It has been confirmed that Bahrain, an island nation located in the southwestern region of Asia, is set to open an embassy in Seoul this year. Bahrain plans to establish a diplomatic mission in South Korea to promote business cooperation with Korean manufacturing, finance, and cryptocurrency corporations.
According to reports on the 7th, Bahrain appointed Saud Hassan Al Nussuf as its first ambassador to South Korea last year, and is planning to officially open its embassy this year. Currently, the Bahraini ambassador to South Korea is staying in Seoul and is seeking business cooperation opportunities with Korean corporations. The Bahrain Economic Development Board's office in Korea, which opened in November 2022, is also conducting activities to attract Korean corporations.
Bahrain has a population of about 1.53 million and an area of approximately 786.5 square kilometers, making it the smallest island nation in the Middle East by land area. It is similar in size to Jeju Island in South Korea and is regarded as one of the most westernized countries in the Middle East. Although it is an Islamic nation, the sale and consumption of alcohol and pork is allowed. There is a saying that 'Allah closes His eyes to Bahrain,' reflecting an open social atmosphere.
Bahrain and South Korea established diplomatic relations in 1976, and Minister of Trade, Industry and Energy Ahn Duk-geun, who was then the chief negotiator, held a 'Trade Ministerial Meeting' with Bahraini Minister of Industry and Commerce Abdulla bin Adel Fakhro in 2023. Additionally, Ali Al Mudhaifa, the chief business development officer of the Bahrain Economic Development Board, visited South Korea last year to explore cooperation with Korean corporations. Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of Bahrain, is reportedly taking the lead in the opening of the South Korean embassy and investment cooperation.
Known as a financial hub in the Middle East, Bahrain is promoting financial-related business cooperation with Korean corporations. It is the only country in the Middle East where the proportion of industries other than the oil industry is higher. Bahrain is also known as the first country to introduce 'Islamic banking,' which follows the Islamic law 'Shariah,' which prohibits interest.
As of 2023, Bahrain's total gross domestic product (GDP) is $46 billion, of which 16.9% comes from the financial sector, surpassing the oil and gas industry at 15.7%. In the capital city of Manama, hundreds of foreign financial companies are located, and in South Korea, Hana Bank and Woori Bank have established a presence.
Bahrain is proposing cooperation to domestic large banks, fintech corporations, and cryptocurrency corporations. In particular, it expects institutional and technological collaboration in the stablecoin sector. Stablecoins are virtual assets that minimize price volatility by pegging their value to fiat currencies such as the dollar or commodities like gold.
A Bahraini government official noted that 'There is currently no system related to stablecoins in Korea, but Bahrain plans to soon establish relevant legislation at the Central Bank level,' adding, 'Bahrain could become a testbed for stablecoins.'
Bahrain emphasizes that it can become a strategic base for consumer goods manufacturing and pharmaceutical corporations looking to expand into the Middle East. Bahrain is positioned close to neighboring countries like Saudi Arabia and the United Arab Emirates, resulting in lower logistics costs, and it highlights the absence of consumption and corporate taxes as advantages. Additionally, electricity, gas, and labor costs are low, significantly reducing operating expenses for corporations.
An official from the Ministry of Trade, Industry and Energy remarked, 'Through Bahrain, export approvals to the Middle East can be much easier, and some domestic corporations are showing interest,' adding, 'Since the Bahraini side visited Korea last year, we may also promote a visit to Bahrain in the future.'