UAE and Bahrain plan to establish a joint fund to invest in both countries and abroad, Reuters reported, quoting state media from both the countries.
According to the Bahrain News Agency, Mumtalakat and Mubadala Investment Co will launch the new fund together.
Bahraini Crown Prince Salman bin Hamad Al Khalifa announced the deal during a visit to the UAE.
“The governments of the UAE and Bahrain, in light of the fraternal ties and long-term mutual interests between the two countries, consider their joint objectives and interests embodied in the articles of incorporation of the Gulf Cooperation Council (GCC),” said a joint statement quoted by Reuters.
“The two governments agreed to establish a framework for strengthening their bilateral ties to reinforce their cooperation in areas of mutual concern, including but not limited to politics, diplomacy, security, the economy, trade, tourism, advanced technologies, energy, transport, education, labour and human resources, climate change and health,” the statement added.
On Tuesday, Moody’s said it expects Bahrain to receive additional funding from its Gulf allies.
Saudi Arabia, Kuwait, and the United Arab Emirates bailed out Bahrain with a $10 billion package in 2018, but in September Bahrain postponed its plans to balance its budget by two years after the Coronavirus outbreak strained its finances.