The Government of Bahrain and the Islamic Development Bank (IsDB) have signed two major financing agreements for the King Faisal Highway Development Project and the Salman Industrial City Expansion Project.
The agreements were signed by Finance and National Economy Ministry Under-Secretary for Financial Affairs Yusuf Abdulla Al Humood, and IsDB Vice President for Operations Dr Rami Ahmed, on the sidelines of the 2026 IsDB Group Annual Meetings in Baku, Azerbaijan.
Under the first agreement, the IsDB will provide approximately $180 million (BD67.85m) to finance the King Faisal Highway Development Project.
It includes upgrading the 4.1km corridor between Al Farooq Junction and Al Fateh Junction into a fully free-flowing route.
Works feature three concrete tunnels spanning 1.93km in total and a 0.58km bridge.
The project also includes the expansion and rehabilitation of around 32 lane-kilometres, along with upgrades to stormwater drainage, lighting systems and urban landscaping, aimed at enhancing mobility and easing congestion in central Manama.
The second agreement provides $330m (BD124.4m) to finance the Salman Industrial City Expansion Project.
The project aims to reclaim around one million square metres of coastal land and develop approximately 800,000 square metres of fully serviced industrial plots within the city.
Works include the construction of internal roads, water and sewerage networks, along with the installation of three main and subsidiary high-voltage electricity substations.
The agreements form part of ongoing co-operation between Bahrain and the Islamic Development Bank to support priority development projects, strengthen infrastructure and the industrial sector, attract investment and advance manufacturing industries, while reinforcing the foundations of sustainable economic growth.
Mr Al Humood said the agreements align with Bahrain’s efforts to continue implementing strategic projects in vital infrastructure sectors.
He noted that the initiatives are a strategic priority aimed at developing productive and sustainable infrastructure, while enhancing the capacity and competitiveness of the kingdom’s industrial and logistics sectors to support economic growth.
He commended the role of the Islamic Development Bank as a leading development finance institution supporting development efforts across the Arab and Islamic worlds, reaffirming Bahrain’s commitment to further enhancing co-operation with the bank.
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