MANAMA, Bahrain – Strengthening its partnership with Bahrain would open a door of opportunities in the Middle East for South Korea, an investment forum held by the Gulf island nation's economic board suggested.

Bahrain hosted the second edition of Gateway Gulf on Sunday and Monday. This year’s Gateway Gulf was held six years after the inaugural edition in 2018. Arranged by the Bahrain Economic Development Board, it was held under the theme of “Investing in a Rapidly Transforming Region.”

“Since we met six years ago, Bahrain's economy -- which we are proud to say is recognized as one of the freest in the world -- has attracted more than $15.6 billion in foreign direct investment, including a record $6.8 billion in 2023 alone,” said Shaikh Salman bin Khalifa Al Khalifa, the Bahraini minister of finance and national economy.

“It is a testament to the confidence the world has in our potential,” he said. “As with every great moment in history, our region's progress depends on continued unity and collaboration with current geopolitical complexities.”

While the event focused on a wide range of opportunities surrounding the island nation, spanning human and natural resources, tourism and more, some Korean business officials from Samsung E&A and LG Electronics' units in the region were in attendance.

Samsung E&A, the Samsung group's plant construction firm, has been making a foray into Bahrain. It landed on a $4.2 billion multinational consortium deal in 2017 that involved an upgrade and modernization of a refinery operated by Bahrain Petroleum Co. The project is still underway.

“Bahrain is a land of opportunities for Korean companies,” Kim Young, executive vice president at Samsung E&A, told The Korea Herald at the event. Kim is in charge of the refinery modernization project.

“Bahrain is an important hub for foreign businesses as it opens up opportunities to expand to the entire Gulf region,” Kim said, referring to the country’s proximity to other Gulf counterparts.

Though countries in the Middle East are often thought to be heavily dependent on oil production, Bahrain promotes itself as a strong provider of financial services. As results of its efforts to diversify its portfolio, oil production only accounts for 20 percent of the country's gross domestic products.

“In the end of 2020, financial services overtook oil and gas in terms of contribution towards the GDP,” Khalid Ebrahim Humaidan, the governor of the Central Bank of Bahrain, said through a panel discussion.

“Two-thirds of foreign direct investment in Bahrain is in financial services,” he said. “It is also interesting to know that out of all of the capital in the banking space in Bahrain, more than half is foreign.”

Korean financial providers have expanded their business in the country as well. Lenders sought to finance Korean companies’ construction projects in the country and to handle international transactions of Korean workers here. Hana Bank launched its branch in Bahrain in 1977 and Woori Bank’s branch came six years later.

In further efforts for economic diversification, the country also pins high hopes on tourism. For this goal, a collective elevation of the Gulf’s status in the tourism market would be necessary, Minister of Tourism Fatima bint Jaafar Al Sairafi said.

“You hear tourists saying we are going to Bahrain or Dubai, but not collectively saying that we are going to the Gulf,” she said.

“When we get to the point where tourists mention that we're going to the Gulf, that will be when we have a huge success in our tourism portfolio.”