Bahrain and Hungary have forged a robust partnership, with bilateral ties significantly strengthening in recent years. Through high-level visits and a series of important agreements, both nations have deepened their political and economic collaboration.

Last week, Hungary’s Foreign Affairs and Trade Minister, Péter Szijjártó, visited Bahrain, marking another milestone in the growing relationship between the two countries. During the visit, Mr. Szijjártó engaged in important discussions with Bahrain’s Foreign Minister, Dr. Abdullatif Al Zayani, and senior Bahraini officials. Several pivotal agreements across key sectors were signed.

“This is just the beginning and we will continue to build on them in the future,” Mr Szijjártó reiterated in an exclusive interview with TradeArabia.

Mr. Szijjártó praised the relationship as exemplary, emphasising its remarkable progress. “Brotherhood is the most fitting term for our relationship, and we do not use this word lightly,” he declared, highlighting the deep connection established between the two countries during the Covid crisis and how Bahrain helped to save thousands of lives in Hungary.

He was also received by His Majesty King Hamad, underscoring the deep ties between the two nations. Mr. Szijjártó expressed his honour at being received by His Majesty King Hamad. “Recalling his visit to Hungary a few years ago, His Majesty assured me that he thoroughly enjoyed his stay and found Hungary to be a beautiful location. I hope this positive experience will encourage more Bahraini citizens to visit Hungary,” he said.

Mr. Szijjártó discussed a range of topics in the interview, including the investment potential in both nations. He called on the EU countries to separate the trade from political concerns and expedite free trade agreements, particularly with GCC states, which promise significant economic gains.

On the Russia-Ukraine conflict, Mr. Szijjártó stressed that Hungary, as a neighbouring country to Ukraine, has consistently advocated for peace through dialogue. He lamented the ongoing involvement of global powers and the supply of arms, which he believes are stalling peace efforts. (Incidentally, the war began during his previous visit to Bahrain, prompting him to return home urgently.)

Excerpts from the interview:

How would you describe Bahraini-Hungarian relations, and what's your vision for this relationship moving forward?

The most fitting term here is brotherhood, and I'll explain why; we don't use this word lightly. During the challenging period of Covid-19, the European Commission mishandled its vaccine procurement process, which left European countries without vaccines for an extended time, while the US, UK, Japan, and other countries had already begun vaccinating. Many Europeans were dying as a result, and at that critical moment, the Hungarian government made a strategic decision to purchase vaccines from Russia and China to protect its citizens.

It was a complicated process to approve these vaccines due to the lack of prior experience. However, the Bahraini government had already gained experience with these vaccines. Foreign Minister Dr. Abdullatif Al Zayani shared documentation with us, detailing Bahrain’s experience with the Sinopharm vaccine, which enabled Hungarian authorities to authorise the use of Sinopharm, ultimately saving thousands of Hungarian lives. We will always remember this gesture.

I understand various agreements have been signed during your visit. How will they enhance the relations between the two countries?

Building on this strong foundation of brotherly relations, we have worked hard over the past few years to achieve practical successes, leading to the signing of a mutual investment protection agreement today (Wednesday, September 4).

We are also collaborating with Bahrain’s Economic Development Board to support Hungarian companies investing in Bahrain. A significant announcement was made about Festipay, a leading Hungarian fintech company, forming a joint venture with a Bahraini partner. This joint venture will provide cashless payment services at the Bahrain International Circuit during the Formula One race.

Our oil company, MOL Group, is planning to invest in Bahrain. They’ve been in contact with Bapco Upstream and other Bapco-related companies to provide enhanced oil recovery (EOR) solutions in an environmentally friendly way. There is also a proposal to establish a factory to produce rubber bitumen in the private sector. In the field of cybersecurity, Quadron, a leading Hungarian firm, has partnered with a Bahraini company to provide cybersecurity solutions for authorities in the kingdom.

These initial success stories are just the beginning, and we will continue to build on them in the future. The two major agreements signed today will significantly enhance our relationship, both in terms of people-to-people interactions and economic ties.

On the economic side, the mutual protection of investments agreement is crucial, as it provides legal certainty for Hungarian investors in Bahrain and vice versa. Given our geographical distance, legal certainty is even more important, making this agreement a reassurance that can further encourage reciprocal investments.

In addition to the agreements mentioned earlier, we have also signed a significant agreement with Bahrain’s Ministry of Education for a scholarship programme. Starting next year, Hungary will offer 10 scholarships annually to Bahraini students at Hungarian universities. The selection and nomination of these scholars, as well as the choice of faculties, will be at the discretion of the Bahraini side. Moreover, we’ve agreed to initiate cooperation with young athletes, allowing Bahraini athletes to study and train in Hungary as part of this programme.

Looking ahead, say five years, where do you see the relationship going further?

I believe our cooperation will rest on two crucial pillars: economic and political. Economically, the prospects are clear. Politically, it's important to note that both Bahrain and Hungary are advocates of peace, despite the war hysteria around. Bahrain and Hungary are both in dangerous regions; both nations consistently support each other in international forums, representing the global majority that seeks peace. Our cooperation in international organisations will be vital in the coming period.

Recently, the Bahrain-Hungarian Joint Economic Commission and Business Forum held their second meeting this year. How has the economic cooperation progressed? And do you have similar arrangements with other GCC states?

We are very pleased with the work of the Joint Economic Commission, which Minister Dr. Abdullatif and I co-chair, because of the tangible results that it has brought, such as the projects I mentioned earlier.

Additionally, trade relations are improving, with Hungarian food and medical industry products increasingly appearing in Bahraini markets. We're also advocating for stronger economic ties between the EU and the economically booming GCC, believing that closer cooperation would benefit both and would help to stop the decline in the European Union's competitiveness. We support resuming EU-GCC free trade agreement talks and discussions on a visa-free regime.

What are your core areas of focus in the GCC region?

As for Hungary's trade relations with other GCC countries, we maintain equally strong relationships with all six nations, rooted in mutual respect. We never lecture or interfere, and similarly, we don’t want others to do the same to us. Our aim is simply to cooperate, which is something our GCC partners appreciate. All GCC countries also share a pro-peace stance in international organisations, further facilitating our cooperation.

Energy cooperation will be crucial in the future, given that Hungary, as a landlocked country in the heart of Europe, lacks energy resources. Diversifying both energy sources and routes is vital for us. Therefore, we are working closely with GCC countries to incorporate their energy resources into our energy mix.

In terms of energy services, Hungary specialises in enhanced oil recovery (EOR) technology, which allows for the efficient extraction of oil from fields that may otherwise be considered exhausted, using environmentally friendly procedures. We are currently negotiating with several GCC countries to sell this technology, and we are optimistic about reaching agreements soon.

Tourism is a major GDP earner for Hungary. How do you plan to attract more tourists from this region, who are eager to explore new regions?

Hungary is an increasingly attractive destination for visitors from the GCC, particularly because of Budapest and other scenic regions. The influx of tourists from the GCC is growing, driven by the country’s safety, openness, and welcoming nature. Our tourism agency has been actively engaging with this region, and we are encouraging more carriers to launch direct flights between the GCC countries and Hungary. While there are currently four destinations in the region you can fly to from Hungary, we hope to see more in the future, including a direct connection to Manama if a carrier expresses interest.

Hungary holds the Presidency of the Council of the European Union until the end of 2024, how can the Hungarian presidency contribute to the development of relations between the GCC and the European Union?

As Hungary holds the presidency of the Council of the European Union this year, we are in a position to contribute to strengthening relations between the EU and GCC. In October, we will host the EU-GCC Summit in Brussels, where I hope European leaders will listen to GCC leaders on the importance of peace. This summit will also provide an opportunity to keep key issues, such as the visa-free regime and the free trade agreement, on the agenda.

The Free Trade Agreement with the GCC member states has been a pending question for quite a long time, what possibilities do you envision for its negotiation and conclusion, especially with your country being at the helm now?

Regarding the long-pending EU-GCC Free Trade Agreement, it’s unfortunate that the European Union has been as slow as a snail when it comes to FTAs. In the last two decades, no FTA has been signed, and the reason isn’t that we are 27 members who all need to agree, but rather that some consistently confuse non-trade-related issues with trade, such as labour regulation, environmental protection, human rights, LGBT rights, and so on. If this approach isn’t reconsidered, an agreement will never be reached. The upcoming appointment of a new EU trade commissioner will play a significant role in shaping the future of these agreements. I hope the new trade commissioner will be in favor of trade rather than against it.

The whole world has been affected by the Russia - Ukraine conflict and being a neighbour, you must have faced many challenges. How did you overcome them? In your opinion, what is the road ahead and how to resolve this conflict?

Hungary has been directly impacted by the ongoing conflict for over two-and-a-half years. We have received over 1.3 million refugees, faced soaring energy prices, and dealt with the inflation caused by the war. Additionally, we have a community of 150,000 Hungarians living in Ukraine, many of whom have been conscripted into the Ukrainian army and sent to the frontline, with tragic losses. Given the human suffering, we strongly advocate for an immediate end to the war through peace talks, rather than prolonging the conflict through continued military support.

- TradeArabia News Service

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