Bahrain has moved a step closer to signing a Free Trade Agreement (FTA) with Singapore.

MPs urgently approved the plan during the yesterday's weekly parliament session.

The FTA now only has to be approved by the Shura Council and ratified by His Majesty King Hamad.

Parliament chairman Khalifa Al Dhahrani said the FTA would present both countries with mutually beneficial opportunities in all fields.

He said it would ensure an open market for Bahrain and Singapore, who already have long-standing, strong diplomatic, economic and trade relations.

'This agreement will certainly help facilitate and promote an even greater flow of goods, services and investment between the countries and strategically link the Gulf region with Singapore, considering that other GCC countries have also agreed to sign FTA agreements with the country,' said Al Dhahrani.

Singapore's CapitaLand became the first Singaporean mega company to invest in the Middle East when it joined forces with Bahrain-based investment bank Arcapita, whose regional headquarters are based in Singapore, for the Bahrain Bay development.

In October last year, both countries' stock exchanges entered into a MoU to explore opportunities for collaboration to benefit their financial services industries. Bahrain and Singapore already have signed FTA with the US.-TradeArabia News Service