Direct Gulf Air flights between Bahrain and the US could take off as soon as in November, said US Ambassador Steven C Bondy.
The American Federal Aviation Administration (FAA) recently conducted an oversight visit of Bahrain’s Civil Aviation Authority, he added.
He was speaking to the media on the sidelines of a reception hosted at his residence in Saar.
“The FAA experts who visited Bahrain a month ago provided very positive feedback,” said Mr Bondy.
“Now, they’ll finalise their report based on their findings.”
A successful FAA assessment paves the way for Gulf Air to launch direct US flights.
“We’re optimistic about a positive outcome,” said the ambassador.
“This could open up direct flights as early as November or December.”
Stating that the choice of destinations will be a business decision for Gulf Air, the diplomat added that the broader impact of direct flights is undeniable.
“They typically facilitate increased business activity, tourism and academic and scientific exchanges. This, in turn, can lead to a significant boost in bilateral commercial relations between the two countries.”
In response to a question about the 1.1 million square-metre US trade zone (USTZ) currently under development in Hidd, Mr Bondy said, “One of my first acts as ambassador in 2022 was laying the foundation stone for the USTZ. The Bahrain government is building the infrastructure – roads, water, electricity – everything businesses need to thrive.
“Plans are in motion to expand the zone significantly by reclaiming land from the sea. This ensures ample space as American companies flock to the location.
“In fact, discussions with a major US company are underway. Their potential investment could fill most of the current space, triggering the expansion for even more American businesses to join the exciting hub.”
Talking about global disruptions like regional conflicts and ongoing supply chain challenges, the diplomat said, “The lingering effects of the Covid-19 pandemic on global trade flows are further compounded by disruptions caused by the Houthi militia in Yemen targeting commercial vessels in the Red Sea.
“Consumers around the world are ultimately bearing the brunt of these attacks,” he said. “Deliveries are significantly slower and more expensive.”
He explained that vessels navigating the Red Sea face two unappealing options: Either pay hefty insurance premiums or take the much longer route around Africa.
“While the exact impact on supply chains remains difficult to quantify, it’s clear these disruptions add further strain to an already stressed system.”
Outlining key upcoming developments, the diplomat said next month marks the start of the fourth annual strategic dialogue between Bahrain and the US, which has a strong commercial component as well.
“In two weeks, Bahrain’s Industry and Commerce Minister Abdulla bin Adel Fakhro will be visiting Washington D.C. He will focus on promoting trade and investment relations, and will lead the Bahraini delegation in a dedicated session on the free trade agreement (FTA) and its implementation,” he added.
“Additionally, preliminary discussions are underway for a Bahraini trade delegation to visit the US in the near future.”
American and Bahraini businesses attended the reception organised to highlight the positive impacts of the US-Bahrain Free Trade Agreement and the Comprehensive Security Integration and Prosperity Agreement on the bilateral commercial relationship.
“It’s a special pleasure to celebrate the 20th anniversary of the signing of the US-Bahrain Free Trade Agreement, an effort I focussed on the first time I served in Bahrain,” said Mr Bondy.
“The FTA between our two countries has been a spectacular success story. Since its implementation 18 years ago, two-way trade has quadrupled from $782 million in 2005 to the high-water mark of more than $3 billion in 2018. Bilateral trade volume in both 2022 and 2023 was $2.85bn. Adding the value of traded services on top of goods brings the total annual commercial exchange to a very substantial figure – around $4bn. While this is a strong foundation, there’s still room for further growth.
“Last September, the US and Bahrain signed a comprehensive agreement to bolster security co-operation, enhance economic ties, and advance scientific collaboration. It strengthens military co-ordination, facilitates intelligence sharing, and identifies new investment opportunities. This agreement deepens the partnership between the two nations.”
Mr Bondy also recognised why US businesses value Bahrain.
“Bahrain is a great location for American companies pursuing business opportunities in the region and seeking an educated and skilled workforce. It is an easy place to do business and a welcoming environment for investors, employees and families.”
avinash@gdnmedia.bh
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