Parmelin signs agreement with Bahrain to protect investments
Guy Parmelin has signed a bilateral agreement in Washington to protect investments between Switzerland and Bahrain. The deal will enter into force following national approvals. Will this be a priority for Ticino and cross-border workers?
Contesto
On Friday, April 17, 2026, Swiss Federal President Guy Parmelin and Bahrain’s Minister of Finance and National Economy, Salman bin Khalifa Al Khalifa, signed an investment protection agreement between Switzerland and Bahrain in Washington. The agreement was concluded on the sidelines of the World Bank and International Monetary Fund (IMF) spring meetings, as reported by the State Secretariat for Economic Affairs (SECO). ## A game-changing agreement The agreement aims to mutually protect investments between the two countries from political risks such as illegal expropriations. According to the SECO press release, Bahrain is the only Gulf Cooperation Council (GCC) country with which Switzerland had not yet concluded such an agreement. Parmelin emphasized that this deal strengthens economic stability and opens new opportunities for Swiss businesses, particularly in sectors like innovation and technology. ## Next bureaucratic steps The agreement will only enter into force after the completion of internal approval procedures in both countries. For Switzerland, the next step involves drafting the message accompanying the agreement, which will then be submitted to the Federal Chambers for adoption. In Ticino, where the presence of companies with foreign interests is significant, this agreement could represent a concrete opportunity for players in the financial and manufacturing sectors. ## Another agreement signed in Washington: Ukraine’s railways During the same trip, Parmelin also signed an agreement with the World Bank to finance the modernization of Ukraine’s railways. The project aligns with Switzerland’s existing commitments to support Kyiv’s transport infrastructure, with a focus on job creation and post-conflict economic recovery. Parmelin highlighted how reliable i...
Dettagli operativi
Opportunities for Ticino-based companies: investing in Bahrain For businesses in Ticino operating in the innovation, logistics, or finance sectors, the agreement with Bahrain presents a strategic opportunity. Bahrain is, in fact, one of the leading financial hubs in the Gulf region, with regulations that are highly favorable to foreign investment. Swiss companies will benefit from enhanced legal security for their investments, reducing risks tied to expropriations or sudden regulatory restrictions. ### Before vs after the agreement: what changes | Aspect | Before the agreement | After the agreement | |---------|---------------------|--------------------| | Investment protection | No specific coverage | Guaranteed protection against illegal expropriation | | Market access | High legal risk | Greater stability and trust | | Opportunities for SMEs | Limited expansion | Potential for local partnerships | Ticino-based companies with interests in Bahrain can now rely on a more transparent regulatory framework, facilitating entry into a market that serves as a bridge between Europe and Asia. According to sources at the State Secretariat for Economic Affairs (SECO), Bahrain is already a destination for Swiss investments in clean technologies and digitalization. ### Practical scenarios for cross-border workers For cross-border workers traveling between Ticino and Bahrain for professional reasons, the agreement could streamline certain bureaucratic procedures related to managing personal investments or their business activities. However, no immediate changes are expected regarding the tax or social security treatment of cross-border workers, which will continue to be governed by the Italo-Swiss Convention and bilateral agreements between Switzerland and Italy. 📊 > Key tak...
Punti chiave
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Punti chiave
[{"q":"Does the agreement with Bahrain change the taxation rules for Ticino cross-border workers?","a":"No. The agreement solely aims to protect investments from political risks such as illegal expropriations. The taxation of cross-border workers remains governed by the Italo-Swiss Convention and by the bilateral agreements between Switzerland and Italy."},{"q":"Which Swiss sectors will benefit most from the agreement?","a":"According to the State Secretariat for Economic Affairs (SECO), the sectors of innovation, technology, and finance stand to gain the most from the deal. Bahrain is indeed a regional financial hub with regulations favourable to foreign investments."},{"q":"When will the agreement with Bahrain enter into force?","a":"The agreement will only come into force after completion of internal approval procedures in both countries. The next step for Switzerland will be drafting the message to the Federal Chambers, though no specific date has been provided."},{"q":"Does the agreement with Bahrain affect visa procedures for cross-border workers?","a":"No. The agreement does not introduce any changes to visa regulations or entry procedures for cross-border workers. These remain governed by the bilateral agreements between Switzerland and Italy."},{"q":"How can I check if my Ticino-based company has interests protected by the agreement?","a":"Ticino-based businesses can contact the State Secretariat for Economic Affairs (SECO) or the Ticino Chamber of Commerce for a preliminary assessment. The agreement offers specific protection for investments, so it is advisable to review your foreign asset portfolio."}]
Frequently Asked Questions
- Does the agreement with Bahrain change the taxation rules for Ticino cross-border workers?
- No. The agreement solely aims to protect investments from political risks such as illegal expropriations. The taxation of cross-border workers remains governed by the Italo-Swiss Convention and by the bilateral agreements between Switzerland and Italy.
- Which Swiss sectors will benefit most from the agreement?
- According to the State Secretariat for Economic Affairs (SECO), the sectors of innovation, technology, and finance stand to gain the most from the deal. Bahrain is indeed a regional financial hub with regulations favourable to foreign investments.
- When will the agreement with Bahrain enter into force?
- The agreement will only come into force after completion of internal approval procedures in both countries. The next step for Switzerland will be drafting the message to the Federal Chambers, though no specific date has been provided.
- Does the agreement with Bahrain affect visa procedures for cross-border workers?
- No. The agreement does not introduce any changes to visa regulations or entry procedures for cross-border workers. These remain governed by the bilateral agreements between Switzerland and Italy.
- How can I check if my Ticino-based company has interests protected by the agreement?
- Ticino-based businesses can contact the State Secretariat for Economic Affairs (SECO) or the Ticino Chamber of Commerce for a preliminary assessment. The agreement offers specific protection for investments, so it is advisable to review your foreign asset portfolio.