Cyprus and Bahrain strengthen business ties

Cyprus and Bahrain can still unlock substantial economic opportunities, President Nikos Christodoulides said on Monday during an address at the first Cyprus-Bahrain Business Forum.

The two countries have used the event as a springboard to strengthen business ties during the president’s official visit to the Gulf kingdom.

Speaking to business representatives, the president described the forum as a first step in tapping what he called largely untapped potential between the two countries.

This potential, he noted, is shaped by their strategic locations, economic dynamism and their shared role as bridges between regions and markets.

Against this background, Christodoulides linked bilateral cooperation to Cyprus’ upcoming Presidency of the Council of the European Union, stressing that relations between the EU and the Gulf will be a clear priority.

He expressed the view that Bahrain would be a key partner in this effort, particularly as regional and European frameworks increasingly converge.

“I firmly believe that our Presidency, as well as the Bahraini Presidency of the Gulf Cooperation Council–EU for 2026 and the second EU–GCC summit scheduled during our Presidency, are not only important milestones,” he said, adding that they are also “opportunities to deepen political dialogue, strengthen economic cooperation and translate common interests into tangible results”.

Turning to Cyprus’ investment profile, the president said the country offers Bahraini investors a stable and predictable, EU-based platform.

Cyprus, he added “serves as an entry point to Europe, with full access to the Single Market and the Eurozone, underpinned by a modern, transparent and business-friendly regulatory framework.”

He also pointed to structural reforms that have come into force this year.

Referring to “our competitive tax system, strengthened by the tax reform in force since January 2026”, Christodoulides linked this to the digitalisation of public services, targeted administrative reforms and ongoing efforts to reduce bureaucracy.

Together, he said, these factors create an environment in which businesses can plan, invest and grow with confidence.

Within this framework, the president emphasised sectors where cooperation could deepen further.

“I firmly believe that there is significant potential to further deepen our cooperation in financial services, investment, technology and digital innovation,” he said, while also pointing to construction, infrastructure and connectivity as areas where the comparative advantages of both countries align.

At the same time, he emphasised Bahrain’s role as a regional hub for Cypriot companies.

Bahrain, he noted, continues to serve as a strategic gateway for firms seeking to expand into the Gulf and the wider Middle East, reinforcing the mutual and complementary nature of the economic relationship.

“Let us therefore focus on further supporting and expanding this cooperation for the mutual benefit of our companies, our economies and our peoples,” he said.

Moreover, the president said that Cyprus is “seeking partnerships that are strategic, long-term and built on trust”.

His presence in Bahrain, Christodoulides concluded, “reflects his firm belief that there is still significant economic potential between Cyprus and Bahrain to be unlocked”.