The Trump administration says new investments will create 30,000 US jobs.
The Bahrain Crown Prince is planning to invest more than $17 billion in the United States.
The White House outlined the New Deal before a meeting between Crown Prince Salman bin Hamad Al Khalifa and US President Donald Trump.
Sitting with the crown prince of Bahrain, he described the Gulf state as a “great alliance.” He said they will discuss trade and other topics.
The prince said he would announce an investment in the US “based on an heritage that we are extremely proud of.”
As part of the investment, Bahrain will sign a contract between Gulf Air and Boeing/GE.
According to the White House, the deal also includes the sale of 40 GE engines.
The announcement from the Crown Prince follows a foreign investment transaction made by Trump during his trip to the Middle East in May. During his visit to Riyadh, Trump secured a $600 million commitment from Saudi Arabia, invested in the US and agreed to sell arms packages to Saudi Arabia, worth nearly $142 billion.
The White House said the Bahrain deal helped American jobs for 30,000 people and was secured with the help of Trump and Secretary of Commerce Howard Lutnick.
The Crown Prince also pledges to deploy additional capital worth billions of dollars.
According to the White House, Bahrain is expected to sign an agreement with Oracle with Cisco with plans to replace Chinese servers with Cisco products.
Bahrain also aims to increase investment in the US energy, technology and manufacturing sector.
The White House says the Crown Prince will increase domestic aluminum production in the US, invest in US LNG production to secure BAH energy supply, buy cutting-edge AI chips, and deploy capital to partner with HyperSchoola.
During the visit, the Crown Prince announces the Kingdom’s intention to make these investments and sign various memorandums of transactions and understanding (Mous).
One of these Mouss creates a framework for Bahrain to launch discussions towards developing commercial nuclear capabilities.
Later this year, the King of Bahrain will visit Washington to finalise these agreements and solidify progress in building economic prosperity between the two countries, the White House said.
The US market remained relatively flat in the announcement. As of 12pm ET (16:00 GMT), the S&P 500 had a 0.1% decline, the technology-rich NASDAQ fell by 0.09%, and the Dow Jones’ industrial average was 0.04%. Boeing Stock has fallen 0.3% since the market opened after rising earlier this morning. GE flows upwards in the news, at 0.1.
The new investment agreement comes as the White House tariff strategy is in the spotlight. When the White House suspended country-specific tariffs in April, the Trump administration said there were 90 transactions in 90 days. As that deadline has passed, the US has only solidified three, including the UK’s Vietnam and Indonesia as of Tuesday.
At a press conference, the crown prince also said Bahrain would not provide patriot missiles to Ukraine.
