The Government of Bahrain has signed two financing agreements with the Islamic Development Bank (IsDB) to support major infrastructure and industrial development projects, including the King Faisal Highway Development Project and the Salman Industrial City Expansion Project.
The agreements, along with a broader framework arrangement between the two sides, were concluded on the sidelines of the 2026 Annual Meetings of the IsDB Group in Baku, Azerbaijan.
Yusuf Abdulla Al Humood, Undersecretary for Financial Affairs at the Ministry of Finance and National Economy, said that the Bahrain-IsDB agreements align with Bahrain’s efforts to continue implementing strategic projects in vital infrastructure sectors.
He noted that the projects represent a strategic priority aimed at developing productive and sustainable infrastructure and enhancing the capacity and competitiveness of the Kingdom’s industrial and logistics sectors, contributing to economic growth and sustainable development.
Al Humood commended the role of the Islamic Development Bank as a leading development finance institution supporting development efforts across the Arab and Islamic worlds, affirming Bahrain’s commitment to further enhancing cooperation and coordination with the bank.
Under the first agreement, the IsDB will provide approximately $180 million (BD67.85 million) to finance the King Faisal Highway Development Project.
The project includes upgrading the 4.1-kilometre corridor between Al Farooq Junction and Al Fateh Junction into a fully free-flowing route through the construction of three concrete tunnels with a total length of 1.93 kilometers and a 0.58-kilometre bridge. The project also includes the expansion and rehabilitation of approximately 32 lane-kilometers, incorporating improvements to stormwater drainage networks, lighting systems and urban landscaping to enhance mobility and reduce traffic congestion in central Manama.
The second agreement provides approximately $330 million (BD124.4 million) to finance the Salman Industrial City Expansion Project.
The project aims to reclaim around one million square meters of coastal land and develop approximately 800,000 square meters of fully serviced industrial plots within the city. The works include the construction of internal roads, water and sewerage networks, and the installation of three main and sub high-voltage electricity substations.
