Bahrain’s Coexistence Diplomacy: Royal Vision Meets Fiscal Reality

The following excerpt is from Chapter 5 — Whither the Board of Peace? Perspectives from Washington and the Gulf. 

Bahrain has welcomed the Board of Peace (BoP) initiative by United States (US) President Donald Trump with open arms and direct, highlevel engagement. Having received a formal invitation to join around mid-January,^[1] Bahrain already has royal directives from King Hamad bin Isa Al Khalifa on how its government can focus on contributing to the BoP’s mandate. Some of these have already been implemented, including contributing to a US$7-billion fund for the BoP’s operations and administration,a and announcing a “readiness to provide the necessary infrastructure and skills to establish an effective Government Digital Services platform for Gaza.”^[2] Moreover, the Royal Humanitarian Foundation (RHF) announced in the same week as the first BoP meeting, a 100-ton consignment of humanitarian aid sent to Gaza in cooperation with Operation Gallant Knight 3 and the Emirates Red Crescent in the United Arab Emirates (UAE).^[3] More details about Bahrain’s formulation of a Board of Peace policy will likely get illuminated in the coming months.

Whatever crystallises in the future, some things are clear: first, Bahrain’s engagement with the BoP is a strategic projection of a national identity rooted in the principles of coexistence and tolerance, personally championed by the King. Second, it is a mechanism to deepen and institutionalise ties with the United States (US) away from the domestically controversial Abraham Accordsb and more ingrained with celebrated momentum in the Kingdom’s foreign policy for multilateral mechanisms (even if Trump-led). Finally, it has to be approached with caution from a financial perspective, given fiscal austerity and the public sensitivities surrounding it.

The Royal Imperative for Showcasing the Nation’s Identity

In the early days of Ramadan in February—a season usually prioritised for significant domestic engagement—the King of Bahrain made an exception and travelled to Washington, DC, for the first BoP meeting. Although His Majesty could have delegated a senior official, as most participants did, the importance of the BoP’s mandate for Bahrain’s identity prompted his direct engagement.

King Hamad has fostered a national identity that is rooted in peace, coexistence, and tolerance. He maintains that these values are at “the heart” of Bahrain’s identity, which he reiterated on the sidelines of the BoP meeting.^[4] It is also seen as a mandate of the King Hamad Global Center for Coexistence and Tolerance that Bahrain “transfers” its unique “model of coexistence and tolerance to all parts of the world,” according to its website.^[5] The Center itself sponsors educational programmes with students from across the globe, in addition to awarding grants to individuals and organisations working on promoting such values. It also proposed to the UN General Assembly to adopt 28 January as the annual International Day of Peaceful Coexistence, a day that also marks the birthday of King Hamad.^[6]

With such royal initiatives in place and increasingly gaining momentum, it is no surprise that the King personally attended the BoP meeting. As noted by a Middle Eastern diplomat interviewed by the author, “Bahrain is historically unique in the region as a country where Jews and Muslims lived side by side in good neighbourly relations for ages.”^[7] With a focus on promoting coexistence based on its own lessons and identity, Bahrain could become the patron of value diffusion within the BoP mandate.

It is also notable that the Iranian aggression on the Gulf States, including Bahrain, during the 40- day Iran War, has not shifted His Majesty’s vision on the BoP. In a royal address marking the last ten days of Ramadan—while attacks were ensuing from Iran—the King noted that Bahrain will remain “firmly committed” to the spirit of wisdom and moderation, “proceeding with confidence and balance in fulfilling its responsibilities toward its Arab region and the international community,” and that the “decision to join the Board of Peace concerned with the reconstruction of Gaza reflects the clarity of our national positions and the alignment of our policies with efforts aimed at promoting peace, supporting reconstruction, and creating the conditions necessary for lasting stability.”^[8]

Reinforcing the Relationship with the US

While the King had attended the first meeting of the BoP, the preceding signing ceremony for its charter in Davos was attended by His Highness Shaikh Isa bin Salman Al Khalifa, a Minister of the Prime Minister’s Court, and the eldest grandson of the King. Sitting next to President Trump, Shaikh Isa “affirmed the importance of continuing to strengthen the historic bilateral and strategic relationship between Bahrain and the United States,”^[9] which reflects a secondary yet notable impetus for the Kingdom to pursue membership on the BoP.

Bahrain has been seeking to build on the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), signed in September 2023. This agreement is one that Bahrain views as slightly short of Article Fivec of the North Atlantic Treaty Organization (NATO).^[10] It is also one that, with the help of the US, the Kingdom wants to turn into a minilateral framework with other countries joining, as the United Kingdom (UK) did in June 2025.^[11]

While the Abraham Accords also earned Bahrain favour with the US, its engagement with the Board of Peace is also driven by the fact that it is growing to become a larger, and less controversial, multilateral achievement. While the Accords likely helped Bahrain gain an invitation to join, it is important to note that the BoP is not restricted to Accords signatories. The inclusion of counterparts such as Saudi Arabia and Kuwait means that Bahrain can market its engagement to its large domestic anti-normalisation audience that is estimated to include more than 90 percent of the population.^[12] Despite being singlehandedly US-led, its diverse membership is seen as almost no different from a Bahraini foreign policy edging towards multilateral leadership, one that has earned Bahrain a non-permanent seat in the Security Council this year and the next.^[13]

Economic Constraints Are a Relevant Concern

The economic reality in Bahrain is an important challenge for the government in getting domestic buy-in for joining the BoP. It was at the beginning of the year when the Kingdom implemented important economic reforms aimed at fiscal consolidation.^[14] Only days after the BoP meeting, Fitch downgraded Bahrain’s credit rating, adding to the concerns about the economy.^[15] For locals, that the Kingdom appears willing to spend on foreign endeavours while tightening the belt at home has been a point of controversy.

It is no surprise therefore that Bahrain has not announced its actual financial contribution to the Peace Board. The Bahraini Minister of Sustainable Development, Noor bint Ali Alkhulaif, spent some time in Davos, also dismissing claims that Bahrain was paying US$1 billion for a permanent seat on the Board.^[16] There is talk among the public that even the contribution that Bahrain has ultimately made was sourced from royal funds rather than a government one, despite there being no official statement on the matter.

Given this, President Trump’s viral quip at the King of Bahrain that the King can “take 25 % of the building [the Donald J. Trump Institute of Peace] for about $6 billion”^[17]—may not have been aligned optically. While the Bahraini political machinery might not respond to the president’s unique tonality, it would be advisable for the latter to be better aligned with the realities in Bahrain before mentioning riches and making such banter.

Conclusion

Bahrain’s participation in the BoP offers the platform a valuable opportunity to internationalise a narrative of coexistence and tolerance which sits at the core of the King’s vision for Bahrain’s global role and brand. At the same time, the participation reinforces Bahrain’s longstanding security and political alignment with the US and a foreign policy driven by multilateralism (whether stemming from the UN or outside its scope).

On the domestic public opinion front, the Peace Board is a slight relief for a public largely sceptical of any normalisation that it is not an Abraham Accords project. Yet, public opinion has also been a limiting factor, as the controversies of economic austerity at home explain why Bahrain’s financial contributions remain vague. Ultimately, Bahrain’s BoP policy reveals the familiar tension in small-state diplomacy of punching above one’s weight internationally amidst modest realities at home.

Mahdi Ghuloom is Junior Fellow, Geopolitics, ORF Middle East.

^[1] Ministry of Foreign Affairs, Government of Bahrain, “Bahrain Receives Invitation to Join Board of Peace,” 2026, https://www.mofa.gov.bh/en/bahrain-receives-invit ation-to-join-board-of-peace.

^[2] “HM King Attends First Meeting of Board of Peace,” Bahrain News Agency, February 19, 2026, https://www.bna.bh/en/HMKingi ssuesdecree46/ HMKingattendsfirstmeetingofBoardofPe a c e.aspx?cms=q8FmFJgiscL2fwIzON1%2 BDrysP2jqHBE tajS4qjroLw4%3D.

^[3] “RHF Sends 100-ton Urgent Relief Consignment to Gaza,” Bahrain News Agency, February 20, 2026, https://www.bna. bh/en/RHFsends100tonurgentreliefconsignmenttoGaza. aspx?cm s=q8FmFJgiscL2fwIzON1%2BDhqsHRd4W6a FhUZvn0RA3fU%3D.

^[4] “HM King Hosts Reception in Washington During Visit to US,” Bahrain News Agency, February 19, 2026, https://www.bna.bh/en/HMKinghostsreceptioninWas hingtonduringvisittoUS.aspx?cms=q8FmFJgisc L2fwIzON1%2bDgA8X5wFS1j2%2fewsXJhycfM%3d.

^[5] King Hamad Global Center for Coexistence and Tolerance, “About KHGC,” KHGC, https://khgc.org.bh/ about.

^[6] Ministry of Foreign Affairs, Government of Bahrain, Foreign Minister Marks International Day of Peaceful Coexistence, https://www.mofa.gov.bh/en/foreignminister-marks-international-day-of-peaceful-coexistence.

^[7] Anonymous Diplomat, Whatsapp message to author, February 14, 2026.

^[8] “HM King Delivers Royal Address on Final Ten Days of Ramadhan,” Bahrain News Agency, March 8, 2026, https://www.bna.bh/en/HMKingdeliversroyaladdr essonfinaltendaysofRamadhan.aspx?cms=q8FmFJ giscL2fwIzON1%2bDqBz8zgG27szZRGe96treCc %3d.

^[9] Prime Minister’s Office, Government of Bahrain, https:// www.pmo.gov.bh/en/article/on-behalf-of-hm-the-kinghh- shaikh-isa-bin-salman-participates-in-the-signing-ofthe- board-of-peace-charter.

^[10] Mahdi Ghuloom, “Will Bahrain Turn the C-SIPA Into a Multilateral Success Story?,” ORF Middle East, February 27, 2025, https://orfme.org/expert-speak/will-bahrainturn- the-c-sipa-into-a-multilateral-success-story/.

^[11] Department of State, United States Government, https://www.state.gov/releases/office-of-the-spokesperson/2025/07/joint-statement-on-the-uksaccession-to-the-comprehensive-security-integrationandprosperity- agreement.

^[12] Joshua Krasna, “Relations Between Israel and the UAE and Bahrain: Five Years to the Abraham Accords, Two Years to October 7,” Moshe Dayan Center for Middle Eastern and African Studies, November 17, 2025, https://dayan.org/ content/relations-between-israel-and-uae-and-bahrainfive- years-abraham-accords-two-years-october-7.

^[13] “Foreign Minister: Bahrain’s UN Security Council Membership for 2026–2027 Conveys a Message of Peace and Cooperation,” Bahrain News Agency, January 1, 2026, https://www.bna.bh/en/ForeignMinisterBahrainsUNSecurityCouncilmembershipfor20262027conveysamessageofpeaceandcooperation.aspx?cms=q8FmFJgiscL2fwIz ON1%2bDtqFrF3Y9zaNr puqG%2fd06s0%3d.

^[14] “Bahrain to Roll Out Fiscal Reforms to Bolster Public Finances,” Arab News, December 30, 2025, https://www. arabnews.com/node/2627824/business-economy.

^[15] Fitch Ratings, Fitch Group, https://www.fitchratings. com/research/sovereigns/fitch-downgrades-bahrain-to-boutlook- stable-23-02-2026.

^[16] “Bahrain’s Board of Peace Seat Comes Without Charge, Minister Ali Alkhulaif Says,” The Daily Tribune News of Bahrain, January 24, 2026, https://www.newsofbahrain. com/bahrain/125642.html.

^[17] Reuters, “LIVE: First Meeting of US-led Board of Peace,” YouTube video, 1:20:00 hrs, February 19, 2026, https://www. youtube.com/live/B0RgHrztjzg?si=FT1qiokuLnLyFiux.