The official, speaking on condition of anonymity, said Palestinian business representatives are expected to attend the event in Manama on June 25-26, but not Palestinian government officials, who have boycotted a peace initiative led by White House senior adviser Jared Kushner.
As a result, the administration decided not to extend an invitation to Israeli government officials to a conference expected to be attended by envoys from Arab governments as well as European nations.
"We're inviting the Israeli business people and Palestinian business people. We'd like to make it as apolitical as possible," the official said.
In late May, the Palestinian Authority rejected the economic conference, saying any peace effort that ignores the Palestinian people's aspirations for an independent state is doomed to fail. A senior Palestinian official has likened the White House plan to "financial blackmail."
Bahrain's foreign minister Sheikh Khalid bin Ahmed Al Khalifa tweeted in response that his country respects the Palestinian leadership's steadfast position safeguarding Palestinian rights.
He said that both the official and popular position of Bahrain "has been and continues to be championing the brotherly Palestinian people in the restoration of their legitimate rights in their land and an independent state with its capital as east Jerusalem, additionally economically supporting the Palestinian people."
The minister added that "there's no other purpose" in hosting the conference than Bahrain's continued support of the Palestinians.
Earlier this month, Foreign Minister Israel Katz told Israeli Channel 13 News that "Israel will be at the Bahrain conference." He gave no further details.