November 05, 2024

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Bahrain’s Minister of Industry & Commerce Abdulla bin Adel Fakhro speaks during the Gateway Gulf forum held in Manama, Bahrain on Sunday (local time). (Bahrain Economic Development Board)

MANAMA, Bahrain -- South Korea’s cooperation with the Gulf region, including Bahrain, is set to strengthen as the free trade agreement involving the two countries will take effect soon, according to a top Bahraini governmental official.

"Last year, we had a trip with a big delegation to Korea. We met with many of the leading companies there,” Bahrain’s Minister of Industry & Commerce Abdulla bin Adel Fakhro told The Korea Herald during an interview held in Manama, Bahrain on Tuesday (local time).

The interview was held on the sidelines of Gateway Gulf, a forum offering the opportunity for global businesses and investors to develop an investment presence in Bahrain and the Gulf region.

Last year, Fakhro visited Korea as part of a Bahraini business delegation of around 40 governmental officials and business representatives. It was the first time for a Bahraini delegation to visit Korea since 2012.

“At the time, we were in discussions on a free trade agreement with Korea which now has materialized, and we are very close to finalizing that on a Gulf Cooperation Council-level with Korea," Fakhro said.

In December 2023, Korea forged an FTA with the Gulf Cooperation Council, a feat achieved 15 years after the talks first began in 2008. The GCC refers to the political and economic alliance of six Middle Eastern countries -- Bahrain, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Oman.

If the FTA takes effect, Korea and the GCC are to eliminate, respectively, 89.9 percent and 76.4 percent of tariffs between the two sides in terms of the number of products. Trade volume between Korea and the GCC stood at $102.6 billion as of 2022. The GCC was the fifth-largest trade partner for Korea, following China, ASEAN, the US and the EU.

“There are a lot of positive things happening with Korea both on trade and as well as investment,” he said. "My main target is to look at manufacturing because Korea is well known for advanced manufacturing."

Though the traditional partnership between Korea and Bahrain had been centered around heavy industry, such as construction and petrochemical projects, Fakhro hopes to see more collaboration in future growth sectors such as medical tourism.

During the interview, Fakhro invited more countries to consider working with Bahrain, as the country has an open attitude towards working with outside partners.

“We have open, liberal and forward-thinking economic policies. We are very open and interested in foreign direct investments,” he said.

He further highlighted the country’s “spirit of entrepreneurship,” going back to the pearl diving industry of the past. Until the 1930s, diving for pearls was the main source of income in Bahrain. History gave the country the nickname "Pearl of the Gulf."

“(Bahrain) has always been at the forefront of the region,” Fakhro said. “Bahraini human capital is the strongest in the region. We have a very tech-savvy, strong work ethic and highly educated locals,” he said.

By Im Eun-byel (silverstar@heraldcorp.com)