain's commitment to strengthening collaboration with the bank. Under the first agreement, IsDB will allocate approximately US$180 million (BD67.85 million) for the King Faisal Highway Development Project. The project involves upgrading a 4.1-kilometre stretch between Al Farooq Junction and Al Fateh Junction, featuring three concrete tunnels and a bridge to improve mobility and reduce traffic congestion in central Manama.
The second agreement entails US$330 million (BD124.4 million) for the Salman Industrial City Expansion Project. This project focuses on reclaiming coastal land and developing fully serviced industrial plots, complete with infrastructure such as roads, water and sewerage networks, and electricity substations. These initiatives are part of the ongoing efforts between Bahrain and IsDB to bolster infrastructure, attract investment, and support sustainable economic growth.