13-05-2025
Investment and tax treaties with South Korea and Oman
Two bilateral treaties, one to protect South Korean investment in Bahrain and the other to eliminate double taxation with Oman, were passed by the Shura Council yesterday.
Both draft laws went through in a single sitting and are now with His Royal Highness Prince Salman bin Hamad A Khalifa, the Crown Prince and Prime Minister, who will send them to His Majesty King Hamad bin Isa Al Khalifa. Neither agreement will take effect until ratified and published in the Official Gazette.
The South Korea agreement, submitted with Royal Decree No. (9) of 2025, sets terms for legal protection of investors and lays the groundwork for deeper trade and financial links between the two countries.
' The agreement is intended to encourage and safeguard investment, and to support cooperation in financial and economic matters between the two countries,' said committee rapporteur Nancy Dinah Elly Khedouri. 'It creates conditions for more cross-border investment and independent business ventures, with the aim of raising prosperity in both countries.'
Markets
Dr Ibtisam Al Dallal said the agreement would reinforce Bahrain's position as a base for Korean companies seeking access to Gulf markets.
'Bahrain is a strategic entry point for Korean firms due to its location and its role as a financial hub,' she said. 'This agreement offers clear legal terms for investors, encourages capital flows, and helps settle disputes when they arise.'
The second agreement, linked to Royal Decree No. (12) of 2025, covers tax matters between Bahrain and Oman.
It removes the risk of income being taxed twice and sets out steps to prevent tax avoidance.
Dr Bassam Ismail Al Binmohamed, speaking on behalf of the Foreign Affairs, Defence and National Security Committee, said the law would make it easier for Bahraini and Omani firms to do business across borders. 'This will support wider economic ties and open new investment opportunities by clearing up tax issues that can slow cross-border activity,' Dr Al Binmohamed said.
