Bahrain doubles down on Hong Kong to woo mainland China capital amid Middle East tensions
Bahrain has deepened its presence in Hong Kong to tap mainland China capital, as the Gulf state launches a charm offensive to court foreign investors amid the US-Israel war on Iran.
Two major Bahraini investors have already placed bets in Hong Kong to seize rising opportunities in China, while the kingdom’s investment promotion agency has vowed to lure more capital with financial deregulation.
“We are here to make sure that we continue the momentum and continue the extensive engagement with strategic investors in mainland China and Hong Kong,” said Ali Al Mudaifa, chief of business development at the Bahrain Economic Development Board, during an investor briefing in Hong Kong on Friday.
Bahrain had rolled out licences for stablecoin issuance and updated family office rules for tokenisation, he added. It also offered zero personal income tax and capital gains tax with 100 per cent foreign ownership.
The move comes after investors were rattled by Iran’s recent strikes on US military bases in the Middle East, including those in Dubai and Bahrain. The tensions persist despite plans to resume talks between the two sides.
Business confidence had held up during the turmoil that started in late February, with logistics rerouted through the 25km (15.5 miles) King Fahd Causeway to Saudi Arabia’s Red Sea ports in Jeddah and Dammam, bypassing the Strait of Hormuz, said Iain Lindsey, adviser to the chairman of the Bahrain Economic Development Board.