  
  
WT/TPR/S/419 /Rev.1  
14 April 2022 
(22-3073) Page: 1/122 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
THE KINGDOM OF BAHRAIN  
Revision  
This report, prepared for the Fourth Trade Policy Review of the Kingdom of Bahrain, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Org anization), sought clarification from the Kingdom of Bahrain on its 
trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Jacques Degbelo 
(tel. 022 739 5583), Katie Waters (tel.  022 739 5067), and Michael Kolie  (tel. 022 739 5931).  
 
Document WT/TPR/G/419 contains the policy statement submitted by the Kingdom of Bahrain.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note:  This report was drafted in English.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 2 - 
 
  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Main Features of the Economy  ................................ ................................ ....................  11 
1.2   Recent Economic Developments ................................ ................................ ..................  11 
1.2.1   Macroeconomic indicators  ................................ ................................ .......................  12 
1.2.2   Monetary and exchange rate policy  ................................ ................................ ..........  14 
1.2.3   COVID -19 related measures  ................................ ................................ ....................  15 
1.2.4   Labour market developments  ................................ ................................ ..................  16 
1.2.5   Balance of payments  ................................ ................................ ..............................  18 
1.2.6   Fiscal policy  ................................ ................................ ................................ ..........  19 
1.3   Develo pments in Trade and Investment  ................................ ................................ ....... 19 
1.3.1   Trends and patterns in merchandise and services trade  ................................ ...............  19 
1.3.2   Trends and patterns in FDI  ................................ ................................ ......................  22 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  24 
2.1   General Framework  ................................ ................................ ................................ .. 24 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 25 
2.3   Trade Agreements and Arrangements  ................................ ................................ ..........  28 
2.3.1   WTO ................................ ................................ ................................ ....................  28 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 28 
2.3.2.1    Gulf Cooperation Council (GCC)  ................................ ................................ .............  28 
2.3.2.2    Pan-Arab Free Trade Area (PAFTA)  ................................ ................................ ........  30 
2.3.2.3    Agreement with the United  States  ................................ ................................ .........  30 
2.3.3   Organization of the Islamic Cooperation (OIC)  ................................ ...........................  30 
2.3.4   Other agreements and arrangements  ................................ ................................ ........  31 
2.4   Investment Regime  ................................ ................................ ................................ .. 31 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  36 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  36 
3.1.1   Customs procedures, valuation, and requirements  ................................ ......................  36 
3.1.1.1    Customs valuation  ................................ ................................ ...............................  40 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 40 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  41 
3.1.3.1    MFN applied tariffs  ................................ ................................ ..............................  41 
3.1.3.2   Tariff bindings  ................................ ................................ ................................ .... 43 
3.1.3.3    Tariff preferences  ................................ ................................ ................................  43 
3.1.3.4    Tariff concessions and exemptions  ................................ ................................ .........  44 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  45 
3.1.4.1    Value added tax (VAT)  ................................ ................................ .........................  45 
3.1.4.2    Excise tax  ................................ ................................ ................................ ..........  46 
3.1.4.3    Other duties and taxes  ................................ ................................ .........................  46 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 3 - 
 
  3.1.5   Import prohibitions, restrictions, and licensing  ................................ ...........................  46 
3.1.5.1    Import prohibitions  ................................ ................................ .............................  46 
3.1.5.2    Import restrictions and licensing  ................................ ................................ ...........  48 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  49 
3.1.6.1    Anti-dumping measures  ................................ ................................ .......................  50 
3.1.6.2    Safeguard measures  ................................ ................................ ............................  50 
3.1.7   Other measures affecting imports  ................................ ................................ ............  51 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  51 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 51 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  52 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  52 
3.2.4   Export support and promotion  ................................ ................................ .................  53 
3.2.4.1    Export subsidies, promotion,  and marketing  ................................ ............................  53 
3.2.4.2    Economic zones  ................................ ................................ ................................ .. 54 
3.2.4.3    Export finance, insurance, and guarantees  ................................ ..............................  54 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 55 
3.3.1   Incentives  ................................ ................................ ................................ ............  55 
3.3.2   Standards and other technical requirements  ................................ ..............................  57 
3.3.2.1    Standards, technical regulations, metrology, testing, and certification  .........................  57 
3.3.2.2    Marking, labelling, and packaging requirements  ................................ .......................  60 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 61 
3.3.4   Competition policy and price controls  ................................ ................................ ........  62 
3.3.4.1    Competition policy  ................................ ................................ ..............................  62 
3.3.4.2    Price controls  ................................ ................................ ................................ ..... 65 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  65 
3.3.6   Government procurement  ................................ ................................ .......................  67 
3.3.7   Intellectual property rights  ................................ ................................ ......................  70 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  70 
3.3.7.2    Industrial property  ................................ ................................ ..............................  73 
3.3.7.3    Copyright and related rights  ................................ ................................ .................  74 
3.3.7.4    Enforcement  ................................ ................................ ................................ ....... 74 
4   TRADE PO LICIES BY SECTOR  ................................ ................................ .....................  76 
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  76 
4.1.1   Main features  ................................ ................................ ................................ ........  76 
4.1.2   Policy ................................ ................................ ................................ ...................  76 
4.2   Mining and Energy  ................................ ................................ ................................ .... 77 
4.2.1   Petroleum and gas  ................................ ................................ ................................ . 78 
4.2.2   Electricity and water  ................................ ................................ ...............................  81 
4.3   Manufacturing  ................................ ................................ ................................ ..........  83 
4.3.1   Features  ................................ ................................ ................................ ...............  83 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 4 - 
 
  4.3.2   Policy o bjectives  ................................ ................................ ................................ .... 83 
4.3.3   Selected industries  ................................ ................................ ................................ . 84 
4.3.3.1    Aluminium  ................................ ................................ ................................ .........  84 
4.3.4   Petrochemicals  ................................ ................................ ................................ ...... 85 
4.4   Services  ................................ ................................ ................................ ..................  85 
4.4.1   Financial services  ................................ ................................ ................................ ... 85 
4.4.1. 1   Features  ................................ ................................ ................................ ............  85 
4.4.1.2    Banking  ................................ ................................ ................................ .............  87 
4.4.1.3    Securities  ................................ ................................ ................................ ..........  89 
4.4.1.4    Insurance  ................................ ................................ ................................ ..........  91 
4.4.2   Telecommunications and postal services  ................................ ................................ ... 92 
4.4.3   Transport  ................................ ................................ ................................ .............  97 
4.4.3.1    Mariti me transport  ................................ ................................ ..............................  98 
4.4.3.2    Air transport  ................................ ................................ ................................ ..... 100 
4.4.3.3    Road and railway transport  ................................ ................................ .................  102 
4.4.4   Tourism  ................................ ................................ ................................ ..............  102 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 105  
 
CHARTS  
 
Chart 1.1 Labour statistics by economic activity, end -2020 ................................ ....................  16 
Chart 1.2 Employment by sector and citizenship, 2020  ................................ ..........................  17 
Chart 1.3 Product composition of merchandise trade, 2014 and 2020  ................................ ...... 20 
Chart 1.4 Direction of merchandise trade, 2014 and 2020  ................................ ......................  21 
Chart 3.1 Distribution of applied MFN tari ff rates, 2021  ................................ .........................  43 
Chart 3.2 Tariffs under preferential agreements, 2021  ................................ ..........................  44 
Chart 3.3 Value of tender awards by sector, 2019 and 2020  ................................ ...................  69 
Chart 4.1 Domestic and international passenger flights, January to December 2019 and 2020  .. 100 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2014 -20 ................................ .........................  12 
Table 1.2 Balance of payments, 2014 -20 ................................ ................................ .............  18 
Table 1.3 Trade in services, 2014 -20 ................................ ................................ ..................  22 
Table 2.1 Main trade -related laws adopted during 2013 -20 ................................ ....................  25 
Table 2.2 Bilateral investment treaties involving Bahrain  ................................ .......................  34 
Table 3.1 Customs Affairs' risk criteria priorities, 2021  ................................ ..........................  38 
Table 3.2 White -list products and companies, May 2021  ................................ ........................  39 
Table 3.3 Structure of applied MFN tariffs, 2021  ................................ ................................ ... 41 
Table 3.4 Prohibited tariff lines, 2021  ................................ ................................ ..................  42 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 5 - 
 
  Table 3.5 Tariffs under preferential agreements, 2021  ................................ ...........................  43 
Table 3.6 VAT regime, 2021  ................................ ................................ ..............................  45 
Table 3.7 Revenue from taxation of merchandise, 2014 -20 ................................ ....................  46 
Table 3.8 Prohibited imports, 2021  ................................ ................................ .....................  47 
Table 3.9 Restricted imports, 2021  ................................ ................................ .....................  49 
Table 3.10 Definitive anti -dumping measures in force in Bahrain, 31  December  2020 ................  50 
Table 3.11 Prohibited exports, 2021  ................................ ................................ ...................  52 
Table 3.12 Restricted exports, 2021  ................................ ................................ ...................  52 
Table 3.13 BDB loan schemes, 2021  ................................ ................................ ...................  55 
Table 3.14 Tamkeen programmes to support SMEs, 2021  ................................ ......................  56 
Table 3.15 Government subsidies to businesses and consumers, 2021  ................................ ..... 57 
Table 3.16 Number of adopted national standard s and technical regulations by sector, up  to 
January 2021  ................................ ................................ ................................ ..................  59 
Table 3.17 Specific trade concerns raised against Bahrain, January 2014 -May 2021  ...................  59 
Table 3.18 State -owned enterprises under Mumtalakat, 31  December 2020  .............................  66 
Table 3.19 Value of government procurement by method, 2019 and 2020  ................................  69 
Table 3.20 Summary of IPR legislation  ................................ ................................ ................  71 
Table 3.21 Applications for trademarks, industrial designs, and patents; and patents granted, 
2014-20 ................................ ................................ ................................ .........................  73 
Table 3.22 IPR infringements, 2014 -20 ................................ ................................ ...............  75 
Table 4.1 Annual data on agricultural and fish production, 2015 -20 ................................ .........  76 
Table 4.2 Ownership structure of NogaHolding subsidiaries, 2021  ................................ ...........  78 
Table 4.3 Energy statistics (oil and gas), 2013 -20 ................................ ................................  79 
Table 4.4 Petroleum products and natural gas pri ces in the local market, as of January  2021 ...... 81 
Table 4.5 Installed power and water generation capacity and contributions from differe nt 
sources, 2015 -21 ................................ ................................ ................................ .............  82 
Table 4.6 Installed water production capacity and the contributions from different sources,  
2015-21 ................................ ................................ ................................ .........................  83 
Table 4.7 Evolution of the assets of the banking sector in Bahrain, 2014 -20 .............................  88 
Table 4.8 Key indicators of Bahrain Bourse, 2013 -20................................ .............................  90 
Table 4.9 Gross premiums and claims for all insurance firms by class, Q3 2018 and Q3  2019 ...... 91 
Table 4.10 Types of cl ass licence issued by the TRA  ................................ ..............................  93 
Table 4.11 Types of individual licence issued by the TRA  ................................ ........................  93 
Table 4.12 Main telecom indicators, 2013 -19 ................................ ................................ ....... 95 
Table 4.13 National fleet: carrying capacity by type of ship, 2010, 2015, and 2019  ...................  98 
Table 4.14 Shipping and maritime transport services, 2018 -20 ................................ ...............  98 
Table 4.15 Selected statistics on air transport, 2013 -20................................ .......................  100 
 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 6 - 
 
  BOXES  
Box 1.1 Economic stimulus packages in response  to COVID -19, April 2000 -June 2021  ...............  15 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports (including re -exports) by group of products, 2014 -20 .............  105 
Table A1.2 Merchandise imports by group of products, 2014 -20 ................................ ...........  107 
Table A1.3 Merchandise exports (including re -exports) by destination, 2014 -20 ......................  109 
Table A1.4 Merchandise imports by origin, 2014 -20 ................................ ............................  110 
Table A1.5 Inward FDI stocks by sector, 2014 -20 ................................ ...............................  111 
Table A2.1 Selected notifications to the WTO, 1  January  2014-31 December  2020 ...................  113 
Table A2.2 Legal requirements relating to companies  ................................ ..........................  116 
Table A3.1 Bahrain's applied MFN tariff summary, 2021  ................................ ......................  122 
 
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 7 - 
 
  SUMMARY  
1. The Kingdom of Bahrain is a high -income country, with a population of about 1.5  million and 
a GDP per  capita of USD  23,300, according to the World  Bank. As a result of long -standing 
diversification efforts, including under Bahrain's Economic Vision 2030, the services sector has 
become the backbone of the economy, accounting for nearly 60% of real GDP in 2020. Nevertheless, 
petroleum products alone still account for some 18.3% of GDP, with significant contribu tions to 
government revenue, exports, and other economic activities. The manufacturing sector (14.2% of 
GDP) is energy -intensive and the second largest contributor to non -oil GDP, while agricultural 
activities remain marginal (0.3% of GDP). The economy con tinues to rely heavily on foreign labour, 
although sustained efforts to increase the employment share of Bahrainis have borne fruit. Heavily 
involved in economic activities, the public sector, including state -owned enterprises, continues to be 
one of the l argest employers. Bahrain maintains a fixed exchange rate regime, with a conventional 
peg of the national currency, the Bahraini dinar, to the US dollar.  
2. Under its Economic Vision 2030, Bahrain implemented several projects to improve the quality 
of infrast ructure, promote digitalization, and ensure high -quality services. A medium -term Fiscal 
Balance Program (FBP) was adopted in 2018 in response to falling foreign exchange reserves, and 
high fiscal deficit and central government debt. The programme includes voluntary retirements of 
public sector employees, tax reforms, and spending controls. A financial support agreement covering 
the period 2018 -22 was also reached between Bahrain and some of its Gulf Cooperation Council 
(GCC) partners to tackle these challen ges. The reforms contributed to maintaining positive but 
fluctuating levels of economic growth, largely supported by the expansion of the non -oil sector, while 
the fixed exchange rate regime contributed to domestic price stability. However, the subsequent 
onset of the COVID -19 pandemic and the measures adopted by Bahrain to help mitigate its impact, 
including the USD  12 billion economic stimulus package, are likely to delay the success of these 
macroeconomic stabilization reforms. The economy contracted by about 5.1% in 2020 due to the 
COVID -19 pandemic and falling oil prices. Economic recovery is expected in 2021, with annual 
real GDP growth estimated at 3.1%, and at 2% -2.5% in the medium term (2022 -25), thanks to 
continued government expenditure on infrast ructure and its related impact on the non -oil sector.  
3. The economy remains highly dependent on trade, with its ratio of trade in goods and services 
to GDP fluctuating between about 176% in 2014 and 136% in 2020. Petroleum products continue 
to account for th e bulk of merchandise exports (over 40% of the total) followed by non -ferrous 
metals, while imports are dominated by crude oil destined for the national refinery, agricultural 
products, and various manufactured goods. Bahrain is a net exporter of services,  with the surplus 
on an upward path. Its main trading partners are the other GCC member States, in particular the 
Kingdom of Saudi  Arabia and the United  Arab Emirates. The shares of other partners (notably the 
European  Union, China, and Brazil) as the sour ces of imports were on an upward trend over the 
review period.  
4. Bahrain is an active participant in the multilateral trading system. It submitted various 
notifications to the WTO during the review period. Nevertheless, notifications on, inter alia, state 
trading enterprises and subsidies remain outstanding. Bahrain participates in Joint Statement 
Initiatives on e -commerce; investment facilitation for development; and micro, small, and 
medium -sized enterprises. Bahrain has never been a complainant in a WTO di spute settlement case, 
but it was a respondent in a case brought by Qatar in 2017. Bahrain also maintains a network of 
regional trade and investment agreements. These include the trade protocols under the Pan -Arab 
Free Trade Area, the Organization of the I slamic Cooperation, and the GCC. It has also a bilateral 
trade agreement with the United  States. Based on a decision by the GCC, all future trade agreements 
should be negotiated as a group.  Four bilateral investment treaties and six  double taxation 
agreeme nts were signed during the review period.   
5. Bahrain continued to improve its investment regime during the review period. In 2016, it 
implemented an online commercial registry system (SIJILAT) to simplify business registration, 
streamline licensing requireme nts, and ensure coordination between relevant agencies. In 2018, 
foreign ownership restrictions were removed on 62  business activities. Steps were also taken in 
2021 to further facilitate foreign participation in some of the selected economic activities wh ere 
foreign access remains prohibited. In fact, bookkeeping and accounting services (not including 
auditing); imports, exports, and sales of racing car fuel; cargo clearing; and fishing are allowed only 
for Bahrainis and GCC citizens and companies.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 8 - 
 
  6. Bahrain  ratified the WTO Trade Facilitation Agreement in September  2016, and the 
Government indicates that it has implemented 100% of its commitments under the Agreement, 
ahead of schedule. New trade facilitation initiatives include Bahrain's implementation of th e GCC 
unified guide on advance rulings, the launch of a remote customs clearance service, and the 
introduction of an authorized economic operator scheme and other schemes giving facilitated access 
for trusted operators. Reportedly, around 90% of goods are released without inspection, typically 
the same day.  
7. Bahrain's customs tariff is based on the common external tariff of the GCC, except for 34  items 
(prohibited by Bahrain) on which each GCC member State is free to set its own regime. 
Non-ad valorem  (mixed ) duties apply to tobacco and tobacco products (20  tariff lines). Bahrain's 
simple average applied MFN tariff rate was 4.7% in 2021 (down from 5.1% in 2013), with ad valorem  
tariff rates ranging from zero to 100%. Average applied rates are higher at 5.4% o n agricultural 
products (WTO definition) than on non -agricultural products (4.6%). Tobacco products are subject 
to the highest duties ( ad valorem  or mixed). On the basis of the ISIC nomenclature, the mining and 
quarrying sector and manufacturing are each s ubject to the highest average tariff rate of 4.9%.  
8. Bahrain has bound about 70% of its tariffs at rates ranging up to 200% on alcohol products. 
The average bound tariff is 34.7%, giving Bahrain a large amount of flexibility to increase applied 
tariffs. More over, the imposition of mixed tariffs on tobacco and tobacco products on which the 
binding is ad valorem  (100%) does not ensure compliance with Bahrain's commitments.  
9. Bahrain has a low -tax environment. Corporation taxes are levied only on companies in the oil 
and gas sectors and those that generate profits from hydrocarbon extraction or refinement. 
However, as part of the FBP, Bahrain introduced excise taxes on tobacco, energy drinks, and 
carbonated drinks, and a value added tax (VAT) at a standard rate of 5%. Although the excise duty 
and the VAT apply equally to locally produced goods and imports, most of the revenue deriving from 
these taxes comes from imports, due to a low level of domestic production.  
10. Since its last Review, Bahrain has i ntroduced import prohibitions on waste, parings, and scrap 
of plastic. Together with the other GCC member States, it imposed definitive anti -dumping duties 
on four  products from five WTO Members, and safeguard duties on imports of certain iron/steel 
produc ts and chemical plasticizers. It imposed (and subsequently lifted) export prohibitions on face 
masks and export licensing requirements on alcohol solution, hand sanitizer, and other disinfectants.  
11. Bahrain provides various programmes to support domestically  established industries, 
including tariff exemptions for inputs used by companies having an industrial licence and, in some 
cases, incentives to encourage exports. Since the last Review, new initiatives have included a loan 
scheme for women's commercial st art-ups, a Liquidity Support Fund for companies' working capital 
requirements, a pilot grant initiative for first -time exporters, and a business development 
programme for small and medium -sized enterprises (SMEs). Additionally, the recently established 
export promotion agency, Export Bahrain, has entered into partnership agreements with 
state-owned and private -sector entities to enable companies to access transportation and related 
services discounts, access export credit facilities, and market local produc ts. In parallel, Bahrain 
removed consumer subsidies for beef, chicken, and petrol.  
12. In 2016, Bahrain enacted a new law on standards and metrology to enable the adoption of 
international standards and expand the scope of work to be aligned with international  and regional 
practices. A "Made in Bahrain" mark was launched to promote local products. Various specific trade 
concerns were raised regarding GCC technical regulations in the WTO TBT Committee and one 
specific trade concern was raised in the SPS Committe e. 
13. In 2018, Bahrain enacted the Law on Competition Promotion and Protection and subsequently 
issued various implementing orders. The Law regulates anti -competitive practices, abuse of 
dominant position, and economic concentration. Pending the establishment  of the Competition 
Promotion and Protection Authority, the Law is being implemented by the Ministry of Industry, 
Commerce and Tourism's Consumer Protection Directorate, and there have not yet been any 
competition -related investigations.  
14. Bahrain has been a n observer to the WTO's plurilateral Agreement on Government 
Procurement (GPA) since 2008. Recent developments in its regime on government procurement WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 9 - 
 
  include the full automation of its electronic tendering system and the introduction of a 10% price 
prefer ence for SMEs in government tenders for goods, construction, and service contracts. In the 
intellectual property (IP) rights sphere, Bahrain approved the GCC Trademarks Law, issued 
implementing regulations for trademarks and patents and utility models, and  launched an e -service 
platform enabling filing of industrial property applications online. Bahrain also became party to 
various IP -related international conventions.  
15. Bahrain continues to rely on imports to meet its domestic demand for most agricultural 
products, despite the Government's efforts to promote the sector. The main incentive programmes 
for agriculture include preferential loans to farmers, subsidized prices for irrigation and greenhouse 
equipment, and the provision of various agricultural servic es. The agriculture, hunting, and fishing 
sector (ISIC definition) benefits from the lowest average tariff protection of 3.0%, but with rates 
ranging up to 100% on tobacco.  
16. The petroleum and gas industry remains of great importance to the economy. State ow nership 
is high in exploration, exploitation, and marketing activities. NogaHolding, the investment arm of 
the National Oil and Gas Authority, administers the Government's shares in 13  companies, mostly 
in the energy sector. The import and export of petrol eum products are solely conducted by the 
Bahrain Petroleum Company, a subsidiary of NogaHolding. Bahrain's efforts in this sector aim to 
promote energy -efficiency and environmentally friendly practices, while optimizing the industry's 
contribution to its e conomic prosperity. The declared objective is to achieve 10% production of 
energy from renewable sources by 2035. To this end, a resolution adopted in 2017 aims to promote 
clean energy production from renewable sources, and to increase the share of the lat ter in the energy 
mix. While power generation has been open to competition, its transmission and distribution remain 
exclusively under the responsibility of the publicly owned Electricity and Water Authority. Import 
tariff rates average 4.9% in the mining and quarrying sector (ISIC definition) and range up to 5%.  
17. The manufacturing sector is dominated by energy -intensive industries such as aluminium and 
petrochemical production. The main manufacturing companies are large and partially state -owned. 
In fact, Aluminium Bahrain Company is one of the largest aluminium companies in the world. It is a 
joint venture between the Saudi Arabian Basic Industries Corporation and Bahrain's Mumtalakat. 
Bahrain has undertaken efforts in recent years with a view to building an environmentally friendly 
manufacturing sector. Manufacturers are encouraged, through various means, to shift to cleaner 
production activities. An environmental impact assessment has to be made before a project is 
launched. Import tariff rates average 4. 9% in the manufacturing sector (ISIC definition) and range 
from zero up to 100%.  
18. Financial services are the largest non -oil contributor to Bahrain's real GDP. They are open to 
foreign investment and comprise a large number of Islamic and conventional finan cial companies. 
Bahrain has recently taken steps to promote the fintech industry; several supporting regulations 
were adopted, and a number of licences were granted in the area of crypto -asset services. The 
Central Bank of Bahrain also adopted new measures , in line with certain Basel III requirements, to 
further mitigate risks in banking activities. Responsibilities of the Compliance Directorate of the 
Central Bank were extended to include anti -money laundering and combating the financing of 
terrorism.  
19. In the securities industry, the Central Bank adopted certain measures to further develop 
Bahrain's capital markets and promote transparency, including the obligation of listed companies to 
immediately announce any dividend distribution and relevant informatio n. Regarding insurance 
activities, in 2019, the Central Bank prohibited insurance licensees from having any form of direct 
or indirect exposure to their controllers (including subsidiaries and associated companies of the 
controllers).  
20. Telecommunications se rvices are open to foreign investment. In 2019, Amazon Web Services 
chose Bahrain as its regional hub. Bahrain deployed 5G towers in 2019 and has now achieved full 
5G coverage. A number of regulations were adopted to strengthen cybersecurity. In July  2018,  a 
personal data protection law was issued and came into force in August  2019. Other recent 
regulations concerning personal data protection include rules on electronic transactions, and on 
technical requirements for sending, receiving, and updating the ele ctronic records and signatures of 
public bodies.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 10 - 
 
  21. Bahrain established a strategic plan on land transport, and investments in bus transportation 
and infrastructure were undertaken, notably through different public -private partnerships. Steps 
were also taken to further regulate internal and international transport for passengers. Maritime 
services are, in general, provided by private companies. Foreign participation was further eased 
during the review period, and full foreign participation was allowed in, inter alia, re-exportation of 
goods and other logistics value -added services, ship building and repair services, pilotage, and 
towage. Bahrain International Airport's infrastructure was modernized in 2021 to further improve its 
passenger handling capacity and better support the tourism industry, which has been affected by 
the global pandemic and related travel restrictions. Moreover, international events that involve large 
numbers of visitors have been promoted with a view to strengthening the position of Bahra in as an 
important destination for both regional and international tourists. Established in 2015, the Bahrain 
Tourism and Exhibitions Authority remains in charge of regulating all tourism activities.  
 
 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 11 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Kingdom of Bahrain is considered as a high -income country by the World Bank.1 The 
national currency is the Bahraini dinar (BHD) , which is pegged to the US dollar. In 2020, Bahrain's  
GDP per  capita stood at USD  23,300 and its population at 1.5  million. Bahrain's workforce is 
characterized by a high degree of foreign labo ur on which the economy is heavily reliant. While the 
services sector, particularly financial services, has become the main pillar of the economy, 
accounting for 58.3% of GDP in 2020 (in real terms), hydrocarbons remain a significant economic 
activity (18.3% of GDP in the same year) and the major source of government revenue, given limited 
taxation of other activities (Section  3.3.1). The manufacturing sector is dominated by production of 
aluminium  and petrochemicals (Section  4.3.3); in 2020 , it accounted for 14.2% of GDP (Table  1.1). 
1.2.  In light of an elevated fiscal def icit and high levels of public debt (Section  1.2.6) and its 
commitment to the United Nations' Sustainable Development Goals (SDGs), Bahrain is striving to: 
(i) continue diversifying its economy; (ii) improve its energy production capacity (Section  4.2)2; 
(iii) introduce new revenue streams (Section  3.1.4); and (iv) improve efficiency in government 
expenditure. Since the last Review, Bahrain's economy has been impacted by the COVID -19 
pandemic and by tumbling oil prices, most notably over the periods 2014 -16 when the brent crude 
oil price dropped from USD  98.9/barrel to USD  44/barrel, and 2018 -20, when the price of oil drop ped 
from USD  71.1/barrel to USD  42.3/barrel (Section  1.2.1).  
1.3.  Bahrain's economy was categorized in 40th place of 178  economies and as "moderately free" 
in the Heritage Foundation's 2021 Index of Economic Freedom , with the principal obstacle facing the 
country reported to be its high debt.3 It was ranked in  42nd place of 189  economies in the 2020 
UNDP Human Development Index4 and in 78th place out 180  economies in Transparency 
International's 2020 Corruption Perceptions Index.5 
1.2  Recent Economic Developments  
1.4.  Bahrain continues to implement its Economic Vision 2030 (Vision  2030) strategy , which has 
been in place since 2008. Integrated withi n this long -term framework, the strategy is also 
implemented using four -year Government Plans. Since 2015, Government Plans have been reviewed 
by the Council of Representatives, which demonstrates a greater involvement by the legislative 
authority. The  Vision 2030 strategy and the  current priorities of the 2019 -22 Government Plan are 
described in Section  2.2. 
1.5.  New measures to reform, support , and diversify the economy over the review period have 
included: (i) the issuance of Bahrain's Fiscal Balance Program in 2018 , which provides a roadmap 
for improving Bahrain's fiscal situation in the medium  term (Section  1.2.6); (ii) the establishment 
of a Liquidity Support Fund to support the working capital requirements of viable companies that 
have short -term liquidity  pressures (Section  3.3.1); (iii) various support measures in response to 
the COVID -19 pandemic (Section  1.2.3); (iv) enhanced infrastructure (Section s 4.2, 4.3, and 
4.4.3); (v) improvements to the regulatory environment to support investment, through the 
issuance of laws in the areas of bankruptcy, competition, commercial companies , and notarization 
(Section s 2 and 3.3.4.1); (vi) development and simplification of government procedures 
 
1 World Bank, World Development Indicators.  Viewed at: https://datatopics.worldbank.org/world -
development -indicators/the -world -by-income -and-region.html . 
2 Bahrain intends to improve its energy produ ction capacity through the Bahrain Petroleum Company 
(BAPCO) Modernization Program; this is expected to increase BAPCO's refining capacity from 267,000 barrels 
per day (bpd) to 380,000 by 2022. Kingdom of Bahrain, Bahrain Economic Report 2019 , March  2020. 
Viewed  at: https://www.mofne.gov.bh/Files/cdoc/FI1267 -BEQ%202019%20EN%20FINAL.pdf . 
3 Heritage Foundation, 2021 Index of Economic Freedom . Viewed at: 
https://www.heritage.org/index/country/bahrain . 
4 UNDP, Human Development Report 2020 . Viewed at: 
http://hdr.undp.org/sites/def ault/files/hdr2020.pdf . 
5 Transparency International, Corruption Perceptions Index 2020 . Viewed at: 
https://www.transparency.org/en/cpi/2020/index/nzl . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 12 - 
 
  (Section  2)6; and (vii) Tamkeen's (the Government Labour Fu nd) program mes to strengthen the 
role of the private sector.  
1.2.1   Macroeconomic indicators  
1.6.  Bahrain posted positive annual real GDP growth over the period 2014 -19, largely supported by 
growth in the non -oil sector. However, the economy contracted by an estimated  5.1% in 2020 due 
to the COVID -19 pandemic and falling oil prices. The non -oil sector was the most affected, with a 
6.2% decline (Table  1.1). Real GDP is expected to grow by 3.1% in 2021. With respect to the 
medium -term outlook (2022 -25), growth is expecte d to average between 2 %-2.5% annually , thanks 
to government expenditure on infrastructure and its related impact on the non -oil sector.7 
1.7.  Bahrain's services sector has continued to expand, supported by a substantial financial services 
segment. In 2020, ser vices as a whole accounted for 58.3% , compared with 55.7% in 2014. Over 
the review period, the GDP share of crude petroleum and natural gas declined, from 20.4% in 2014 
to 18.3 in 2020 in real terms. The manufacturing sector's share in GDP fluctuated sligh tly 
year-on-year over the review period and was 14.2% in 2020. Agriculture and fisheries maintained 
a steady 0.3% share of GDP throughout the review period (Table  1.1). 
Table 1.1 Selected macroeconomic indicators, 2014 -20 
 
2014  2015  2016  2017  2018  2019  2020a 
GDP at current prices (BHD billion)  12.6 11.7 12.1 13.3 14.2 14.5 13.1 
GDP at constant prices (BHD billion)  11.3 11.5 11.9 12.5 12.7 13.0 12.3 
GDP at current prices (USD billion)  33.4 31.1 32.2 35.5 37.8 38.7 34.7 
GDP at constant prices (USD billion)  30.0 30.6 31.6 33.2 33.8 34.6 32.7 
Real GDP percentage change (in 
constant prices, base year 2010)  4.4 2.5 3.6 4.3 2.1 2.1 -5.1 
Real oil sector GDP percentage 
change  3.0 -0.1 -0.1 -0.7 -1.3 2.2 -0.1 
Real non-oil sector GDP percentage 
change  4.7 3.1 4.5 5.5 2.9 2.1 -6.2 
GDP per capita (USD  1,000)  22.8 22.4 22.3 22.1 22.5 23.3 22.3 
Population (million)  1.3 1.4 1.4 1.5 1.5 1.5 1.5 
Total employment by citizenship 
(% of total employment)b        
Bahraini  .. 23.6 21.6 22.6 22.9 23.0 25.2 
Non-Bahraini  .. 76.4 78.4 77.4 77.1 77.0 74.8 
Unemployment, overall (% of total 
labour force)  3.7 3.4 3.9 4.1 4.3 4.7a 5.9a 
Inflation (CPI, % change)  2.6 1.8 2.8 1.4 2.1 1.0 -2.3 
GDP by type of expenditure (% of GDP at real prices)  
Total final consumption  58.0 58.2 55.9 55.8 55.7a 53.8a .. 
Government  16.3 16.5 15.8 16.8 16.8a 16.2a .. 
Private  41.6 41.7 40.2 39.0 38.9a 37.6a .. 
Gross fixed capital formation  26.6 23.8 25.4 27.0 29.0a 28.9a .. 
Government  4.2 4.0 3.6 4.6 4.9a 4.2a .. 
Private  22.4 19.8 21.8 22.3 24.1a 24.6a .. 
Change in stocks  1.1 0.7 2.1 3.2 2.7a 0.9a .. 
 
6 These include the implementation of  the new online commercial registration portal (SIJILAT), the 
establishment of a government auction company (Mazad) in 2017, and privatization of a number of 
government services in the areas of infrastructure, transport, healthcare, and administrative serv ices. 
7 World Bank (October 2020), Bahrain Economic Update . Viewed at: 
https://www.worldbank.org/en/country/gcc/publication/economic -update -october -2020-bahrain . Major 
infrastructure projects include the Bahrain Petroleum Company (BAPCO) modernization and expansion project; 
the King Hamad Causeway transport infrastructure project; the Bahrain International Airport modernization 
programme; the constructi on of a gas processing plant; housing and resort projects; and electricity, water, 
road, and sewerage projects. US International Trade Administration (September 2020), Bahrain - Country 
Commercial Guide . Viewed at: https://www.trade.gov/country -commercial -guides/bahrain -construction -and-
infrastructure . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 13 - 
 
   
2014  2015  2016  2017  2018  2019  2020a 
Net exports of goods and services  14.2 17.3 16.5 14.0 12.6a 16.5a .. 
Exports of goods and services  89.7 86.8 81.5 81.0 82.2a 81.0a .. 
Imports of goods and services  75.5 69.4 64.9 67.0 69.6a 64.5a .. 
GDP by economic activity (% of GDP at real prices)  
Agriculture and fishing  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Mining and quarrying, of which:  21.1 20.6 20.0 19.1 18.5 16.5 19.1 
Crude petroleum and natural gas  20.4 19.9 19.2 18.3 17.7 15.7 18.3 
Manufacturing  14.6 14.7 14.9 14.5 14.4 14.9 14.2 
Electricity and water  1.4 1.1 1.1 1.0 1.0 1.0 1.0 
Construction  6.8 7.0 7.2 7.0 7.2 7.4 7.1 
Services, of which:  55.7 56.3 56.6 58.1 58.6 59.9 58.3 
Trade  4.4 4.4 4.4 4.6 4.5 4.5 4.4 
Hotels and restaurants  2.3 2.3 2.3 2.4 2.3 2.4 2.2 
Transport and communication  7.0 7.3 7.3 7.9 8.3 8.6 8.2 
Social and personal services  5.6 5.7 5.9 6.2 6.3 6.4 6.1 
Real estate and business activities  5.5 5.5 5.7 5.8 5.6 5.8 5.5 
Financial corporations  16.4 16.4 16.5 16.6 16.8 17.1 16.5 
Financial institutions  4.7 4.9 5.1 5.3 5.3 5.4 5.2 
Offshore financial institutions  6.6 6.4 6.2 5.9 6.1 6.2 5.9 
Insurance  5.1 5.1 5.2 5.4 5.4 5.5 5.4 
Government services  12.8 12.9 12.8 12.8 12.7 13.0 13.5 
Public finance (% of GDP)c        
Revenue  25.0 17.0 16.0 17.0 20.0 20.0 16.0 
Net oil and gas revenue  21.0 14.0 12.0 12.0 16.0 14.0 9.0 
Non-oil revenue  3.0 4.0 4.0 4.0 3.0 6.0 7.0 
Grants  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Expenditure  28.0 30.0 29.0 27.0 26.0 25.0 29.0 
Balance ( - indicates deficit)  -4.0 -13.0 -13.0 -10.0 -6.0 -5.0 -13.0 
Public debt (% of GDP)         
Central government debt  44.0 62.0 73.0 80.0 88.0 93.0 115.0  
External debt  20.0 26.0 35.0 43.0 50.0 56.0 73.0 
Domestic debt  24.0 35.0 38.0 37.0 38.0 37.0 41.0 
Money and interest rates         
Broad money (M2) (annual 
percent age change)  6.5 2.9 1.2 4.2 2.4 11.1 6.5 
Broad money and government 
deposits (M3) (annual percent age 
change)  3.7 2.2 1.1 4.2 0.8 8.3 3.5 
Interest rate on personal loans  5.4 5.1 4.8 5.0 5.2 4.9 4.8 
Interest rate on deposits 
(3-12 months)  1.0 1.1 1.3 1.6 2.4 1.6 1.2 
Repos  2.3 2.3 2.8 3.3 4.3 4.1 2.3 
External sector         
BHD/USD  0.38 0.38 0.38 0.38 0.38 0.38 0.38 
BHD/EUR  0.46 0.41 0.40 0.45 0.43 0.42 0.46 
Nominal effective exchange rate 
(percentage change; minus= 
depreciation)  1.5 7.8 2.2 0.6 -0.3 2.8 1.0 
Real effective exchange rate 
(percentage change; minus= 
depreciation)  1.6 7.8 3.0 -0.1 -0.7 2.5 -2.9 
Total reserves (USD billion)  6.2 3.5 2.6 2.8 2.3 3.9 2.5 
Total reserves in months of imports  2.5 1.6 1.2 1.2 0.9 1.9a 1.3a 
Current account (% of GDP)  4.6 -2.4 -4.6 -4.1 -6.5 -2.1 -9.4 
Trade in goods and services (% of 
GDP) 175.6  154.4  139.2  143.1  151.4  142.4  136.2  
Oil exports (% of GDP)  43.4 24.9 18.9 24.1 28.1 25.7 17.2 
Workers' remittance outflows 
(USD  million)  2,364  2,367  2,391  2,466  3,269  2,890  2,738  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 14 - 
 
   
2014  2015  2016  2017  2018  2019  2020a 
Price of crude oil, brent (USD/ bbl, 
nominal)  98.9 52.4 44.0 54.4 71.1 64.0 42.3 
Price of crude oil, brent (USD/ bbl, 
real 2010 USD)  91.4 53.5 46.8 55.9 69.8 64.4 42.7 
Bahrain crude oil production 
('000 barrels/day)  48.8 50.6 48.5 44.2 42.1 42.4 43.3 
Abu Safa  crude production 
('000 barrels/day)  153.6  151.9  153.5  153.0  151.9  152.0  151.0  
.. Not available.  
a Provisional data.  
b Including all civilian employed persons in the private and public sectors (insured, uninsured , and 
self-employed) and domestic workers.  
c Based on statistics (total state budgeted revenues and expenditures) sourced from Ministry of 
Finance and National Economy.  
Source:  Information provided by the authorities; Information and eGovernment Authority, Bahrain Open 
Data Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; Central Bank of Bahrain, 
Statistical B ulletin , February 2021. Viewed at: https://www.cbb.gov.bh/publications/ ; Ministry of 
Finance and National Economy, Open Data. Viewed at: https://www .mofne.gov.bh/OpenData.aspx ; 
Labour Market Regulatory Authority, Bahrain Labour Market Indicators. Viewed at: 
http://blmi.lmra.bh/2020/12/mi_dashboard.xml ; National Oil and Gas Authority (NOGA) . Viewed at: 
http://www.noga.gov.bh/noga/publications.aspx#show_pdf_39 ; World Bank, Commodity Markets . 
Viewed at: https://www.worldbank.org/en/research/commodity -markets ; and IMF data. Viewed at: 
https://data.imf.org/ . 
1.8.  During 2014 -20, the average inflation rate, as measured by the Consumer Price Index (CPI), 
was 1.3%. It fl uctuated over this period, peaking at 2.8% in 2016 and witnessing a sharp decline 
from 2018 (2.1%) to 2020 ( -2.3%) (Table  1.1). As reported by the Ministry of Finance and National 
Economy  (MOFNE) , deflation in 2020 largely resulted from  a 2.6% fall in the price of the housing, 
water, electricity, gas , and other fuels category (the largest single component in the CPI basket). 
However, the recreation and culture category recorded the largest decline in this year (with prices 
falling by 31.2%). Inflation is ex pected to remain low and stable; according to the authorities , it is 
forecast to climb to 2% in 2021 and 2.5% in 2022.  
1.2.2   Monetary and exchange rate policy  
1.9.  Over the review period, the Central Bank Law was amended three times – in 2015, 2016 , and 
2020.8 The 2 015 amendment mainly concern ed the establishment of Credit Reference Bureaus and 
the way they operate. The 2016 amendment related mainly to licensees under administration with 
a new provision on how a moratorium on court proceedings may be imposed for such  licensees. The 
administrator was also given further powers to be able to effectively protect the interests of 
customers, creditors , and shareholders of the licensee under administration. The 2020 amendment 
included adding maintenance of financial stabilit y to the C entral Bank of Bahrain's (CBB)  objectives , 
chang ing the provision on financial penalties to permit the imposition of such penalties on listed 
companies  in the case of violations , adding a provision in relation to the CBB's power to specify the 
Sharia standards applicable to contracts and transactions that are concluded by financial institutions 
that are subject to Sharia , and adding provision s on mergers and acquisitions of listed companies.  
1.10.  Bahrain has a fixed exchange rate regime. The Bahraini dinar, the national currency, has been 
conventionally pegged to the US dollar (1  BHD = USD  2.659) since 2001.9 The main monetary policy 
instruments used over the review period include FX swap facilities, standing facilities (lending and 
deposit facilities) , the CBB Wakalah facility10, and policy interest rates. Bahrain accepted the 
obligations of Article  VIII of the IMF Agreement on March  1973. Following concerns about Bahrain's 
currency peg sustainability, with foreign currency reserves falling to USD  0.9 billion in 2018 
(equivalent to 0.9  months of imports) (Table  1.1), a financial support agreement was reached 
between Bahrain, the Kingdom of Saudi  Arabia, the United  Arab Emirates , and the State  of Kuwait. 
 
8 CBB, CBB Law . Viewed at: https://www.cbb.gov. bh/laws -regulations/ . 
9 IMF, Annual Report on Exchange Arrangements and Exchange Restrictions 2019 . Viewed at: 
https://www.imf.org/en/Publications/Annual -Report-on-Exchange -Arrangements -and-Exchange -
Restrictions/Issues/2020/08/10/Annual -Report -on-Exchange -Arrangements -and-Exchange -Restrictions -2019-
47102 . 
10 CBB, Monetary Policy . Viewed at: https:// www.cbb.gov.bh/monetary -policy/#wk . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 15 - 
 
  The agreement provided USD  10 billion in finan cial support to Bahrain over the period 2018 -22. The 
funds are intended to be spent on maturing public debt and budget deficit support.11 
1.11.  In June  2009, Bahrain, the State  of Kuwait, Qatar, and  the Kingdom of  Saudi  Arabia signed 
an agreement to form a monetary union, the so -called Gulf Monetary Council (GMCO) , which  is 
based in Riyadh. The agreement was ratified and entered into force in March  2010. However, the 
date for adoption of a single currency is yet to be determined. The GMCO's membership is ope n only 
to countries of the Gulf Cooperation Council (GCC).  
1.2.3   COVID -19 related measures  
1.12.  To mitigate the impact of the COVID -19 pandemic, Bahrain established a National Taskforce 
and announced an economic stimulus package in 2020 consisting of various support initiatives worth 
around USD  12 billion. Measures introduced included extending Bahrain's Liquidity  Support  Fund 
initiative (Section  3.3.1), interest rate subsidies, loan restructuring and salary support, rent 
subsidies , and grants and utility relief for business (Box  1.1). 
Box 1.1 Economic stimulus packages in response to COVID -19, April  2000 -June  2021  
Initiatives announced in March and April  2020  
Paid full salaries of insured  Bahrainis employed in the private sector for three  months; doubled the Liquidity 
Support Fund to BHD  200 million; redirected Tamkeen's programs to support affected companies; exempted 
all tourism -related industries from tourism levies for three  months; ex empted some of the fees levied by the 
Labour Market Regulatory Authority (LMRA) for three  months; paid all Electricity and Water Authority (EWA) 
utility bills for all accounts for three  months; issued directives to increase banks' lending ability including 
deferral of loans for six  months; supported taxi drivers and driving instructors (BHD  300 monthly for 
three  months); postponed mortgage instalments collected by Eskan Bank for six  months; granted an 
exemption from municipal fees for all accounts for three  months; exempt ed all businesses from government 
industrial land rental fees for three  months; supported kindergarten and nursery teachers (paid full salaries 
for three  months); suspended rent collection from the shops owned by Eskan Bank for thre e months; and 
suspended rent collection from properties owned by the Supreme Council for Environment (SCE) for 
three  months.  
Initiatives announced in June and July  2020  
Paid 50% of salaries of insured Bahrainis (in adversely affected sectors) for three  months; paid EWA utility 
bills for Bahrainis' first home for three  months; extended support to taxi drivers, driving instructors , and 
nursery teachers at 50% for three  months; exempt ed Bahrainis in their first  home from municipal fees for 
three  months; extend ed exemption of all tourism -related industries from tourism levies for three  months; 
reduced the fees levied by LMRA by 50% and exempted adversely impacted companies for three  months; 
exempted businesses that export at least 30% of their products from indu strial land rental fees for 
three  months; extended Tamkeen's Business Continuity Support (BCS) Program for three  months; and waived 
the 2020 CR renewal and commercial activity fees.  
Adversely affected sectors: catering and restaurants , personal services, t ravel and aviation, training and 
rehabilitation, transport, newspapers, manufacturing, health, retail (except food), administrative services , 
real estate and construction , and any other adversely impacted sectors, except financial services, 
telecommunications, professional services , and schools and universities.  
Initiatives announced in September  2020  
Paid 50% of salaries of insured Bahrainis employed in most adversely impa cted companies for three  months; 
paid EWA utility bills for Bahrainis in their first  homes for three  months; exempted Bahrainis in their 
first homes from municipal fees for three months; exempted all tourism -related establishments from tourism 
levies for t hree months; extended support given to taxi drivers, driving instructors , and nursery teachers at 
50% for three  months; and extended option for deferral of loans by banks, as agreed with the CBB, for 
three  months.  
Most adversely impacted sectors: restauran ts, entertainment, cinemas, exhibition cent res, event halls, travel 
and aviation, tourism, hotels, training and rehabilitation, transportation, and retail (except food).  
Initiatives announced in first quarter of 2021  
Extended Tamkeen's BCS Program for clos ed businesses for three months; paid 50% of salaries of Bahrainis 
working in closed businesses as part of the BCS Program for three  months; exempted closed businesses from 
municipal fees for three  months; exempted all tourism -related establishments from to urism levies for 
three  months; extended option for deferral of loans for six months; paid BHD  300 a month to tour guides for 
nine months; and extended Tamkeen's BCS for gyms and exhibition halls for six  months.  
Closed businesses: entertainment halls, cinem as, event and exhibition halls , and spas.  
 
11 Kingdom of Bahrain, Fiscal Balance Program . Viewed at: https://www.mofne.gov.bh/fbp_en.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 16 - 
 
  Initiatives announced in June  2021  
The following initiatives were extended for adversely impacted sectors: paid 100% of salaries in June  2021 
and 50% of salaries in July and August  2021 for insured Bahrainis employ ed in adversely impacted companies; 
exempted businesses from municipal fees for three  months; relaunched the Liquidity Support Fund with a 
focus on small and medium -sized enterprises; waived the 2020 commercial registration renewal fees and 
commercial activity fees; extended the Tamkeen's BCS Program for closed businesses; exempted all tourism -
related establishments from tourism levies for three  months; and exempt ed tenants of government -owned 
properties from the payment of rent for three  months. 
Adversely affected sectors: catering and restaurants , personal services , travel and aviation , training and 
rehabilitation , transport , newspapers , manufacturing (except large companies) , health (except hospitals and 
pharmacies) , retail (except food) , administrative services , real estate and construction , and any other 
adversely impacted sectors except financial services, telecommunications, professional services, and schools 
and universit ies.  
Source:  Information provided by the authorities.  
1.2.4   Labour market developments  
1.13.  The main sources of employment in Bahrain are the construction sector and the wholesale, 
retail, and repair services segment , which together account for nearly 50% of employ ment 
(Chart  1.1). As indicated by the authorities, Bahraini citizens tend to be employed in high -income 
jobs, and are highly represented in the public sector (see below) and the utilities and financial 
services sectors (Chart  1.2). 
Chart 1.1 Labour statistics by economic activity, end -2020  
(% of total employmenta) 
 
a Including Bahraini and non -Bahraini nationals.  
Source:  Information provided by the authorities.  
1.14.  The Labor Law ( Law No.  36 of 201212) was amended twice over the review period. 
Amendments in 2018 introduced provisions regarding the payment of wages; the prohibition of 
discrimination between labo ur according to race, origin, faith, language , or religion; and penalties 
related to harassment in  the workplace.13 Further amendments in 2021 prohibit discrimination in 
 
12 Law No.  36 of 2012. Viewed at: https://lmra.bh/portal/en/page/show/199 . As indicated in the 
previous Review, the aim of the Law is to establish better working conditions and increase salaries. It, 
inter alia, aligns private sector labour practices with the government sect or, expedites the process for labour 
disputes, extends legal protection for domestic staff, prohibits discrimination practices, and increases employee 
benefits including with respect to leave (e.g. maternity leave).  
13 Decree -Law No.  59 of 2018 amending som e provisions of the Labor Law in the Private Sector 
promulgated by Law No.  36 of 2012. Viewed at: 
https://www.legalaffairs.gov.bh/AdvancedSearchDetails.aspx?id=14597 . 
Agriculture, hunting and 
forestry 0.3%Fishing 0.6%
Mining and quarrying
2.2%
Manufacturing
10.8%Electricity, gas and water 
supply 0.3%
Construction 23.9%
Wholesale/retail, repair 
vehicles and personal 
goods 23.4%Hotels and restaurants
5.3%Transport, storage and 
communications 6.1%Real estate, rentals and 
associated activities 7.4%Financial services 3.0%Education 2.5%Health and social work 1.9%Non-health -related social work
2.2%
Other 
10.2%Chart 1.1, Employment by sector and citizenship, 2020
Source: Information provided by the authorities.% of total employmenta
a     Including Bahraini and non -Bahraini nationalsWT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 17 - 
 
  wages between male and female workers for work of equal value.14 A wage protection scheme was 
introduced in 2019 to implement provisions contained in the Labour Law.15 Unemployment in Bahrain 
was relatively low and stable between 2014 to 2020, ranging from 3.4% to an estimated peak of 
5.9%. Bahrain's workforce continues to be largely composed of foreigners (74.8% of the workforce) 
(Table 1.1), with a large representation of unskilled co nstruction workers.16 The share of Bahraini 
citizens in the workforce was highest in 2020, with a 25.2% share in total employment (Table  1.1). 
Chart 1.2 Employment by sector and citizenship,  2020  
 
Source:  Information provided by the authorities.  
1.15.  As part of the 2018 Fiscal Balance Program (Section  1.2.6), a voluntary retirement scheme 
for public -sector employees was introduced , which resulted in a 13.2% reduction in the number of 
public -sector employees between 2018 and 2019.17 The total number of people employed in the 
public sector in the first half of 2019 was 49,125. Over 89% of public -sector workers are Bahraini 
citizens.  
1.16.  The relatively low par ticipation of Bahrainis in the labo ur market has led the authorities to 
launch various initiatives to help Bahraini nationals compete for jobs (so -called "Bahrainization"). 
Tamkeen  continues to foster the formation and growth of local firms, and help Bahra ini nationals 
obtain employment in the private sector by  funding training initiatives, and collaborating with other 
agencies in the provision of grants and loans (Section  3.3.1). In 2019, the National Employment 
Program was launched to further increase job  opportunities for Bahrainis, secure quality jobs in the 
private sector for them , and make citizens the first choice of employment. It has four components: 
(i) a registration campaign to raise awareness and encourage individuals to register on the 
unemploy ment database; ( ii) increased unemployment benefits; ( iii) increased fees for the Parallel 
System and Flexi Work Permit18; and ( iv) the redesign of Tamkeen's training and wage support 
 
14 Decree-Law No.  16 of 2021 amending some provisions of the Labor Law in the Private Sector 
promulgated by Law No.  36 of 2012. Viewed at: 
https://www.legalaffairs.gov.bh/Legi slationSearchDetails.aspx?id=36288 . 
15 Resolution No.  68 of 2019. Viewed at: https://lmra.bh/portal/en/legal/show/64 . 
16 US Department of State, 2020 Investment Climate Statements: Bahrain . Viewed at: 
https://bit.ly/2MnL4Op . 
17 Kingdom of Bahrain, Bahrain Economic Report 2019 . Viewed at: 
https://www.mofne.gov.bh/Files/cdoc/FI1267 -BEQ%202019%20EN%20FINAL.pdf . 
18 The Parallel Bahrainization System allows companies that need more work permits for non -Bahrainis  
but did not reach the required "Bahrainization" proportion to pay an additional amount of the issue fee for each 
new permit issued outside the prescribed Bahrainization proportion. The Flexi Work Permit allows certain 
expatriates to live in Bahrain and wo rk in any non -specialized occupation without a sponsor for a renewable 
period of one to two years. Those eligible are expatriates with terminated or expired work permits or those 
who have not received their wages and have a case in the labour court. Labour  Market Regulatory Authority. 
Viewed at: https://lmra.bh/portal/en/faq/question/55  and https://lmra.bh/portal/en/page/show/325 .  
0%10%20%30%40%50%60%70%80%90%100%Bahraini Non-Bahraini
Source: Information provided by the authorities.
Agriculture,hunting 
and forestry
Fishing
Mining and 
quarrying
Manufacturing
Electricity,gas and 
water supply
Construction
Wholesale/retail, 
repair vehicles and 
personal goods
Hotels and 
restaurants
Transport, storage and 
communications
Real estate, rentals 
and associated 
activities
Financial services
Education
Health and social 
work
Non-health -related 
social work
OtherChart 1.2, Employment by sector and citizenship, 2020WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 18 - 
 
  program me in order to encourage companies to hire Bahrainis.19 Since August  2000, companies 
wishing to apply for a new work permit for an expatriate worker have been required to post the 
vacancy in local newspapers for a period of seven  days, mentioning all job ann ouncement details 
and contacts , so to favo ur applications from citizens.20 
1.17.  Small and medium -size enterprises (SMEs) play an important role in Bahrain's economy , 
contributing 35.6% to GDP in 2020 (30% at the time of the previous Review) and providing jobs f or 
about 91.5% of private sector employees in 2020 (73% at the time of the previous Review). New 
initiatives to support SMEs over the review period include government procurement price 
preferences (Section  3.3.6) and Tamkeen program mes to support SMEs (Sec tion 3.3.1).  
1.2.5   Balance of payments  
1.18.  From 2015 onwards, Bahrain's balance of payments featured annual current account deficits, 
peaking at USD  3,245.5  million in 2020, representing 9.4% of GDP (Table  1.1). This is in direct 
contrast to situation at the time of the previous Review , when the current account was consistently 
in surplus. The notable shift from surplus in 2014 to deficit in 2015 was due to the sharp decline in 
the goods foreign trade surplus du e to oil price declines, reducing the value of total oil exports by 
around 30%. The current account deficit is projected to narrow to 4.5% of GDP in 2021 and 2.7% 
of GDP in 2022.21 
1.19.  Continuing a trend evident during the previous review period, Bahrain is in creasingly 
becoming a net exporter of services , with a surplus averaging USD  2,991  million over the period 
2014-20 (compared to USD  1,701  million during the period 2006 -12) (Table  1.2). 
Table 1.2 Balance of pa yments, 2014 -20 
(USD million)   
2014  2015  2016  2017  2018  2019  2020a 
Current account  1,523  -752 -1,493  -1,450  -2,435  -794 -3,245  
Goods  3,713  831 -804 -550 -1,066  856 -127 
Exports (f .o.b.) 23,498  16,540  12,785  15,526  18,044  18,120  14,066  
Oil 14,501  7,739  6,082  8,561  10,594  9,895  5,938  
Non-oil 8,997  8,801  6,703  6,965  7,449  8,225  8,127  
Imports (f .o.b.) -19,785  -15,710  -13,588  -16,076  -19,110  -17,263  -14,193  
Oil -7,440  -3,933  -3,147  -4,245  -5,720  -5,334  -2,776  
Non-oil -12,344  -11,777  -10,441  -11,831  -13,390  -11,930  -11,416  
Services (net)  1,807  2,520  3,498  3,556  3,976  3,500  2,079  
Credit  8,572  9,113  10,998  11,356  11,915  11,445  11,184  
Debit  6,765  6,593  7,500  7,800  7,939  7,945  9,105  
Primary income (net)  -1,633  -1,736  -1,795  -1,990  -2,076  -2,261  -2,459  
Credit  2,136  2,233  2,264  2,113  2,418  2,331  2,517  
Debit  -3,769  -3,969  -4,060  -4,102  -4,494  -4,592  -4,976  
Investment income  -1,633  -1,736  -1,795  -1,990  -2,076  -2,261  -2,459  
Direct investment 
income  -1,279  -1,376  -1,417  -1,299  -755 -864 -854 
Portfolio income  -294 -314 -334 -637 -1,229  -1,369  -1,563  
Other investment 
income  -59 -47 -45 -54 -92 -28 -42 
Secondary income 
(current  transfers) (net)  -2,364  -2,367  -2,391  -2,466  -3,269  -2,890  -2,738  
Capital and financial account 
(net)  -2,297  -865 2,562  1,584  4,079  1,867  4,616  
Capital account (net)  100 253 874 604 795 896 780 
Financial accountb -2,397  -1,118  1,688  981 3,284  971 3,837  
 
19 Kingdom of Bahrain, Bahrain Economic Report 2019 . Viewed at: 
https://www.mofne.gov.bh/Files/cdoc/FI1267 -BEQ%202019%20EN%20FINAL.pdf . 
20 Kingdom of Bahrain, Bahrain  Economic Quarterl y Q3 2020 . Viewed at: 
https://www.mofne.gov.bh/Files/cdoc/CI1582 -MOFNE%20BEQ%20Q3%202020%20En.pdf . 
21 Kingdom of Bahrain, Bahrain Economic Quarterly Q4 2020 . Viewed at: 
https://www.mofne.gov.bh/Files/cdoc/CI1683 -%5bEN%5d%20MoFNE%20 -
%20BEQ%20report%202020%20(Q4).pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 19 - 
 
   
2014  2015  2016  2017  2018  2019  2020a 
Direct investment  1,913  -3,126  1,123  1,197  1,543  1,698  1,212  
Abroad  394 -3,191  880 -229 -111 197 205 
In Bahrain  1,519  65 243 1,426  1,654  1,501  1,007  
Portfolio investment (net)  -700 -107 1,834  3,215  -1,504  77 2,174  
Assets  -972 -536 -2,329  642 -2,177  -1,302  -1,256  
Liabilities  271 430 4,163  2,573  672 1,378  3,430  
Other investment (net)  -2,889  -542 -2,373  -3,266  2,776  726 -1,005  
Assets  -6,832  -2,992  -626 -2,848  -2,201  3,453  -1,119  
Liabilities  3,943  2,450  -1,747  -418 4,977  -2,727  114 
Reserve assets (net)  -721 2,657  1,103  -166 469 -1,530  1,457  
Errors and omissions  774 1,617  -1,069  -134 -1,644  -1,073  -1,372  
a Provisional data.  
b A negative sign means net outflows/increases in external assets.  
Source:  CBB, Statistical Bulletin , various editions. Viewed at: https://www.cbb.gov.bh/publications/ . 
1.2.6   Fiscal policy  
1.20.  Since the last Review, Bahrain's fiscal position has been consistently in deficit, mainly due to 
the drop in oil prices from 2014. The deficit increased from 4% of GDP in 2014 to 13% in 2015 and 
2016. It then narrowed year -on-year to 5% in 2019 , as the Government reined in expenditures  
through the 2018 Fiscal Balance Program (FBP) , non-oil revenue increased, and oil and gas revenue 
recovered . The FBP provided a roadmap for improving Bahrain's fiscal situation in the medium  term, 
notably , establishing a value -added tax of 5% in January 2019 (Section  3.1.4.1) , implementing a 
voluntary retirement scheme for public -sector employees , establishing six  dedicated spending 
efficiency taskforces , and instituting new spending controls.22 Nonetheless, t he fiscal deficit then  
widened from 5%  to 13% in 2020  due to a second collapse in oil prices and the onset of the 
COVID -19 pandemic . In January  2021, Bahrain sold government bonds worth USD  2 billion.23 
Overall , the COVID -19 pandemic and the stimulus package (Box  1.1) are likely to delay the results 
of the r eform efforts.  
1.21.  New measures to improve the fiscal situation announced in the State Budget for 2021 -22 
include the creation of a revenue taskforce to support the Government's efforts to increase non -oil 
revenues and encourage partnerships with the private s ector in the provision of government 
services , and the doubling of the contribution of Bahrain's sovereign wealth fund (Mumtalakat ) 
(Section  3.3.5) to government revenues. For 2021, the Government estimates a fiscal deficit of 
BHD 1,208  million. This defic it is expected to be reduced to BHD  1,112  million in 2022.24 Central 
government debt reached 115% of GDP in 2020, a significant increase compared with 44% in late 
2014 (Table  1.1). 
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and  services trade  
1.22.  Bahrain's economy remains highly dependent on trade. The ratio of trade (in goods and 
services) to GDP fluctuated over the review period, peaking at 175.9% in 2014 and was at a low of 
136.2% in 2020 when Bahrain ranked 52nd among world merc handise exporters (considering EU 
members as one and excluding intra -EU trade) and 70th among importers. In services trade, Bahrain 
ranked 38th among exporters and 50th among importers.25 
1.23.  The value of Bahrain's exports and imports fluctuated significantly over the review period ; 
according to the authorities , this largely reflects swings in oil prices, global trends, developments in 
the exchange rates  of the Bahraini dinar vis-à-vis the currencies of its main trading partners , and 
changes in demand. There was a big drop in the value of exports between 2014 (USD  23.2 billion) 
 
22 Kingdom of Bahrain, Fiscal Balance Prog ram. Viewed at: https://www.mofne.gov.bh/fbp_en.pdf . 
23 Yousef Saba, "Bahrain Gets $2 Billion in Bond Sale After Deficit Spike", Reuters , 20 January  2021. 
Viewed at: https://www.reuters.com/article/us -bahrain -bonds -idUSKBN29P125 . 
24 MOFNE. Viewed at: https://www.mofne.gov.bh/Finan cialFramework.aspx . 
25 WTO, Trade Profiles 2020 . Viewed at: 
https://www.wto.org/english/res_e/booksp_e/trade_profiles20_e.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 20 - 
 
  and 2016 (USD  12.9 billion) , followed by a moderate uptick until 2019 and subsequently another 
significant dec rease (from USD  18.1 billion in 2019 to USD  14 billion in 2020). Fluctuations in import 
values largely mirror these trends , but changes are less dramatic (Table s A1.1 and A1.2). 
1.24.  Mining (mainly petroleum products) accounts for the bulk of merchandise export s (76.1% of 
the value of exports in 2020). A direct comparison of Bahrain's exports in 2014 and 2020 shows a 
huge change in the composition of merchandise trade, with the share of fuels shrinking from 63.3% 
of exports in 2014 to 41.7% in 2020 and an increa se in the value of exports of non -ferrous metals 
(largely aluminium and aluminium alloys)  (Chart  1.3). However, it should be noted that the situation 
depicted by the C hart represent s the points in time over the review period when oil prices were at 
their h ighest and (close to) lowest. This is also the reason behind the big shrinkage of crude oil in 
the import basket when comparing 2014 and 2020 data (Chart  1.3, Table s A1.1 and A1.2). Bahrain 
remains a net food importer.  
Chart 1.3 Product composition of merchandise trade, 2014 and 2020  
 
Note:  Based on SITC Rev.3. Preliminary data for 2020.  
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; and statistical information provided 
by the authorities.  
Chart 1.[BHR]  Product composition of merchandise trade, 2014 and 2020
20142020
Exports including re -exports (f.o.b.)
Manf.
20.8%
Crude oil 
16.2%Petroleum oils 
24.6%Manf.
26.6%Agriculture 
4.3%Ores and other 
minerals 
6.9%
Non-ferrous 
metals 
19.1%Chemicals 
5.7%Iron and steel 
4.4%
Machinery 
and transport 
equip. 
9.1%Other 
manf.
7.4%Other 
2.3%
Total: USD 23.2 billion Total: USD 14.1 billion
Imports (c.i.f.)
Chemicals
5.5%Transport  
equipment
11.5%
Manufactures
40.4% Electrical 
machines  
5.8%
Non-electrical 
machinery  
4.1%Ores and other 
minerals 
6.4%Agriculture
12.2%
Ores and other 
minerals 
11.3%
Crude oil 
17.9%
Iron & steel
2.8%Chemicals
7.7%Other semi -
manufactures
6.3%Non-electrical 
machinery  
11.5%Electrical 
machines  
9.5%Transport  
equipment
8.1%Other manf. 
9.1%Other 
3.6%
Manufactures
55.0%
Total: USD 19.7 billion Total: USD 15.5 billionOther manf. 
7.1%Iron and steel 2.8%
Chemicals 4.2%
Petroleum oils 
39.1%
WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter; and statistical information 
provided by the authorities.Other semi -
manufactures
4.6%Non-ferrous 
metals 8.7%
Agriculture
10.1%Other 
manf.
6.6%
Crude oil 
37.8%
Iron & steel
1.9%Ores and other 
minerals 
4.2%Other 
1.1%
Other 
5.4%Machinery and 
transport equip. 
7.2%
Source:Note:              Based on SITC Rev. 3.  Preliminary data for 2020.Crude oil 
23.4%Agriculture 
2.8%WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 21 - 
 
  1.25.  The main destinations for Bahrain's exports and sources of imports remain other GCC member 
States, notably the United  Arab Emirates (for exports) and the Kingdom of Saudi  Arabia (for imports 
and exports). The share of Bahrain's exports to the European  Union (the Netherlands in particular), 
China, and Malaysia increased slightly, whereas the share of exports to Japan contracted. On the 
import side, the most notable trends are increased imports from the European  Union, Brazil, and 
China, and a drop in imports from the Kingdom of Saudi  Arabia (Chart  1.4, Tables  A1.3 and A1.4).  
Chart 1.4 Direction of merchandise trade, 2014 and 2020  
 
Note:  Preliminary data for 2020.  
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; and statistical information provided 
by the authorities.  
 
 
Chart 1.[BHR]
Direction of merchandise trade, 2014 and 2020
2014 2020
Exports including re -exports (f.o.b.)
Asia 
35.6%
Africa 7.4%Gulf 
Cooperation 
Council 
(GCC)
36.5%Malaysia
4.8% 
Asia 
36.9%Other 6.1%
United States 
5.9%
EU-27
7.2%China 8.9%Japan 6.5%India 
3.6%
Other Asia 13.0%
United Arab 
Emirates 
15.4%Saudi Arabia
14.7%Other GCC
6.4%
Total:   USD 23.2 billion Total:  USD 14.1 billion
Imports (c.i.f.)
EU-28
9.6%United States
4.8%
Brazil 2.4%
Saudi Arabia 
42.1%India 2.6 %
Gulf 
Cooperation 
Council (GCC)
49.2%Other GCC
7.1%Australia 
4.0%
EU-28
14.1%Gulf 
Cooperation 
Council 
(GCC)
30.8%China 11.4%Japan
4.5%India  
3.7%
Other Asia
8.0%
Other
11.3%
Brazil 5.2%
Saudi Arabia 
23.9%Other GCC
6.9%Australia 
5.7%
United States
5.3%
Total:   USD 19.7 billion Total:   USD 15.5 billionAfrica 9.4%
China 8.2%United States 
5.0%
Source:Other 7.8%Japan
5.1%EU-27
3.4%Gulf 
Cooperation 
Council 
(GCC)
38.4%China 4.3%
Other Asia
6.4%Japan 14.0%
Asia 
33.2%Asia
26.2%Malaysia 
1.6%India 
2.0%
Other Asia 13.6%
Other 8.2%
WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data Portal. 
Viewed at: https://www.data.gov.bh/en/ResourceCenter; and statistical information provided by the 
authorities.Note:     Preliminary data for 2020.United Arab 
Emirates 
15.0%Saudi Arabia
14.8%Other GCC
8.5%WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 22 - 
 
  1.26.  Bahrain maintained a trade surplus in services throughout the review period , which reached 
a peak in 2018. Services exports are driven by insurance and pension services, followed by travel 
services and then telecommunication, computer , and information services. The value of services 
imports was on a largely upward trend over the review period (except in 2015 and 2020 when there 
were slight dips). Bahrain's main services imports are insurance and pension services and transport 
(Table  1.3). 
Table 1.3 Trade in services, 2014 -20 
(USD million)   
2014  2015  2016  2017  2018  2019  2020a 
Trade balance  1,807  2,520  3,498  3,556  3,976  3,500  2,079  
Exports  8,572  9,113  10,998  11,356  11,915  11,445  11,184  
Maintenance and repair 
services n.i.e.  298 399 429 454 467 496 430 
Transport  705 798 800 805 820 810 790 
Travel  1,208  1,575  3,220  3,341  3,374  3,400  2,328  
Construction services  1 1 2 2 7 16 14 
Insurance and pension 
services  4,426  4,751  4,896  4,926  5,274  4,780  5,001  
Financial services  67 71 85 94 124 122 103 
Telecommunication, 
computer, and information 
services  652 585 605 760 887 907 1,302  
Other business services  1,216  934 962 975 963 914 1,214  
Imports  6,765  6,593  7,500  7,800  7,939  7,945  9,105  
Maintenance and repair 
services n.i.e.  0 0 0 0 0 0 0 
Transport  1,381  1,297  1,669  1,765  1,882  2,579  2,701  
Travel  611 822 1,265  1,490  1,169  904 891 
Construction services  2 1 4 4 2 1 2 
Insurance and pension 
services  3,730  3,681  3,769  3,720  4,059  3,650  4,028  
Financial services  0 0 0 0 0 0 0 
Telecommunication, 
computer, and information 
services  86 71 73 91 106 108 462 
Other business services  956 721 721 730 721 703 1,021  
a Provisional data.  
Source:  WTO Secretariat calculations, based on information provided by the authorities.  
1.3.2   Trends and patterns in FDI  
1.27.  Attracting foreign investment is one of Bahrain's main economic goals, and the amount of 
foreign direct investment ( FDI) is set as one of the indicators for measurin g the achievements of 
Vision  2030. The Bahrain Economic Development Board (EDB) is charged with the promotion of FDI 
in Bahrain, especially in the manufacturing, logistics, information and communications technology, 
financial services, tourism , and leisure  sectors.26 
1.28.  At the time of the last Review in 2014, the total stock of inward FDI was USD  25.7 billion. It 
increased year -on-year to reach USD  31.7 billion in 2020. The GCC member States (particularly the 
State of Kuwait and the Kingdom of Saudi  Arabia) have been the main sources of FDI stocks. Other 
major sources of investment are Libya, the Cayman  Islands, India, and , increasingly, the 
European  Union. FDI stocks have become more diversified on a sectoral basis. While finance and 
insurance activi ties continue to attract the lion's share of FDI (65.6% in 2020), this is considerably 
less than at the time of the previous Review (83.2% in 2014). Notable increases in the share of FDI 
stocks have been posted in manufacturing and wholesale and retail tra de (Table  A1.5).  
 
26 EDB. Viewed at: https://www.bahrainedb.com/about -us. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 23 - 
 
  1.29.  With respect to FDI flows, there was a peak in 2018 that has been attributed to the granting 
of permission for full foreign ownership in oil and gas drilling activities , as well as new growth within 
the manufacturing sector. A subsequent s harp decline in FDI flows in 2019 and 2020 has been linked 
to the concentration of FDI in light manufacturing and services , which are reportedly sensitive to 
regional and macroeconomic trends.27 
 
27 Investment Monitor, "The State of Play: FDI in Bahrain", 14  September  2020. Viewed at: 
https://investme ntmonitor.ai/manufacturing/the -state-of-play-fdi-in-bahrain ; and UNCTAD, World Investment 
Report 2020 . Viewed at: https://unctad.org/webflyer/world -investment -report -2020. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 24 - 
 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  Bahrain is a constitutional monarchy. The legal system is based on the 2002 Constitution, as 
amended in 2012, 2017 , and 2018. The 2017 amendment authorized military courts to have 
jurisdiction over civilians charged with terrorism offen ces, while the 2018 amendment grant ed 
members of the Upper House of the Parliament (the Shura Council) the right (previously solely held 
by members of the House of Representatives) to ask written questions to Ministers. Sharia (Islamic 
Law) is the basis of Bahrain's national legislation, and Islam is the state religion.  
2.2.  The pol itical system has not undergone significant changes since the previous review.1 Under 
Article  32 of the Constitution, the system of government is based on a separation of the legislative, 
executive, and judicial powers. Legislative authority is vested in the King and the National Assembly, 
while executive authority is vested in the King, assisted by the Council of Ministers. The King appoints 
the Prime Minister, who then recommends Ministers for their appointment by the King. The King 
exercises his powers directly and through the Ministers, jointly answerable to him for general 
government policy. The King is also the supreme commander of the armed forces and has the right 
to propose amendments to the Constitution  and to laws, and is the ratification and pro mulgation 
authority. The King also chairs the Higher Judicial Council and appoints judges by Royal Orders, as 
proposed by the Supreme Judicial Council.  
2.3.  The Council of Ministers (or Cabinet) is headed by the Prime Minister. It assists the King in the 
implem entation of Bahrain's general policy. To this end, it submits recommendations to the King on 
economic, political, social, environmental, executive, and administrative matters of concern to the 
Government, and proposes draft laws and decrees for his approva l. For issues requiring a Royal 
Decree, the Cabinet must submit resolutions to the King for ratification.  
2.4.  The National Assembly consists of the Council of Representatives, which is a 40-seat Lower 
House , and the Consultative "Shura" Council, a 40 -seat Uppe r House. Members of the Council of 
Representatives are elected for four -year terms by direct, secret, general ballot; members of the 
Consultative Council are appointed by Royal Order also for four -year terms. Resolutions of the 
Consultative Council or the Council of Representatives may be passed only when a majority of 
members are present and with the approval of a majority of those present. The latest parliamentary 
elections took place in 2018.  
2.5.  The legislative process has remained largely unchanged since t he last Review . Bills are 
prepared by the relevant ministries, and presented successively to the Council of Ministers, the 
Council of Representatives, and the Consultative Council, and then for approval by the King through 
a Royal Decree. Amendments to the  Constitution must be requested by at least 15 members of the 
National Assembly to be considered , and any member of the National Assembly can initiate a bill. 
Once drafted, the bill must be approved by the Council (the House) from which its demand emerged 
and be referred to the Government , which will then present it to the Council of Representatives. In 
principle, laws cannot be promulgated unless approved by both Chambers (Houses) and ratified by 
the King. Once a bill is signed by the King, it becomes a la w and must be published in the 
Official  Gazette  within two weeks of promulgation; it enters into effect one month after publication 
unless otherwise specified.  
2.6.  The Supreme Judicial Council is the Constitutional Court, which is chaired by the King, who also  
retains the power of pardon. The Supreme Judicial Council supervises the judicial system that 
consists of the commercial courts, the Sharia or Islamic courts (involving personal status and family 
law), the High Court of Appeals, and the Court of Cassation . Decisions taken by the civil courts (e.g. 
the commercial and Sharia courts) may be appealed to the High Court of Appeals, which is the 
highest appellate court. The Court of Cassation is specialized in reviewing the application of the law 
by the lower cou rts and does not rule on the merits of a case.  
2.7.  The Bahrain Chamber for Dispute Resolution (BCDR), established by Legislative Decree No.  30 
of 2009, is divided into a specialized court (the BCDR Court) and an international arbitration and 
mediation centre. The BCDR Court is in charge of settling commercial disputes on matters exceeding 
 
1 WTO document WT/TPR/S/294/Rev.1, 24  April 2014.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 25 - 
 
  BHD 500,000 and when at least one party is a financial institution licensed by the Central Bank of 
Bahrain  (CBB) , or the dispute is of an international commercial nature. All other commercial disputes 
are dealt with through commercial courts.  The authorities indicate that the "judicial holiday" was 
eliminated during the review period to ensure that courts continue to operate throughout the year, 
and the number of judges dealing  with commercial cases was increased. In order to reduce the 
number of labour disputes brought before courts and expedite dispute resolution, a body was 
established within the Ministry of Labour and Social Development with the responsibility of 
conducting amicable settlement of disputes between workers and employers. According to the 
authorities, a number of public services, including judicial, real estate , and insurance, are being 
progressively provided online.  
2.8.  In the legal hierarchy, the Constitution is f ollowed by laws, decree -laws, royal decrees, Prime 
Minister's decisions , and resolutions. Treaties and other international agreements concluded by 
Bahrain must be ratified by the King through Royal Decrees, and the Shura Council and the Council 
of Representatives must be immediately informed. A treaty has the force of law only  after its 
publication in the Official Gazette . However, peace treaties and treaties of alliance ; treaties relating 
to state territory, natural resources, rights of sovereignty, and the public and private rights of 
citizens ; treaties pertaining to commerce , shipping , and residence ; and treaties that involve the 
State Exchequer in non -budget expenditure or that entail amendment of the laws of Bahrain must 
be promulgated by law to be valid. Treaties and other international agreements have legal power in 
national courts.  
2.2  Trade Policy Formulation and Objectives  
2.9.  The Minist ry of Industry, Commerce and Tourism (MOICT) is responsible for the coordination 
and implementation of Bahrain's trade -related and investment policies, in coordination with other 
ministries and bodies, including the Economic Development Board (EDB) , the Ministry of Finance, 
and the CBB. The EDB continues to provide strategic direction on the management of the economy. 
Private sector participation in trade policy formulation is ensured through the  Bahrain Chamber of 
Commerce and Industry (BCCI) . A joint committee is in place between the MOICT and the BCCI, 
acting on behalf of the private sector. It aims to ensure that economic reforms reflect positively on 
the national economy. It held a first meet ing on 10 February  2002, and since then continues to do 
so every three months or whenever the need arises and discusses relevant issues.  
2.10.  The National WTO Committee is tasked with follow ing up on issues regarding the WTO and to 
shape Bahrain's position towa rds them, including compliance with WTO requirements. The 
authorities indicate that on 30  September  2018, the committee established a National Technical 
Team to follow up on the implementation of the Trade Facilitation Agreement.  
2.11.  The main trade -related reg ulations adopted during the review period are listed in Table  2.1. 
Table 2.1 Main trade -related laws adopted during 2013 -20 
Laws/legislation/customs  Issue  
Law No.  3 of 2013  Permits commercial companies to open branches in Bahrain and to have 
national treatment benefit  
Law No.  19 of 2013  Ratifies the agreement with Mexic o regarding m utual protection of 
investments  
Law No.  25 of 2013  Amends some provisions of Decree -Law No.  4 of 2001 regarding p rohibition 
and combating money laundering and terrorist financing ( subject to the 
discretion of the MOICT ) 
Law No.  6 of 2014  Approves the Trademarks Law (System) of the GCC  
Law No.  29 of 2014  Ratifies the promotion and reciprocal protection of investments agreement 
with Turkey  
Law No.  50 of 2014  Amends certain provisions of the Commercial Companies Law promulgated 
by Decree -Law No.  21 of 2001  
Law No.  62 of 2014  Commercial Anti -Fraud Law  
Law No.  3 of 2015  Ratifies the agreement with Hungary regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to taxes on 
income  
Decree -Law No.  27 of 2015  Commercial Register  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 26 - 
 
  Laws/legislation/customs  Issue  
Decree -Law No.  28 of 2015  Amends certain provisions of the Commercial Companies Law promulgated 
by Decree -Law No.  21 of 2001  
Law No.  38 of 2015  Ratifies the agreement with the Russian  Federation  on the promotion and 
reciprocal protection of investments  
Law No.  3 of 2016  Ratifies the agreement with Tajikistan regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to income tax  
Law No.  5 of 2016  Ratifies the agreement with Tajikistan regarding the promotion and 
reciprocal protection of  investments  
Law No.  7 of 2016  Ratifies the agreement with Cyprus regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to income tax  
Law No.  9 of 2016  Standards and Metrology  
Law No.  10 of 2016  Ratifies the agreement with Portugal regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to income tax  
Law No.  11 of 2016  Ratifies the second protocol to amend the FTA with the United  States  
Law No.  17 of 2016  Ratifies the WTO Trade Facilitation Agreement  
Law No.  18 of 2016  Investment Limited Partnerships  
Decree -Law No.  22 of 2016  Protected Cell Companies  
Law No.  9 of 2017  Ratifies the investment protection and promotion agreement with 
Bangladesh  
Law No.  10 of 2017  Ratifies the agreement with Bangladesh regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to income tax  
Law No.  17 of 2017  Ratifies the agreement with Morocco regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to income tax  
Decree -Law No.  36 of 2017  Amends Article  3 of Decree -Law No.  4 of 2001 concerning the prohibition 
and combating money laundering and terrorism finance  
Law No.  39 of 2017  Ratifies the unified excise tax agreement for the GCC  
Law No.  40 of 2017  Excise Tax  
Law No.  1 of 2018  Amends certain provisions of the Commercial Companies Law promulgated 
by Decree -Law No.  21 of 2001  
Law No.  4 of 2018  Ratifies the agreement with the United  States  to Improve International Tax 
Account Tax Compliance , and to implement FATCA and its first and second 
appendices  
Law No.  5 of 2018  Ratifies the protocol amending the conventions of the agreement with the 
Philippines regarding the avoidance of double taxation and the prevention 
of fiscal evasion with respect to taxes on income and capital  
Law No.  6 of 2018  Ratifies the protocol amending the conventions of an agreement with 
Thailand regarding the avoidance of double taxation and the prevention of 
fiscal evasion with respect to taxes on income and capital  
Law No.  12 of 2018  Approves the Unified Law (Regulation) for Commercial Anti -Fraud Law of 
the GCC)  
Law No.  13 of 2018  Approves the joining of Bahrain to the Convention on Mutual 
Administrative Assistance in Tax Matters as amended according to the 
2010 Protocol  
Law No.  22 of 2018  Issues the Bankruptcy Reorganization Law  
Law No.  28 of 2018  Ratifies the agreement with Egypt regarding the avoidance of double 
taxation and the prevention of fiscal evasion with respect to taxes on 
income  
Law No.  31 of 2018  Competition Promotion and Protection  
Law No.  32 of 2018  Ratifies the Third Protocol to amend the FTA with the United  States  
Law No.  38 of 2018  Ratifies the cooperation agreement with Egypt in the field of Commercial 
Maritime Navigation  
Decree -Law No.  47 of 2018  Ratifies the Unified Value Added Tax Agreement for the GCC  
Decree -Law No.  48 of 2018  Issues the Value Added Tax Law  
Decree -Law No.  51 of 2018  Amends certain provisions of the Trade Law promulgated by Decree -Law 
No. 7 of 1987  
Decree -Law No.  52 of 2018  Amends certain provisions of Decree -Law No.  27 of 2015 concerning the 
commercial registry  
Decree -Law No.  53 of 2018  Amends certain provisions of the Commercial Companies Law promulgated 
by Decree -Law No.  21 of 2001  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 27 - 
 
  Laws/legislation/customs  Issue  
Decree -Law No.  57 of 2018  Amends certain provisions of Decree -Law No.  4 of 2001 concerning the 
Prohibition and Combating Money Laundering and Terrorism Finance 
(subject to the discretion of the MOICT ) 
Law No.  1 of 2020  Concerns approval of joining the United Nations Convention on the Use of 
Electronic Communications in International Contracts  
Law No.  6 of 2020  Amends paragraph (A) of Article  284 of the Commercial Companies Law 
promulgated by Decree -Law No.  21 of 2001  
Law No.  9 of 2020  Ratifies the Memorandum and Articles of Association of Gulf Payments 
Company  
Law No.  19 of 2020  Ratifies the protocol amending the agreement with Pakistan regarding the 
avoidance of double taxation and the prevention of fiscal evasion with 
respect to taxes on income  
Decree -Law No.  25 of 2020  Amends certain provisions of the Reorganization and Bankruptcy Law 
promulgated by Law No.  22 of 2018  
Decree -Law No.  28 of 2020  Amends certain provisions of the Commercial Companies Law promulgated 
by Decree -Law No.  21 of 2001  
Source:  Information provided by the authorities.  
2.12.  Economic diversification continues to be at the core of Bahrain's overall economic policy 
objectives. The authorities rely on the actual implementation of Economic Vision 2030  (Vision  2030)  
(in place since 2008) to develop productive non -oil sectors. The Vision establishes a roadmap to 
raise Bahrain's level of economic diversification through exploring new industries such as finance, 
tourism, and manufacturing; fostering the role of the private sector; and enhancing international 
trade and investment.  
2.13.  The broad measures highlighted in Vision  2030 seek to attract public and private funds to 
improve Bahrain's connectivity to global markets through high -quality physical infrastructure and its 
access to affordable utiliti es (electricity, water , and gas) and services (logistics, public transport , 
and telecommunications), so as to promote a competitive economy. In addition, it put a special 
emphasis on promoting export -oriented sectors to ensure that Bahraini companies can t ap overseas 
markets in a competitive manner.  
2.14.  Vision  2030 is operationalized by way of action plans by the Government. The current one 
covers the period 201 9-22 and aims to achieve the following objectives2: 
• Invest in citizens by improving government servi ces in education, health, and other sectors.  
• Create a safe and stable society.  
• Achieve fiscal balance and maintain economic growth.  
• Support the private sector to drive national development and create opportunities for citizens 
and investors.  
• Optimize the u se of resources and ensure their sustainability.  
• Sustain social and economic development by adopting legislation and initiatives supporting 
family stability and gender equity.  
• Continue to finance development projects and infrastructure that enhance growth and serve 
citizens.  
• Redefine the role of the public sector from operator to regulator and partner.  
• Support creativity  and excellence, and highlight the role of women, youth, and sports in all 
government programmes and initiatives.  
 
2 eGovernment Bahrain, The Government Action Plan (2019 -2022). Viewed at: 
https://www.bahrain.bh/wps/portal/!ut/p/a1/rZJfT8IwFMW_ynjY4 -
jdyv7g2ySIEkADomwvpNvaMrO1YxTQb28HicFEBBP71t7fa c-
5tyhGCxQLsss5UbkUpGj2sbe8fwTPdgJnGOA5hvDR6027fbAH4GogOgUA434D -E_-
S9fxArhOD864Zz90tH48BgiD2 -no-
a4HMMCX9K8oRnEqVKVWKKJc7ipZK1IsqTChICLLBTcqwunGBF2ktSipUAZJm3xGpQlDQ8ZJicl6WzaXVmmeoYgxH
7PM71qMMbA6GUusxCPYcpKO6yYOBdv7CnFmhRebMKPiGORCKw_Ab706Aud9RNqof9aJvmH2x -TDK-
abv63XcainJIWi7wot_m9M -nleyOTwUaNQJDjgKK4pozWt29taH6 -UqjY3Jpiw3 -_bXEpe0HYqSxN -
kqzkRvv7TqKqnM_LAH9Ywz6bTKw4cYvdKGy1PgEeq5Zu/dl5/d5/L2dBISEvZ0FBIS9nQSEh/ . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 28 - 
 
  2.15.  In line with the objectives set in Vision  2030 and the Government's working plan, the MOICT 
continues to improve its services through increased digitalization; it also sets Bahrain's trade 
policies, regulations , and practices in a way that consolidates a conducive regulato ry environment 
and maximizes benefits from foreign trade.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.16.  Bahrain is an original Member of the WTO. It is a signatory to the WTO Information Technology 
Agreement (ITA). On 9  December  2008, Bahrain became an observer to  the plurilateral 
WTO Agreement on Government Procurement. It also participates in Joint Statement Initiatives on 
e-Commerce; investment facilitation for development; and micro, small, and medium -sized 
enterprises. Bahrain is a Member of the WTO group of A sian developing members.  
2.17.  Bahrain accepted the Protocol on the Trade Facilitation Agreement on 23  September  2016 
(Section  3.1.1) . Bahrain has never been a complainant in a WTO dispute settlement case. It was a 
respondent in a case brought in 2017 by Qatar  (DS527),  which requested consultations with respect 
to measures relating to trade in goods, trade in services , and trade -related aspects of intellectual 
property rights.3 The trade policies of Bahrain have been reviewed three times at the WTO; the 
third Review took place on 22 and 24  April 2014.  
2.18.  Bahrain grants at least most -favoured -nation (MFN) treatment to all of its trading partners. 
Its trade -related notifications to the WTO are presented in Table  A2.1.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Gulf Cooperation Council (GCC)  
2.19.  Bahrain is a member of the GCC , which was created in May  1981. The other members of the 
GCC are the State of Kuwait, Oman, Qatar, the Kingdom of Saudi  Arabia, and the 
United  Arab Emirates. Its main objectives are regional cooperat ion and integration in all economic, 
financial, commercial, scientific, educational , and cultural affairs.4 In 2001, the GCC Supreme Council 
adopted the Economic Agreement between the GCC States. The Agreement contains the foundation 
of the GCC Customs Un ion.5 The organizational structure consists of the Supreme Council (the 
highest authority), the Ministerial Council , and the Secretariat General; the main legal instruments 
of the GCC consist of agreements, laws , and regulations.6 
2.20.  Since January  2003, the GCC member States have been applying a common external tariff 
(CET) of zero and 5% to most products imported from third countries (Chapter 3.2.4.1.)7, and a 
common law on customs procedures and valuation. The GCC has common  trade-related  legisla tion 
on, inter alia, customs (Section  3.1.1), contingency measures  (Section  3.1.6) , veterinary quarantine 
and plant quarantine  (Section  3.3.3) , and trademarks (Section  3.3.7) . Under the GCC Agreement, 
each member State maintains its own list of restricted and prohibited items.  Launched in 2003, the 
GCC Customs Union was finalized in January  2015, and the unified guides for customs procedures 
and advance rulings have been released  (Section  3.1.1).8 In 2006, the Kingdom of Saudi  Arabia 
notified the GCC Agreement under Article  XXIV of the GATT9, and subsequently in 2008 changed the 
 
3 WTO, Bahrain – Measures Relating to Trade in Goods and Services, and Trade -Related Aspects of 
Intellectual Property Rights . Viewed at: https://www.wto.org/english/tratop_e/dispu_e/cases_e/d s527_e.htm . 
4 GCC, GCC Charter, Article  4. Viewed at: https://www.gcc -sg.org/en -
us/AboutGCC/Pages/Primarylaw.aspx . 
5 WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21  March  2018.  
6 GCC, Organizational Structure . Viewed at: https://www.gcc -sg.org/en -
us/AboutGCC/Pages/OrganizationalStructure.aspx . 
7 The exceptions to the CET relate to tobacco, pork, and alcohol products, which are either prohibited 
(including domestic production) or subject to high rates of duty.  
8 Secretariat General of the Cooperation Council for the Arab States of the Gulf, Achievements, The Free 
Trade Area . Viewed at: https://www.gcc -sg.org/en -
us/CooperationAndAchievements/Achievements/EconomicCooperation/The CustomsUnion/Achievements/Pages/
ITheFreeTradeAreaFTA.aspx . 
9 WTO document WT/REG222/N/1, 20  November  2006.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 29 - 
 
  notification to come under paragraph 4(a) of the Enabling Clause in 2008.10 On 6 October  2009, the 
Agreement was re -notified by the Kingdom of Saudi  Arabia under Article  XXIV: 7(a) of the 
GATT  1994.11 In 2018, a factual presentation of the GCC Customs Union was prepared by the WTO 
Secretariat.12 
2.21.  In 2001, the GCC started a process of implementing a common market, providing equal 
treatment to all GCC citizens in relation to freedom of movement and residence, work, investment, 
education, health , and social services.13 The Gulf Common Market was officially launched in 
January  2008, but it appears that it has not yet been completed  (Section  1.2.2) . 
2.22.  GCC member  State s have made pr ogress in several areas of economic cooperation, such as 
agriculture, energy, telecommunications, and transportation. Recent examples of further integration 
include a unified law for real estate owners, a cultural strategy for 2020 -30, and a common 
Environ ment Programme for 2020.14 In 2018, the GCC member States began rolling out value -added 
tax (Section  3.1.4.1) . 
2.23.  The GCC has created several institutions to regulate trade, including the Gulf Investment 
Corporation , the GCC Bureau of the Technical Secretaria t for Anti -Dumping , the GCC Standardization 
Organization , the Commercial Arbitration Centre , the GCC Patents Office , the Technical Office for 
Telecommunications , the GCC ATM Network , the GCC Intellectual Property Training Centre , and the 
GCC Federation of Chambers of Commerce.  
2.24.  In June  2017, the Kingdom of Saudi  Arabia, the United  Arab Emirates , and Bahrain imposed 
diplomatic, trade, and travel restrictions on Qatar. In January  2021, t he Al-Ula Agreement lifted the 
suspension of diplomatic rela tions with Qatar.  
2.25.  Two GCC member  State s (Bahrain and Oman) have FTAs on an individual basis with the 
United  States. In November  2011, the GCC announced that all future agreements would be 
negotiated as a group.15 The GCC has since concluded a regional trade agreement ( RTA) with 
Singapore, which entered into force in 2013 and was notified to the WTO in 2015.16 The Agreement 
covers, inter alia, trade in goods, rules of origin, customs procedures, trade in services, government 
procurement, and electronic commerce.  
2.26.  In addition, the GCC's agreement with the E uropean Free Trade Association  (EFTA) entered 
into force in 2014 but was not yet notified in July  2021.17 The agreement covers trade in goods, 
trade in se rvices, government procurement, and competition policy. Bilateral agricultural 
agreements cover basic agricultural products and are an integral part of the legal instruments 
establishing the free trade area between the GCC and the EFTA.18 
 
10 WTO documents WT/REG222/N/1/Corr.1 and WT/COMTD/N/25, 31  March  2008.  
11 WTO document WT/REG276/N/1/Rev.1, 17 November 2009.  
12 WTO document WT/COMT D/RTA/9/1, WT/REG276/1, 21  March  2018.  
13 Secretariat General of the Cooperation Council for the Arab States of the Gulf, The GCC Common 
Market and Economic Nationality . Viewed at: https://www.gcc -sg.org/en -
us/CooperationAndAchievements/Achievements/EconomicCooperation/TheGCCCommonMarketandEconomicnati
onality/Pages/Mechanis mofAchievingtheCommonM.aspx . 
14 Secretariat General of the Cooperation Council for the Arab States of the Gulf, "The Minister of 
Foreign Affairs of the Kingdom of Saudi Arabia and the Secretary General of the Gulf Cooperation Council Hold 
a Press Conference  at the Conclusion of the 40th Summit of the GCC Supreme Council", 10  December  2019. 
Viewed at: http://www.gcc -sg.org/en -us/MediaCenter/NewsCooperation/News/Pages/news2019 -12-10-5.aspx . 
15 Cooperation Council for the Arab States of the Gulf (GCC) Sec retariat General , Economic Agreement 
between the GCC States, 31 December 2001, Article  2. 
16 WTO document WT/COMTD/N/45, 6  July 2015.  
17 EFTA-GCC, Regional Trade Agreements Database. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=462 . 
18 EFTA, Gulf Cooperation Council FTA. Viewed at: https://www.efta.int/free -trade/free -trade -
agreements/gcc#anchor -8. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 30 - 
 
  2.27.  The GCC has also entered into negotiations with several other countries and economic 
groupings, including Australia, China, the European  Union19, India, Japan, the Republic of Korea, 
MERCOSUR, New  Zealand , Pakistan, and Turkey . 
2.3.2.2   Pan-Arab Free Trade Area (PAFTA)  
2.28.  Under the P AFTA Treaty20, in force since 1  January  1998, most trade barriers among its 
members were eliminated on 1  January  2005, with some products (mainly alcoholic beverages and 
tobacco products) excluded from liberalization. The principal entity responsible for implementing the 
programme is the Economic and Social Council of the League of Arab States. The PAFTA Treaty was 
notified to the WTO by the Kingdom of Saudi  Arabia in 2006 under Article  XXIV of the GATT .21 
2.29.  There are ongoing efforts to integrate trade in services into the PAFTA  Treaty . On 
1 February  2017, nine  PAFTA countries22 agreed on a schedule of commitment s for trade in services. 
Bahrain has yet to submit its schedule.  
2.3.2.3   Agreement with the United  States  
2.30.  The agreement with the United  States , which entered into force on  11 January  2006, has not 
undergone any substantial change since the previous Review. The agreement covers trade in goods 
and services; it also has provisions on investment, intellectual property rights, e -commerce, labour, 
environment, and dispute settlement. The authorities state that only changes to the agreement 
concerned update s of HS code s in 2016 and 2018.23 
2.31.  The agreement provides for tariff elimination by each party on agricultural and 
non-agricultural goods over a maximum of 10  years, although a large share of products was granted 
duty-free access immediately. In government procurement,  US suppliers are given the same price 
preference of 10%, wherever this privilege is extended by the GCC to domestic suppliers  
(Section  3.3.6) . 
2.32.  Fishing and a ll services sectors were liberalized, except for customs clearance, postal services, 
and publishing  of local newspapers.  
2.3.3   Organization of the Islamic Cooperation (OIC)  
2.33.  Bahrain is a member of the O IC. Since the OIC's creation in 1969, members have adopted 
several economic cooperation arrangements including trade -related agreements. In 2002, a 
framework ag reement was adopted on a Trade Preferential System (TPS) among members.  
2.34.  Bahrain has ratified the Protocol on Preferential Tariff Scheme for the Trade Preferential 
System (PRETAS) among OIC members (TPS -OIC), and has ratified the Agreement on Rules of Origi n 
 
19 Negotiations for an FTA with the European  Union were launched in 1990 but subsequently halted in 
2008, replaced by a Dialogue on Trade and Investment Issues.  
20 PAFTA members include the GCC member States, Algeria, Egypt, Iraq, Jordan, Lebanon, Libyan Arab 
Jamahiriya, Morocco, Palestine, Sudan, Syrian Arab Republic, Tunisia, and Yemen. The Comoros, Djibouti, 
Mauritania, and Somalia are accession candidates. The agreement is sometimes refer red to as GAFTA (Greater 
Arab Free Trade Area).  
21 WTO document WT/REG223/N/1, 20  November  2006.  
22 Egypt, Lebanon, Morocco, Oman, Qatar, the Kingdom of Saudi  Arabia, Sudan, the 
United  Arab Emirates, and Yemen. Economic and Social Commission for Western Asia  (ESCWA), Assessing Arab 
Economic Integration: Trade in Services as a Driver of Growth and Development , document 
E/ESCWA/EC.6/2019/6, 14  May 2019. Viewed at: 
https://www.unescwa.org/sites/default/files/event/materials/assessing_arab_economic_integration_ -
_trade_in_services_as_a_driver_of_growth_and_development.pdf . 
23 Bahrain Legal Affai rs, Law No. (11) of 2016 Ratifying the Second Protocol to Amend the Free Trade 
Agreement between the Government of the Kingdom of Bahrain and the Government of the United  States of 
America . Viewed at: https://www.legalaffairs.gov.bh/LegislationSearchDetail s.aspx?id=12694 ; and Law 
No. (32) of 2018 ratifying the Third Protocol to Amend the Free Trade Agreement between the Government of 
the Kingdom of Bahrain and the Government of the United  States of America . Viewed at: 
https://www.legalaffairs.gov.bh/Media/LegalPDF/K3218.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 31 - 
 
  of the TPS -OIC.24 PRETAS entered into force in 2010 and aims at reducing tariffs on products covered 
under the Scheme , as well as para -tariff and non -tariff barriers, while the Agreement on Rules of 
Origin has not yet entered into force.25 PRETAS has not  been notified to the WTO.  
2.3.4   Other agreements and arrangements  
2.35.  Bahrain does not participate in the Global System of Trade Preferences (GSTP) among 
developing countries. It was a beneficiary of tariff reductions offered by Australia, Belarus, 
Kazakhstan, the Russian  Federation , Switzerland , and Turkey under the Generalized System of 
Preferences (GSP), as most recently reviewed in 2018.26 
2.4  Investment Regime  
2.36.  Bahrain considers investment (foreign and domestic) as an important vehicle to achieving its 
Vision  2030 strategy (Section  2.2). The authorities also seek to direct investments towards 
technologies that reduce carbon emissions, minimize pollution , and promote the sourcing of more 
sustainable energy, in accordance with the Kingdom's strategic document. The E DB is an investment 
promotion agency with overall responsibility for attracting investment into the Kingdom and 
supporting initiatives that enhance the investment climate. The core regulatory issues are under the 
responsibility of the MOICT.  
2.37.  The significance of reforms and business facilitation measures put in place by Bahrain has 
been reflected in a number of international indexes (Section  1.1). According to the World Bank, 
Bahrain has reformed the business environment and undertaken some fa cilitation measure in areas 
such as contract enforcement and judicial effectiveness.27 Under the 2021 Index of Economic 
Freedom, Bahrain ranked 40th (of 178), an improvement from 63rd in 2020.28 This was mainly 
attributed to an improvement in the Bahrain's  judicial effectiveness.  
2.38.  The Commercial Companies Law (No.  21 of 200129, as amended in 2014, 2015, 2018 , and 
2020) is an important legislation in Bahrain's investment framework. It regulates the incorporation 
of local and foreign companies. It provides for  rules that govern the legal forms of companies allowed 
in Bahrain. A summary of main legal forms is provided in Table  A2.2. Most changes brought to the 
Commercial Compan ies Law during the review period aimed to further improve corporate 
governance and pro mote foreign participation.  
2.39.  The 2014 amendments included  the possibility for public shareholding companies to be 
established with the participation of foreign capital or expertise, whil e giving the MOICT the power 
to impose foreign ownership restrictions w ithin certain business sectors or when undertaking certain 
activities.30 Foreign companies were required to obtain a licence to set up a branch, agency, or office 
in Bahrain, but they no longer need to resort to a local sponsor. The 2015 amendments indicated 
that, inter alia, foreigners can partially or fully own economic activ ities that were usually reserved 
for Bahrainis, if the authorities determine that incorporation of such companies shall have a strategic 
economic significance or a profitable return for Bahrain's economy.31 The 2018 amendments allow 
 
24 Islamic Centre for Development of Trade, The Trade Preferential System among the Member States of 
the Organisation of Islamic Cooperation , November  2018.  
25 Organisation of Islamic Cooperation, SES RIC, An Overview of the Trade among OIC Countries , 
1 April 2020. Viewed at: https://www.sesric.org/publications -detail.php?id=140 . 
26 UNCTAD, Generalized System of Preferences: List of Beneficiaries , 2018. Viewed at: 
https://unctad.org/system/files/official -document/itcdtsbmisc62rev7_en.pdf . 
27 World Bank, Doing Business 2020 . Viewed at: https://www.doingbusiness.org/en/doingbusiness . 
28 Heritage Foundation, 2021 Index of Economic Freedom: Bahrain . Viewed at: 
https://www.heritage.org/index/country/bahrain . 
29 MOICT, The Commercial Companies Law . Viewed at: 
https://moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulation%20New/Bahrain%20Commercial%
20Companies%20Law%202001%20Decree%2021.pdf . 
30 MOICT, Law No. (50) of 2014 Amending Certain Provisi ons of the Commercial Companies Law 
Promulgated by Legislative Decree No. (21) of 2001 . Viewed at: 
https://www.moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulations/LAW%20NO.%20(50)%20O
F%202014%20AMENDING%20CERTAIN%20PROVISIONS%20OF%20THE%20COMMERCIAL%20COMPANIES%
E2%80%99%20LAW.pdf . 
31 MOICT,  Official Gazette, Edition Appendix 3230, 8  October  2015. Viewed at: 
https: //moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulation%20New/Legislative%20Decree%2
0No.%20(28)%20for%20the%20year%202015%20Amendment%20to%20BCCL.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 32 - 
 
  a shareholder of a comp any to become a shareholder in a competing company, on the condition that 
they do not partake in the management of more than one of the companies.32 The amendments also 
established the possibility for the MOICT to conduct an administrative investigation on  its own 
initiative or based on serious complaints regarding a violation of the Law. The 2020 amendments 
introduced changes33, including the possibility for a non -profit company to be established. In 
addition, single person companies (SPCs) have been merge d with limited liability companies  (LLCs) . 
Therefore, existing SPCs were required to convert into a n LLC within six months of the announcement 
date. 
2.40.  Other amendments to the Law during the review period concerned, inter alia, the easing of 
restrictions on s hareholders, general assembly rules, a broadening of definitions of certain terms, 
penalties for non -compliance, voting regulations, rules for increasing capital, determination 
procedure for the remuneration of boards members, meeting procedures, registrat ion of companies,  
and shares distribution and acquisition.  
2.41.  The Commercial Registration Law (No.  1 for 1961) was repealed and replaced with the 
Commercial Registration Act No.  27 of 2015, which was amended in 2018. It governs the registration 
of all busines ses carrying out commercial activities in Bahrain34, including sole proprietorships 
(individual establishments). The Law, as amended, provides that each trader practicing in a 
commercial activity shall be registered in Bahrain's Commercial Register. It fur ther provides that the 
practice of any commercial activity without obtaining a licen ce and being registered is a criminal 
offence.  
2.42.  Except for banned activities, applications for business registration must be filed with the 
MOICT , and licences (where requir ed) must be granted by the relevant regulator, after fulfilment of 
the requirements. Pursuant to the Law, the registration of a business from the Commercial Register 
expires if the registration is not renewed or if the business has remained dormant for mor e than a 
year; it can , however , be revived when past due renewal fees  are paid , or violations removed. The 
Commercial Registration Law also gives power to the MOICT to conduct administrative investigations 
of any violation of the Law ; set up a cooperation mechanism between the MOICT, the courts , and 
other law enforcement agencies ; and impose sanctions (fines or close down of businesses). However, 
before seeking enforcement by forcible means, the authorities are required by the Law to rectify the 
violation.  
2.43.  On 5 May 2016, Bahrain launched its online commercial register system (SIJILAT)  to provide 
a single virtual registration platform for businesses.35 Its objectives are, inter alia, to simplify the 
process of business registration, streamline licensing requirements, and ensure coordination 
between relevant agencies. The authorities rec ently published a Procedures Guide , explaining the 
use of SIJILAT and the legal steps for establishing a commercial company.36 Through SIJILAT , 
investors can obtain a business licence and seek approvals from relevant ministries. The authorities 
indicated t hat it takes three to five days, on average, to register a business. In general, the time it 
takes to register a company depends on the type of establishment (whether an individual 
establishment or company) and whether the investors are local s or foreigner s. The time it takes to 
obtain a licence also depends on the activity.  
2.44.  Only Bahrainis, GCC nationals , and US citizens can register as commercial sole 
proprietorships. In addition, the applicant must be resident in Bahrain and may not be less than 
18 years of age. Citizens of other countries may engage in all economic activities through all forms 
of commercial companies except for restricted business activities. Further amendments in 2018 
 
32 MOICT, Official Gazette , Issue No.  3395, 29 November 2018. Viewed at: 
https://www.moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulation%20New/Legislative%20Decr
ee%20No.%20(53)%20of%202018.pdf . 
33 MOICT, Decree Law No. (28) for Year 2020 Amending Some Provisions of the Commercial Companies 
Law Promulgated by Decree Law No. (21) of 2001 . Viewed at: 
https://www.moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulation%20New/Decree%20Law%20
No.%20(28)%20for%20year%202020%20an%20amending%20some%20provisions%20of%20the%20Comme
rical%20Companies%20Law%20promulgated%20by%20Decr ee%20Law%20No.%20(21)%20of%202001.pdf . 
34 The definition of commercial activities is provided by the Law of Commerce (1987).  
35 SIJILAT. Viewed at: https://www.sijilat.bh/ . 
36 MOICT, Procedures Guide for Establishments and Commercial Companies . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 33 - 
 
  modified provisions on measures to be taken upon breach, penalties, and the role of the Ministry , 
notably in enforcement of anti -money laundering and counter -financing of terrorism.  
2.45.  The Government has a generally liberal approach to foreign investment and actively seeks to 
attract investors and foreign companies. However, it  also maintains rules to protect national security 
and safeguard public order. A foreign investor applying for a commercial licence is subject to security 
screening by the Ministry of Interior. The authorities indicate that foreign individuals and foreign -
owned companies have access to a wide range of economic activities and are permitted to have full 
ownership in 64% of business activities37, while foreign ownership is limited to 49% in 33% of 
economic activities. Foreign access in the remaining 3% is prohibited. The authorities indicate that 
in August  2021, a decision was issued by the Crown Prince and Prime Minister, in which the 
remaining 3 3% of economic activities (previously restricted to 49% foreign ownership) would allow 
a higher percentage of foreign ownership subject to the presence of a Bahraini shareholder 
(percentage of foreign ownership is determined and agreed upon by the sharehol ders). Furthermore, 
100% foreign ownership can be granted for the majority of retail activities, which mandates the 
presence of a Bahraini shareholder, subject to satisfying a set of criteria issued by the Ministerial 
Cabinet.38 
2.46.  Since 2015, foreign entitie s have been allowed to invest in restricted or prohibited activities, 
if the authorities determine that granting such exceptions shall have a strategic economic 
significance or a profitable return for Bahrain's economy. On 24 May 2018, Decree No.  17 of 201 8 
removed foreign ownership restrictions on 62 business activities that previously could be carried out 
by only companies with a maximum of 49% foreign ownership.39 Bahrain provides online information 
on possibilities of foreign investment in each business  activity .40 
2.47.  Economic activities reserved exclusively for Bahraini nationals include : brokerage in real 
estate services;  press, publishing, and distribution houses (daily, non -daily, and specialized 
newspapers and magazines);  office printing services;  public transportation;  postal services;  mobile 
food service activities; recruiting manpower activities; news agency activities; employment office s; 
legal activities (lawyers); chef s in the hospitality sector ; and clearance of government transactions.  
2.48.  Economic activities that are allowed only for Bahrainis and GCC citizens and companies are 
book-keeping and accounting services (not including auditing); imports, exports, and sales of racing 
car fuel; cargo clearing; and fishing.  
2.49.  Investment is prohibited or restricted for domestic and foreign investors in gambling; alcoholic 
drinks manufacturing; narcotics manufacturing; weapons manufacturing; imports of all types of 
waste and treatment; storage and dumping of radioactive materials and toxic waste in Bahrain;  
import, manufacturing, and dealing of asbestos and its by -products (not including asbestos 
removal); imports and industrial use of restricted chemicals; pearl farming; cigarette manufacturing; 
imports of automatic cigarette vending machines; and postal se rvices (exclusive to Bahrain Post).  
2.50.  In June  2018, the MOICT introduced new requirements stipulating the obligation for all 
registered companies (new and existing) to disclose the names of their shareholders with  a 5% or 
more stake or interest. They must indicate the name of the natural persons who hold shares in the 
company and the natural persons on whose behalf a transaction is being conducted (the final 
beneficiaries). The authorities state that the step aims to ensure compliance with good governance 
and limiting misuse for illicit purposes, including money laundering, bribery and corruption, insider 
dealings, tax fraud, terrorist financing, and other illegal activities.  
2.51.  In an effort to further strengthen the bus iness environment, the Bahrain Bankruptcy Law (Law 
No. 22 of 2018) came into force on 8  December  2018.41 It seeks to boost transparency and efficiency 
in the insolvency process, with the view to encouraging foreign investment and promoting greater 
 
37 Activities are listed according to ISIC classification (Rev.4).  
38 Prime Minister's Decision No. 40 of 2021 specifying the commercial activities that companies with 
foreign capital may be licensed to engage in. Viewed at: 
https:/ /www.legalaffairs.gov.bh/Media/LegalPDF/RCAB4021.pdf . 
39 Viewed at: http://www.legalaffairs.gov.bh/Media/LegalPDF/RFDPM1718.pdf . 
40 Commercial Registration Portal, Business Activitie s, Required Licenses and Approvals . Viewed at: 
https://www.sijilat.bh/ . 
41 It repeals Legislative Decree No.  11 of 1987 with respect to the Bankruptcy and Composition Law.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 34 - 
 
  entrepre neurship. The new law, inter alia, prohibits creditors from seizing assets, and aims to 
preserve value of assets while the recovery plan for the creditors is negotiated and implemented. It 
does not apply to entities licensed and regulated by the CBB; as a main novelty, it provides for 
cross-border insolvency proceedings where a foreign element is involved. The Ministry of Justice and 
Islamic Affairs is in charge of matters relating to restructuring and insolvency, and the competent 
court is the High Civil C ourt of Bahrain.  
2.52.  The EDB generally provides advisory support, on processes and requirements, to foreign 
investors. The authorities indicate that Bahrain does not impose local content requirements on 
foreign investments.  
2.53.   Incentive measures in place include  the absence of personal, corporate , or withholding tax. 
There are no restrictions on capital repatriation, currency exchange, or transfer of dividends. Land 
ownership is permitted to Bahraini and GCC nationals in all areas of Bahrain. Non -GCC nationals 
have been able to purchase real estate in Bahrain since 2001, pursuant to the Legislative Decree 
No. 2 of 2001 With Respect to Property and Land ownership by non -Bahrainis , which  states that 
foreigners are permitted to buy certain types of property in certai n areas of Bahrain.42 
2.54.  Various relief measures were taken by the authorities following the onset of the COVID -19 
crisis ( Box 1.1), including payment of electricity and water bills for all individuals and corporations , 
exemption from the payment of various administrative fees, and exemption for industrial companies 
that export at least 30% of their products abroad from paying rent for government  industrial lands. 
In addition, enterprises in the most affected sectors could obtain a 50% reduction of the 
employment -related fees levied by Labo ur Market Regulatory Authority . According to the authorities, 
licensed foreign investors are eligible for all  incentives and guarantees accorded to domestic 
companies.  
2.55.  Bahrain continued to expand its network of bilateral investment treaties (BITs). Of its existing 
35 BITs, 4 entered into force during the review period ( Table 2.2). It has also signed double taxati on 
agreements with 44 partners43, of which those with Hungary  (2014), Pakistan  (2014), 
Portugal  (2015), Bangladesh  (2015), Cyprus  (2015),  and Egypt  (2016) were signed during the 
review period. The agreement with Switzerland has not yet entered into force. In addition, tax 
information  exchange agreements (TIEAs) are in place with 11  countries.44 Bahrain is a member of 
the Multilateral Investment Guarantee Agency (MIGA). It is also a party to the Convention on the 
International Centre for the Settlement of Investment Disputes (ICSID). The Bahrain -India BIT was 
unilaterally terminated by India in M arch 2021 but will remain in effect for a period of 15  years for 
prior investments.  
Table 2.2 Bilateral investment treaties involving Bahrain  
 Status  Date of signature  Date of entry into force  
Russian  Federation  In force  29/04/2014  25/12/2015  
Pakistan  In force  18/03/2014  07/10/2015  
Mexico  In force  29/11/2012  30/07/2014  
Turkmenistan  In force  09/02/2011  08/03/2012  
Uzbekistan  In force  16/11/2009  18/11/2010  
Bulgaria  In force  26/06/2009  22/12/2011  
Spain  In force  22/05/2008  17/12/2014  
Brunei  Darussalam  In force  14/01/2008  24/11/2009  
Czech  Republic  In force  15/10/2007  11/12/2009  
Germany  In force  05/02/2007  27/05/2010  
Netherlands  In force  05/02/2007  01/12/2009  
 
42 Survey and Land Registration Bureau. Viewed  at: 
https://www.slrb.gov.bh/About/Legislationdetails/?PageId=462&ChnlId=48 . 
43 Algeria, Austria, Bangladesh, Barbados, Belarus, Belgium, Bermuda, Brunei  Darussalam , Bulgaria, 
China, Cyprus, Czech  Republic, Egypt, Estonia, France, Georgia, Hungary, the Islamic Republic of Iran, Ireland, 
Isle of Man, Jordan, the Republic of Korea,  Lebanon, Luxembourg, Malaysia, Malta, Mexico, Morocco, the 
Netherlands, Pakistan, the Philippines, Portugal, Seychelles, Sudan, Singapore, Sri Lanka, Switzerland, Syria, 
Thailand, Turkey, Turkmenistan, the United  Kingdom, Uzbekistan, and Yemen.  
44 Australia, D enmark, Faroe  Islands, Finland, Greenland, Iceland, India, Luxembourg, Norway, 
Seychelles, and Sweden.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 35 - 
 
   Status  Date of signature  Date of entry into force  
Italy In force  29/10/2006  28/06/2009  
Belgium -Luxembourg Economic Union  
(BLEU)  In force  11/07/2006  08/05/2016  
Turkey  In force  15/02/2006  15/11/2014  
France  In force  24/02/2004  03/10/2005  
India Terminated  13/01/2004  05/12/2007  
Singapore  In force  27/10/2003  08/12/2004  
Lebanon  In force  07/08/2003  13/09/2005  
Yemen  In force  01/12/2002  14/07/2004  
Belarus  In force  26/10/2002  16/06/2008  
Iran, Islamic Republic of  In force  19/10/2002  12/10/2004  
Thailand  In force  21/05/2002  17/07/2002  
Syrian Arab Republic  In force  20/09/2000  18/12/2001  
Algeria  In force  11/06/2000  16/05/2008  
Morocco  In force  07/04/2000  09/04/2001  
Jordan  In force  08/02/2000  05/06/2000  
Sudan  In force  22/03/2006  20/09/2009  
United  States   In force  29/09/1999  30/05/2001  
Lebanon  Terminated  26/08/1999   
China  In force  17/06/1999  27/04/2000  
Malaysia  In force  15/06/1999  21/01/2011  
Egypt  In force  04/10/1997  11/01/1999  
United  Kingdom  In force  30/10/1991  30/10/1991  
Bangladesh  In force  22/12/2015  23/03/2017  
Tajikistan  In force  28/05/2014  15/04/2016  
Source:  UNCTAD Investment Policy Hub, Bilateral Investment Treaties: Bahrain . Viewed at: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/15/bahrain ; 
and information provided by the authorities.  
2.56.  In 2009, Bahrain established the BCDR, which operates in partnership with the American 
Arbitration Association (AAA). The BCDR has two  distinct and separate components: a statutory 
court (BCDR Court) and arbitration through the BCDR -AAA international arbitration centr e. In 
July 2015, Bahrain issued L egislative Decree No.  9 of 2015, promulgating the Arbitration Law. It 
adopts the Model Law of the United Nations Commission on International Trade Law (UNCITRAL) on 
International Commercial Arbitration. Under the 2015 Arbitration Law, non-Bahraini -licensed lawyers 
may represent parties in international commercial arbitrations in Bahrain .WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 36 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Since 2003, Bahrain has been applying the GCC Common Customs Law and its Rules of 
Implementation and Explanatory Notes.1 In 2015, the GCC published the Unified Guide for Customs 
Procedures.2 Customs Affairs, within the Ministry of Interior, has overall responsibility for 
customs -related matters. Bahrain is  a signatory to the Revised Kyoto International Convention on 
the Simplification and Harmonization of Customs Procedures. In 2020, Bahrain signed the Arab 
Customs Cooperation Agreement , which has not yet entered into force. In the same year , it ratified 
an agreement on cooperation in customs matters with Egypt.  
3.2.  In January  2017, Bahrain launched its Customs Strategy 2017 -2020. The plan sets out 
four main missions for Customs Affairs: (i) contribut e to the national economy; (ii) enhanc e the flow 
of legitimate  trade and travel; (iii) protect and safeguard Bahrain from prohibited/restricted items; 
and (iv) secur e land, air , and maritime borders.3 The authorities indicate this plan has been fully 
implemented. A new Customs Affairs strategic plan for 2021 -24 was released in January  2021. It 
has three goals: ( i) align plans and program mes with Vision  2030 (Section  2.2) and the policies of 
the World C ustoms Organization; ( ii) reinforce customs work and develop acquisitions; and ( iii) build 
the capacities and capabilities of Customs Affairs to face challenges and convert them into 
opportunities.4 
3.3.  To become legally established, all investors (including  importers and exporters) must register 
with the Ministry of Industry, Commerce and Tourism (MOICT) and obtain a Commercial Registration 
Certificate. To commence practicing their activities, they must also apply for approvals and/or a 
business licence from the relevant licensing entity  (Section  2.4). Membership in the Bahrain 
Chamber of Commerce is also required, with fees varying according to the company's capital. 
Importers do not need to be licensed if they are engaged in re -export, temporary admission, o r 
transit. Importers can choose to use the services of a customs clearing agent, who must be 
registered with Customs Affairs and hold a valid licence.   
3.4.  All imports to Bahrain must be accompanied by the original invoice , the original certificate of 
origin (see below) , delivery order (for air or sea transportation) , bill of lading (for air or sea 
importation) , manifest (for imports by land or by wooden vessels) , a packing list for multiple goods 
indicating the HS code as w ell as the international code for chemicals or hazardous items , and 
required approvals from the competent authorities concerning restricted goods.5 The customs office 
may request translation of the documents in Arabic.6 Import documentation must be submi tted 
 
1 WTO document G/VAL/N/1/BHR/1, 6  May 2009.  
2 GCC, Unified Guide for Customs Procedures . Viewed at: https://www.gcc -sg.org/en -
us/CognitiveSources/DigitalLibrary/Lists/DigitalLibrary/Customs/1435652105.pdf . 
3 Customs Affairs, Strategic Plan 2020 -2017.  Viewed at: 
https://www.bahraincustoms.gov.bh/sites/default/files/2019 -
03/Custom%20Affairs%20Strategic%20Plan_compressed.pdf.  
4 Customs Affairs, Strategic Plan 2021 -2024. Viewed at: 
https://www.bahraincustoms.gov.bh/en/strategic -plan-2021-2024 and 
http://www.bahraincustoms.gov.bh/en/publications . 
5 Bahrain eGovernment, Commercial Goods Importation Request . Viewed at: https://bit.ly/3aly5GP  and 
http://13.127.181.153/index.php/en/commercial -import . For example, special safety requirements apply to 
imports of chemicals, cosmetic products, radiation sources or devices, wireless equipment, and 
telecommunications devices; depending on the category, documen tation might need to include the list of 
customers inside Bahrain and their contacts or halal certificates. Information for each one was viewed on 
Bahrain's eGovernment database at: https://bit.ly/2WeEdIk ; and imports  of printed publications and 
audio -visual media need a certification from the Ministry of Information for the protection of intellectual 
property rights and moral values. Ministry of Interior, Customs Affairs, General FAQ . Viewed at: 
http://www.bahraincustoms.gov.bh/faq.php#:~:text=What%20are%20the%20duty%20rates,subject%20to%
2020%25%20duty%20rate . Import documentation req uirements are contained in Ministry of Interior 
Resolution No.  1 of 2014 (as amended by Resolution No.  8 of 2017) and Decision No.  7 of 2018. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=14573 . 
6 Ministry of Interior, Customs  Affairs, General FAQ . Viewed at: 
http://www.bahraincustoms.gov.bh/faq.php#:~:text=What%20are%20the%20duty%20rates,subj ect%20to%
2020%25%20duty%20rate . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 37 - 
 
  electronically through the e -customs system (see below); there is no requirement for declarations 
to be submitted in advance of the good s' arrival. Original documents must be provided when 
requested either prior to or after the release of goods.7 Bahrain has eight customs offices. The 
Director -General of Customs Affairs may allow the completion of customs clearance procedures in 
the absence of required documents against cash or bank guarantees , or a written undertaking to 
submit these documents ac cording to the stipulated conditions.  
3.5.  In 2020, Customs Affairs issued the unified guide on advance rulings, prepared at the GCC 
level.8 This sets out the procedures for advance rulings by customs administrations in GCC member 
States on customs classificat ion (including customs duty exemptions), origin, and valuation. These 
decisions are binding both on the customs administrations in the country of issue , as well as those 
in other GCC member  State s. Importers must apply for an advance ruling to the customs 
administration in the relevant GCC member State using the prescribed form (contained in the guide). 
The customs administration has up to 60  days to issue its advance ruling, which is binding. Under 
certain circumstances , a request for an advance ruling may  be rejected, but this must be justified. 
Fees for advance rulings may be levied. Importers may make a written request for advance rulings 
to be reviewed. An electronic database and central database are being established at the GCC level 
to ensure transpar ency and coordination; advance rulings made by customs administrations in the 
respective GCC countries must be shared. The authorities indicate that Bahrain is applying this 
system , and the fee is around USD  14. 
3.6.  The E-Customs System for Single Window and I nternational Trade Facilitation (OFOQ) has been 
operational since 2011. The OFOQ aims to provide integrated and seamless electronic trade 
operations between Bahrain's customs and regulatory authorities and the trade and logistics 
operators. It is a single window platform through which traders can make their customs declarations. 
Import licences may be through the Government web portal ( www.bahrain.bh ). The authorities  
indicate  that various new functions were added to the OFOQ over the review period , and there is 
work in progress to upgrade the clearance system. There are no charges for using  the OFOQ. In 
April 2020, Customs Affairs launched the remote customs clearance service for goods , which enables 
the submission of  customs declarations and completion of the payment of financial dues remotely 
through OFOQ using a billing system, without the need to personally attend customs ports to 
complete customs clearance procedures. Customs service fees are set out in an attachm ent to 
Ministry of Interior Resolution No.  80 of 2017.9 
3.7.  Around 90% of goods are released without inspection, typically the same day; the remaining 
goods are assigned to a yellow, orange, red , or other government agencies ( OGA) declaration lane 
(see below)  selected by the customs clearance electronic system risk engine. This risk engine targets 
shipments electronically , according to selective or random determinations by Customs Affairs' Risk 
Management Department and ensures facilitation of customs procedur es for companies on 
facilitation lists (i.e. the white list, A uthorized Economic Operator (AEO)  Programme (see below) , 
and Compliant Operator Programme (see below) ). According to the authorities, the risk management 
work revolves around a set of risks that  are given priority due to Bahrain's security, commercial, 
economic, and geographic realities. Risk criteria priorities are based on the objectives of customs 
control and trade facilitation and are reviewed periodically (Table  3.1). 
 
7 Ministry of Interior, Customs Affairs, Commercial Import . Viewed at: 
http://13.127.181.153/index.php/en/commercial -import . 
8 GCC, Unified Guide on Advance Rulings . Viewed at: https://www.customs.gov.bh/sites/default/files 
/2021 -01/%D8%A7%D9%84%D8%AF%D9%84%D9%8A% D9%84%20%D8%A7%D9%84% D9%85%D9% 
88%D8%AD%D8%AF%20 --%20%D8%B4%D9%88%D9%94%D9%88%D9%86%20o%D8%A7% D9%84% 
D8%AC%D9%85%D8%A7%D8%B1%D9%83.pdf . 
9 Resolution No.  80 of 20 17 Regarding fees for customs services. Viewed at: 
https://www.customs.gov.bh/sites/default/files/2020 -01/_LB2TA~V.PDF . In 2020, the Ministry of Interior 
abolished the cust oms service fee on the "written request of the importer to match goods at the customs office 
after submitting the customs declaration". It also cancelled fees for certificates issued by the General 
Administration of Civil Defense.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 38 - 
 
  Table 3.1 Customs Affairs' risk criteria priorities, 2021  
Risk objective  Priority criteria  
Control  Control over customs tariff chapters (product HS code)  
 Monitoring customs cases and violations  
 Control over value, fees and taxes  
 Control over customs brokers  
 Control of restricted goods for other government authorities (OGA)  
 Control over countries, ports , and airports  
 Control through  Regional Intelligence Liaison Officer  alerts and other data exchange  
 Control of manifest  
Facilitation  Maintaining the stability of targeting rates on the red lane, in line with the capacity 
of customs points  
 Maintaining the stability of targeting rates on the green lane  
 Analysis of the Global Transparency Report  
 Facilitation granted to Compliance Lists  
 Facilitation granted to AEO Lists  
Source:  Information provided by the authorities.  
3.8.  As set out in Administrative Order No.  23 of 2016 , customs control risk lanes are d efined as: 
(i) green lane (customs declaration and its attachments are accepted); ( ii) yellow lane (documentary 
check of the customs declaration and its attachments); ( iii) orange lane (examination of goods by 
X-ray machine) ; and ( iv) red lane (customs dec laration and its attachments must be audited, and 
goods are physically inspected, and examined by any auxiliary control means). In 2020, around 7% 
of all customs declarations were assigned to the green lane, 14.4% to yellow, 36.8% to orange, 
13.4% to red , and 28.4% to OGA. The latter is for goods that require post -importation procedures , 
such as sample checks and reporting quantities.  
3.9.  Customs duties are suspended for goods stored in government -bonded warehouses, until 
re-export, whereupon they are cancelled. If the goods are not re -exported and are sold in Bahrain, 
the appropriate duties are levied.10 
3.10.  According to a case study undertaken by the authorities on the import of car parts from Japan 
via a seaport revealed significantly lower times, namely , 24 hours for border compliance and 
1.22 minutes for documentary procedures; they point out that both procedures can be done 
simultaneously.  
3.11.  In November  2019, a "white list" for importers (and exporters) was established by certain 
OGAs and issued by Custo ms Affairs. This enables trusted companies to clear their imports and 
exports of certain products without customs inspection. The OGA selects and accredits trusted 
companies on the basis that they have a low probability of violation and they undertake a hi gh 
volume of trade. As at mid -2021, there were 58  accredited companies (Table  3.2). The objective is 
to reinforce customs operations, reduce the costs for traders , and speed up procedures .11 
3.12.  Bahrain launched its A EO Programme in 2018; its aim is to enhance customs performance 
and facilitate the movement of international trade. The programme gives recognized companies in 
the areas of imports, exports, transportation and transport management, warehousing and storage, 
and clearance offices priority in customs clearance and release procedures. For companies to obtain 
AEO status, various requirements and conditions apply , including: ( i) meeting requirements relating 
to customs, financial systems, internal control systems, data processing systems , and international 
security; ( ii) maintaining a minimum level of business; ( iii) having been operational for a minimum 
period of time; and ( iv) being financially solvent. These and other specific requirements are detailed 
in the Aut horized Economic Operator Programme Guide.12 As at July  2021, there were 11  certified 
AEOs. A mutual recognition agreement (MRA) was concluded with the Kingdom of Saudi  Arabia in 
 
10 WTO document WT/TPR/S/294, 18  March  2014.  
11 Bahrain News Agency, "Bahrain Launches White List for Importers, Exporters", 13  November  2019. 
Viewed at: https://www.bna.bh/en/BahrainlaunchesWhiteListforimporter 
sexporters.aspx?cms=q8FmFJgiscL2fwIzON1%2BDiQNRYFQxa0M7Y1I69l71qg%3D . 
12 Customs Affairs, Authorized Economic Operator (AOE) Programme Guide . Viewed at: 
www.bahraincustoms.gov.bh/sites/default/files/2019 -
04/AuthorizedEconomicOperatorProgrammeGuideEng.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 39 - 
 
  2019, and another MRA is under negotiation with Hong Kong, China.13 The value of imports covered 
by the AEO Programme was 27% in the first half of 2021.  
Table 3.2 White -list products and companies, May 2021  
Government agency  Product under control  Companies 
(number)  
National Health Regulatory 
Authority  Medicines intended for human use  3 
National Health Regulatory 
Authority  Medical devices and tools intended for human use  2 
Supreme Council for Environment , 
Hazardous Chemicals 
Management Unit  Chemical products, chemical and mineral fertilizers, 
and devices containing chemicals  17 
National Oil and Gas Authority  Oil and gas and their derivatives  1 
MOICT, Department of Inspection 
and Metrology  Children's toys, cement, cars, motorcycles and their 
tyres 35 
Source:  Information provided by the authorities.  
3.13.  Under Customs Affairs' Post Audit and Compliance Guide announced in March  2021 
(Compliant Operator Programme , see above ), certain operator's tie rs and levels of customs 
facilitation are determined by Customs Affairs based on their compliance history as measured 
through auditing and examining of their financial and commercial systems, documents , and records. 
As at mid -2021, there were 207  companies  on the "Compliance  1" list and 312  companies on the 
"Compliance  2" list. The difference between the two  lists relates to accreditation rules, levels of 
facilitation offered by Customs Affairs , and other services provided.14 
3.14.  Bahrain ratified the WTO Trade Facilitation Agreement (TFA) in September  2016.15 In 2018, 
it notified its Category  A, B, and C commitments under the TFA.16 It notified the WTO in 
February  2020 that it required an extended definitive implementation date for its Category  C 
commitments on "consultations" from 28  February  2020 to 28  August  2021 (TFA , Article  2.2).17 
Bahrain has notified information under Articles  1.4, 10.6.2 , and 12.2.2 of the TFA, as well as contact 
points under Article  22.3.18 According to the WTO TFA Database , Bahrain ha s implemented 90.3% 
of its commitments under the TFA as per the set deadlines by end -August  2021.19 The authorities 
confirm that , in reality, Bahrain implemen ted 100% of its commitments (in advance of the set 
deadlines).  
3.15.  In response to the COVID -19 pandemic, Customs Affairs sped up customs clearance of release 
of relief shipments of medicines, medical equipment , and food and to support the increase in demand 
for e-commerce transactions, it also increased staffing to support e -commerce stakeholders.  
3.16.  Bahrain notified the WTO in 1997 that it had no laws or regulations relating to pre -shipment 
inspection.20 
 
13 The MRAs are written to cover the elements of a mutual recognition arrangement/agreement 
mentioned in the World Customs Organization (WCO) Mutual Recognition Arrangement/Agreement Strategy 
Guide, which include responsible entities, compatibility, mutual r ecognition, information exchange and 
participant communication, future endeavours, modification and consultation, status of 
arrangement/agreement, and commencement and discontinuation/termination.  
14 With respect to accreditation rules, the import value and  declarations made per year are higher for 
Compliance  1. With respect to customs facilitation, Compliance  1 is granted lower levels of red lane allocation. 
With respect to other services, Compliance  1 is notified by customs customer services when there is any strong 
indication of a decline in the level of commitment.  
15 Law No.  17 of 2016. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=13701 . 
16 WTO document G/TFA/N/BHR/1, 2  March  2018. This follows on from Bahrain's notification of its 
Category A commitments in November  2015 (WTO document WT/PCTF/N/BHR/1, 24  November  2015).  
17 WTO document G/TFA/N/BHR/1/Add.1, 28  February  2020.  
18 WTO documents G/TFA/N/BHR/3, 4  March  2019; and G/TFA/N/BHR/2, 1  March  2019.  
19 WTO Trade Facilitation Ag reement Database. Viewed at: https://tfadatabase.org/members/bahrain -
kingdom -of. 
20 WTO document G/PSI/N/1/Rev.1, 11  October  2012.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 40 - 
 
  3.1.1.1   Customs valuation  
3.17.  Custom tariffs on imported goods are assessed based on the transaction value, in most cases 
equivalent to the c.i.f. value.21 Import prices are monitored by Customs Affairs Valuation Section, 
and if undervaluation is suspected an investig ation is initiated and the importer asked to provide 
evidence. If the transaction value of the imported good cannot be determined, then the transaction 
value of a similar or identical good is used. If neither of these values can be determined, the valuatio n 
methods used are the deductive value, the computed value , and the flexible (also called fallback) 
method.22 The importer may request application of the computed value method before the deductive 
value method.23 This request must be made in writing at the  time of submitting the customs 
declaration.  
3.18.  Customs tariffs are imposed on damaged goods based on their current value at the time of 
lodging the customs declaration.24 
3.19.  As set out in the GCC Common Customs Law, the importer or any person liable for payment  
of the customs duties may object and appeal to a valuation committee composed of officers from 
the administration against a customs decision within 15  days following the registration of the 
customs declaration, or from the date of the valuation notice sen t by registered mail. Appeals may 
be made to the competent court.25 In March  2019, Bahrain notified the Committee on Customs 
Valuation that it had implemented the decision on the Valuation of Carrier Media Bearing Software 
for Data Processing Equipment, ef fective from March  2008.26 According to the authorities , there has 
been no direct impact.  
3.1.2   Rules of origin  
3.20.  Bahrain applies non -preferential and preferential rules of origin.  
3.21.  Under the non -preferential scheme, products are generally considered as originating  from the 
country where they are wholly obtained or where they underwent substantial transformation, with 
at least 40% of local value -added. As mentioned  above , all imports into Bahrain, including from 
other GCC member  State s, must be accompanied by an ori ginal certificate of origin. This must be 
stamped by the Chamber of Commerce and Industry/Commerce Union of the country of origin and 
relevant Consulate of Bahrain or any Arab Embassy in the country of origin before the goods may 
be exported to Bahrain. Co nsular fees are levied with the rates varying according to the invoice 
value; they range from USD  60 for imports with an invoice value of up to USD  2,646 to USD  1,200 
for imports with an invoice value of USD  264,553 and over. Consular fees are waived for U S traders. 
Where the certificate of origin is not available, a BHD  10 deposit is payable until it is provided. 
Bahrain has not submitted any notification under the Article  V of the Agreement on Rules of Origin 
on the implementation of non -preferential rule s of origin.  
3.22.  Neither the 2001 Economic Agreement between the GCC States nor its Implementation Rules 
contain provisions relating to rules of origin.27 Imported goods in the GCC are subject to the proof 
of origin according to the rules of origin adopted within the framework of the international and 
regional economic agreements in force.28 Products of the Pan -Arab Free  Trade Area (PAFTA), of 
 
21 As indicated by the authorities, if the f.o.b. value is p rovided on the declaration, importers must also 
disclose shipping fees.  
22 Rules of Implementation of the Unified Customs Regulation. Viewed at: https://bit.ly/2N4uMKN ; as 
amended by Resolution No.  5 of 2008. Viewed at : 
https://www.legalaffairs.gov.bh/AdvancedSearchDetails.aspx?id=9087 . 
23 WTO document G/VAL/N/1/BHR/2, 15  October  2012.  
24 Bahrain eGovernment, Commercial Goods Importation Request . Viewed at: https://bit.ly/3aly5GP . 
25 WTO document G/VAL/N/1/BHR/2, 15  October  2012, Articles  61-62.  
26 WTO document G/VAL/N/3/BHR/1, 1  March  2019.  
27 Article  II(f) of the Implementation Rules provides that goods produced in any GCC  member State will 
be treated as of national origin. WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21  March  2018.  
28 GCC Common Customs Law, 2003, Article  25. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 41 - 
 
  which the GCC  States are all members, qualify for preferential treatment when at least 40% of value 
is added locally.29 
3.23.  Under the USA -Bahrain Free Trade Agreement, goods originating from either territory benefit 
from duty -free access to the parties' markets. A good qua lifies for such preferential treatment if it 
is wholly grown, produced , or manufactured in either territory , or if it is imported and transformed 
into a new or different article of commerce with the sum of the material produced in the 
transformation equal or superior to 35%. The Agreement also stipulates specific rules of origin for 
textiles, including a "yarn forward requirement".30 The GCC -Singapore FTA sets the same 35% 
threshold for treating a good as originating from one of the parties. Article  6.6 of the A greement 
provides that normal rules of origin provision s do not apply to goods or services imported or supplied 
for the purpose of government procurement.  
3.24.  The GCC -European Free Trade Association (EFTA) FTA rules of origin are set out in Annex  IV 
to the Agreement.31 This lists the various working or processing requirements for products not wholly 
obtained in the territory  of a party. For various HS  sections, the value of non -originating materials 
used must not exceed a certain percentage of the ex-works price of the product/set (ranging from 
15% to 60%). The EUR.1 movement certificate is used as the certificate of origin.  
3.1.3   Tariffs  
3.1.3.1   MFN applied tariffs  
3.25.  The single -entry principle applies to imports to GCC member States , including Bahrain. Under 
this principle, items imported into Bahrain or any other GCC member State and destined for another 
GCC market are subject to customs duty only at the first point of entry into the GCC.32 Based on the 
common external tariff (CET) of the GCC, Bahrain's MFN tariff  comprises 7,521  lines at the 8 -digit 
level of the HS17  nomenclature. All rates are ad valorem , except for 20  tariff lines on tobacco, for 
which mixed (alternate) duties are applied.  
3.26.  The simple average MFN applied tariff rate was 4.7% in 2021, down from 5.1% in 2013 due 
to reforms (see below). MFN applied tariff rates remain generally higher on agricultural products 
(WTO definition) at 5.4% on average in 2021 (down from 7.5% in 2013) than on non -agricultural 
products (unchanged at 4.6% in 2021, and 2 013). The share of duty -free lines slightly increased 
from 11.1% in 2013 to 11.7% in 2021 (Table  3.3). The highest tariff rate of 100% applies to certain 
beverages, spirits , and tobacco (Table  A3.1). Import prohibitions cover 34  tariff lines; no tariffs we re 
provided for these lines (Table  3.4). 
Table 3.3 Structure of applied MFN tariffs, 2021  
(%, unless otherwise indicated)  
 MFN applied  Final bounda 
 2013  2021  
Bound tariff lines (% of all tariff lines) .. .. 70.0 
Simple average rate  5.1 4.7 34.7 
WTO agricultural products  7.5 5.4 38.6 
WTO non -agricultural products  4.6 4.6 33.6 
Duty-free tariff lines (% of all tariff lines)  11.1 11.7 2.1 
Simple average rate of dutiable lines only  5.7 5.4 35.8 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)b 0.4 0.7 0.0 
Domestic tariff "peaks" (% of all tariff lines)c 0.9 0.6 0.2 
 
29 Arab Rules of Origin for the Purpose of Implementing the Agreement to Facilitate and Develop Trade  
among Arab States (GAFTA), Rule  2: Standard of Origin. Viewed at: 
http://www.economy.gov.lb/public/uploads/files/2340_7722_8709.pdf . 
30 Bahrain -United  States Free Trade Agree ment, Trade in Goods. Viewed at: 
http://www.sice.oas.org/TPD/USA_BHR/Studies/Goods_e.pdf . 
31 Free Trade Agreement between the EFTA States and the Member States of the Cooperation Counci l 
for the Arab States of the Gulf (originally known as GCC). The list is provided in Annex IV, Appendix II. 
Viewed  at: https://www.efta.int/free -trade/free -trade -agreements/gcc . 
32 WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21  March  2018.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 42 - 
 
   MFN applied  Final bounda 
 2013  2021  
International tariff "peaks" (% of all tariff lines)d 0.9 0.6 67.9 
Standard deviation  8.3 5.4 12.3 
Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 
.. Not available.  
a Final bound rates are based on the 2021 tariff schedule in HS17 nomenclature.  
b Including 34  prohibited tariff lines (0.5% of total lines) in case of the 2021 tariff analysis.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than  zero, but less than or equal to 2%.  
Note:  The 2013 tariff is based on HS12 nomenclature consisting of 7,303 tariff lines (at the 8-digit tariff 
line level). The 2021 tariff is based on HS17 nomenclature consisting of 7,521  tariff lines (at the 
8-digit tariff line level). In case of non -ad valorem  tariffs, the ad valorem  part is used for mixed 
duties.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and WTO CTS database.  
Table 3.4 Prohibited tariff lines, 2021  
HS code  Product description  No. tariff 
lines  
Total  
34 
40121100, 40121200, 40121300, 
40121900, 40122000  Retreaded or used pneumatic tyres of rubber  5 
12113000, 12114000, 12119020, 
12119060  Coca leaf, poppy straw, black poppy, and cannabis sativa  4 
01031000,01039100, 01039200  Live swine  3 
12079100, 12079910, 12079920  Poppy seeds, poppy, and hemp seeds  3 
09082100, 09082200  Mace 2 
13021100, 13021910  Opium and hashish  2 
25241000, 25249000  Asbestos  2 
68128000, 68129300  Fabricated asbestos fibres; mixtures with a basis of 
asbestos or with a basis of asbestos and magnesium 
carbonate; articles of such mixtures or of asbestos  2 
71012100, 71012200  Cultured pearls  2 
71161010, 71161090  Articles of natural or cultured pearls  2 
05071000  Ivory; ivory powder and waste  1 
24039921  Chewable and sniffing preparation (Sahmmah, Suwaikah) 
containing tobacco  1 
29397110  Cocaine  1 
68132000  Friction material and articles thereof (for example, sheets, 
rolls, strips, segments), containing asbestos  1 
68114000  Articles of asbestos -cement, of cellulose fibre -cement or 
the like  1 
85437031  Electronic cigarettes  1 
95030040  Remote -controlled reduced -size models of aircraft  1 
Source:  Compiled by the WTO Secretariat , based on data provided by the authorities and WTO CTS 
database.  
3.27.  While a full comparison between the 2021 and 2013 tariff schedules was not possible, tariff 
decreases were observed for 18  tariff lines.33 These included 15  tariff lines on certain alcoholic 
beverages where tariff rates in 2013 were 125% and were duty free in 2021. Two  tariff lines that 
were prohibited in 2013 had rates of 5% in 2021 (solid or cushion tyres, interchangeable tyre treads 
and tyre flaps, of rubber ; and worked iv ory and articles of ivory). One  tariff line (other mattresses 
of cellular rubber or plastics, whether or not covered) was 20% in 2013 and 5% in 2021. The tariff 
rate on one  tariff line (on mattresses with springs) was higher (at 20%) in the 2021 tariff tha n in 
2013 (at 5%).  
 
33 Around 3% of the tariff lines in the 2013 and 2021 tariff schedules could not be compared, mainly 
due to changes in HS  nomenclature and in the structure of the tariff schedule.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 43 - 
 
  3.28.  In the 2021 tariff schedule, 11.7% of all tariff lines are duty free, and 87.2% of lines have a 
5% rate.  As shown in Chart  3.1, 0.31% of t ariff lines have ad valorem  rates at 6% or above, and 
0.3% of tariff lines attract mixed duties (Ch art 3.1). 
Chart 3.1 Distribution of applied MFN tariff rates, 2021  
(Number of tariff lines ) 
 
Note:  Figures in parentheses denote the share of total lines. The 2021 tariff schedule consists of 
7,521  tariff lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Tariff bindings  
3.29.  Bahrain has bound about 70% of its tariffs; all bindings are ad valorem .34 The imposition of 
non-ad valorem  (mixed) tariffs on tobacco and tobacc o products, while the binding on these goods 
is ad valorem  at 100%, does not ensure compliance with its WTO commitment s. About 67% of tariff 
lines are bound at 15%. Alcohol products (16  lines) carry the highest bound rate of 200%. Bahrain's 
average bound t ariff is 34.7%, compared with the overall average MFN applied tariff of 4.7% , giving 
Bahrain a large amount of flexibility to increase applied tariffs.  
3.30.  Bahrain bound other duties and charges (ODCs) at zero, except for 46  tariff lines (HS08) that 
were bound  at 2%.  
3.1.3.3   Tariff preferences  
3.31.  Products originating from the Gulf Cooperation Council (GCC), the PAFTA , and the 
United  States  are exempt from customs duties except for prohibited items (Table  3.2). Preferential 
tariff treatment is also accorded to EFTA member States and Singapore under their respective RTAs 
with the GCC. The GCC -EFTA RTA covers 5,890  tariff lines (at the HS  8-digit level), with a simple 
average preferential tariff of 0.4% and the GCC -Singapore RTA covers 6,051  tariff lines (at the 
HS 8-digit le vel); under both RTAs , the simple average tariff on agricultural products (WTO 
definition) is higher than on non -agricultural goods (Table  3.5 and Chart  3.2). 
Table 3.5 Tariffs under preferential agreements, 2021  
 Simple average 
(%) overall  WTO agriculture  WTO 
non-agriculture  
MFN 4.7 5.4 4.6 
Gulf Cooperation Council (GCC)  0.0 0.0 0.0 
Pan-Arab Free Trade Area (PAFTA)  0.3 1.7 0.0 
Bahrain -United  States  0.0 0.0 0.0 
GCC-EFTA 0.4 2.3 0.0 
GCC-Singapore  0.5 2.0 0.2 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
34 The transposition of Bahrain's bound tariff into HS17 has been approved and certified. WTO document 
G/MA/TAR/RS/641, 17  December  2020.  
05001,0001,5002,0002,500
Duty free 5% 20% 100% Mixed duty ProhibitedChart 3.[BHR]  Distribution of MFN tariff rates, 2021
Number of tariff lines
Note:   Figures in parentheses denote the share of total lines.  The 2021 tariff schedule consists of 7,521 tariff lines.
Source:   WTO Secretariat calculations, based on data provided by the authorities.7,000
6,500
(11.7%)(87.2%)
(0.01%) (0.5%) (0.3%) (0.3%)WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 44 - 
 
  Chart 3.2 Tariffs under preferential agreements, 2021  
 
Note:  Duty-free treatment applied to all imports from the GCC and the United  States  (except prohibited 
items).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.4   Tariff concessions and exemptions  
3.32.  Section  VIII of the GCC Common Custo ms Law provides for a number of duty and tax 
concessions and exemptions, namely, diplomatic exemptions; military exemptions; exemptions for 
personal effects and household items brought into a member country by nationals residing abroad 
or foreigners coming  for the first time for residence in a member country; and exemptions for 
imports by philanthropic societies, and returned goods. Under the GCC Industries Law (Law No.  1 of 
2006) and the 2019 revised controls for industry input exemptions, tariff exemption s are granted to 
industries having an industrial licence from the MOICT. These exemptions cover industrial inputs 
used for industries' immediate industrial production, such as machinery; equipment; parts; and raw, 
semi-manufactured, finished , and packing m aterials.  
3.33.  Under the GCC Common Customs Law and its rules of implementation, duty and tax 
concessions are granted under the import for re -export, temporary admission , and transit regimes. 
Importers using the import for re -export regime make a deposit or pro vide a bank guarantee in lieu 
of the duty payment, which is refunded/released upon proof of re -export. If the goods remain in 
Bahrain after 180  days, they are liable for duty payment. Goods declared under temporary 
admission, such as goods imported for exh ibitions; equipment used in construction, scientific 
research, or development projects; and items for repair or maintenance must be re -exported within 
a maximum of three years.  
3.34.  Duty drawback is allowed under Article  16 of the Executive Supplementary Notes to the GCC 
Customs Law. It permits exporters to recover the duty paid on an imported product once the product 
is re-exported from Bahrain. The qualifying conditions include that : (i) the exporter is also the 
original importer of the product; (ii) the original c.i.f. value of the re -exported goods is not less than 
USD 5,000 (or its equivalent in local currency); (iii) the goods are re -exported within one year of 
payment of the import duty, in the same condition and packaging as when they were imported; and 
(iv) exports are not restricted or granted protective duty under Bahraini law, unless prior permission 
0%10%20%30%40%50%60%70%80%90%100%
MFN
EFTA
Singapore
GCC
PAFTA
United States
MFN=duty-free Dutiable lines
Preferential tariff rates Prohibited lines0%1%2%3%4%5%6%
Overall WTO Agriculture WTO Non-
agriculture
MFN EFTA Singapore PAFTADistribution of applied MFN and preferential tariffs Simple average duties under FTAs (%)
(% of all lines)
Source: WTO Secretariat calculations, based on data provided by the authorities.Chart 3. [BHR] Tariffs under preferential agreements, 2021
Note: Duty -free treatment applied to all imports from GCC and the United States (except prohibited items).WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 45 - 
 
  is obtained from the relevant authority.35 Proof is required that the goods being exported are 
identical to the goods that were imported. Customs imp oses a service charge of 0.5% of the c.i.f. 
value of the goods if the customs duty did not exceed 20% , and 1% of the c.i.f. value of the goods 
with customs duty above 20%.  
3.1.4   Other charges affecting imports  
3.35.  Over the review period , Bahrain introduced value -added and excise taxes. To administer, 
monitor, and collect the VAT and excise taxes (and related penalties), the Government created the 
National Bureau for Revenue in 2019.  Customs Affairs remains responsible for collecting customs 
duties.  
3.1.4.1   Value added tax (V AT) 
3.36.  In 2018, GCC member States concluded a Unified Agreement for Value Added Tax that 
foresees a standard rate of 5% on goods and services; the authority to introduce implementing 
legislation and detailed procedures necessary for the operation of a VAT sys tem remains with each 
GCC member. On 1 January  2019, Bahrain introduced the VAT at the standard rate of 5%, with VAT 
registration being phased in during the course of 2019.36 The value for imported goods for VAT 
purposes is the c.i.f. customs value plus cu stoms duties and excise tax; for domestically  produced 
goods and services, the VAT applies on the sales price. Certain goods and services are VAT -exempt 
or zero -rated (Table  3.6). Moreover, personal imports and gifts for individuals worth less than 
BHD 300 are not subjected to the VAT.  
Table 3.6 VAT regime, 2021  
Rate  Application  
5% Standard rate applicable to all goods except those exempt or zero -rated  
Zero  Exports of goods and services; domestic and international transportation; basic food items 
(water, milk, meat and fish, oils, eggs, salt and sugar, infant formula, bread products, 
vegetables and fruits, coffee beans, tea and cardamom, and wheat and rice); medicines and 
medical equipment; healthcare services; educational services; construction services for new 
buildings; domestic oil and gas; precious stones; investment gold, silver , and platinum; supply 
of goods to a customs duty suspension regime; and re -export of goods temporarily imported 
into Bah rain for repair, conversion, restoration , and processing  
Exempt  Real estate supplies; certain financial services; goods imported which are exempt from 
customs duties under the Customs Law (i.e. diplomatic and military exemptions, returned 
goods, imports of used personal belongings and household appliances by Bahraini citizens 
residing abroad and foreigners who are coming to reside in Bahrain for the first time; and 
imports of personal effects and gifts accompanied by a traveller)  
Source:  Kingdom of Bahrain , VAT General Guide , December  2018 (as updated on 14  January  2021). 
Viewed  at: https://s3 -eu-west-
1.amazonaws.com/nbrproduserdat a/media/ry8rd3NbWnJ6YsMYGZtxdEL2XoGPkSUSlTDmtuhR.pdf . 
The list of zero -rated basic food items was viewed at: 
https://www.nbr.gov.bh/pdf/basic_food_list.pdf ; and details on the supply of medicines and medical 
equipment are published by the National Health R egulatory Authority ( http://www.nhra.bh ). 
3.37.  As indicated by Table  3.7, VAT accounts for the largest share of revenue from taxation of 
merchandise. In 2019, 73% of VAT revenues came from imports. In 2020, an estimated 77% of  VAT 
revenues came from imports.  
 
35 Customs Handbook, Resolution No.  2 (1986) Regarding Drawback of Import Duty Paid on Foreign 
Goods, on Re -export.  
36 The legislative framework for the VAT is the Unified Agreement for Value Added T ax of the 
Cooperation Council for the Arab States of the Gulf as ratified by Bahrain through Decree -Law No.  47 of 2018. 
Viewed at: https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=14479 ; Decree No.  48 of 2018 
Regarding Value Added Tax. View ed at: https://www.nbr.gov.bh/pdf/81129_Bahrain_VAT_Law.pdf ; and 
Resolution No.  12 of 2018 on the Issuance of Executive Regulations of the Value Added Tax Law. An 
English -language translation of the Unified VAT Agreement for the Cooperation Council for the  Arab States of 
the Gulf was viewed at: https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/tax/me_Deloitte -
english-GCC-VAT-Treaty -translation -May-7.pdf. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 46 - 
 
  Table 3.7 Revenue from taxation of merchandise , 2014 -20 
(BHD million)  
Tax 2014  2015  2016  2017  2018  2019  2020  
Customs duty  n.a. n.a. n.a. n.a. n.a. n.a. n.a. 
VAT n.a. n.a. n.a. n.a. n.a. 253 220-230a 
Excise tax  n.a. n.a. n.a. n.a. 56 61 55a 
n.a. Not applicable.  
a Figures are estimated.  
Source:  Information provided by the authorities.  
3.1.4.2   Excise tax 
3.38.  In 2017, Bahrain introduced an excise tax system, following on from the Unified Agreement 
on Selective Taxation by the GCC member States . On locally produced goods, the tax is imposed on 
the sale price.37 The taxation base for imported goods is the retail price of these goods. It is levied 
at a rate of 100% on tobacco and energy drinks , and 50% on carbonated drinks.38 The excise tax is 
not applied to exported or re -exported goods or excise goods used in the production of other 
commodities subject to excise.  In 2019 and 2020, 83% of excise tax revenues came from imports.39 
3.1.4.3   Other duties and taxes  
3.39.  As indicated in the previous report, Bahrain bound other duties and taxes at zero, except for 
40 tariff lines under HS Chapter 08 , which were bound at 2%.  
3.1.5   Import proh ibitions, restrictions, and licensing  
3.1.5.1   Import prohibitions  
3.40.  Under the GCC Common Customs Law, each GCC member State still determines its own list 
of prohibited or restricted products. GCC member  State s are developing a common list , but this is a 
work in prog ress. Imports that are prohibited in some GCC member States but permitted in others 
may not transit through the member States in which they are prohibited.  
3.41.  Bahrain imposes import prohibitions on certain goods (from all sources) for various reasons, 
includi ng religious, safety , and health considerations (Table  3.8). Over the review period, new import 
prohibitions were introduced on the import of waste, parings and scrap of plastic through the 
Supreme Council for Environment Order No.  2 of 2019. In addition, the import and export of goods 
from/to Democratic People's Republic of Korea  are prohibited , as are imports and exports of military 
equipment to countries mentioned in U nited Nations  Security Council resolutions. Import prohibitions 
on goods of Israeli origin or bearing Israeli trademarks or logos were lifted in accordance with the 
Declaration of Peace, Cooperation and Friendship and Diplomatic Relations that Bahrain and the 
State of Israel announced on 15  September  2020.  
 
37 The legal framework for the excise tax regime is Law No.  40 of 2017 on Selective Taxation. 
Viewed  at: https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=13910 ; Law No.  39 of 2017 on 
the Ratification of the Unified Agreement on Selective Taxation by the GCC Countries. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id= 13909 ; and Decree No.  17 of 2017 on the 
Issuance of Regulations to Implement Law No.  40 of 2017 on Selective Taxation. Viewed at: 
https://www.legalaffairs.gov.bh/Media/LegalPDF/RFIN1717.pdf . 
38 The full list of products subject to the excise tax was viewed at: 
https://www.nbr.gov.bh/publications/view/excise_goods_list . 
39 For 2020, the data are estimates.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 47 - 
 
  Table 3.8 Prohibited imports, 2021  
HS code  Product description  Justification  Institution  
01.03.00.00  
01.03.10.00  
01.03.91.00  
01.03.92.00  Live swine  Religious reasons  Ministry of Work, Municipalities 
Affairs and Urban Planning  
05.07.10.00  
96.01.10.00  
 Ivory, ivory powder and 
waste  Protection of human, 
animal , or plant life or 
health; conservation of 
exhaustible natural 
resources; and compliance 
with CITES Convention  Ministry of Health , Ministry of 
Interior (Customs Affairs) , and 
Supreme Council for 
Environment  
Numerousa Waste  Protection of human, 
animal , or plant life or 
health; and conservation of 
exhaustible natural 
resources  Supreme Council for 
Environment  
02.08.19.20  
24.03.99.20  
24.03.99.21  
09.08.21.00  Areca nuts and other 
manufactured tobacco and 
manufactured tobacco 
substitutes; 
"homogenised" or 
"reconstituted" tobacco; 
tobacco extracts and 
essences  Protection of human, 
animal , or plant life or 
health  Ministry of Health  
12.07.91.00  
12.07.99.20  
12.11.90.60  
12.11.90.20  
12.11.40.00  Certain types of other oil 
seeds and oleaginous fruits 
(including poppy and hemp 
seeds, cannabis sativa, 
black poppy , and poppy 
straw)  Protection of human, 
animal , or plant life or 
health ; compliance with 
international conventions  Ministry of Interior (Customs 
Affairs)  
22.07.20.19  Ethyl alco hol and other 
spirits, denatured, of any 
strength  Protection of human, 
animal , or plant life or 
health  National Health Regulatory 
Authority  
Numerousa Radioactive matters  Protection of human, 
animal , or plant life or 
health; conservation of 
exhaustible natural 
resources  Supreme Council for 
Environment  
36.04.10.10  Certain types of fireworks, 
signalling flares, rain 
rockets, fog signals , and 
other pyrotechnic articles  Protection of human, 
animal , or plant life or 
health  Ministry of Interior  
39.15.10.00  
39.15.20.00  
39.15.30.00  
39.15.90.00  Waste, parings and scrap, 
of plastic  Protection of human, 
animal , or plant life or 
health  Supreme Council for 
Environment  
40.12.11.00  
40.12.12.00  
40.12.13.00  
40.12.20.00  Certain types of used tyres  Protection of human, 
animal , or plant life or 
health  Ministry of Industry, Commerce 
and Tourism  
68.11.40.00  
68.12.80.00  
68.12.93.00  Articles containing 
asbestos  Protection of human, 
animal , or plant life or 
health  Ministry of Industry, Commerce 
and Touris m 
71.01.21.00  
71.01.22.00  
71.16.10.10  Cultured pearls  Protection of national 
treasures of artistic, 
historic , or archaeological 
value; maintain the 
reputation of the natural 
pearls Bahrain is known for  Ministry of Industry, Commerce 
and Tourism  
84.76.89.00  Gambling slot machines  Religious reasons; 
protection of human, 
animal , or plant life or 
health  Ministry of Interior  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 48 - 
 
  HS code  Product description  Justification  Institution  
84.76.89.00  Automatic goods -vending 
machines for cigarettes  Religious reasons; 
protection of human, 
animal , or plant life or 
health  Ministry of Health  
85.43.70.31  Electronic cigarettes  Protection of human, 
animal , or plant life or 
health  MOICT  
93.07.00.10  
93.07.00.90  Certain types of swords, 
cutlasses, bayonets, lances 
and similar arms and parts 
thereof and scabbards and 
sheaths  Essential security interests 
relating to the traffic in 
arms, ammunition , and 
implemen ts of war  Ministry of Interior  
95.04.90.00  Tools, machines and 
devices dedicated to 
gambling of all kinds  Religious reasons  Ministry of Interior  
a For the tariff line codes affected, see WTO document G/MA/QR/N/BHR/1/Rev.1, 10  March  2021.  
Source:  WTO document G/MA/QR/N/BHR/1/Rev.1, 10  March  2021.  
3.1.5.2   Import restrictions and l icensing  
3.42.  Bahrain detailed its procedures for import licensing in December  201940, and notified its 
regime for import licensing and restrictions to the WTO in March  2021 (Table  3.9). Importers (as 
well as manufacturers, exporters , and re -exporters) of several products41 must obtain an industrial 
licence from the MOICT . This licence may be issued only to a firm or an individual resident in Bahrain. 
It is valid for one  year (renewable) and is transferrable between importers.  
3.43.  Under the GCC Guide for Control of Imported Foods, all consignments of imported food, plant, 
and animal products must be accompanied by sanitary and phytosanitary health certificates from 
the exporting co untry.42 Requests for imports of radiation sources or devices must be accompanied 
by a copy of the Environment Activity Licence provided by the Supreme Council for Environment for 
both the applicant and the user.43 
 
40 WTO document G/LIC/N/3/BHR/3, 17  December  2019.  
41 These products are meat; fish , crustaceans, and molluscs; fruit and vegetables; vegetable, animal, 
and fish oils and fats; dairy products; grain mill products, starches, and starch products; other food products; 
bakery products; cocoa, chocolate, and sugar confectionery; prepared anim al feeds; soft drinks, mineral 
waters , and other bottled waters; textiles; wearing apparel; leather and related products; paper and paper 
products; fertilizers and nitrogen compounds; plastics and synthetic rubber in primary forms; paints, varnish, 
and sim ilar coatings, printing ink, and mastics; soap and detergents, cleaning and polishing preparations, 
perfumes, and toilet preparations; other chemical products; pharmaceutical products and pharmaceutical 
preparations; rubber products; plastics products; gla ss and glass products; non -metallic mineral products; 
various metal products; computer, electronic, and optical products; furniture; jewellery; musical instruments; 
games and toys; "scale" models and similar recreational models; medical and dental instrume nts and supplies; 
stationery, art, and handcraft tools; miscellaneous articles; material recovery products; poultry eggs; wood 
and wood and cork products (except furniture); articles of straw and plaiting materials; coke oven products; 
refined petroleum pr oducts; basic chemicals; pesticides and other agrochemical products; man -made fibres; 
basic iron and steel; stem generators, except central heating hot water boilers; electric motors, generators, 
transformers, and electricity distribution and control appar atus; batteries and accumulators; wiring and wiring 
devices; electric lighting equipment; domestic appliances, other electric equipment; machinery and equipment; 
motor vehicles; bodies (coachwork) for motor vehicles; trailers and semi -trailers; parts and a ccessories for 
motor vehicles; ships; pleasure and sporting boats; railway locomotives and rolling stock; air and spacecraft 
and related machinery; motorcycles; bicycles and invalid carriages; other transport equipment; sports goods; 
protective safety equi pment; and treatment of oil waste.  
42 The Cooperation Council for the Arab States of the Gulf, GCC Guide for Control on Imported Foods , 
2016, p.  16. Viewed at: https://members.wto.org/crnattachments/2017/sps/bhr/17_0268_00_e.pdf . 
43 Bahrain eGovernment, Ionizing Radiation Source Import or Use Authorization Request . Viewed at: 
https://bit.ly/3nuq31S . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 49 - 
 
  Table 3.9 Restricted imports, 2021  
HS code  Product description  Conditions for release  Rationale for 
restriction  
01011010  Of Arab breed (horses)  No objective certificate from 
Equestrian and Horse Racing Club , and 
valid certificate from Veterinary 
Authority  Health, security , 
and religious 
reasons  
01061990  Other (predatory animals and 
circus animals)  No objection certificate from Ministry 
of Interior, and valid certificate from 
Veterinary Authority  Health, security , 
and religious 
reasons  
05119120  Dead animals of chapter 3  Valid certificate from veterinary 
authority  Health, security , 
and religious 
reasons  
28444010  Radioactive elements and 
isotopes and compounds  Permission  Health  
31 Animal or vegetable 
fertilizers whether or not 
mixed together or chemically 
treated  No objection certificate  Health  
3808 Insecticides, rodenticides, 
fungicides, herbicides, and 
anti-sprouting products  No objection certificate  Health, security , 
and religious 
reasons  
87011000  Pedestrian -controlled tractors  No objection certificate  Health, security , 
and religious 
reasons  
93 Military weapons, firearms 
and bombs, swords, 
cutlasses, bayonets, lances , 
and similar arms and parts 
thereof and scabbards  and 
sheaths therefor  No objection certificate  Security  
95030090  Other: models of aircraft that 
work by remote control rifles 
and pistols for children using 
air pressure or explosive 
packets  Permission  Security  
 Travelling circuses and 
travelling menageries  No objection certificate from Ministry 
of Interior, and valid certificate from 
Veterinary Authority  Health, security , 
and religious 
reasons  
Source:  WTO document G/MA/QR/N/BHR/1/Rev.1, 10  March  2021. 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.44.  Bahrain's legal framework for contingency measures remains the GCC Common Law on 
Anti-dumping, Countervailing Measures and Safeguards of 22  December  2003 (as amended in 
201144) and its implementing rules.45 There were no further amendments over the review period.  
3.45.  The GCC Industrial Cooperation Committee, the Committee on Anti -Injurious Practices in 
International Trade , and the Bureau of Technical Secretariat of Anti-injurious Practices in 
International Trade (GCC -TSAIP ) are responsible for implementing the GCC Common Law on 
Antidumping, Countervailing Measures and Safeguard Measures.46 
3.46.  Bahrain did not undertake any countervailing investigations or measures over the review 
period.  
 
44 Bahrain approved the Amended GCC Common Law on Anti -dumping, Countervailing Measures and 
Safeguard Measures through the Law No.  48 of 2011, and notified its translation to English to the WTO in 201 5 
(WTO document G/ADP/N/1/BHR/3, G/SCM/N/1/BHR/2, G/SG/N/1/BHR/3, 15  January  2015).  
45 An English translation of the implementing rules for Law No.  48 of 2011 was notified through WTO 
document G/ADP/N/1/BHR/3/Suppl.1, G/SCM/N/1/BHR/2/Suppl.1, G/SG/N/1/BHR/3 /Suppl.1, 
16 February  2016.  
46 GCC Common Law on Anti -dumping, Countervailing Measures and Safeguard Measures, 2011, 
Article  7. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 50 - 
 
  3.1.6.1   Anti-dumping measures  
3.47.  Over the review pe riod, Bahrain, together with other GCC member  State s, imposed definitive 
anti-dumping duties on four products from five WTO Members (Table  3.10). Additionally, an 
investigation was initiated on 29  April 2020 on plates, sheets, and strip s of aluminium alloy s, of a 
thickness not exceeding 8  mm but greater than 0.2  mm, except those polished, coated, heat 
treatable, and aluminium can stock used for beverage cans and its lids from China.47 
Table 3.10 Definitive anti -dumping measures in force in Bahrain, 31  December  2020  
Country  Product  Date of original 
imposition  Final measures  
China  Ceramic flags and paving, hearth, floor, or wall 
tiles; whether or not on a backing; finishing 
ceramics (Ceramic Tiles)  06/06/2020  Definitive duty  
23.5% -58% 
All others 76%  
Korea, Rep ublic 
of  Electric lead -acid accumulators of capacity of 
35 up to 115 Amp -hour 25/06/2017  Definitive duty  
12%-25% 
India Ceramic flags and paving, hearth, floor, or wall 
tiles; whether or not on a backing; finishing 
ceramics (Ceramic Tiles)  06/06/2020  Definitive duty  
17.6% -70.2%  
All others 106%  
Poland  Uncoated paper and paperboard (Kraft Liner of 
Fluting or test Liner), in rolls or sheets 
(Containerboard)  01/05/2019  Definitive duty 
34% 
Spain  Uncoated paper and paperboard (Kraft Liner of 
Fluting or test Liner), in rolls or sheets 
(Containerboard)  01/05/2019  Definitive duty 
24.6% -31% 
Source:  GCC notifications to the WTO Committee on Anti -Dumping Practices.  
3.1.6.2   Safeguard measures  
3.48.  On 1 November  2016, the GCC notified the WTO of its intention to impose a provisional 
safeguard measure in the form of an additional duty of 21% on the c.i.f. value of imports of 
ferro-silico-manganes e for a duration of 200  days. On 15  May 2017, the GCC notified the WTO that 
this safeguard investigation was terminated without taking definitive measures.48 
3.49.  On 15  May 2018, the GCC imposed safeguard duties on imports of flat -rolled products of iron 
or non -alloy steel for three  years at a rate of USD  169/tonne for the first year , USD 153/tonne for 
the second year , and USD  137/tonne for the third year.49 
3.50.  On 21  June 2019, the GCC imposed safeguard duties on chemical plasticizers for three  years 
at a rate of U SD 221/tonne for imports exceeding the quota of 250,354  tonnes for the first year, 
reduced to USD  199/tonne for the second year , and USD  177/tonne for the third year.50 According 
to the authorities, in -quota import volumes are subject to the MFN rate and are not 
allocated/distributed among importers. Customs Affairs' electronic system monitors import volumes 
and automatically applies the out -of-quota rates once the quota threshold has been reached.  
3.51.  In addition, in 2019, the GCC initiated a safeguard in vestigation on imports of certain steel 
products; the products under investigation were subsequently modified.51 GCC member  State s 
 
47 WTO document G/ADP/N/350/BHR, 5  February  2021.  
48 The relevant WTO documents relating to this measure are WTO documents G/SG/N/6 /BHR/2, 
10 October  2016; G/SG/N/7/BHR/1 and G/SG/N/11/BHR/1, 21  October  2016; G/SG/N/7/BHR/1/Suppl.1, 
1 November  2016; and G/SG/N/7/BHR/1/Suppl.2, 18  May 2017.  
49 The relevant WTO documents relating to this measure are G/SG/N/6/BHR/1, 10  June 2016; 
G/SG/N/8 /BHR/1, 17  January  2017; G/SG/N/8/BHR/1/Corr.1, 31  January  2017; G/SG/N/10/BHR/1 and 
G/SG/N/11/BHR/2, 15  June 2017; G/SG/N/10/BHR/1/Suppl.1 and G/SG/N/11/BHR/2/Suppl.1, 21  July 2017; 
G/SG/N/8/BHR/1/Corr.2, 28  July 2017; and G/SG/N/10/BHR/1/Suppl.2 and G/SG /N/11/BHR/2/Suppl.2, 
30 April 2018.  
50 The relevant WTO documents relating to this measure are G/SG/N/6/BHR/3, 3  October  2017; 
G/SG/N/8/BHR/2, 17  May 2018; G/SG/N/10/BHR/2 and G/SG/N/11/BHR/3, 5  April 2019; and 
G/SG/N/10/BHR/2/Suppl.1 and G/SG/N/11/BHR/3/Su ppl.1, 14  June 2019.  
51 WTO documents G/SG/N/6/BHR/4, 24  October  2019; G/SG/N/8/BHR/3, 23  July 2020; and 
G/SG/N/6/BHR/4/Suppl.1, 20  January  2021.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 51 - 
 
  notified the WTO of their finding of a serious injury of threat thereof caused by imports in July  202052, 
and of their propos al to impose a measure in April  2021.53 
3.1.7   Other measures affecting imports  
3.52.  Bahrain applies the sanctions adopted by the United Nations Security Council. Trade 
restrictions applied on Qatar in the context of  the suspension of diplomatic relations  by Bahrain, the 
Kingdom of Saudi  Arabia, the United  Arab Emirates , and Egypt were  lifted according to the Al -Ula 
Agreement, signed in January  2021.  
3.53.  No official countertrade or offsetting arrangements or agreements designed to influence the 
quantity or value of goods a nd services imported by Bahrain are currently in force. Bahrain has 
never taken any measures for balance -of-payment purposes. The authorities confirm that Bahrain 
does not have any local content requirements.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs pro cedures and requirements  
3.54.  Like imports, exports may be carried out only by companies or individuals who are registered 
with the commercial registry at the MOIC T. 
3.55.  Documents required for export of goods from Bahrain are the customs declaration, invoice, 
certificate of origin stamped by the Bahrain Chamber of Commerce and Industry  (BCCI) , and cargo 
manifest. Additional documentation may be required by Customs Affairs if exports of the products 
are restricted. While documents can be submitted online, the origina l is requested prior to or after 
the release of the goods.54 
3.56.  Re-exportation for the purpose of recovering the customs duties can be done if the goods are 
in the same condition in which they were imported , the c.i.f. value is not less than USD  5,000 , and 
re-exportation takes place within one year from the date of collection of the customs duties. In this 
case, a copy of both the customs duty payment receipt and the certificate of origin must be attached 
to the declaration.55 
3.57.  Since 2019, all customs procedures for exports, including payment of fees, are undertaken 
online through the customs clearance system; this is operational 24  hours a day.  
3.58.  According to the World Bank Doing Business database, the average time to clear goods for 
export from Bahrain is 59 hours for border compliance and 24  hours for documentary compliance.56 
The authorities indicate that a study was undertaken on the customs clearance of aluminium exports 
to the Saudi  Arabia causeway; it took 15  minutes for the customs authorities at the border to process 
the documents. As noted by the World Bank, over the review period Bahrain made exporting faster 
by deploying new scanners.57 The authorities note that other measures to facilitate exports included 
the introduction of the AEO Program me (Section  3.1.1) , pre-assigned spaces queueing , and 
pre-arrival clearance.  
 
52 WTO document G/SG/N/8/BHR/3, 23  July 2020.  
53 WTO document G/SG/N/11/BHR/4, 12  May 2021.  
54 Ministry of Interior, Customs Affairs, Commercial Export . Viewed at: 
https://www.bahraincustoms.gov.bh/en/commercial -export . 
55 Ministry of Interior, Customs Affairs, Traders/Businesses Exportation . Viewed at: 
https://www.bahraincustoms.gov.bh/en/re -export -goods . 
56 World Bank, Doing Business database, Ease of Doing Business i n Bahrain . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/bahrain#DB_tab . 
57 World Bank, Doing Business  Report 2020 . Viewed at: 
https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 52 - 
 
  3.2.2   Taxes, charges, and levies  
3.59.  Bahrain does not apply any export duties or taxes. Exports of goods are subject to VAT at the 
zero rate if they are exported within 90  days of their supply and have not been transferred to a 
third party before leaving Bahrain.58 
3.2.3   Export prohibitions, restrictions, and licensing  
3.60.  Based on Decree -Law No.  18 of 1975 on Setting and Controlling Prices, as amended by 
Decree -Law No.  11 of 1977, the MOICT  has th e right to prohibit exports or re -exports of any 
product.59 Currently, Bahrain prohibits exports of live horses, camels, palm tree seedlings, 
radioactive matters , and antiquities. Over the review period, Bahrain also introduced a temporary 
ban on exports o f face masks; this entered into force on 25  February  2020, was extended several 
times, and expired on 6  April 2021 (Table  3.11). Export restrictions apply to waste (Table  3.12). 
Table 3.11 Prohibited exports, 2021  
HS code  Product description  Institution  Rationale for prohibition  
01012110  
01012190  
01012910  Live horses  Horse Welfare Authority  Protection of human, animal , or 
plant life or health  
01061310  
01061320  
01061390  Camels  Ministry of Work, Municipalities 
Affairs and Urban Planning  Protection of human, animal , or 
plant life or health  
06022010  Palm tree seedlings  Ministry of Work, Municipalities 
Affairs and Urban Pl anning  Protection of human, animal , or 
plant life or health  
Variousa Radioactive matters  Supreme Council for Environment  Protection of human, animal , or 
plant life or health ; conservation of 
exhaustible natural resources  
9706 Antiquities  Bahrain Authority for Culture and 
Antiquities  Protection of national treasures of 
artistic, historic , or archaeological 
value  
63079097  Face masks (temporary 
export ban)  MOICT  Prevention of cr itical shortages of 
essential products; protection of 
human, animal , or plant life or 
health  
a The prohibition applies to several tariff lines. For further details , see WTO notification s in source.  
Source:  WTO document s G/MA/QR/N/BHR/1/Rev.1, 10  March  2021; G/MA/QR/N/BHR/1/Rev.1/Add.1, 
30 March  2021; G/MA/QR/N/BHR/1/Rev.1/Add.2, 20  April 2021; and 
G/MA/QR/N/BHR/1/Rev.1/Corr.1, 18  May 2021.  
Table 3.12 Restricted exports, 2021  
HS code  Product description  Conditions for release  Institution  
Variousa Waste Licence required from Supreme Council for 
Environment ; requirements include formal letter, 
official document , and contract from company 
receiving waste in destination country  Supreme Council for 
Environment  
22071010  
22089011  
38089490  Alcohol solution  
Hand sanitizer and 
other disinfectants  Temporary non -automatic export licence 
(entered into force 22  March for three month s 
and has been terminated)  Ministry of Industry, 
Commerce and Tourism  
a The prohibition applies to several tariff lines. For further details see WTO notification s in source.  
Source:  WTO document s G/MA/QR/N/BHR/1/Rev.1, 10  March  2021; and G/MA/QR/N/BHR/1/Rev.1/Add.1, 
30 March  2021. Supreme Council for Environment. Viewed at: 
https://www.sce.gov.bh/en/%D8%AA%D8%B5%D8%AF%D9%8A%D8%B1%D8%A7%D9%84%D9
%86%D9%81%D8%A7%D9%8A%D8%A7%D8%AA%D8%A5%D9%84%D9%89%D8%A7%D9%84
%D8%AE%D8%A7%D8%B1%D8%AC?cms=iQRpheuphYtJ6pyXUGiNqn4yFZX70Gnc . 
 
58 Bahrain National Bureau for Revenue, Kingdom of Bahrain Imports and Exports VAT Guide , 
February  2019.  
59 Decree -Law No.  18 of 1975 on Setting and Controlling Prices. Viewed at: 
https://www.legalaffairs.gov.bh/AdvancedSearchDetails.aspx?id=5795 ; as amended by Decree -Law No.  11 of 
1977. Viewed at: https://www.legalaffairs.gov.bh/AdvancedSearchDetails.aspx?id=1470 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 53 - 
 
  3.2.4   Export support and promotion  
3.2.4.1   Export subsidies , promot ion, and marketing  
3.61.  In February  2018, Bahrain notified the WTO that it did not grant or maintain any subsidy 
within the meaning of Articles  1.1 and 2 of the Agreement on Subsidies and Countervailing Measures  
(SCM  Agreement) , or Article  XVI:1 of the GATT  1994.60 
3.62.  Bahrain maintains two  programmes with a financial support component provided by the 
Government, namely the Export Credit Insurance Solution (Section  3.2.4.3) and the pilot Start -up 
Exporter Solution initiative, launched in May  2021 by Export Bahrain. The latter targets first -time 
exporters serving start -ups, SMEs , and micro -businesses that export abroad for the first time or 
existing companies  exporting a new service or product line. Under the initiative, businesses can 
apply to Export Bahrain ( see bel ow) for a one -off grant covering up to 20% of the initial value of 
their first export transaction. The authorities indicate that no data were available regarding these 
grants and that , after the pilot period, the programme will be assessed, and the formula  adjusted.  
3.63.  In 2018, Bahrain's SME Development Board61 launched Export Bahrain to increase SMEs' 
competitiveness, promote exports , and contribute to economic diversification.62 Export Bahrain 
offers various market intelligence and export promotion facilities.  
3.64.  Under its Export Shipping and Logistics Solution, Export Bahrain has partnered with public 
and private sector transport and logistics companies offering discounted transpor t costs and related 
services (including insurance services) at up to 80% below market rates. This initiative started in 
2019 through a partnership with Gulf Air's Falcon Cargo, a state -owned enterprise, to provide 
Bahraini SMEs that are Export Bahrain cust omers with a 40% discount of their transport costs. These 
SMEs need to export at least 100  kg of merchandise.63 It has since been expanded to include other 
transport and logistics companies (currently some 20  partners) and includes all types of cargo 
expor ted through all transport modes (air, land , and sea). It also covers both small - and 
large-volume shipments. Eligibility criteria are that companies need to be based in Bahrain , and 
there needs to be some value addition undertaken to the goods in Bahrain ( e.g. production or 
packaging, although there is no specific formula applied). The partnership arrangement involves 
Export Bahrain acting as an intermediary, bringing a large volume of clients to these companies in 
return for their access to the discounts.  
3.65.  Similarly, in September  2020, Export Bahrain partnered with Lulu Hypermarket Group to 
make available a platform for national products that are "Made in Bahrain" to be placed on the 
shelves of the Hypermarket's local and international branches with time -limited discounts. These 
include six  months of free shelving for their products in local branches , followed by a 50% discount 
on the listing and registration fees for the next three  months. In the meantime, the products are 
evaluated for private labelling and  export to the international branches of the retail stores. As with 
the Export Shipping and Logistics Solution, Export Bahrain acts as an intermediary. In 2021, a similar 
partnership agreement was concluded with Carrefour, and other partnerships are under negotiation.  
3.66.  Export Bahrain's "export potential map" helps Bahraini businesses find products and markets 
with export potential as well as options for product diversification64, and its "market access map" 
allows Bahraini exporters to analyse and compare ta riff and non -tariff measures for different 
markets.65 Export Bahrain has entered into partnerships with local, regional , and international 
e-commerce platforms to provide cost -savings for and incentives to businesses selling their "Made 
in Bahrain" product s and services online. It operates an export tendering platform that allows 
companies to have up -to-date information on international tender opportunities. Export Bahrain also 
 
60 WTO document G/SCM/N/315/BHR, 13  February  2018.  
61 Tamkeen is a public authority that was established in 2006 to reform the labour mar ket with a view to 
help develop the private sector to be the main engine of economic and sustainable growth. Viewed at: 
https://www.tamkeen.bh/about -tamkeen . 
62 Bahrain News Agency, "Industry Minister launches 'Export Bahrain'", 11  November  2018. Viewed at:  
https://bna.bh/en/IndustryMinisterlaunchesExportBahrain.aspx?cms=q8FmFJgiscL2fwIzON1%2BDkWNV3w8iM
PupNVzL3A6FyI%3D . 
63 Export B ahrain. Viewed at: https://export.bh/export -bahrain -ties-up-with-gulf-air-cargo -to-offer-
special -discounts -on-cargo -exports/ . 
64 Export Bahrain, Export Potential Map . Viewed at: https://export.bh/export -potential -map/ . 
65 Export Bahrain, Market Access Map . Viewed at: https://export.bh/market -access -map/ . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 54 - 
 
  offers businesses an export readiness and self -assessment test and runs export w orkshops and 
e-learning courses.66 It is cooperating with the Supreme Council for Women to help women -owned 
micro, small, and medium -size enterprises participate in the global economy.  
3.67.  The Bahrain Economic Development Board (EDB)  (Section  2.4), while not o ffering export 
promotion services per se, directs investors needing support to export their products to the relevant 
entity (including making the initial connections) and offers after -care services to ensure investors ' 
needs are met. 
3.2.4.2   Economic zones  
3.68.  Bahrain has two economic zones that offer various incentives to businesses (including 
foreign -owned businesses).  
3.69.  The Bahrain Logistics Zone (BLZ) is a custom -bonded logistics park established as a 
complementary facility to Khalifa bin Salman Port (KBSP) in  northern Bahrain. The business activities 
permitted in the BLZ are the design, building, and operation of bonded warehousing facilities in order 
to house third -party logistics and freight forwarding enterprises; provision of general and specialized 
wareho using and distribution centres to serve local, regional, and international markets ; 
value -added logistics services (packaging/repackaging; assembly, weighting, filling , and mixing; 
consolidation and reconsolidation; testing and repair; labelling; kitting/p alletizing; and component 
assembly); assembly freight forwarding services; cross -docking of different types of cargo; and 
truck, container, and railway unloading, offloading, and reloading. Except for value -added logistics 
services, m anufacturing activitie s are prohibited in the BLZ. Incentives  specific to the BLZ scheme 
include reduced utilities  tariffs , reduced rental rates , and longer duration of lease agreements.  
3.70.  There are also seven designated industrial parks that are managed by the MOICT, covering a 
total area of 22  million  m2. The first to be established in the 1960s was the Mina Salman Industrial 
Park, which has direct access to the sea; it is a key location for manufacturing and logistics 
companies. The Salman Industrial City, covering 12  million  m2 was the latest industrial park to open 
(in 2010). It is home to the Bahrain International Investment Park , the Bahrain Investment Wharf , 
and the Hidd Industrial Park. Industries present in these parks include food and beverages, fast -
moving consumer goods, pharmaceuticals, aluminium, light engineering, plastics , and fib reglass.  
Incentives available to companies located within these areas a re largely the same as those available 
to companies operating throughout Bahrain (Section  2.4). 
3.71.  In January  2021, Bahrain and US authorities sign ed a Memorandum of Understanding to 
establish an American trade zone in Bahrain , facilitating exports operations  and logistics, and thus 
promoting bilateral trade. The zone will also act as a distribution hub for the rest of the 
GCC countries.67 The related incentives/benefits have  not been determined yet.  
3.2.4.3   Export finance, insurance, and guarantees  
3.72.  The Bahrain Develo pment Bank (BDB), owned by the Government, remains the primary 
financial development institution. It was established in 1992 to encourage and develop investment, 
support entrepreneurship activities , and meet the financing needs of small and medium -sized 
enterprises (SMEs).68 The BDB continues to facilitate exports of goods and services by SMEs through 
an Export Credit Insurance Solution consisting of export letters of credit and working capital to cover 
pre-operating/pre -shipment from the time of the receip t of an export order to the time to fulfil the 
export deal. Financing amounts range from a minimum of BHR  5,000 to a maximum of BHR  1 million 
at market interest rates. Export financing is also provided by the banking sector. If the application 
for export f inancing, either to the EDB or other partner banks, is routed through Export Bahrain 
(Section  3.2.4. 1), Tamkeen subsidizes up to 70% of the BDB's interest rate; hence the borrower 
pays only 30% of the interest rate, as well as 50% of the bank's administrat ion fee and 50% of the 
collateral used as a guarantee  up to BHD  125,000.69 To be eligible, a company's revenues should be 
 
66 Export Bahrain. Viewed at: https://export.bh/ . 
67 Saudi Gazette , "Bahrain US Sign Key Trade Deal", 13  January  2021. Viewed at: 
https://saudigazette.com.sa/article/602432/BUSINESS/Bahrain -US-sign-key-trade -deal. 
68 Bahrain Development Bank, Profile . Viewed at: https://www.bdb -bh.com/about -us/profile /. 
69 Bahrain Development Bank, Export Finance Scheme . Viewed at: https://www.bdb -bh.com/financial -
services/export -finance -scheme . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 55 - 
 
  below BHD  5 million , and it should meet minimum standards of local production, and goods 
manufacturing or processing; these are determined by Export Bahrain on a case -by-case basis. A 
grace period for repayment can also be granted on a case -by-case basis.70 According to the 
authorities, data are not available on the value of export finance provided by the BDB or on sector 
beneficiaries.  
3.73.  Export credit facilities to protect exporters against the risk of non -payment by an international 
buyer have been provided since 2019 through a partnership between Export Bahrain and the Arab 
Investment Export Credit Guarantee Corporation (Dhaman). The facility subsidi zes 80% of the 
premium rate and transaction fees for each import shipment based on pre -defined premium rates. 
It also covers 80% of the buyer evaluation fees and the application fees, as well as offering exporters 
at least 90% reimbursement in the case of default.71 To be eligible , small companies must be based 
in Bahrain  and have revenues not exceeding BHD  5 million , and there must  be a value addition 
element (i.e. production or packaging) in the country . Bigger businesses are evaluated on a 
case-by-case basis , and other terms and conditions are applied in line with Export Bahrain policies.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.74.  Bahrain does not collect corporate tax, personal income tax, withholding taxes , or capital 
gains taxes. The only sectors that are subject to corporate taxation are local and foreign companies 
in the oil and gas sectors and those that generate prof its from hydrocarbon extraction or refinement; 
these businesses are taxed at a rate of 46% on net profits.72 As a consequence, fiscal incentives are 
few and relate to VAT zero -rated items (Section  3.1.4.1). 
3.75.  Bahrain provides grants and operates various loan schemes with zero or subsidized interest 
rates; these are largely offered by the B DB (Table  3.13). One new loan scheme, the Women's 
Business Finance Scheme "Riyadat", was established over the review period (in 2016). It is a 
USD 100 million fund established by the Supreme Council for Women, Tamkeen (the Government's 
Labour Fund73), and the BDB. It provides financial, training , and advisory support to help women 
launch their own commercial start -ups or develop existing ones . The BDB su pports key industries 
including retail, education, food and beverages, transportation, manufacturing, recycling, 
microfinance, healthcare, energy saving, and other services; emphasis is on helping businesses that 
promote import substitution, export opportu nities, job creation, and value addition, and that attract 
foreign investment.74 
Table 3.13 BDB loan schemes, 2021  
Scheme  Description  
BDB Finance  Islamic and conventional loans to finance specific assets (mac hinery, working capital). 
Minimum financing amount is BHD 3,000  and to be Sharia -compliant, no interest rate is 
levied. Comfortable repayment and grace periods for sectors including manufacturing, 
information and communication technology ( ICT), agri -business, private education, 
healthcare, tourism, trading, transportat ion, and other services.  
BDB and 
Tamkeen 
Finance  Loans to finance a specific asset, such as plant or machinery, or working capital loans. 
Minimum financing am ount of  BHD 5,000, and maximum of BHD 29,000. Tamkeen 
subsidizes 50% of the BDB's profit. Comfortable repayment and grace periods for sectors 
including manufacturing, ICT, agri -business, private education, healthcare, tourism, 
trading, transportation, and other services.  
Export Finance 
Scheme  Financing for credit facilities with 70% of the int erest rate subsidized by Tamkeen 
(Section  3.2.4. 3). 
 
70 Export Bahrain, Export Financing . Viewed at: https://export.bh/solutions -2/export -financing/ . 
71 Information provided by Export Bahrain.  
72 PwC, Corporate – Taxes on Corporate Income , January 2021. Viewed at: 
https://taxsummaries.pwc.com/bahrain/corporate/taxes -on-corporate -income . 
73 Tamkeen is a public authority that was established in 2006 to promote labour market reform through 
supportin g the development of the private sector to be Bahrain's main engine of economic and sustainable 
growth. It has two primary objectives: (i)  to foster the growth of enterprises; and (ii)  to enhance the 
productivity and training of the national workforce.  
74 Bahrain Development Bank, Overview: Investment Division . Viewed at: https://bit.ly/3btQWA2 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 56 - 
 
  Scheme  Description  
Agricultural 
Loans  Loans with 0% interest rate to be used for development of agricultural production in 
Bahrain. Maximum facility amount is BHD 15,000. The applicant must be a Bahraini and 
should own or lease agricultural land.  
Fisheries 
Loans  Loans with 0% interest rate to help fishermen purchasing new/used boats, engines, spare 
parts, or fishing items , or for maintenance. Maximum facility amount is BHD  15,000. The 
applicant must be a Bahraini between 2 1 and 55 years of age and hold a valid fishing 
licence.  
Women's 
Business 
Finance 
Scheme 
"Riyadat"  Loans to finance a specific asset, such as plant or machinery or working capital loans. 
Minimum financing amount of BHD 5,000, and maximum of BHD 100,000. Tamkee n 
subsidizes 60% of the BDB's interest rate on loans granted. The beneficiary is eligible for 
100% of the payment of the interest rate, for one time in this project, subject to a 
financing amount of BHD  30,000 for a loan term of up to three  years, repaid in full within 
three years. Sectors include manufacturing, ICT, private education, healthcare, trading, 
transportation , and other services . 
Source:  BDB. Viewed at: https://www.bdb -bh.com/ . 
3.76.  A BHD  100 million Liquidity Support Fund was established by the Ministry of Finance and 
National Economy (MOFNE) in 2019 in cooperation with other entities.75 This supports the working 
capital requirements of viable companies that have genuine short -term liquidity pr essures. The initial 
phase of the Liquidity Support Fund provided 2.5% interest loans for up to three years to businesses 
through a partnership with four local banks (National Bank of Bahrain, Bank of Bahrain and Kuwait, 
Bahrain Islamic Bank, and BDB). The  fund was split into two parts, the first for SMEs  (businesses 
with less than BHD  3 million in annual revenue) , for which loans were capped at BHD  250,000, and 
the second, for large enterprises (businesses with more than BHD  3 million in annual revenue) , for 
which loans were capped at BHD  1 million. In March  2020, the Liquidity  Support  Fund was doubled 
to BHD  200 million, with the same terms and conditions. In June  2021, the Fund was relaunched 
with a focus on supporting SMEs. Eligibility criteria were relaxed to reach a wider range of companies 
and to allow start -ups to apply. At the same time, Fund beneficiaries were limited to companies 
operating in sectors advers ely affected by the COVID -19 pandemic  (Box 1.1).76 Nevertheless, 
companies that had previously benefited from financing facilities under the Fund's previous rounds 
were able to request an extension of the financing repayment period or increase the facility  amount 
up to the maximum allowed.  
3.77.  Support specifically for SMEs is provided through Tamkeen , which operates four programmes 
(Table  3.14). Among these, the only programme newly established over the review period was the 
Business Development programme, intr oduced in September  2014.  
Table 3.14 Tamkeen programmes to support SMEs, 2021  
Programme  Description  
Business Development  Co-financing program me that provides grants to enterprises to help their growth 
and development. Tamkeen covers up to 50% of the cost of approved 
items/services (including machinery, marketing, ICT, consulting, accounting, and 
quality management).  
Training and Wage Support 
Program Co-financing program me that provides financial support to enterprises wishing to 
hire, train , and/or increase the salaries of their Bahraini employees.  
Tamweel and Tamweel +  Subject to the participating bank's approval, Tamkeen subsidizes 50% of the 
bank's annual nominal loan interest rate (capped at 8%) . 
Microfinance Scheme  Tamkeen , in partnership with the Family Bank , provides affordable financing 
through subsidizing up to 87.5% of the Bank's loan interest rate.  
Source:  Information provided by the authorities.  
3.78.  The Government provides subsidies to consumers for utilities (water and electricity), 
petroleum, lamb, and flour for locally produced bread (Table  3.15 and Section  3.3.4.2 ). In 2015, the 
Government removed meat subsidies for be ef and chicken, resulting in a more than doubling of 
 
75 The entities were the MOICT, the BCCI, Tamkeen, and the four national banks.  
76 These sectors were catering and restaurants,  personal services, travel and aviation, training and 
rehabilitation, transport, newspapers, manufacturing (except large companies), health (except hospitals and 
pharmacies), retail (except food), administrative services, real estate and construction, and any other 
adversely impacted sectors except financial services, telecommunications, professional services, and schools 
and universities.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 57 - 
 
  prices for these commodities; to mitigate the impact of this reform, Bahraini citizens (but not 
resident foreigners) are being compensated with cash disbursements from the Government.77 In 
2018, the Gove rnment removed some subsidies on petrol, resulting in price increases of 12% -25% 
depending on the petrol grade.78 To improve public finances, the Government continues to discuss 
plans to redirect subsidies to more appropriate segments.  
Table 3.15 Government subsidies to businesses and consumers, 2021  
Product  Cost of subsidy/revenue forgone  
(BHD '000)a 
2014  2015  2016  2017  2018  2019  2020  
Electricity and waterb 350,000  325,500  268,972  229,635  188,745  141,000  154,481  
Petroleum  252,958  101,738  12, 479  55,584  70,000  54,525  35,356  
Lamb and beef  43,292  34,719  24,937  26,273  26,784  27,607  28,369  
Chicken  2,720  2,181  0 0 0 0 0 
Flour for locally 
produced bread  11,303  10,435  8,301  8,000  9,559  10,420  10,113  
a Preliminary data.  
b Represents the Government's transfer to the Electricity and Water Authority (EWA) and not the total 
expenditure of the EWA.  
Note:  Figures have been rounded up.  
Source:  Information provided by the authorities.  
3.79.  Some additional incentives are provided in Bahrain's seven  industrial areas and 
one investment park (Section  3.2.4.2).  
3.80.  Various incentives were announced through the Government's March  2020 economic stimulus 
package designed to help Bahraini ci tizens and companies mitigate the impact of the COVID -19 
pandemic ( Box 1.1). Agriculture and fisheries and t ransport -related incentives are covered in 
Section s 4.1 and  4.4.3, respectively . 
3.81.  In 2018, Bahrain notified the WTO that it does not grant or maintai n any subsidies requiring 
notification under Article  XVI of the GATT  1994 or Article  25 of the SCM  Agreement .79 
3.3.2   Standards and other technical requirements  
3.3.2.1   Standards, technical regulations, metrology, testing , and certification  
3.82.  The Testing and Metrology Directorate under the M OICT is responsible for metrology, technical 
regulation, standardization , and quality assurance  and is Bahrain's national enquiry point. It 
prepares, revises, amends, and publishes Bahraini technical regulations and conform ity 
assessments , as well as Bahraini national standards upon approval of the National Committee for 
Standards and Metrology (NCSM) (see below). It verifies the conformity of local and imported 
products, issues licen ces to conformity assessment and/or certi fication companies, issues certificates 
for exported products, collects the relevant fees, and spreads awareness on standards activities. The 
Testing and Metrology Directorate may also accept and adopt, as appropriate, the technical 
regulations, standards,  guides, recommendations of other foreign countries and of regional ( GCC 
and Arab States) and international organizations.80 
3.83.  The N CSM is chaired by the Minister of Industry, Commerce and Tourism, and comprises 
stakeholder representatives from relevant mini stries  and the BCCI, as well as independent technical 
experts. Further to Ministerial Order No. 32 of 2017, the NCSM is due to be reformed in 2021; this 
 
77 Arab News , "Bahrain Lifts Meat Prices as Cheap Oil Hits State Finances", 1  October  2015. Viewed at: 
https://www.arabnews.com/economy/news/814156 . 
78 Arabian Business, "Bahrain Increases Price of Petrol Following Subsidies Removal", 10  January  2018. 
Viewed at: https://www.arabianbusiness.com/politics -economics/387268 -bahrain -increases -price-of-petrol -
following -subsidies -removal . 
79 WTO document G/SCM/N/284/BHR, G/SCM/N/315/BHR, 13  February  2018.  
80 The Testing and Metrology Directorate's responsibilities are set out in Article  3 of Law No.  9 of 2016 
on Specifications and Standard. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=12415 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 58 - 
 
  is expected to  have an impact on the structure of technical committees.81 The NCSM is responsible 
for: (i) drawing up the standards and metrology policy in Bahrain; (ii)  adopting national standards 
and technical regulations; (iii)  forming Technical Committees that participate in the preparation of 
standards; and (iv)  establishing internal regulations for th e functioning of the Committee.82 
3.84.  In 2016, Bahrain adopted Law No.  9 of 2016 on Standards and Metrology, replacing previous 
legislation in force.83 The Law enables the NCSM to adopt international standards , and it expands 
the scope of work to be aligned with international and regional practices.  
3.85.  According to the authorities, the development of standards and technical regulations is based 
on the following principles: (i) no Bahraini standard/technical regulat ion is to be developed if there 
is an identical existing GCC Standard/technical regulation (see below); and ( ii) the new Bahrain 
Standard/technical regulation must not create unnecessary trade barriers. The BMSD publishes its 
annual work programme online.84 The adoption process is as follows: ( i) projects in the plan are 
proposed; ( ii) standards are drafted; ( iii) drafts are studied by the technical committees; ( iv) the 
WTO is notified (if a technical regulation); ( v) the drafts are sent to the national com mittee for 
approval; ( vi) a ministerial order is issued; and ( vii) the ministerial order is published in Arabic the 
Official Gazette .85 Copies of standards and technical regulations may be purchased online from the 
MOIC T's standards store.86 
3.86.  GCC member  States are harmonizing their technical regulations and standards through the  
GCC Standardization Organization  (GSO). GSO standards and technical regulations are developed 
by first being proposed as a draft to the Secretary of the GSO Committee by a working gr oup or the 
member State in charge of the project and are then presented to the member States. International 
standards go through a fast -track mechanism.87 Once approved, GSO standards are circulated to all 
GCC member States for adoption. Members must withdraw any existing national standard that 
conflicts with the new GSO standard. In general, GCC standards are based on international 
standards. Technical reg ulations are proposed by the Gulf Conformity Assessment Committee 
(GCAC), which are then approved by the GSO board of directors and adopted by member States. 
The GCAC is part of the GSO , and its membership includes representatives from national 
standardiza tion organizations of GSO member States. As indicated by the authorities, 29% of 
Bahrain's technical regulations are aligned with GCC regulations and 71% are national technical 
regulations. Nevertheless, the authorities indicate that most of the latter are  based on GCC 
standards , as Bahrain aims to maintain harmony with GSO technical regulations unless there is an 
urgent need to regulate a product or service nationally.  
3.87.  The MOICT may consider the technical regulations of other countries equivalent to nation al 
technical regulations if they are found to adequately meet the objectives of the national technical 
regulations. According to the authorities, some technical regulations are considered equivalent under 
mutual recognition agreements with Australia, Egypt , the Islamic Republic of Iran, Israel,  Jordan, 
Malaysia, Morocco, Syria, Thailand, and Yemen.  
3.88.  As of January  2021, Bahrain had adopted 22,2 50 national standards and 1,294  national 
technical regulations (Table  3.16). No standards or technical regulations ha ve been removed. More 
than 95% of standards are adopted from international standards, while 17% of technical regulations 
are adopted from international standards.  
 
81 At the time of writing, there were no further updates.  
82 Law No.  9 of 2016, Article  5. 
83 Law No.  9 of 2016 on Standards and Metrology. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=12415 . 
84 Viewed at: https://www.gso.org.sa/gso/tcschedule/unifiedProjects.do?setLocale=ar . 
85 Viewed at: www.legalaffairs.gov.bh . 
86 Viewed at: https://bsmd.moic.gov.bh/store . 
87 GSO, Standards Development . Viewed at: https://www.gso.org.sa/en/standards/method -of-
standards -development/ . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 59 - 
 
  Table 3.16 Number of adopted national standard s and technical regulations by sector , 
up to January 2021  
Sector  Standards  Technical regulations  
Mechanical  5,771  204 
Electrical  4,729  33 
Chemical and textile  4,058  279 
Information  1,714  3 
Food and agriculture  1,174  614 
Construction and building  1,605  87 
Metrology  1,425  64 
Oil and gas  1,041  10 
Health  666 0 
Management systems  67 0 
Total  22,250 1,294  
Source:  Information provided by the authorities.  
3.89.  Bahrain issued 281  notifications of its draft technical regulations and conformity assessment 
procedures between 1  January  2014 and 1  May 2021 to the WTO Committee on Technical Barriers 
to Trade  (TBT Committee) . Of these, 275 were regular notifications, 3 were addenda, 2 were 
corrigenda , and 1 was a revision. There were no emergency notifications made. All technical 
regulations apply equally to locally produced and imported products.  
3.90.  Since January  2014, various specific trade concerns have been raised regarding GCC technical 
regulations i n the TBT Committee (Table  3.17).  
Table 3.17 Specific trade concerns raised against Bahrain, January 2014 -May 2021  
Technical regulation  Member raising  First time raised 
(subsequent number of 
times raised)  
Halal feedstuff  United  States   28 October  2020 (1) 
GCC technical regulations for the restriction of use of 
certain hazardous substances in electrical and 
electronic equipment  United  States  and 
European  Union  14 November  2018 (2) 
Cooperation Council for Arab States of the Gulf draft 
technical regulation for requirements of handling of 
energy drinks  Switzerland, 
United  States , and 
European  Union  15 November  2014 (12) 
Guide for control of imported foods – certification 
requirements for animal p roducts  United  States  and 
European  Union  14 June 2017 (1) 
Motor vehicles: General requirements GSO 
No. 42:2003  European  Union  4 November  2015 (0) 
Source:  WTO, TBT Information Management System. Viewed at: http://tbtims.wto.org . 
3.91.  Products are granted entry in Bahrain if they comply with the provisions of the applicable 
technical regulation and they successfully go through  the associated conformity assessment 
procedures. Preapproval licences are required for some products subject to technical regulations, 
namely motor vehicles; vehicle tires; motorcycles; motorcycle tires; electrical appliances and 
equipment; children's toy s; automotive batteries; automotive spare parts; portland cement; white 
portland cement; non -directional lamps; air conditioners; and weighing scales, weights, measuring 
tapes , and meters.88 To obtain the licence, certain supporting documents must be provided 
electronically through the customs single window prior to import. Licences are granted within 
three  days and are either single use (valid for three months from the date of issue) or mult iple use 
(valid for six months from the date of issue).  
3.92.  The Testing and Metrology Directorate, together with the GSO and the other national 
standardization bodies of the GCC , continues to implement the Regional Conformity Assessment 
Scheme (RCAS), whereby a Gulf Conformity Mark (G -mark) certifies the conformity of certain 
 
88 Working procedures for issuing the OFOQ pre -approval licences to the imported products subject to 
the Testing  and Metrology Directorate's Regulation (2018). Viewed at: 
www.moic.gov.bh/en/Tiles/BusinessServices/Standards%20and%20metrology/documents/licensepreapproval.
pdf. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 60 - 
 
  products (currently children's toys and household electrical appliances) to the essential requirements 
of health, safety , and environment.  
3.93.  In January  2020, the Government launched a "Made in Bahrain" mark to promote and export 
local products; factory owners in possession of an industrial licence can register to use this mark if 
the local content of their products is equivalent to 35% or higher.89 
3.94.  Bahrain does not have a national accreditati on system and uses the services of the Gulf 
Accreditation Centre.  
3.95.  Bahrain is a member of the Arab Industrial Development and Mining Organization (AIDMO) , 
a found ing member of the G SO, a member body of the International Organization for Standardization 
(ISO), a correspondent member in the International Organization of Legal Metrology (OIML), and an 
associate member in the International Electrotechnical Commission (IEC). Bahrain has also signed 
Memoranda of Understanding on technical cooperation in standardiz ation with ASTM International, 
Australia, Egypt, the Islamic Republic of Iran, Israel, Jordan, Malaysia, Morocco, Syria, Thailand, and 
Yemen. As of September  2020, the GSO had signed 51  Memoranda of Understanding.  
3.3.2.2   Marking, labelling, and packaging requirem ents 
3.96.  Between 1  January  2014 and 1  May 2021, Bahrain issued 44  notifications to the WTO 
regarding labelling requirements. These related to prepacked foodstuffs; various foods, food 
products , and beverages (fish, honey, chilled marinated meats, pre -packaged foods for special 
dietary use, ready -to-eat foods , snacks, custard powder, aqueous coconut products, infant formula, 
certain foods for infants, danbo cheese, dried okra, powdered milk and c ream, oriental sweets, 
peanut butter, wheat flour, avocado, fruit juices, flavoured water, bottled drinking and natural 
mineral water, non -carbonated flavoured drinks, tea , and herb bags); use of certain terms in the 
labelling of food products; handling of  foods for special medical purposes; food supplements, 
additives, sweeteners , and extraction solvents; pre -packaged substances  used in food products 
industry and not for direct human consumption90; non -food items (single -use plastic bags, plastic 
products,  and polyethylene bags for food packaging, toilet soap, and liquid detergent; electronic 
nicotine products); and feed products.  
3.97.  Labelling requirements for pre -packaged foodstuffs are set out in GSO 9 of 2013 (as amended 
in 2016).91 Nutritional labelling re quirements are contained in GSO 2233 of 2012.92 
3.98.  In January  2021, Bahrain temporarily waived the requirement for explanatory data on labels 
to be written in Arabic for imported food products, health goods , and materials; instead, this data 
could be provided  in English, and another language. This measure was in place for six months due 
to the exceptional circumstances relating to the COVID -19 pandemic ; it expired on 27  June 2021.93 
3.99.  Bahrain enforces a mandatory labelling regulation on genetically modified food ; if a product 
contains at least one genetically engineered (GE) plant ingredients with more than 1% GE content, 
a mention that the product has been genetically modified must appear clearly on the label in the 
 
89 Startup MGZN, "'Made in Ba hrain' Initiative Launched under the Patronage of H.E.  Zayed Al -Zayani", 
22 January 2020. Viewed at: https://www.startu pmgzn.com/english/news/made -in-bahrain -initiative -
launched -under -the-patronage -of-h-e-zayed -al-zayani/ . "Made in Bahrain" mark registration may be done 
online through MOITC's dedicated portal. Viewed at: http://www.moic.gov.bh/en/eServices/madeinbahrain . 
90 These include single -use plastic bags, plastic products, and polyethylene bags for food packaging, 
toilet soap, liquid detergent, and electronic nicotine products.  
91 GSO 9 of 2013. Viewed a t: https://www.gso.org.sa/store/standards/GSO:615544/GSO%209:2013 ; 
and Amendment No.  1 of 2016. Viewed at: 
https://www.gso.org.sa/store/standards/GSO:738341/GSO%209:2013 -Amd%201:2016?lang=en . The 
amendments in 2016 require that the content of trans fat must be mentioned in the nutritional facts of the 
products.  
92 GSO, Requirements of Nutritional Labeling . Viewed at: 
https://www.gso.org.sa/store/standards/GSO:589563/GSO%202233:2012 . 
93 MOICT, Resolution No.  22 of 2021. Viewed at: 
https://www.legalaffairs .gov.bh/25839.aspx?cms=q8FmFJgiscJUAh5wTFxPQnjc67hw%2bcd53dCDU8XkwhyDq
Zn9xoYKjxoUZrBJQB1fuEM32VclMHGAAxsKAjucaQ%3d%3d . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 61 - 
 
  same font size and in a different colour than the ingredients. GCC member  State s do not allow 
imports of foodstuffs containing GE animal products.94 
3.100.   In August 2011, the GSO adopted labelling requirements for tobacco products, introducing 
mandatory warnings on cigarette packages. Labels using terms such as "light" or "low" on packages 
are deemed misleading and thus prohibited. The GCC Law of Fertilizers and Agricultural Soil 
Improvers regulates labelling of simple fertilizers, complex compound s, and soil improvers.95 
3.3.3   Sanitary and phytosanitary requirements  
3.101.   The Directorate of Public Health under the Ministry of Health is the national enquiry point 
under the WTO  Agreement  on the Application of Sanitary and Phytosanitary Measures 
(SPS Agreement ) for food safety. The Directorate of Plant Wealth under the Ministry of Works, 
Municipalities  Affairs  and Urban Planning is the national enquiry point for plant welfare. Bahrain's 
notification authority is the MOICT .96 Bahrain is a member of the World Orga nisation for Animal 
Health (OIE), the International Plant Protection Convention (IPPC), and Codex Alimentarius.  
3.102.   The Food Control Section within the Ministry of Health has responsibility for controlling and 
protecting food from contamination and ensuring fo od safety; it has two sections : the Imported Food 
Group and the Domestic Food Safety and Licensing Group. The Imported Food Group is responsible 
for: ( i) ensuring the fitness and wholesomeness of imported food; ( ii) developing principles and 
guidelines for  food inspection and certification systems; ( iii) conducting and supervising research 
and risk assessment to establish standards for maximum levels of contamination and food additives 
in food; ( iv) elaborating sampling plan procedures as recommended by the  WTO; ( v) developing an 
information exchange system using WHO/FAO principles; ( vi) establishing procedures for food 
control information exchange; ( vii) proving advice to importers; ( viii) liaising with international 
organizations and foreign authorities; ( ix) identifying SPS barriers to trade and seeking solutions; 
(x) taking actions to control products in violation of laws and regulations; ( xi) coordinating with local 
organizations to implement WHO/WTO requirements for imported food; ( xii) assisting the im ported 
food safety group s with respect to sampling procedures, methods , and policies; and ( xiii) provision 
of education and training. The Domestic Food Safety and Licensing Group is  responsible for , 
inter alia, ensuring the safety and quality of food in food establishments in Bahrain including through 
setting standards, licensing, inspections, education and advice, and surveillance.  
3.103.   Within the Ministry of Works, Municipalities  Affairs  and Urban Planning , the ent ities with 
SPS-related responsibilities are the Animal Wealth Directorate and the Plant Wealth Directorate . 
3.104.   Bahrain applies the SPS -related GCC laws on animal and plant quarantine.97 There have 
been no amendments to these common laws over the review period . Bahrain's recently enacted 
Public Health Law (No.  34 of 2018) strengthens the capacity of the Minister of Health to deal with 
communicable diseases and prevent their spread. As indicated by the authorities, it requires products 
to come from a disease -free area, and has provisions on the inspection of products, maximum levels 
of pesticide residues , and permitted use of additives in food.98 
3.105.   Bahrain did not enter into any SPS -related agreements (either alone or with other GCC 
members) over the review period.  
3.106.   All GCC member  State s apply the same SPS -related standards; as such , Bahrain does not 
have any SPS measures that are uniquely national. At the GCC level, the GSO Technical Committee 
for Food and Agricultural Products has been harmonizing existing GCC stan dards within the 
guidelines of the Codex Alimentarius, ISO, and other international organizations. By January  2021, 
 
94 Food and Agriculture Organization of the United Nations, FAO GM Foods Platform: Bahrain . Viewed at: 
http://www.fao.org/food/food -safety -quality/gm -foods -platform/browse -information -by/country/country -
page/en/?cty=BHR . 
95 Europ ean Commission, Overview of Import Procedures, Market Access Database, last updated 
8 October  2020.  
96 WTO SPS Information Management System. Viewed at: 
http://spsims.wto.org/en/EnquiryPointsNotificationAuthorities/Search?countryCode=C048&filter= . 
97 WTO documents WT/COMTD/RTA/9/1, WT/REG276/1, 21  March  2018; and G/SPS/N/BHR/181, 
6 November  2017.  
98 Law No.  34 of 2018. Viewed at: https://www.legalaffa irs.gov.bh/media/legalpdf/k3418.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 62 - 
 
  the GSO had developed more than 1,768 food and agriculture standards.99 All GSO standards are 
based on international standards.  
3.107.   Over the per iod January  2014 to end -May 2021, Bahrain made 99  regular notifications to 
the WTO SPS Committee, as well as submitted 73 corrigenda and 36  addenda. All SPS measures are 
published in the Official Gazette . One specific trade concern was raised in the SPS Co mmittee over 
the review period, regarding the proposed GCC Guide for Control in Imported Foods100; Bahrain 
notified the WTO of its non -implementation of the Guide until further notice.101 
3.108.   According to the authorities, Bahrain's procedures for processing requ ests to recognize pest 
or disease -free areas or areas of low pest or disease prevalence in foreign countries follow the 
guidelines of the relevant international standards for phytosanitary measures (ISPMs) adopted by 
the IPPC's Commission on Phytosanitary Measures. The  authorities  state that no such requests  were 
received  during the review period.  
3.109.   According to the authorities, import prohibitions for SPS -related reasons apply to hemp 
seeds and poppy seeds. Before importing any food products, establishments must be commercially 
registered with the MOIC T and be licensed by the Ministry of Health to practice the activity of 
importing food. Pre -import licences issued by the Department of Quarantine and Plant Protection 
must be obtained for all agricultural consignments and pesticides.102 Imports of these pro ducts must 
be accompanied by a phytosanitary certificate issued by the competent authorities in the country of 
export.103 These requirements apply equally to imports from other GCC member States and from 
non-GCC sources. All meat and poultry products must b e accompanied by an Islamic ( halal) 
slaughter certificate issued by an approved Islamic centre in the country of origin.104 If food imported 
into Bahrain contains more than 1% biotech content, the shipment must be accompanied by a health 
certificate issued by the relevant government agency stating that the GE ingredient(s) used is/are 
approved for human or animal consumption in the country of origin.105 The authorities confirm that 
no further SPS -related import requirements were introduced over the review per iod. 
3.110.   The Imported Food Group is responsible for the inspection of imported foods (including fruits 
and vegetables) and beverages to determine if they comply with the relevant standards on raw 
materials, food additives, food labelling , and hazardous substan ces. Random samples are drawn 
from shipments for laboratory analysis according to a predetermined plan. All consignments that are 
imported for the first time are analysed before release. Results are assessed against GCC and Codex 
Alimentarius standards to ensure that imported food items are safe for human consumption. Imports 
are detained if they are found not to be in compliance with GSO standards or as a result of a negative 
laboratory analysis. Rejected foodstuffs must be destroyed or re -exported to the country of origin 
under food control supervision. Inspection fees depend on the shipment quantities per kg (BHD 8/kg 
for quantities of 1  kg-1,000 kg, BHD  9/kg for 1,000  kg-5,000  kg, and BHD  10/kg for more than 
5,000 kg).  
3.111.   Inspections of fresh meat, non -processed meat , and meat products are undertaken by the 
Ministry of Works , Municipalities Affairs and Urban Planning.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.112.   In July 2018, the Law on Competition Promotion and Protection (Law No.  31) was published 
in the Official Gazette . Chapter  2 of the Law (relating to the establishment of the Competition 
Promotion and Protection Authority)  entered into force in August  2018 and the remainder of the Law 
 
99 GSO Standards Store, Search Standards . Viewed at: https://bit.ly/3nrZ2ve . 
100 The guide was notified to the WTO in document G/SPS/N/BHR/164, 12  January  2017.  
101 WTO document G/SPS/N /BHR/164/Add.1, 29  June 2017.  
102 These requirements are set out in the GCC Plant Quarantine Law No.  5 of 2015 (Article  15).  
103 Ministry of Works, Municipalities Affairs and Urban Planning. Viewed at: 
https://www.mun.gov.bh/agri/pages/agriServices/006_plantWealthEn.jsp . 
104 Executive Regulations of the Veterinary Quarantine Law (Resolution No.  7 of 2014, Article  11, 
paragraph  14). Viewed at: https://www.legalaffairs.gov.bh/advancedsearchdetails.aspx?id=5917 . 
105 Food and Agriculture Organization of the United Nations, FAO GM F oods Platform : Bahrain . 
Viewed  at: http://www.fao.org/food/food -safety -quality/gm -foods -platform/browse -information -
by/coun try/country -page/en/?cty=BHR . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 63 - 
 
  entered into force in February  2019.106 This is the first time that Bahrain has introduced dedicated 
competition legislation. The following implementing orders have been issued: Ministerial Order 
No. 71 of 2019 Regarding the Controls for Excluding Small and Micro Enterprises from 
Anti-Competiti ve Arrangements , Ministerial Order No.  72 of 2019 Regarding Controls Governing 
Economic Concentration , and Ministerial Order No.  73 of 2019 Regarding Procedures Regulating the 
Investigation of Competition Complaints.  
3.113.   Competition -related issues are also cov ered by other laws and regulations. Ministerial Order 
No. 14 of 2008 regulates the non -manipulation of advertised prices. Competition -related rules and 
practices in the telecommunications sector are stipulated in Article  65 of the Telecommunications 
Law (D ecree No.  48 of 2002) and explained in the Telecommunications Regulatory Authority (TRA)'s 
2010 Competition Guidelines in 2010.107 Additionally, Law No.  35 of 2012 on Consumer Protection 
covers a broad spectrum of regulatory issues concerning consumer right s and competition.108 Law 
No. 62 of 2014 on the Fight Against Commercial Fraud lays out the different penalties for 
infringement , such as for fraud on the commodity's essence, nature, kind , or essential features or 
circulation of rotten food or animal feed.  The Central Bank of Bahrain (CBB) considers the impact on 
competition when assessing mergers and acquisitions of licensees and listed companies in the 
financial services and capital markets segments.  
3.114.   The Competition Promotion and Protection Law is being t emporarily enforced by the 
Consumer Protection Directorate within the M OICT, pending the establishment of the Authority. 
According to the authorities, no timeframe has yet been set for the creation of the Authority  but 
once established  it will be financial ly and administratively independent and will have its own board 
members, chair person , and CEO and will fall under the supervision of the Minister in charge of trade 
affairs.109 The Authority is charged with taking measures to ensure compliance with the Law.  It may 
conduct investigations on its own initiative, at the request of the Minister, or based on serious reports 
or complaints received (see below). Its responsibilities also include expressing opinions on draft 
laws, regulations , and decisions related to  the promotion and protection of competition , as well as 
studying the laws and regulations in force to consider whether or not they contain provisions 
hindering competition and, if so, propos ing amendments.  
3.115.   According to the authorities, the Competition Directorate has been implementing the general 
policy concerning the measures to ensure the protection of free competition and prevention of 
harmful monopolistic practices. Specifically, this has included: ( i) receiving and investigating 
complai nts made by consumers and societies under the Consumer Protection Law; ( ii) taking 
measures to ensure the prevention of commercial fraud; ( iii) looking into disputes between suppliers 
and consumers and seeking to settle them amicably, and laying down the n ecessary regulations and 
procedures for the settlement of disputes between suppliers and consumers; ( iv) implementing  the 
provision s of consumer awareness programmes ; (v) introducing and enforcing rules concerning 
consumer protection in coordination with the concerned administrative authorities; and 
(vi) coordinating with universities, scientific research centre s, and public and private institutions 
regarding research and exchange of ideas regarding consumer protection.  
3.116.   The Law on Competition Promotion and  Protection regulates anti -competitive practices, 
abuse of dominant position , and economic concentration, with some exceptions (see below). It 
applies to the economic activities of businesses within Bahrain , business behaviour intended to 
impede competitio n even if one of the parties is not incorporated in Bahrain , and also to economic 
activities practiced outside Bahrain to the extent that they affect competition within the country. The 
Law does not apply to arrangements covered by international agreements ; facilities and projects 
owned or managed by the State (as such, the Law does not apply to fully state -owned enterprises); 
and arrangements required for the use, exploitation, transfer, or licensing of the exploitation of 
 
106 Law on Competition Promotion and Protection. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=14321 . 
107 These guidelines are designed to help market participants understand how the TRA will assess 
competition in the telecommunications sector.  
108 Law No.  35 of 2012. Viewed at: https://www.legalaffairs.gov.bh/Media/LegalEng/K3512.docx . Details 
on the coverage of competition issues in the Law on Consumer Protection are provided in Bahrain's previous 
TPR (WTO document WT/TPR/S/294/Rev.1, 18  June 2014).  
109 As set out in Law No.  31 of 2018, the Board of Directors is to be composed of three members 
nominated by the Council of Ministers, the Director General of the Telecommunications Regulatory Authority, 
and one member nominated by each of the CBB, the BCCI, and the largest representative association of 
economists in Bahrain.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 64 - 
 
  legally  established intellectual property rights  (IPRs) , provided that these do  not hinder the transfer 
or spread of technology or impede competition.  
3.117.   Under the Law, anti -competitive arrangements are stipulated as those aiming at or resulting 
in: (i) influencing the prices of products in question including by raising, lowering , or fixing prices, 
or through fictitious transactions; ( ii) limiting or controlling production, marketing, technological 
development , or investment; ( iii) sharing markets or sources of supply; ( iv) knowingly 
dissemin ating incorrect information about the products and their prices; ( v) colluding on bids or 
offers in auctions, tenders , or practices, and influencing the price offers to buy and sell products; 
(vi) creating a sudden abundance of products that leads them to be traded at unreal prices that 
affect the rest of the competitors; and ( vii) colluding by refusing to buy  from, sell to, or supply a 
particular facility or establishment to prevent/impede the exercise of its ability.  
3.118.   Various exclusions apply , including specific arrangements that: (i) lead to a tangible 
improvement in the production or distribution of products; ( ii) lead to the promotion of technical or 
economic development in the field of production or distribution of products; ( iii) grant an equitable 
share to consumers of products of any resulting benefits; ( iv) do not impose restrictions on 
competition for the concerne d firms other than what is required by the conditions stipulated in ( i), 
(ii), and ( iii). 
3.119.   Under the Law, a firm is considered dominant if it has economic power enabling it to prevent 
effective competition in the market and giving it the ability to act inde pendently, to a tangible extent, 
from its competitors and customers. A single firm is considered dominant if its market share of the 
products concerned exceeds 40% and a group (two or more) of firms is dominant if its market share 
of the products concerned  exceeds 60%. Actions that constitute a buse of dominance include:  
• imposing prices for sale or purchase or any other direct/indirect trading conditions;  
• limiting production, marketing , or technological development to the detriment of 
consumers;  
• discriminati on (regarding prices, product quality , or other terms of dealings) in 
agreements/contracts with suppliers or customers whenever contractual terms are similar;  
• suspending the conclusion of a product -specific contract agreement on the condition of 
accepting obligations or products that are by nature, or according to commercial use, 
unrelated to the product that is the subject of the original agreement, contract , or 
transaction;  and 
• refraining, without legitimate justification, from concluding deals to sell or  buy a product 
with any firm, or sell the products in question at less than their actual cost, or to stop 
dealing entirely in a way that leads to the exclusion of competing firms from the market 
or exposing them to losses that make it difficult to continue  their activities.  
3.120.   Exclusions may be based on public interest considerations based on a reasoned decision by 
the Minister of Industry, Commerce and Tourism, based on the Authority's opinion and the approval 
of the Council of Ministers.  
3.121.   Under the Law, econo mic concentration arises if a change in control results from: ( i) the 
merger of two or more independent firms; ( ii) gaining direct or indirect control over an establishment 
or part of it; or ( iii) establishing a joint  venture that carries out all the functions of a self -contained 
entity. The Law provides for exceptions to be made in the public interest.  
Investigations and appeals  
3.122.   Before starting formal investigation procedures to establish infringement, the Authority mu st 
notify the concerned establishment about the evidence it has regarding the violation; the latter has 
20 days to respond. Investigations must be completed within six  months , at which point the 
investigating committee's report and findings must be submitt ed to the Authority's CEO. An 
additional six -month extension is allowed in cases of delay due to circumstances beyond the 
investigating committee's control. During investigations, the Authority's CEO has the authority to WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 65 - 
 
  appoint judicial arrest officers to  undertake inspections and to review and take copies of documents. 
Inspectors are prohibited from entering housing premises without prior authorization from the Public 
Prosecution, or investigation judge. Pursuant to the Chair person 's resolution, a prelimi nary 
investigation may be carried out without a notice being served if there is substantial evidence that 
a formal investigation may be hindered or the truth lost. Appeals may be made against the 
Authority's decision within 30  days. These will be decided b y an Appeal Tribunal (yet to be 
established) composed of three judges of the Civil High Court of Appeal as delegated by the Supreme 
Judicial Council. It will be possible for the Appeal Tribunal's ruling to be appealed to the Court of 
Cassation.110 
3.123.   Various n on-punitive measures may be imposed if violation of the Law is proven (Article  49). 
Penalties are set out in Chapter  III of the Law. Depending on the nature of the violation, fines range 
from BHD  100 to BHD  50,000 , and prison sentences may be imposed for u p to one year. Sums 
obtained from crimes committed may also be confiscated. As at mid -2021, no penalties had been 
imposed under the Law. 
3.3.4.2   Price controls  
3.124.   Price controls are regulated by Law No. 18 of 1975, as amended by Law No. 11 of 1977. 
According to the a uthorities, these old laws have not been amended, and the articles do not keep 
pace with the current economic situation. Flour, produced by Bahrain Flour Mills Company for certain 
types of locally  produced bread (local traditional flat bread, Lebanese brea d, loaf bread , and roll 
bread) , is the only commodity whose price is fixed by the Government; it is sold at subsidized prices 
to local traditional and automated bakeries. Bread retail prices are controlled.111 According to 
Resolution No.  32 of 2020 on Regul ating Medicines and Pharmaceutical Products Registration and 
their Prices and Announcement, the price of a medicine or pharmaceutical product shall be 
determined based on the unified price list approved by the Executive Office of the Council of Health 
Ministers of the GCC or Import Price (CIF).112 
3.3.5   State trading, state -owned enterprises, and privatization  
3.125.   Bahrain's most recent notification to the Working Party on State Trading Enterprises was in 
October  2011. It reported that Bahrain does not have any state trading enterprises , and that the 
Bahrain Livestock Company has the right to purchase livestock on behalf of the Government.113 The 
authorities indicate in the context of this Review  that the Bahrain Li vestock Company continues to 
import livestock without  monopolistic  or exclusive trading rights , and the Bahrain Petroleum 
Company ( BAPCO ) remains the sole importer and exporter of oil products (Section  4.2.1) . 
3.126.   The public sector in Bahrain continues to be o ne of the largest employers and still has a 
direct and strong influence on the economy. It includes the Central Government; the General 
Organi zation for Social Insurance (GOSI), a pension fund for private sector employees and a workers' 
compensation fund f or expatriates in the public sector; four municipalities; and several state -owned 
enterprises (SOEs).  
3.127.   The contribution of SOEs to the economy remains significant, especially in the energy sector. 
NogaHolding, which belongs  to the National Oil and Gas Autho rity (NOGA)  and is chaired by the 
Minister of Oil and Gas , oversees several companies in the oil and gas sectors whose ownership is 
either fully or partially under government control  (Section  4.2.1).  The Bahrain Mumtalakat Holding 
Company, a sovereign weal th fund, continues to manage the Government's non -oil and gas 
commercial assets. It is chaired by the Deputy Prime Minister. Mumtalakat owns stakes in  companies 
operating in various sectors in Bahrain (Table  3.18) , as well as those investing overseas. At t he end 
of 2020, the value of its consolidated assets was BHD  6.6 billion.114 With the exception of its founding 
 
110 STA, "Overview: Competition Law 2020 in Bahrain", 20  February  2021. Viewed at: 
https://www.stalawf irm.com/en/blogs/view/competition -2020-bahrain.html . 
111 Ministerial Order No.  152 of 2012, on the rules for the disposal of subsidized flour.  
112 Resolution No.  32 of 2020 on Regulating Medicines and Pharmaceutical Products Registration and 
their Prices and A nnouncement, Article  25. The price list was viewed at: 
https://www.nhra.bh/Departments/PPR/?page=102 . 
113 WTO document G/STR/N/7/BHR, G/STR/N/10/BHR, G/STR/N/11/BHR, G/STR/N/12/BHR, and 
G/STR/N/13 /BHR, 17  October  2011.  
114 Mumtalakat, "Mumtalakat Announces Consolidated Financial Results for 2019", 22  June 2020. 
Viewed  at: https://mumtalakat.b h/press_release/mumtalakat -announces -consolidated -financial -results -2019/ . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 66 - 
 
  capital, Mumtalakat operates without government contributions.115 Over the review period, 
Mumtalakat divested 4% of its shares in the National Bank of Bahrain in 2014 (state ownership share 
previously 49%) , returned the Arab Shipbuilding and Repair Yard (ASRY) to the Ministry of Finance 
and National Economy (MOFNE) in 2019 , and transferred its stakes in Durrat Khaleej Al Bahrain (a 
real estate company ) and Marina Durrat to its wholly  owned subsidiary (Edamah) in 2020. In 2018, 
Mumtalakat acquired 90% of the shares of H Al  Dhaen Boats. Over the review period, three new 
companies were formed by Mumtalakat with other joint venture partners: Al Sahel Resort, 
Mueller  Middle East, and Prodrive International Company (Table  3.18).  
Table 3.18 State -owned enterprises  under Mumtalakat , 31 December 2020  
SOE  Field of activity  State ownership 
(%)  
Bahrain International Circuit Company  Tourism (F1 racetrack)  100  
Bahrain Real Estate Co (Edamah)  Real estate  100  
General Poultry Company  Food  100  
Radio Bahrain Company  Telecommunications, 
media and technology  100 
Khairat Al Bahrain  Food and agriculture  100 
Al Dana Amphitheatre  Real estate and tourism  100 
Gulf Air Holding Company  General services  100 
Gulf Aviation Academy  Education  100 
Mazad  Consumer  100 
Bahrain Institute for Pearls and Gemstones  Consumer  100 
Lash HQ LLC  Real estate  95 
H Al Dhaen Boats  Industrial manufacturing  90 
Southern Tourism Company  Tourism and real estate  89.64  
Aluminium Bahrain  Aluminium  69.38  
Bahrain Flour Mills Company  Food  65.73  
Prodrive International  Industrial manufacturing  65 
Prime Magnetics Holdings SL  Industrial manufacturing  49.4 
Development Drive Morrisville, LLC  Real estate  49.12  
Asturiana de Aleaciones S.A. (Aleustur)  Industrial manufacturing  49 
RegMum JV LL  Real estate  49 
Al Elm Education Fund  Education  44.5 
National Bank of Bahrain  Financial services  44.06  
Gulf Aluminium Rolling Mill Company (GARMCO)  Aluminium  37.3  
Bahrain Telecommunications Company (Batelco)  Telecommunications  36.67  
Hawar Holding Company  Telecommunications  33.3  
Asmak  Food and agriculture  32.75  
Axtman Aviation  Aviation  30 
Mueller Middle East  Industrial manufacturing  30 
Bahrain Livestock Company  Food  27.48  
Gulf Hotels Group  Tourism  25.47  
Al Waha Fund of Funds  Financial services  25 
Envirogen Technologies  Industrial manufacturing  23.9 
Aljazeera Tourism Company  Tourism and real estate  19.65  
Gulf Investment Corporation  Financial services  16.7 
Delmon Poultry Company  Food and agriculture  15 
Bahrain International Golf Course Company  Tourism and real estate  14.29  
Gulf Cryo  Industrial manufacturing  12.9 
Arcapita  Financial services  11.12  
KOS Group  Healthcare  6.4 
PRO Unlimited  General services  4.92 
Oasis Capital  Financial services  3.89 
Cranemere Group  Financial services  3.88 
 
115 Mumtalakat, Our Story . Viewed at: https://mumtalakat.bh/our -story/ . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 67 - 
 
  SOE  Field of activity  State ownership 
(%)  
Arab Maritime Petroleum Transport Company 
(AMPTCo)  Logistics  3.8 
Arab Petroleum Investments Corporation (APICORP)  Financial services  3 
Arabsat  Telecommunications, 
media and technology  2.45 
Arab Investment Company  Financial services  1.81 
Arab Company for Drug Industries and Medical 
Appliances (ACDIMA)  Healthcare  1.14 
Gulf International Bank  Financial services  0.44 
Source:  Mumtalakat. Viewed at: https://mumtalakat.bh/sectors/bahrain ; NogaHolding , Portfolio . Viewed at: 
http://www.nogaholding.com/portfolio ; and information provided by the authorities.  
3.128.   All SOEs are monitored by the National Audit O ffice (NAO) , which reports annually on 
possible irregularities and corruption.116 The NAO ensures the proper use of public funds. As for 
enterprises, the NAO audits companies in which the State or an entity having a public legal 
personality holds more than 50% of their capital, or for which the State guarantees a minimum profit 
or provides financial assistance.117 
3.129.   Privatization policy in Bahrain is set out in Legislative Decree No.  41 of 2002 with respect to 
privatization. In 2014, the Council of Ministers is sued Decision No.  3 of 2014 with regard to the 
policies and guidelines for privatization.118 As envisaged by Article  7 of the Decision, a High Council 
for Privatization has been established; it is composed of various stakeholders including the M OFNE , 
the EDB, and the Civil Service Bureau. Its responsibilities are to recommend privatization 
program mes and plans and monitor rel ated products; it may seek advice and assistance from other 
relevant parties as it deems fit. According to the authorities, the Council has convened several times 
to discuss priority privatization projects in key sectors, including, but not limited to, env ironmentally 
sustainable waste management.  
3.130.   As part of its economic diversification strategy and the Vision  2030 strategy  (Section  2.2), 
the Government has been seeking to foster greater private sector participation in the economy. Over 
the review period, B ahrain has implemented, or is in the process of implementing, several 
public -private partnership projects, including in the areas of social housing, utilities , and transport.  
3.3.6   Government procurement  
3.131.   Since December  2008, Bahrain has been an observer to the plurilateral  WTO Agreement  on 
Government Procurement (GPA). In the context of this Review, the authorities indicate that Bahrain 
has no intention to accede to the GPA for the time being.  
3.132.   Bahrain's law on government procurement remains Legislative Decree No.  36 of 2002, 
amended in 2010 through Law No.  29 of 2010 and its implementing regulations (Decree No.  37 of 
2002).119 The Law covers all government procurement except for the purchases by the Bahrain 
Defence Force, Public Security forces , and the National Gu ard of goods, construction , and services 
of a military, security , or confidential nature, or those required by the public interest not to be 
announced.  
3.133.   The Bahrain Tender Board (TB) continues to prepare, oversee, approve, process, and 
supervise all tenderi ng, purchasing, and awarding processes related to the public sector and 
 
116 US Department of State, 2020 Investment Climate Statements: Bahrain . Viewed at: 
https://www.state.gov/reports/2020 -investment -climate -statements . 
117 National Audit Office, Entities Subject to the NAO's Audit . Viewed at: 
https://www.nao.gov.bh/en/category/entities -subject -to-the-naos-audit; and Decree -Law No.  49 of 2014 
Concerning the Amendment of Some Provisions of the Law of the Financial Supervision Bureau. Viewed at: 
https://www.legalaffairs.gov.bh/Media/LegalPDF/L4910.pdf . 
118 Decision No.  3 of 2014. Viewed at: 
https://www.legalaffairs.g ov.bh/AdvancedSearchDetails.aspx?id=6788 . 
119 Legislative Decree No.  36 of 2002 and Decree No.  37 of 2002. Viewed at: 
https://www.ten derboard.gov.bh/MediaHandler/GenericHandler/Pdf/laws/Tender%20Law%2036%20of%20200
2T%20New.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 68 - 
 
  government -owned organizations (government purchasing authorities) that are above the "internal 
tender" threshold. The TB i s an independent body that reports directly to the Council of  Ministers. 
Government purchasing authorities are responsible for tendering and award procedures for 
purchases up to the thresholds of BHD  25,000 for Ministries and BHD  50,000 for government -owned 
companies (so -called "internal tenders"); however, these mu st be reported to the TB. 
3.134.   Over the review period, the TB issued various circulars and decisions. These, inter alia, relate  
to, inter alia, speeding up receipt of correspondence from government purchasing authorities so to 
avoid delays in deciding on tenders; introducing a code of conduct for employees responsible for 
tendering procedures; accelerating the finalization of tendering procedures  and awards through the 
use of standard documents and set timeframes; and prequalif ying suppliers and contractors , fees, 
and procedures to be followed by government purchasing authorities when processing internal 
tenders, auctions, and sales.120 
3.135.   The legislation provides for several procurement methods: (i)  open (or so -called "public") 
tender as the main method for the purchases of goods, services , or construction; (ii)  selective (or 
so-called "limited") tenders, applied if there is a limited number of  suppliers, or the intended 
purchase is of small value that does not justify a large number of bids; (iii)  competitive  negotiated 
tenders, applied if no tender has been submitted at the end of public procedures, and when goods 
cannot be identified by preci se specifications; (iv)  direct purchasing, if it is established that the needs 
can only be supplied by a single source; (v)  requests for proposals, as the main method for services, 
through local or international advertisement, or in a specialized publicati on, or applications for 
pre-qualification121; and (vi)  a two -phase tender that is used when it is not feasible to draft detailed 
specifications for goods or to determine the characteristics of the services to obtain the best solution 
to meet the requirement s of the procuring entity. All procurement methods other than open (public)  
tendering require the prior approval of the TB.122 Local tenders are limited to companies and 
organizations registered in Bahrain (GCC companies are considered as local). As at the time of the 
previous Review, the criteria for choosing between local and international tenders are based upon 
the nature of the goods, construction , or services to be purchased; volume; complexity; and 
standards required. While Bahrain does not have a stat ed public procurement policy favouring 
environmentally friendly goods and services, nevertheless, a relatively high weighting in tender 
evaluation criteria is usually allocated in tender documents to these sorts of goods, constructions , 
and services.123 Open (public)  tenders and requests for proposals are advertised; the rest of the 
tendering methods are not and are by invitation only.  
3.136.   In 2020, the estimated value of government procurement was approximately 
BHD 2,098 million, up from around BHD  1,844 million in 2019. Public tenders accounted for 46% 
and 31% of the number of tenders in 2020 and 2019, respectively. International tenders accounted 
for just over 20% or public tenders in 2019 and nearly 3% in 2020  (Table  3.19) . 
3.137.   In value terms, most of the contra cts awarded in 2019 by the TB were for infrastructure, 
followed by oil and gas, housing, and aviation (Chart  3.3), while in 2020, most contracts were for 
oil and gas and infrastructure. In 2019, the top 10  purchasing authorities (in order of the total valu e 
of tenders) were the Ministry of Housing; Tatweer Petroleum Company; the Ministry of Works, 
Municipalities Affairs and Urban Planning; the EWA; Gulf Air; BAPCO; the Bahrain Airport Company; 
Edamah; the Ministry of Health; and the MOFNE. In 2020, the top 10 purchasing authorities were 
Tatweer Petroleum Company; Gulf Air; the EWA; the Ministry of Works, Municipalities Affairs and 
Urban Planning; the Ministry of Health; the Ministry of Housing; Eskan Bank; BAPCO; the Bahrain 
Airport Company; and the Ministry  of Transportation and Telecommunications.  
 
120 Tender Board. Viewed at: https://www.tenderboard.gov.bh/Legislation/Decisions  and 
https://www.tenderboard.gov.bh/Legislation/Circulars . 
121 Requests for submissions of proposals may be made directly to a number of suppliers if the services 
are unavailable except with a limited number of suppliers, the costs of the evaluation exceed the value of the 
required services, and confidentiality or na tional interests so require (Legislative Decree No.  36 of 2002, 
Article  51). 
122 TB, Process . Viewed at: https://www.tenderboard.gov.bh/Services/Process/ . 
123 WTO document WT/TPR/M/294/Add.1, 1  July 2014.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 69 - 
 
  Table 3.19 Value of government procurement by method, 2019 and 2020  
(BHD million)  
 2019  2020  
Open  (public ) tender    
 - local  459 939 
 - international  118 26 
Selective  (limited ) tender  1,116  1,017  
Competitive negotiated tender  106 5 
Direct purchasing  45 111 
Request for proposal  .. .. 
Two-phase tender  .. .. 
TOTAL  1,844 2,098 
.. Not available.  
Note:  The authorities indicate that : (i) the figures include "internal" tenders ; and ( ii) some data are either 
not available or not captured.  
 The values in the table represent the estimated cost of the tenders . 
Source:  Information provided by the authorities.  
Chart 3.3 Value of tender awards by sector, 2019 and 2020  
 
Note:  Figures denote the share of total value.  
Source:  Information provided by the authorities.  
3.138.   In April  2020, Bahrain fully automated its electronic tendering system (e -tender)124, through 
software enhancements to its existing system. Previously, procuring entities could create and publish 
their tender documents on the system , and it allowed suppliers to purchase and download these 
documents. As a result of improvements made, est ablishments may now submit their bids online, 
the proposals are then handled by the respective evaluation committee , and the winner is announced 
after this evaluation process .125 Previously bids were submitted to the tender boxes on the TB 
premises.  
3.139.   All ope n/public tenders are advertised online on the TB's portal. In addition, international 
tenders are advertised in Bahrain and abroad notably using the embassies and consulates to inform 
the relevant sectors in their countries. The TB may also advertise in ot her media of wider circulation. 
 
124 The e -Tender website was viewed at: https://etendering.tenderboard.gov.bh/Tenders/publicDash . 
125 TB, "Tender Board Opens First Online Tender Following Full Automation", 4  June 2020. Viewed at: 
https://www.ten derboard.gov.bh/About/News/Tender%20Board%20opens%20first%20online%20tender%20fo
llowing%20full%20automation.aspx . Evaluation committees are ad hoc. 
27.6%
13.8%
25.2%2.9%19.0%2.9%3.7%1.3% 3.6%
Infrastructure Aviation Oil & Gas
Health Housing Information
Investments Youth & Education OtherChart 3.[BHR] Value of tender awards by sector, 2019 and 2020
Information provided by the authorities. Source:Note: Figures denote the share of total value.21.6%
16.8%
39.0%7.2%8.5%1.7%1.5%1.2% 2.6%2019 2020WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 70 - 
 
  Public procurement, through tendering, for BHD  1 million or more must be advertised in the 
Official  Gazette .126 
3.140.   The TB must award the tender to the bidder who offers the best terms and the lowest 
price.127 The successful bidde r must submit a performance bond within 10  days for local tenders or 
20 days for international tenders of notification of the provisional intention to award the contract 
(this may be extended, in both cases, by a further 10  days). The amount of the perform ance bond 
is determined by the TB based on the nature and value of the project.128 Successful bidders must 
be notified individually. All final awards are published in the Official Gazette , in the press, and on 
the TB's website.129 
3.141.   Price preferences are given  for goods (but not services and construction) produced in Bahrain 
and in other GCC member S tates, provided that the prices of these goods are within specified 
margins of the value of their imported equivalents (10% for goods produced in Bahrain and 5% for  
goods produced in the GCC). In the context of Bahrain's regional and bilateral FTAs, suppliers from 
the United  States  and Singapore benefit from the same price preferences of 10%.  
3.142.   Since  2019, registered SMEs have been eligible to obtain a 10% price preference during 
bidding for government tenders for goods, construction , and service contracts.130 This preference 
also applies to the internal tenders of government purchasing authorities.  
3.143.   Complaints may be submitted in the first instance, for reconsidera tion by the procuring entity 
and/or the TB, prior to the contract's entry into effect. A decision must be taken within 30  days after 
the complaint is made.131 In 2019, the TB handled 541 such grievances.132 Judicial review is available 
for contractors or suppliers to challenge the decisions taken by the procuring entity or the TB before 
the competent law courts within 60  days after the decision is made.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.144.   The main institut ions responsible for intellectual property matters in Bahrain are the Foreign 
Trade and Industrial Property Directorate of the MOICT133, which includes the National Patents Office 
(also in charge of Industrial Designs), the Trademark Office, and the Industr ial Property Control 
Section; Customs Affairs within the Ministry of Finance, which is responsible for matters related to 
border measures; and courts of law, which are responsible for enforcement issues. Copyrights are 
under the Ministry of Information Aff airs.134 At the regional level, the GCC Patent Office (based in 
Riyadh) is responsible for patent protection  for the patents granted by the Office . There are no 
Collective Management Organizations operating yet in Bahrain.135 
 
126 Legislative Decree No.  36 of 2002, Regulating Government Tenders and Purchases, as amended by 
Law No.  29 of 2010, Article  23. 
127 The TB estimates in monetary terms, where possible, all the criteria of comparison between tenders, 
such as maintenance costs and quality.  
128 If the winning bidder fails to submit the performance bond within the deadline, he/she is dee med to 
have withdrawn from the process, and cannot participate in tenders for at least one year. The performance 
bond is returned when a supplier or a contractor fulfils the terms of contract.  
129 TB. Viewed at: http://www.tenderboard.gov.bh . 
130 TB Circular No.  2 of 2019, which is based on Cabinet Resolutions No. 2416 -04 of 2019 and 
No. 4-2516 of 2017.  
131 Complaints are to be filed within 10 days of becoming aware of the decision or action in case of local 
tenders, and 20 days in the case of international tenders. According to Article  56 of Legislative Decree No.  36 
of 2002, a refusal must be substantiated. However, if no decision is taken with respect to the complaint within 
30 days, it shall be deemed as an implici t rejection.  
132 TB, Annual Report 2019 . Viewed at: 
https: //www.tenderboard.gov.bh/MediaHandler/GenericHandler/Pdf/annualreport/Tender%20Board%202019%
20Annual%20Report%20 -%20English%20Version%20for%20Website%20(Modified%2024%20Aug).pdf . 
133 MOICT, Industrial Property Control . Viewed at: 
https://www.moic.gov.bh/en/Tiles/TrademarksAndPatents/Pages/IndustrialPropertyControl.aspx .  
134 Bahrain eGovernment, Copyright Certificate Issuance Request . Viewed at: https://bit.ly/35MpKJ4 .  
135 This notwithstanding, Chapter 10 of Law No. 22 of 2006 on Copyright Protection and Related Rights  
regulates the collective management of the financial rights of authors and owne rs of attendant rights. 
Viewed  at: https://www.legalaffairs.gov.bh/AdvancedSearchDetails.aspx?id=3695 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 71 - 
 
  3.145.   Since its last TPR in 2014, Bahr ain has approved the GCC Trademarks Law through Law 
No. 6 of 2014, as amended by Law No.  3 of 2021.136 Implementing regulations have also been issued 
for patents and utility models, as well as for trademarks (see below).  Key features of laws in force 
are described in the Secretariat Report for the previous Review and summarized in Table  3.20.137 
Table 3.20 Summary of IPR legislation  
IPR Main legislation  Duration of protection  Coverage  
Industrial property    
Patents  Law No.  1 of 2004 , 
as amended by 
Law No.  14 of 2006 
on Patents and 
Utility Models  20 years from the date 
of filing for patents; and 
10 years from the date 
of filing for a utility 
model  Technical innovations based on human 
necessities, performing operations, chemistry, 
physics, pharmaceutics, biotechnology, and 
mechanics are patentable provided they are 
new, involve an inventive step, and are capable 
of industrial application. Pharmaceutical 
produc ts are also patentable.  
Trademarks  Law No.  6 of 2014 
on Approval of the 
Trademarks Law of 
the GCC States, as 
amended by Law 
No. 3 of 2021  10 years, renewable 
indefinitely for periods of 
10 years  The Law covers trademarks, service marks, 
collective marks, and certification marks. A 
trademark is defined as any visually perceptible 
sign, name, word, signature, letter, number, 
address, seal, drawing, pronunciation, odour, 
picture, inscription, symbol, packaging, 
photographic element, figure, one colour or 
more, or a combination thereof, or sign or a 
group of signs that are used or intended for use 
to distinguish products or services resulting 
from the products or services of other facilities, 
or to indicate, or to render a service or to 
distinguish any products  or services in terms of 
origin, structure elements, manufacturing 
method, quality, identity, or any other 
characteristics. Multi -class trademark 
applications are permitted. The Law also covers 
non-traditional trademarks such as sounds and 
smells.  
Trade secrets  Law No.  35 of 2005 
amending Article  5 
of Law No.  7 of 
2003 with respect 
to Trade Secrets 
and Law No.  12 of 
2006  5 years for new 
pharmaceutical products 
and 10 years for new 
agricultural/chemical 
products (from date of 
approval)  Prohibits information disclosure that is 
confidential, was of commercial value due to its 
confidentiality, and that confidentiality was 
dependent on measures undertaken by its legal 
owner to preserve it. All data or tests submitted 
to the competent administrative au thority that 
are the results of considerable efforts aimed at 
obtaining an official approval for marketing 
pharmacological or agrichemical products in 
which new chemical components are used are 
considered trade secrets . 
Geographical 
indications  Law No.  16 of 2004 
on Protection of 
Geographical 
Indications , 
amended by Law 
No. 16 of 2006  Not specified ; 
geographical indications 
are protected if they 
enjoy protection in their 
country of origin  Geographical indications are defined as any sign 
that may have origi nated in the territories of a 
WTO Member or in a region or area wherein the 
product quality, goodwill , or other 
characteristics are essentially attributed to its 
geographical origin.  
Integrated 
circuits  Law No.  5 of 2006 
on Integrated 
Circuits  10 years f rom date of 
filing or the first 
commercial exploitation, 
whichever is earlier, and 
renewable for 5 years  Integrated circuits are every product in its final 
or intermediate form, whose active 
component(s) and all/some of its connections, 
are integrated or p laced in a sheet of material, 
with the objective of the product being to deliver 
an electronic function.  
Industrial 
designs  Law No.  6 of 2006 
on Industrial 
Designs  10 years, renewable for 
5 years  Industrial designs are defined as any 
composition of lines and colours, or any 
three -dimensional form, whether associated 
with colours or not. Designs must be novel and 
filed independently and give a special 
appearance to an industrial craft or product.  
 
136 Law No.  6 of 2014 on Approval of the Trademarks Law of the Gulf Cooperation Council States. 
Viewed at: https://wipolex.wipo.int/en/legislation/details/14730 . Law No.  3 of 2021 amends the definitions of 
"competent authority" and "minister" in Article  1. Viewed at: 
https://www.legalaffairs.gov.bh/25860.aspx?cms=q8FmFJgiscJUAh5wTFxPQnjc67 hw%2bcd53dCDU8XkwhyDq
Zn9xoYKj4LwbCHZreOko9tht7ovckiDcEUH%2bghH%2fg%3d%3d . 
137 WTO document WT/TPR/S/294/Rev.1, 18  June 2014.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 72 - 
 
  IPR Main legislation  Duration of protection  Coverage  
Copyright     
Copyright  Law No.  22 of 2006 
on Copyright and 
Neighbouring 
Rights  Life of author plus 
70 years is the general 
rule. For broadcasting 
organizations, economic 
rights over radio and 
televisions programmes 
are protected for 
20 years of the first day 
of the next calendar year 
after their broadcast.  Covers books, computer programs, pamphlets 
and other writings, lectures, sermons, dramatic 
works, musical works, dancing and other 
performing works, musical compositions, 
cinematographic and other audio -visual  works, 
works of drawing , painting, architecture, 
sculpture, engraving, photographic works, works 
of applied art, illustrations, maps, plans, 
sketches and three -dimensional works. 
Protection is accorder to derivative works 
including translations, adaptations, 
encyclopaedias. Neig hbouring rights for 
performers, producers of sound recordings and 
broadcasting organizations are also covered.  
Source:  WTO document WT/TPR/S/294/Rev.1 , 24 April 2014; Law No.  3 of 2021. Viewed at: 
https://www.legalaffairs.gov.bh/25860.aspx?cms=q8FmFJgiscJ UAh5wTFxPQnjc67hw%2bcd53dCDU8
XkwhyDqZn9xoYKj4LwbCHZreOko9tht7ovckiDcEUH%2bghH%2fg%3d%3d ; and information 
provided by the authorities.  
3.146.   In November  2020, the Shura Council approved the draft law on the protection of new plant 
varieties to implement the Inter national Convention for the Protection of New Plant Varieties; this 
draft offers patent protection of 25  years.138 As at mid -2021, this law had not entered into force. 
Additionally, in January 2021, the GCC Supreme Council approved the law amending some pro visions 
of the Patent Regulation of the Cooperation Council for the Arab States of the Gulf; as at mid -2021, 
this had not been ratified by Bahrain.  
3.147.   In its most recent notification under Article  63 of the Agreement on Trade -Related Aspects 
of Intellectual P roperty Rights (TRIPS  Agreement), Bahrain updated its main laws on trademarks, 
trade secrets, geographical indications, patent and utility models, industrial designs, and integrated 
circuits; some of these notifications were outstanding at the time of Bahr ain's previous Review.139 
Bahrain has not yet notified Law No.  3 of 2021.  
3.148.   Bahrain has provisions on IPRs in its FTAs with the other GCC member  State s (the GCC 
Customs Union) and with the United  States ; these are described in detail in the respective factual  
presentations to the Committee on Regional Trade Agreements.140 Additionally, under the GCC -EFTA 
RTA, parties are required to ensure adequate, effective , and non -discriminatory protection of IPRs, 
and the effective means of enforcing these rights. Parties must accord, to nationals of other parties, 
treatment that is no less favourable than that accorded to their own nationals.141 Additionally, not 
later than two years after entry into force of the agreement, parties should conclude negotiations 
on an Annex c ontaining further provisions on the protection and enforcement of IPRs. The Pan -Arab 
Free Trade Area (PAFTA) has provisions that party states shall consult over protection of IPRs ; 
however , there have been no further developments in this regard.  
3.149.   Since its last Review , Bahrain has become a party to the Convention on the Protection of the 
Underwater Cultural Heritage ; the Convention on the Means of Prohibiting and Preventing the Illicit 
Import, Export and Transfer of Ownership of Cultural Property ; the UN Con vention on Contracts for 
the International Sale of Goods ; and the UN Convention on the Use of Electronic Communication in 
International Contracts.142 Bahrain is in the process of becoming party to the Vienna Agreement 
Establishing an International Classific ation of the Figurative Elements of Marks, and to the 
International Union for the Protection of New Varieties of Plants . These are in addition to the other 
IP conventions/agreements Bahrain was party to at the time of its previous Review.143 The GCC 
 
138 LexisNexis, Bahrain: Draft Protection of New Plant Varieties Law Approved . Viewed at: 
https://www.lexis.ae/2020/10/25/bahrain -draft-protection -of-new-plant-varieties -law-approved . 
139 WTO document IP/N/1/BHR/5/Rev.2, 14  July 2016.  
140 For the RTA between Bahrain and the United  States, see WTO document WT/REG219/2/Rev.1, 
7 April 2015. For the GCC Customs Union RTA, see WTO document WT/REG/276/1, 21 March 2018.  
141 Free Trade Agreement between EFTA States and GCC Member States. Viewed at: 
https://www.efta.int/free -trade/free -trade -agreements/gcc . 
142 WIPO IP Portal, Bahrain Treaties . Viewed at: https://wipolex.wipo.int/en/members/profile/BH . 
143 WIPO Convention (acceded to in 1995);  Paris Convention on the Protection of Industrial Property 
(1997); Berne Convention on Literary and Artistic Works (1997); Patent Law Treaty (PLT) (2005); Madrid WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 73 - 
 
  Patent Office is not a member of the Paris Convention, but it reportedly respects the Convention's 
rules. In the context of this Review, the authorities indicate that Bahrain is considering becoming 
part of the Hague Agreement, the Locarno Agreement , and the Strasbourg Agreement.  
3.3.7.2   Industrial property  
3.150.   In February  2017, the MOICT launched the Trademark, Patent, Industrial Designs and IP 
Control e -service platform144; according to the authorities , this was rolled  out over a three -and-a-
half-year period, with the  activation of electronic services for trademarks in 2017, followed by 
patents in March  2018, then industrial designs in March  2020. The rest of the electronic services for 
trademarks and industrial designs were gradually updated and added during the last half of 2020. 
This platform allows Bahraini nationals and foreign residents to file their trademark, patent , and 
industrial designs applications online. It also allows for changes to be made electronically, the status 
of applications to be checked, fees to  be paid , and grievances to be lodged. Foreign applicants not 
resident must apply through the IP Registration Office or a Bahraini law firm that is registered as a 
representative with the Directorate of Foreign Trade and Industrial Property.145 
3.151.   Over the per iod 2014 -20, Bahrain posted a relatively stable number of trademark 
applications, except in 2020 when there was a dip; resident applications consistently outnumbered 
non-resident applications. The number of trademark registrations varied year -on-year. Indu strial 
design applications and registrations fluctuated. Patent applications were dominated by applications 
under the P atent Cooperation Treaty (PCT) ; few patents were granted until 2018 .146 (Table  3.21). 
No applications for protection of utility models or geographical indications have yet been filed.  
Table 3.21 Applications for trademarks, industrial designs, and patents ; and patents 
granted, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
Trademark applications         
Resident  3,299  3,733  3,463  3,261  3,456  3,140  2,577  
Non-resident  2,214  2,189  2,700  2,127  2,237  2,151  1,219  
Total 5,513  5,922  6,163  5,388  5,693  5,291  3,796  
Trademark registrations  8,366  7,629  9,567  9,658  5,399  4,711  4,403  
Industrial designs applications  56 64 91 79 84 62 70 
Industrial designs registrations  27 77 111 67 62 88 69 
Patent applications         
National  7 8 7 15 18 7 8 
Patent Cooperation Treaty (PCT)  200 185 172 230 221 303 232 
Total 207 193 179 245 239 310 240 
Patents granted  1 0 0 0 17 73 33 
Source:  Information provided by the authorities.  
3.152.   Over the review period , key developments in the field of industrial property were: 
• Bahrain's enactment of the GCC Trademarks Law through Law No.  6 of 2014 and its 
Implementing Regulation through Decision No.  65 of 2016.147 This replaces previous 
legislation in force in Bahrain (Law No.  12 of 2006). The purpose of the GCC Trademarks 
Law is to create unified implementing regulations for trademark protection in all member 
States. The substantial changes in the Law consist of determining the period for responses 
 
Protocol (2005); Nice Agreement on International Classification of Goods and Services (2005); WIPO Copyright 
Treaty (WCT) (2005); WIPO Performances and Phonograms Treaty (WPPT) (2005); Patent Cooperation Treaty 
(PCT) (2007); Trademark Law Treaty (TLT) (2007); and Budapest Treaty on the International Recognition of 
the Deposit of Micro -Organisms for  the Purpose of Patent Procedure (2012).  
144 MOICT, Trademark, Patent, Industrial Designs & IP Control e -Services . Viewed at: 
https://www.moic.gov.bh/en/eservices/pages/ip -bahrain.as px. 
145 MOICT, Patents . Viewed at: https://www.moic.gov.bh/en/Tiles/TrademarksAndPatents/patent .  
146 At the time of Bahrain's previous Review, the explanation for this given by the a uthorities was that 
there were a limited number of staff in the patent office, there were no trained examiners to perform the 
examination process, and there was a limited budget for capacity building. WTO document 
WT/TPR/M/294/Add.1, 1  July 2014.  
147 Law No.  6 of 2014. Viewed at: 
https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=6828 ; and  Decision No.  65 of 2016 on the 
Issuance of the Implementing Regulation of the Trade Mark Law of the Gulf Cooperation Council States. 
Viewed  at: https://wipolex.wipo.int/en/legislation/details/16174 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 74 - 
 
  from the Trademark Office and the applican t, and allowing notifications to be sent 
electronically instead of by registered mail. The Law also allows electronic publication 
instead of publication in the Official Gazette . All legal representatives (either industrial 
property registration agents or l aw firms specialized in industrial property registration) 
must be recorded in the register of registration agents. Additionally, the Law provides for 
the possibility of changing or adding fees for trademarks services as required by GCC 
member  State s. The G CC Trademarks Law does not offer a unified filing system, hence 
trademark applications will continue to be filed separately in each GCC member State for 
protection.148 
• The GCC Supreme Council's decision in 2021 of an amendment to the GCC Patent Law 
Regulati on.149 The amendment will allow GCC member States  to choose the services to be 
provided by the GCC Patent Office (filing applications service, examination service , or 
granting service). Additionally, patent protection will cover only the GCC member State 
that agreed to grant the patent. Following this decision, the GCC Patent Office stopped 
accepting new filings of patent applications pending agreement between the GCC member 
States on amendments to the related implementing regulations. Once implementing 
regulations have been finalized and issued by the relevant authorities in each of the 
GCC member States, the GCC Patent Office will resume receiving applications.  
• The issuance of implementing regulations on Patents and Utility Models in 2018 .150 This 
contains t he requirements and procedures for filing and examination of applications and 
sets out the conditions for granting patents according to the Bahrain patent law.  
• A decision on the schedule of fees for the registration of patents and utility models in 
2018.151 This sets out the revised fees applicable for all procedures from the filing of the 
application to the granting of the patent.  
• A decision on the registration of Industrial Property Agents in 2018.152 This requires 
industrial property agents to be registered in a formal Register. Persons may apply to be 
registered through the industrial property services portal. Registrations are renewable 
annually.  
• A Ministerial Order on Fees for Reservation and Renew al of Reservation of Trade Names 
in 2015.153 This sets out a fee of BHR  300 for trade name reservation applications and a 
fee of BHR  300 for requests to renew such reservations.  
3.153.   The authorities confirm that no compulsory licences have been filed or granted over the 
review period.  
3.3.7.3   Copyright and related rights  
3.154.   There were no developments in the area of copyright and related rights over the review 
period. During the review period, 42  cases of copyright infringement were taken to the public 
prosecutor, and 140,03 9 violating materials were seized and destroyed.  
3.3.7.4   Enforcement  
3.155.   Bahrain 's laws on IPR protection detail several penalties in case of violations, ranging from 
fines of BHD 500 to BHD 2,000 and/or a prison term between three  months and one  year. For repeat 
 
148 China Business Law Journal , "Unified Trademark Law for GCC Has Pros and Cons", 13  March  2016. 
Viewed at: https://law.asia/unified -trademark -law-for-gcc-has-pros-and-cons/ . 
149 RWS, "Gulf Cooperation Council (GCC) Patent Office Ceases Accepting New Patent Filings", 
19 January  2021. Viewed at: https://www.rws.c om/blog/gulf -cooperation -council -gcc-patent -office -ceases -
accepting -new-patent -filings/ . 
150 Decision No.  101 of 2018 on the Issuance of the Implementing Regulation of Law No.  1 of 2004 on 
Patents and Utility Models. Viewed at: https://www.legalaffairs.gov.b h/Media/LegalPDF/RICT10118.pdf . 
151 Decision No.  102 of 2018 Specifying the Schedule of Fees for the Registration of Patents and Utility 
Models. Viewed at: https://www.legalaffairs.gov.bh/Media/LegalPDF/RICT10218.pdf . 
152 Decision No.  58 of 2018 on the Registr ation of Industrial Property Agents. Viewed at: 
https://wipolex.wipo.int/en/legislation/details/18737 . 
153 Ministerial Order No.  48 of 2015 on Fees for Reservation and Renewal of Reservati on of Trade 
Names. Viewed at: https://wipolex.wipo.int/en/legislation/details/19657 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 75 - 
 
  offenders, the upper limit of both the fine and imprisonment is doubled. In addition, the court may 
order the business premises to be closed for 15  days to 6  months and order the verdict to be 
published in a daily newspaper at the expense of the offender.154 The different IPR laws provide for 
higher penalties for civil remedies, such as the BHD  9,000 compensation maximum set by the Law 
on the Protection of Copyright and Neighbouring Rights.155 
3.156.   Over the review period, most industrial property infringements were fo r trademarks 
(Table  3.22). While the authorities confirm there were no seizures of suspected copyright -infringing 
goods at the border over the review period, no data were available on copyright infringements within 
Bahrain.  
Table 3.22 IPR infringements, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
Trademarks  83 61 0 42 83 38 38 
Industrial designs  0 0 0 0 0 0 0 
Patents  0 0 0 3 4 0 0 
Total  83 61 0 45 87 38 38 
Source:  Information provided by the authorities.  
3.157.   The customs clearance of imports is suspended when counterfeit goods are suspected. This 
may be undertaken by Customs Affairs on its own initiative or at the request of a right holder.  
3.158.   According to the authorities, enforcement of IP protection  also takes the form of receiving 
and accepting complaints of IP violations. Since 2014 , 102 complaints were accepted, involving 
52,239  goods. Additionally, 293  shops were referred to the Public Prosecution  Office  for selling such 
goods.  
 
 
154 WTO document IP/Q/BHR/1, 6  December  2001.  
155 Law No.  22 of 2006 on the Protection of Copyrights and Neighbouring Rights, Article  64. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 76 - 
 
  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Main features  
4.1.  Agriculture (including fisheries) is a small sector in Bahrain's economy, due to lack of arable 
land (around 6,200  hectares), scarce water resources, strong salinity of the soil , and unfavourable 
weather conditions. The sector contributed less than 1% of GDP in real terms in 2020 (Table  1.1). 
4.2.  Bahrain is a net importer of agricultural products. Annual data on agricultural production are 
provided in Table  4.1. Agriculture under greenhouse is used to achieve self -sufficiency in various 
products, particularly high -quality fresh vegetable crops. The  main greenhouse crops are tomatoes, 
cucumbers, peppers, squash, eggplant, lettuce, strawberries, beans, sweet melon, zucchini , and cut 
flowers, although farmers also grow dates, figs, citrus  fruits jujuba, berries, papaya, tamarind, 
Indian almond s, and ma ngos.  
4.3.  Fisheries are largely artisanal and insignificant from an economic point of view. However, they 
provide food and economic livelihood to many coastal villages. Some 2,521  vessels, mainly gillnets 
and long liners , made up Bahrain's fishing fleet in 201 6. The employment estimate was 
11,821  people, with a few engaged in aquaculture.1 
Table 4.1 Annual data on agricultural and fish production, 2015 -20 
Item/year  Agricultural production ('000 tonnes)  
2015  2016  2017  2018  2019  2020  
Vegetables  14,572  15,200  15,800  18,450  19,760  20,650  
Dates  12,200  12,000  12,380  12,330  12,200  12,700  
Fruits  900 600 820 770 511 1,100  
 Fishing sector (MT)  
Artisanal fish production  17,137.00  15,200.10  19,864.59  21,071.04  18,280.00  16,525.88  
Fish imports  13,548.00  14,791.00  17,807.3 7 31,191.68  36,095.72  31,238.82  
Fish exports  24,225.00  13,606.00  13,009.68  30,239.39  31,039.43  12,868.66  
Source:  Information provided by the authorities.  
4.1.2   Policy  
4.4.  Agriculture and Marine Resources Affairs, under the Ministry of Works, Municipalities Affairs 
and Urban Planning, is in charge of policy formulation for agriculture, including fisheries and 
livestock. It is also responsible for enforcing sanitary and phyto sanitary measures and providing 
technical assistance to farmers. The Plant Wealth Directorate is in charge of, inter alia, research in 
plant production, soil and water, animals and fodder, and agricultural services in relation to 
production of seeds and se edlings, soil, water, food, and feed analysis. The Directorate of Fisheries 
within Agriculture and Marine Resources Affairs is responsible for the management and development 
of aquaculture. The 2002 Royal Decree on Exploitation and Utilization of the Marin e Resources has 
provisions on controlling aquaculture activities. Under the Decree, a company may not undertake 
any aquaculture activity without permission from the authorized government body (Directorate of 
Fisheries).  
4.5.  During the review period, Bahrain's notification to the WTO on agriculture support indicated 
that export subsidies were not granted over the calendar years 2014 -19.2 The country also notified 
that there were domestic agricultural support measures related to development programmes in 2018 
and 2019. According to the notification , the authorities ran two  programmes on plant protection 
services for the control of red palm  weevil, and on infrastructure for plant production farms.3 Most 
of the infrastructure programme consisted of the implementation of irrigation and greenhouse 
 
1 Food and Agriculture Organization of the United Nations (FAO), Fishery and Aquaculture Country 
Profiles: The Kingdom of Bahrain . Viewed at: http://www.fao.org/fishery/facp/BHR/en . 
2 WTO documents G/AG/N/BHR/9, 30  April 2018; and G/AG/N/BHR/13, 20  February  2020.  
3 WTO documents G/AG/N/BHR/11, 9  September  2019; and G/AG/N/BHR/14, 20  February  2020.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 77 - 
 
  projects. Support was provided through, inter alia, subsidies4: 84% of the cost of machinery ser vices 
(for land preparation); 60% of the price of modern irrigation material, and 60% of the price of 
pesticides; 40% of the price of plastic sheet; 50% of the price of veterinary drugs and animal 
vaccines; and 5% of the price of local poultry meat.  
4.6.  Prefer ential loans are also provided to farmers to encourage them to continue on agriculture 
production, launch programmes to protect date palms, and other farming activities. The Bahrain 
Development Bank (BDB) continues its financial assistance to agriculture, including fisheries 
activities, and the related loans are guaranteed by the Government.5 The Government provides most 
inputs to farmers, such as material for irrigation, pesticides, and poultry feed, at below -market 
prices.  
4.7.  Various other infrastructure an d public services are in place to encourage agricultural activities. 
In 2020, Bahrain launched its National Centre of Agricultural Laboratories to provide additional 
services to Bahraini farmers and breeders. The Centre consists of several labs related to,  inter alia, 
food safety, tissue culture, plant genetic resources, animal diagnostics, serology, soil, pesticides, 
entomology, plant pathology , and parasitology.  
4.8.  The National Mariculture Centre has been improving the mass propagation of seed of the 
following commercially important local species: rabbit fish, Sobaity seabream, brown -spotted 
grouper, gilthead seabream, mangrove snapper, and cobia.6 The authorities note that the Centre 
also implements research on mangrove snapper and cobia. Bahrain pro duces and exports marine 
finfish seed to the region. In the area of Ras Hayan, the authorities encourage private investments 
by providing  plots of land  for aquacultural activities, with a view to ensuring food security.  
4.9.  According to the authorities, develo pment efforts in agriculture include providing a safe 
environment and support including financing7, facilitating land ownership and training to farmers 
and fishermen and in particular small producers, improving agricultural technologies, enhancing the 
role of the Agricultural Cooperative Association, and preserving the genetic resources and distinctive 
Bahraini breeds. The authorities did not indicate if Vision  2030 considers agriculture as a strategic 
sector. They note that in the context of supporting Vision 2030 (Section  2.2), the Agency for 
Agriculture and Marine Resources at the Ministry of Works, Municipalities Affairs and Urban Planning 
seeks to improve its performance by upgrading the quality of services for farmers and streamlining 
administrative p rocedures.  
4.10.  Import and export controls are in place on some  agricultural products, mainly on SPS grounds 
(Section s 3.1.5 and 3.2.3). 
4.11.  The simple average applied MFN tariff on agricultural products (ISIC definition) stood at 3% 
in 2021 (unchanged since 2013)  (Table  A3.1) . Imports of most agricultural raw materials and basic 
food products are duty free. Alcoholic beverages are subject to the highest tariff rate (100%), while 
alternate tariffs apply to tobacco products (Section  3.1.3.1).  
4.2  Mining and Energy  
4.12.  In the  energy sector, Vision  2030 aims at implementing  energy -efficiency regulations and 
directing investments towards technologies that reduce carbon emissions, minimize pollution, and 
promote the sourcing of more sustainable energy. Along the same lines, the Kingdom's 2019-22 
Action Plan aims to, inter alia, optimize the use of resources and ensure their sustainability for the 
next generations  (Section  2.2). The industry continues to be a significant contributor to the economy 
(Section  1.1). 
 
4 The authorities purchase agricultural equipment and resell them at discounted prices.  
5 BDB, Annual Report 2019 . Viewed at: https://www.bdb -
bh.com/assets/reports/BDB_AR2019_English%28f inal%29.pdf . 
6 FAO, National Aquaculture Sector Overview : Bahrain. Viewed at: 
http://www.fao.org/fishery/countrysector/naso_bahrain/en . 
7 The BDB offers 0% interest rate loans for the  development of agriculture production.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 78 - 
 
  4.2.1   Petroleum and gas  
4.13.  Bahrain is an observer to the Organization of the Petroleum Exporting Countries (OPEC) and 
a member of the Organization of Arab Petroleum Exporting Countries (OAPEC).  
4.14.  The National Oil and Gas Authority (NOGA) is responsible for the supervision, organization, 
and development of the hydrocarbon sector and its related industries, with a view to securing the 
oil and gas needs of Bahrain and achieving a sustainable economic growth. NOGA is chaired by the 
minister in charge of oil who also serves as the chair person  of the board of directors of the Oil and 
Gas H olding Company (NogaHolding, a subsidiary of NOGA). NogaHolding was established in 2007 
as NOGA's investment and development arm. It is also in charge of administering the Government's 
shares in 13  companies, mostly  in the energy sector (Table  4.2). Bahrai n does not have specific 
legislation governing the granting of rights for exploration and development of concession s. The law 
establishing NOGA granted it the right to manage upstream activities, including the approval of new 
operators. As such, NOGA has s igned a service agreement with NogaHolding and its subsidiaries for 
the execution of upstream activities. According to the authorities, any upstream activity by a third 
party must get an approval from the Cabinet and confirmed by the Parliament. NOGA raise s the 
request to the Cabinet and seeks an approval.  
Table 4.2 Ownership structure of NogaHolding subsidiaries, 2021  
SOE Field of activity  State 
ownership (%)  Other shareholders  
 Under Noga Holding/NOGA     
Bahrain Petroleum Company 
(BAPCO)  Oil and gas (downstream)  100 None 
Tatweer Petroleum (TP)  Oil and gas (upstream)  100 None 
Bahrain National Gas 
Company (B anagas ) Processing and marketing of 
hydrocarbon liquids  75 12.5% Chevron Bahrain, 
12.5% Boubyan 
Petrochemical Company  
Bahrain National Gas 
Expansion Company (B anagas  
Expansion)  Processing and marketing of 
hydrocarbon liquids  100 None 
Bahrain Aviation Fueling 
Company (BAFCO)  Managing and operating the 
jet fuel pipeline  60 27% Chevron Bahrain, 
13% BP Middle East  
BAPCO  Retail Company (BRC)  Domestic sales of refined 
petroleum products locally  100 None 
Bahrain Gasoline Blending 
(BGB)  Gasoline blending  85 15% Greenenergy UK  
Arab Shipbuilding and Repair 
Yard (ASRY)  Maritime building, repair and 
engineering  37 The company is under the 
Organization of Arab 
Petroleum Exporting Counties 
(OAPEC ); member countries 
owning shares in ASRY other 
than Bahrain are  the Kingdom 
of Saudi  Arabia, the 
United Arab Emirates , the 
State of Kuwait, Libya , and 
Iraq 
Gulf Petrochemical Industries 
Company (GPIC)  Petrochemical processing  33.3 33.3% Saudi  Arabian Basic 
Industries Cooperation 
(SABIC), 33.3% State of 
Kuwait's Petrochemical 
Industries Company (PIC)  
Bahrain Liquified Natural Gas 
Terminal (BLNG)  Liquified natural gas 
terminal  30 30% Teekay  (Canada ), 24% 
GIC (State of Kuwait ), 16% 
Samsung C&T (Republic of 
Korea )  
Schmidt Logistics Bahrain 
(Schmidt)  Warehousing, storage and 
packaging activities  49 51% Schmidt Heilbronn  
Bahrain Lube Base Oil 
Company (BLBOC)  Manufacturing of lube base 
oil  55 45% Neste Oil Company of 
Finland  
BAG Jet Fuel Company 
(BAG Jet) Construction new refuelling 
infrastructure at Bahrain 
International Airport  50 50% Bahrain Airport 
Company  
Source:  Information provided by the authorities.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 79 - 
 
  4.15.  Over the review period, NogaHolding purchased stakes in two newly  formed companies: 
Bahrain LNG WLL, a company established in 2015 to develop a liquified natural gas (LNG) receiving 
and regasification terminal in Bahrain , and Bahrain Gasoline Blending, established in 2016 and which 
undertakes gasoline blending and export . In 2016, NogaHolding acquired 100% equity in Tatweer 
Petroleum, the previously joint  venture responsibl e for operating the fields in southern Bahrain . 
NogaHolding did not divest its shares in any company during  the review period.  In 2018,  Bahrain 
Petroleum Company (BAPCO) transferred its upstream activities to Tatweer, allowing BAPCO to focus 
its operations  on downstream activities. According to the authorities, Tatweer is now responsible for 
all upstream operations in Bahrain, including oil and gas exploration, development, and production 
activities.  
4.16.  In May  2019, NOGA signed an exploration and production -sharing agreement with the Italian 
company ENI for the offshore area located in the northern territorial waters of Bahrain (Block 1). 
ENI is an oil service company contracted by Tatweer to perform certain technical activities. The 
authorities state that the geological and geophysical evaluations of the block are in progress. In 
September  2020, another agreement with ENI was signed to conduct a joint study on offshore 
Block  2. The purpose of the agreement is to evaluate the block's hydrocarbon potential.  
4.17.  At end -2020, crude oil reserves were 165  million barrels and the amount of natural gas 
reserves was 2.41  trillion cubic feet. In 2018, Bahrain announced the discovery of large 
unconventional oil resources in the Khaleej Al Bahrain basin. Accordi ng to the authorities,  the new 
discovery amounts to at least 80  billion barrels of tight oil and 10 -20 trillion cubic feet of deep gas 
reserves.  
4.18.  Bahrain's crude oil is produced from two fields: the Bahrain Field, also referred to as Awali 
Field, in the sou thern part of the island; and the offshore Abu Safa  Field, which is shared with the 
Kingdom of Saudi Arabia on a 50 -50 basis. In the first three quarters of 2020, Bahrain produced 
some 198,355  barrels per day (bpd) of crude oil on average, of which around 78% came from the 
Abu Safa  Field. Crude oil from the Abu Safa  Field is exported.  
4.19.  Bahrain, through BAPCO, is also a significant importer of crude petroleum, which, along with 
locally produced crude oil from the Awali Field, is destined mainly for its refine ry through dedicated 
pipelines. The authorities state that one  sixth of the crude originates from Bahrain while the rest is 
sourced from the Kingdom of Saudi  Arabia. A new 118  km pipeline, with a maximum capacity of 
400,000  bpd, was built in 2018. It is se t to transport crude oil from Saudi Aramco's Abqaiq Plants 
facility to BAPCO's refinery in Bahrain. BAPCO operates and maintains the Bahraini portion of the 
pipeline, while Aramco operates and maintains the Saudi portion.  
4.20.  The simple average applied MFN tariff on petroleum products  stood at 5% in 2021 (unchanged 
since 2013).  
4.21.  Figures on production, consumption, imports , and exports of oil, gas, and refined products 
are presented in Table  4.3. 
4.22.  Natural gas reserves in Bahrain are limited. The main source of natural gas is the Khuff gas 
reservoir near the Awali Field. In 2018, Bahrain announced the discovery of significant gas reserves 
in the Pre -Unayzah reservoirs. Their exploitation is under a development phase.  
Table 4.3 Energy statistics (oil and gas), 2013 -20 
('000 barrels)  
Year  2013  2014  2015  2016  2017  2018  2019  2020  
Crude petroleum          
Gross production  72,122  73,882  73,556  73,944  71,958  70,875  70,886  71,073  
Imports  78,583  76,015  78,711  76,682  80,179  80,164  81,388  84,082  
Exports  52,121  56,311  54,556  56,540  55,639  56,313  56,024  54,450  
Natural gas liquids          
Gross production  3,491  3,710  3,636  3,700  3,503  4,008  6,773  6,619  
Exports  3,330  3,684  3,653  3,812  3,279  3,792  7,212  6,518  
Jet fuel          
Gross production  26,604  23,254  25,821  24,670  24,215  24,209  24,065  18,073  
Exports  22,765  21,770  22,157  20,483  20,806  19,880  19,679  16,067  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 80 - 
 
  Year  2013  2014  2015  2016  2017  2018  2019  2020  
Aviation fuel  3,124  3,070  3,388  3,377  3,470  3,755  3,944  2,231  
Local sales  355 325 261 255 218 279 254 208 
Motor gasoline          
Gross production  5,064  6,398  6,981  6,662  6,325  6,296  6,416  4,561  
Exports  7 0 37 44 0 0 0 0 
Local sales (by road)  5,981  6,360  6,611  6,629  6,778  7,191  7326 6,263  
Kerosene a         
Gross production  0 0 0 0 0 0 0 0 
Exports  0 0 0 0 0 0 0 0 
Local sales  216 186 217 154 144 125 123 116 
Gas diesel          
Gross production  28,504  29,517  30,436  28,897  30,250  29,517  30,438  28,534  
Exports  25,945  28,194  28,086  25,187  28,522  26,020  27,994  26,519  
Local sales  2,278  2,214  2,405  2,586  2,747  2,597  2,318  2,216  
Residual fuel oil          
Gross production  16,676  14,287  14,436  16,447  18,205  17,205  17,620  12,893  
Exports  16,574  14,390  14,612  16,177  18,385  16,975  17,808  12,960  
Local sales  0 0 0 0 0 0 0 0 
Liquified petroleum gas          
Gross production  1,215  1,214  1,854  1,875  1,739  1,938  1,584  1,442  
Exports  447 456 832 909 771 768 725 521 
Local sales  643 678 717 755 804 836 840 802 
Naphtha          
Gross production  16,338  16,721  14,322  13,679  13,056  14,467  14,909  13,649  
Exports  15,945  16,262  14,696  14,164  13,379  16,038  15,353  14,579  
Local sales  0 0 0 0 0 0 0 0 
Bitumen asphalt          
Gross production  2,586  3,682  3,914  2,721  1,805  1,911  2,003  2,088  
Exports  2,250  3,389  3,644  2,429  1,556  1,480  1,738  1,820  
Local sales  342 295 269 293 282 373 284 265 
Other petroleum 
products          
Gross production  2,975  5,160  3,221  2,668  3,436  3,336  2,958  2,841  
Exports  3,250  3,399  3,573  3,110  3,902  4,063  4,128  4,343  
Local sales  0 0 0 0 0 0 0 0 
Total refinery output          
Refinery capacity bbl/day 260,000  260,000  260,000  260,000  260,000  267,000  267,000  267,000  
Natural gas MMCUFT          
Gross production  481,618  521,613  519,553  499,884  514,388  522,624  612,232  609,520  
Reinjected  161,262  184,448  209,468  206,970  220,268  228,142  274,210  278,378  
a Gross production of kerosene show s zero amount from 2011 -17. Kerosene  is primarily combined 
with jet fuel for the production of the refinery.  
Source:  National Oil and Gas Authority ; and inf ormation provided by the authorities.  
4.23.  The downstream segment is mainly operated by BAPCO, which owns and operates a refinery 
of 267,000  bpd. The refinery facilities include crude and intermediate product storage, as well as 
shipping facilities at Sitra. The refinery started operation in July  1936, and over the years, there 
have been many capacity extension and conversion investments, including the construction of the 
Low Sulphur Diesel Production complex in 2007 to increase BAPCO's refinery convers ion capability 
with the addition of a hydrocracker complex,  and the 2009 Refinery Gas Desulphurisation Project, 
which addressed air and water emission requirements. The latest high -profile development project 
of the refinery is the BAPCO Modernization Prog ramme (BMP), which is the largest investment in the 
company 's history and is expected to be completed in 2022 -23. The authorities indicate that under 
BMP, the company aims to increase its capacity from 267,000  bpd to over 380,000  bpd, improve 
product quali ty to allow exports to new markets, and establish operations that are energy efficient 
and environmentally friendly to meet local and international expectations.  
4.24.  BAPCO produces liquified petroleum gas, naphtha, gasoline, kerosene, aviation turbine fuel, 
diesel, heavy lube distillate, fuel oil , and asphalt. It also imports refined products, such as gasoil 
(cutter) and heavy vacuum gasoil , on a spot basis, when economically feasible, to blend or use as 
feedstock to its main units. Gasoline is occasionally imp orted to meet local demand in case of 
maintenance in any gasoline producing unit in the refinery.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 81 - 
 
  4.25.  Some  of BAPCO's refined products are exported to countries across Africa, the Middle East, 
the Far East , and South East Asia.  
4.26.  Various other companies are invo lved in activities related to oil and gas (Table  4.2). Bahrain 
Lube Base Oil Company BSC  Closed (BLBOC) manufactures Group III base oils and has a production 
capacity of 400,000 tonnes a year of very High Viscosity Index Group III base oils. BLBOC is a joi nt 
venture with three shareholders: Noga Holding and BAPCO jointly own 55% of shares , while Neste 
of Finland holds 45%. Commercial sales by BAPCO of its own branded base oils (BAPbase) started 
in January  2018.  
4.27.  Bahrain Gasoline Blending WLL (BGB) is a joint venture formed in 2016 between NogaHolding, 
BAPCO , and UK -based Greenergy with the aim to create a regional gasoline blending hub. Its 
operations commenced in February  2017, using BAPCO's existing refinery infrastructure to produce 
and blend gasoline supplemented by gasoline blend stock imports.  
4.28.  BAPCO is solely responsible for the direct marketing of petroleum products produced by the 
refinery, while Tatweer Petroleum is solely responsible for natural gas distribution and sales to users 
locally. According to the authorities, petroleum products sol d in the local market are subsidized and 
their prices set by the Cabinet, except for asphalt , whose price is based on international prices 
(Table  4.4 and Section  3.3.4.2 ). In general, NOGA determines the prices of domestic petroleum 
products based on inter national references such as Mean of Platts Arab Gulf (M OPAG). They are  then 
submitted periodically and/or by request to the Cabinet to review and study the proposed scenarios. 
The Cabinet uses the proposed prices as a reference for any future price.  
4.29.  In Jan uary 2016, gasoline prices rose for the first time since 1980 due to changes in global 
oil prices. For natural gas,  the price escalate d at a rate of 25  cents per MMBTU every year , effective 
1 April 2016 until 1  April 2021 to reach USD  4/MMBTU. The current gas price has stood at 
USD 3.75/MMBTU since 1  April 2020, as the planned increase in 2021 was deferred due to the 
COVID -19 pandemic . Domestic g as and oil are subject to a 0% VAT (Section  3.1.4.1).  
Table 4.4 Petroleum products and natural gas prices in the local market, as of 
January  2021 
Product  Unit Price  
91 Octane (Jayyed)  BHD/litre  0.140  
95 Octane (Mumtaz)  BHD/litre  0.200  
98 Octane (Super)  BHD/litre  0.235  
Diesel  BHD/litre  0.180  
Kerosene  BHD/litre  0.160  
LPG BHD/litre  0.058  
Natural gas  USD/MMBTU  3.75 
Asphalt  USD/MT  International prices  
Note:  The prices of petroleum products sold in the local market are subsidized except for asphalt , for which 
the prices are based on international prices.  
 Natural gas prices increase d by 0.25 USD/MMBTU every April until 2021.  
Source:  Information provided by the authorities.  
4.2.2   Electricity and water  
4.30.  Figures on the evolution of Bahrain's installed power ge neration capacity and the contributions 
from different sources are compiled in Table  4.5. 
4.31.  The Electricity and Water Authority (EWA) was established pursuant to Decree No.  98 of 2007. 
It aims to, inter alia, provide a reliable, cost -effective, and quality supply of electricity and water , 
and maintain, develop, and improve the transmission and distribution network to ensure the highest 
standards of efficiency and minimum energy loss.  EWA's Corporate Strategy Map for 2018 -22 aims 
to raise the level of  the Government's efforts to accelerate sustainable development and achieve 
Vision  2030 objectives. The Ministry of Electricity and Water is responsible for the development of 
rules and regulations on the operational and financial aspects of the sector, su bject to the provisions WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 82 - 
 
  of the Royal Decrees on the Sector. Energy policy is within the purview of Ministry of Energy. The 
authorities maintain the objective of achieving 10% production of energy from renewable sources 
by 2035.  
Table 4.5 Installed power and water generation capacity and contributions from 
different sources , 2015 -21 
(MW)  
Technology type  Power station  2015  2016  2017  2018  2019  2020  2021  
Thermal Power Plant 
(Open Cycle) EWA 
owned  Riffa Power 
Station  700 700 700 700 700 700 700 
Co-Generation power 
plant (steam turbine)  Sitra Water and 
Power Station 
(phased out , 
being demolished)  125 125 125 125 125 125 0 
Thermal Power Plant 
(Combined Cycle)  Al-Ezzel Power 
Company  - IPP 943 942 942 942 941 941 941 
Thermal Power Plant 
(Combined Cycle)  Al-Dur Power and 
Water Company 
(Phase I)  1,227  1,226  1,225  1,225  1,224  1,224  1,224  
Thermal Power Plant 
(Combined Cycle)  Al-Dur Power & 
Water Company 
(Phase II), Haya 
Power & 
Desalination 
company HPDC  n.a. n.a. n.a.  n.a.  n.a.  n.a. 1,000 
(2021) 
1,500 
(2022) 
Thermal Power Plant 
(Combined Cycle) & 
Co-Generation Power 
Plant  Hidd Power & 
Water company  929 929 929 929 929 929 929 
Cross Border GCC 
Link GCCIA 
(Emergency 
Backup)  600 600 600 600 600 600 600 
ALBA Link with N -1 ALBA 300 300 300 300 300 300 300 
Hawar Island Power 
Station  Not linked with 
mainland  7.3 7.3 7.3 7.3 7.3 7.3 7.3 
Renewable Plant  Addur Hybrid 
solar/wind plant  0 0 0 0 0 0 5 
Total capacity installed & other links  4,831.3  4,829.3  4,828.33  4,828.33  4,826.33  4,826.33  5,706.3  
(2021) 
6,206.3  
(2022) 
n.a. Not applicable.  
Source:  Information provided by the authorities.  
4.32.  While the EWA owns the Riffa power generation company and is exclusively responsible for 
the transmission and distribution of electricity in Bahrain, all the other  power generation plants are 
owned by the private sector (Table  4.5). The authorities indicate that the Sitra power and water 
company has been phased out. The Ministry of Electricity and Water Affairs is in charge of licensing 
private power producers , and foreign companies are allowed to invest in electricity generation and 
Water production. The authorities indicate that almost all producers of electricity and water are 
currently foreign companies.  
4.33.  The output of the independent power producers (IPPs) is connected to the national grid under 
power purchase agreements with the EWA. Aluminium Bahrain (ALBA) generates electricity for its 
own energy needs, and it can also meet around 300  MW of Bahrain's energy requirements in the 
scenario of the previous year. This excess energy is offered to the EWA under a contingency supply 
agreement  that covers a period of 20 to 25  years. Bahrain is also connected through the cross -border 
GCC interconnection grid as an emergency backup that can supply arou nd 600  MW to the EWA in 
contingencies, and to trade or exchange power as agreed with other GCC member States.  
4.34.  In 2014, a 5 MW solar plant, a joint  venture between BAPCO, NOGA , and two US -based firms  
(Caspian Energy Holdings and Petra Solar ) was completed i n Awali.  The authorities indicate that the 
EWA is in the process of commissioning a combined solar/wind plant at Addur, with a capacity of 
3 MW and 2  MW from solar and wind , respectively.  It is expected to be completed in November  2021.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 83 - 
 
  4.35.  In 2017, Bahrain adopted Resolution No.  2 of 2017 with a view to regulating the electricity 
production from renewable energy and the linkage with the EWA's distribution network. The 
objective s of the Resolution are to, inter alia: (i) establish a clear legislative framework regulating 
the connection of renewable energy generators to the electricity distribution system; (ii) encourage 
various entities to generate electricity from renewable energy; (iii) contribute to diversifying energy 
sources through increasing the  share of renewable energies in the energy mix; (iv) contribute to the 
protection of environment ; and (v) ensure open access and the right of every electricity customer 
to install renewable energy generators at the customer 's site, and interconnect them to  the electricity 
distribution system without discrimination.  
4.36.  In the water sector, while the distribution segment is exclusively managed by the EWA, 
production is open to the private sector. The EWA owns the Ras Abu Jarjour Water plant and 
maintains indepen dent water producer agreements with other power and water producers in Bahrain  
for purchase of water (Table  4.6). 
Table 4.6 Installed water production capacity and the contributions from different 
sources , 201 5-21 
(Million gallon per day ) 
Production site  2015  2016  2017  2018  2019  2020  2021  
Hidd Power & Water Station  90 90 90 90 90 90 90 
Al-Dur Phase  I 48 48 48 48 48 48 48 
Al-Dur Phase  II/Haya Power 
& Desalination Company  0 0 0 0 0 0 25  
Ras Abu Jarjour  16 16 16 16 16 16 16 
Alba  5 5 5 5 5 5 5 
Ground Water Extraction  10.8 10.8 10.8 10.8 10.8 10.8 10.8 
Hawar Power & Water 
Station  0.023  0.023  0.023  0.023  0.023  0.023  0.023  
Totalled installed capacity  169.83  169.83  169.83  169.83  169.83  169.83  194.83   
Source:  Information provided by the authorities.  
4.37.  Decree No.  1 of 2016 on Electricity and Water Tariff determines the tariff to be charged for 
the supply of electricity and water in Bahrain . Prices are determined by the EWA after approval by 
the Cabinet. According to the authorities, tariffs are decided on a "cost recovery " basis with a 
subsidi zed regime for specified groups of customers. The tariffs are generally categorized as 
domestic ( residen tial consumption) customers and non-domestic (commercial, industrial , and 
agricultural consumption) customers. Customers who  are Bahraini nationals are charged at 
subsidized rates for their first consumption account. Small commercial customers are also charged 
at subsidized rates up to 5 ,000 units. All other customers are charged at a price equal to the cost of 
generation/produ ction, transmission , and distribution. The tariff is revised based on the cost of 
supply on a regular basis.  Payment for electricity and water fees was suspended in 2020, as part of 
the economic stimulus packages in response to the COVID -19 pandemic (Box 1.1). 
4.3  Manufacturing  
4.3.1   Features  
4.38.  As part of its efforts to diversify its economy, Bahrain has been expanding its manufacturing 
sector in recent years. After financial services, Bahrain 's manufacturing sector is the largest 
contributor to the non -oil GDP and accounted for 14.2% of GDP in 2020 (14.6% in 2014) and 26.6% 
of merchandise exports over the same period.  
4.39.  As at the time of the previous Review, Bahrain's main industries are energy -intensive , such 
as alumi nium, petrochemicals, metal products, and steel. The leading companies in the 
manufacturing sector are large, partially state -owned enterprises.  
4.3.2   Policy objectives  
4.40.  Vision  2030 (Section  2.2) considers the manufacturing sector as a key driver for the 
Kingdom' s diversification process. It aims to boost competitiveness through improved infrastructure WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 84 - 
 
  and investment climate, with the broader goal of diversifying economic activity away from oil and 
gas. 
4.41.  The Ministry of Industry, Commerce and Tourism ( MOICT ), the m ain regulator of the sector, 
is responsible for industrial policy -making and development. The Ministry is also responsible for 
providing services, including registering and licensing new businesses and processing applications 
for duty exemptions, while the  EDB is responsible for investment promotion  (Section  2.4). Export 
Bahrain provides various export promotion -related services (Section  3.2.4. 1). 
4.42.  Support for small and medium -sized enterprises (SMEs) is a priority, and it would appear that 
one of the MOICT 's medium -term targets is to increase the number of SMEs operating in Bahrain 
from 36,000 as of 2019 to 43,000 by 2024, and boost SME exports from 8% to 20% of the total 
over the same period.8 Under its mandates, the MOICT is working to develop an integrat ed strategy 
for sustainable development, which includes supporting infrastructure projects, adopting advanced 
technology, reducing bureaucracy, and attracting new investment, as well as developing technology, 
communications, business , and training services . 
4.43.  In 2021, the simple average applied MFN tariff on manufacturing  (ISIC definition)  was 4.9% 
(5.2% in 2013)  (Table  A3.1) . 
4.44.  Based on the Commercial Companies Law (No.  21 for 2001) (Section  2.7), up to 100% of 
foreign investment is permitted in industrial com panies depending on the activity to be undertaken. 
Bahrain offers various investment incentives to national and foreign investors in the manufacturing 
sector, and investors in manufacturing benefit from a relatively well -developed free zone network 
(Sectio n 3.2.4.2 ). 
4.45.  Bahrain accords high importance to environmental protection for which it has adopted a 
National Action Charter. Under the Charter, facilities are offered to manufacturers to shift to clean 
production. It also requires that an environment al impact assessment be made before a project is 
launched.9 
4.3.3   Selected industries  
4.3.3.1   Aluminium  
4.46.  The aluminium industry is Bahrain's largest manufacturing segment. ALBA, the 
majority -state-owned smelter, is one of the largest aluminium company in the world. It is a joint  
venture between the Saudi Arabian Basic Industries Corporation (SABIC), which holds around 
20.62%  of the company's shares,  and Mumtalakat, with 69.38% (Section  3.3.5) . The remaining 
10% are floated on the stock exchange . 
4.47.  Following the conclusion of the Line 6 expansion project, which was inaugurated in late 
November  2019, ALBA's annual production increased by 540,000  tonnes, bringing the company 's 
total production capacity to more than 1 ,548 million tonnes per year.10 About 21% of ALBA's output 
is directed towards Bahrain 's downstream aluminium sector, while 16% of its production is exported 
to the Middle East and North Africa, 30% to Asia, 23% to Europe , and 10% to the Americas.  
4.48.  ALBA's activities have created significant opportuniti es in downstream aluminium 
manufacturing. Main local manufacturers include Midal Cables Co., a manufacturer of aluminium 
cables and electrical connectors; Gulf Aluminium Rolling Mill Company (GARMCO) , which  produces 
rolled products, rolled metal sheets, and aluminium circuits; Bahrain Aluminium Extrusions Company 
which  produces aluminium profiles, metal coating, smelting , and fabrication; and Bahrain Alloys 
 
8 Oxford Business Group, Key Industries Set to Propel Manufacturing in Bahrain Forward . Viewed at: 
https://oxfordbusinessgroup.com/overview/upward -trajectory -buoyed -increased -investment -key-industries -
look-set-propel -sector -forward . 
9 Bahrain Supreme Council for Environment, The National Action Charter . Viewed at: 
https://www.sce.gov.bh/en/TheNationalActionCharter?cms=iQRpheuphYtJ6pyXUGiNqmpHMGVHCRbl . 
10 ALBA, Line 6 Expansion Project . Viewed at: 
https://www.albasmelter.com/About%20Alba/Pages/Line6.aspx . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 85 - 
 
  Manufacturing Company  which  is a manufacturer of a wide range of primary aluminium alloys and 
master alloys. Exports include alloys, as well as passenger cars and truck wheels.  
4.49.  The Invest Aluminium Bahrain Programme was set up to attract foreign investment into the 
industry. The programme was created by the Ministry of Finance, the MOICT, and the EDB, wit h the 
cooperation of the United Nations Industrial Development Organization ( UNIDO ), with the aim to 
capitalize on the global potential for Bahrain by developing aluminium downstream industries , create 
more job opportunities for Bahrainis , enhance export e arnings , and achieve greater value added.  
4.50.  Imports of mineral and metals are subject to customs duties at an average rate of 5% 
(unchanged since 2013).  
4.3.4   Petrochemicals  
4.51.  The petrochemical industry is the second -largest manufacturing subsector in Bahrain after 
aluminium; the Gulf Petrochemical Industries Co mpany  (GPIC) is the main player. The GPIC is a 
joint venture between the state-owned Noga Holding, SABIC, and the State of Kuwait 's Petrochemical 
Industries Company (PIC), with each owning an equal share of 33.3%.  
4.52.  The GPIC, with a production capacity of about 1.5  million tonnes per year, manufactures 
fertilizers and petrochemicals such as methanol, ammonia, and urea products.  
4.53.  The GPIC uses locally produced natural gas as feedstock to produce and export ammoni a, 
methanol , and urea. Urea production facilities were expanded in 2017 to produce urea 
formaldehyde.11 
4.54.  In 2011 (most recent year for which information is available), the main export market for 
urea products was the United  States , followed by Australia , Pakistan, India, Thailand, South  Africa , 
and Viet  Nam. The main export markets for ammonia were the Republic of Korea and India.  
4.55.  The simple average applied MFN tariff on chemical products stood at 4.6% in 2021 
(unchanged since 2013)  (Table  A3.1) . 
4.4  Services  
4.56.  Services accounted for around 58.3% of Bahrain's GDP in 2020  (in real terms) . Financial 
services accounts for the largest share ( 16.5% of total GDP in 2020)  (Table  1.1). 
4.57.  In its GATS Schedule of Specific Commitments, Bahrain bound only one sector, financial 
services.12 For banking and other financial services, Bahrain bound the existing legal framework, 
while in insurance services, the applied policy appears to be more liberal than its commitments. In 
addition, some sectors, such as tourism and tran sport, while not included in Bahrain's GATS 
commitments, are open to trade and investment.  
4.58.  Under Bahrain's horizontal commitments, commercial presence is permitted only in the form 
of a joint  stock company, and acquisition of land or property is not allowe d. Bahrain has no MFN 
exemptions under Article  II of the GATS.  
4.4.1   Financial services  
4.4.1.1   Features  
4.59.  By the end of 2020, there were 370  licences issued by the regulator, the Central Bank of 
Bahrain ( CBB). The banking sector was made up of 91  banks , and there were 27 9 non-banking 
financial institutions, including investment business firms, insurance companies (including takaful 
and retakaful firms), representative offices for conventional banks , and specialized licensees . 
 
11 GPIC, GPIC Signs Contract for New Facility , 27 February  2017. Viewed at: 
https://www.gpic.com/media/PressR eleases/2017/SigningUF85projectJGC.aspx . 
12 WTO documents GATS/SC/97, 15 April 1994; and GATS/SC/97/Suppl.1, 26  February  1998.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 86 - 
 
  4.60.  Financial institutions in Bahrain represent a mix of international, regional , and local 
companies, and the financial industry is the largest non -oil contributor to real GDP, with a 
contribution of 16.5% in 2020 ( Table  1.1). The licensed companies cover a full range of financial 
services, s pecializing predominantly in banking, insurance, and fund and asset management. The 
financial services industry employ ed a total of 13,737 in 2020. Bahrain 's banking system is the 
largest component of the financial system, accounting for over 87% of the to tal financial assets in 
2020.  
4.61.  According to the authorities, the share of domestic banks' assets accounted for 55% of the 
total banking assets , while the foreign -owned banks accounted for 45%. The top five banks 
accounted for 37.8% of the total assets of th e banking sector.  
4.62.  The Central Bank of Bahrain and Financial Institution s Law No.  64 of 2006 is the legal 
framework regulating all financial services in Bahrain. The sector is regulated and supervised by the 
CBB. The CBB's supervisory process combines onsite assessments and offsite supervision (which 
focuses on the analysis of regulatory returns, as well as of audited financial statements and other 
relevant information). As part of the CBB's operational directorates, the Financial Stability 
Directorate (FSD) follows up on recommendation updates related to the banking and insurance 
sector a nd financial stability issues that contribute to the development of the supervisory and 
regulatory systems adopted by the CBB. The FSD is the CBB's contact point for third parties, 
including international institutions and agencies. The Compliance Directora te is tasked with leading 
the CBB's anti -money laundering efforts. It also handles complaints from the public relating to CBB 
licensees, and receives information on financial crimes, such as fraud attempts. In 2019, the 
Compliance Directorate's structure w as extended to include a new Anti -Money Laundering and 
Combating the Financing of Terrorism  (AML/CFT)  Unit. 
4.63.  In recent years, Bahrain has undertaken innovative approaches in the financial services 
sector, mostly with regard to fintech. The CBB has taken var ious initiatives to promote fintech, digital 
solutions, crypto -asset platform operators, open banking, and digital finance advice ( robo-advisor s) 
to support the growth of its economy. Indeed, Bahrain  began to build the foundation for a 
comprehensive fintech ecosystem, and the COVID -19 pandemic has served as a catalyst for digital 
transformation across its financial services industry.  
4.64.  The CBB issued new separate regulations allowing financial instituti ons to host data on the 
cloud13, enabling banks and investment firms' licensees to offer digital financial advice14, allowing 
the use of movable assets as collateral for loans , and mandating all banks to supply licensed payment 
providers with access to cus tomer accounts on a non -discriminatory basis. Moreover, the new 
Electronic Communications and Transactions Law was promulgated, and it contains provisions that 
support fintech development.  
4.65.  In the same context , a Fintech and Innovation Unit was also establi shed to promote Bahrain's 
digitalization policies and improve the services offered to customers , as well as a "Regulatory 
Sandbox" to allow start -ups and fintech firms to access innovative banking and financing solutions. 
As an example, Bahrain FinTech Bay , a local incubator since 2018, is one of the leading fintech hubs 
in the Middle  East and aims to further the development, interaction, and acceleration of the fintech 
ecosystem. Bahrain FinTech Bay incubates various fintech initiatives through innovation labs, 
acceleration programmes, educational opportunities, and collaborative platforms. It serves as a 
framework where ideas can be tested, refined, and licensed within a controlled environment before 
being ready for the market. Among the recent development s in digital banking, Bank ABC launched 
Ila Bank, a mobile -only banking space; National Bank of Bahrain launched the first open banking 
services in the Middle East and North Africa (MENA) region; and Bahrain Islamic Bank launched 
Bahrain 's first fully digi tal bank branch.  
4.66.  The CBB has developed new regulations for fintech subsectors , such as crypto -asset and 
crowdfunding.  The Crypto -asset (CRA) Module was first issued by the CBB in February  2019 and 
covers the licensing requirements and regulatory framework for crypto -asset services providers. In 
addition, the CBB granted the first licence to carry out crypto -asset services as Category  3. 
Category  3 licensees may undertake one or more of the following regulated crypto -asset services: 
(i) trading in accepted crypto -assets as agent ; (ii) trading in accepted crypto -assets as principal ; 
 
13 CBB, Cloud Services . Viewed at: https://cbben.thomsonreut ers.com/entiresection/115814 . 
14 CBB, Digital Finance Advice . Viewed at: https://cbben.thomsonreuters.com/entiresection/115155 . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 87 - 
 
  and (iii)  portfolio management, crypto -asset custody, and investmen t advice.15 In 2020, the CBB 
granted another licen ce to carry out crypto -asset services as Category  2. Category  2 licensees may 
undertake one or more of the following regulated crypto -asset services: trading in accepted 
crypto -assets as agent, portfolio ma nagement, crypto -asset custody , and investment advice.  
4.67.  On financial inclusion, the CBB's strategy aims to: (i) improv e women's, SME s', and young 
people's access to financial services; ( ii) promot e the protection of consumers of financial services; 
(iii) improve and provid e financial coverage data and statistics to support policy development; and 
(iv) promot e awareness and financial education.16 The number of bank accounts within retail banks 
increased markedly from 1,505,233 in 2013 (with a population of 1, 253,191) to 2,108,637 in 2019 
(with a population of 1,483,756).  
4.68.  Bank financing remains the main source of funding for the economy. According to the 
authorities, at end -2020, bank financing stood at BHD  10,413.8  million , while the share of non -bank 
financing was BHD 385.3  million . This proportion remained roughly unchanged over the review 
period.  
4.69.  In the context of the C OVID -19 crisis, measures were taken to support the economy, including 
the financial sector. Specific measures in the financial s ector consisted of, inter alia, allowing 
borrowers to defer their instalment payments to banks from March  2020 to mid -2021 ( Box 1.1). The 
CBB also provided liquidity support to banks that were adversely affected through a zero rate repo 
facility.  
4.4.1.2   Banking  
4.70.  In December  2020, the banking sector in Bahrain was made up of 91  banks, categorized as 
follows: 30 retail banks , and 61  wholesale banks. Retail banks cover all commercial banks that carry 
out their business in Bahraini dinar  and other currencies in the onshore market , while wholesale 
banks cover offshore banking units , which generally operate in foreign currencies with non -residents 
and investment banks and are oriented towards investment activities. Each category includes bo th 
conventional and Islamic banks. Wholesale banks can undertake individual onshore transactions 
above USD  18.5 million, in deposits and the provision of credit, and above USD  250,000 for 
investment business transactions, including the sale of investment p roducts. State -owned banks, 
such as the Eskan Bank and the BDB, grant preferential loans. Rules and regulations governing 
preferential lending are set by the Ministry of Finance.  
4.71.  Driven by domestic and foreign banks, the assets of the banking sector in Bah rain stood at 
USD 207.4  billion in December  2020, which represents six times Bahrain's  GDP, marking a 
significant increase since 2014 (Table  4.7). Domestic banking assets amounted to USD  71.5 billion 
at the end of 2020 , compared to USD  68.5 billion at the end of 2019, while foreign assets amounted 
to USD  135.8  billion, up from USD  136.4  billion at the end of 2019.17 
4.72.  In general, banks operating in Bahrain continued to perform relatively well, as supported by 
a number of indicators. The capital adequacy ratio  (CAR) for the banking sector remained above the 
statutory requirements and stood at 18.5% in June  2020, a decrease compared to 19.2% in 
December  2019. The non -performing loans (NPL) ratio continued to decrease and reached 4.5% in 
June 2020 (4.8% in Decemb er 2019), a significant improvement compared to 8.9% in 2014.18 
Banks' profitability also remained positive. However, return -on-assets (ROA) decreased slightly, 
from 0.6% in June  2019 to 0.4% in June  2020. As of end -June 2020, return -on-equity (ROE) 
decreased to 1.5% from 4.8% in June  2019.19 
 
15 CBB, License for Crypto -Asset Service . Viewed at: https://cbben.thomsonreuters.com/rulebook/cra -
1113. 
16 CBB, Financial Stability Report , Issue No.  28, March  2020. Viewed at: https://www.cbb.gov.bh/wp -
content/uploads/2020/05/FSR -Mar-2020-Public -2.pdf. 
17 CBB, Annual Report 2019 . Viewed at: https://www.cbb.gov.bh/wp -content/uploads/2020/06/Annual -
Report -2019-englishCBB -Accounts.pdf . 
18 CBB, Financial Stability Report , February  2015.  
19 CBB, Financial Stability Report , Issue No.  29, September  2020. Viewed at: 
https://www.cbb.gov.bh/wp -content/uploads/2020/12/FSRSep2020VER2.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 88 - 
 
  Table 4.7 Evolution of the assets of the banking sector in Bahrain , 2014 -20 
(USD billion)  
Indicator  2014  2015  2016  2017  2018  2019 2020  
Banking sector  189.3  191.0  186.1  187.4  192.6  204.9  207.4  
times GDP  5.7 6.1 5.8 5.3 5.1 5.3 6.0 
Retail sector  80.0 82.2 83.0 83.5 86.6 94.1 94.3 
times GDP  2.4 2.6 2.6 2.4 2.3 2.4 2.7 
Wholesale sector  109.3  108.8  103.0  104.0  106.0  110.8  113.1  
times GDP  3.3 3.5 3.2 2.9 2.8 2.9 3.3 
Islamic sector  24.9 25.3 26.3 26.7 27.9 32.1 31.6 
times GDP  0.7 0.8 0.8 0.8 0.7 0.8 0.9 
Source:  CBB, Statistical Bulletin , various issues;  and information provided by the authorities.  
4.73.  The Central Bank of Bahrain and Financial Institutions Law No. 64 of 2006 prescribes that no 
person may undertake a "regulated service"  in Bahrain unless licensed by the CBB. Licensing 
procedures for establishing a bank are the same for Bahraini and foreign -owned banks (conventional 
and Islamic). Foreign ownership of locally incorporated banks may be up to 100% without any 
restriction. Ap plicants must apply to the CBB for a licence to undertake regulated activities in or 
from Bahrain.20 The CBB may attach terms and conditions it deems appropriate for the granting of 
a licence. The licensing criteria and procedures are under regular review by the CBB and may be 
updated periodically after consulting with the industry. A licence is granted through a 
recommendation made by the Licensing Committee to the Governor of the CBB; the latter approves 
and grants the licence.  
4.74.  Banks may be universal or s pecialized, c onventional or Islamic, retail or wholesale, locally 
incorporated or branches of foreign banks ; they must not operate insurance companies or branches 
of insurance, although they may engage in stockbroking through subsidiaries. There is no 
requirement for domestic companies to employ specified banking companies for certain services.  
4.75.  There are no nationality requirements for managerial positions, including for board members 
and senior executives, but an ongoing "fit and proper test" is applied. T he fit and proper test, 
according to the authorities, refers to the experience, integrity, and suitability of persons holding 
senior positions in a bank; factors considered include qualifications and the financial history of the 
person concerned. There are  no explicit limitations to employment of foreign nationals, though 
emphasis is on the employment of Bahraini nationals wherever appropriate. Foreign -based retail 
banks licensed in Bahrain may raise funds from or grant loans to residents and may own and op erate 
branches in Bahrain.  
4.76.  Retail banks are required to maintain a minimum of 5% deposit in unremunerated reserves 
at the CBB; reserve balances must be maintained continuously throughout the subsequent month. 
The total banks' reserve requirement balance outstanding in December  2019 was 
BHD 489,789  million.21 
4.77.  On 1  January  2015, the CBB implemented new standards for capital and liquidity 
requirements in accordance with the Basel Committee on Banking Supervision (Basel III), applicable 
to both conven tional and Islamic banking institutions. Local banks are required to maintain a 
minimum capital adequacy ratio of 12.5%. As part of Basel III implementation, new disclosure 
requirements came into effect for all locally incorporated banks' financial stateme nts on 
30 June 2015.22 Under the new system, the CBB requires all locally incorporated banks to report 
Basel III ratios on leverage and liquidity on a quarterly basis for liquidity coverage ratio (LCR). The 
CBB indicated that from 31  December  2019, it woul d also require all locally incorporated banks to 
follow the same system when reporting their net stable funding ratio (NSFR). Other Basel -related 
regulatory developments in recent years include establishing domestic  systemically important banks 
(D-SIBs). I n 2019, the CBB embarked on an exercise  to identify  D-SIBs for 2020 and 2021 , based 
 
20 Details of the CBB licensing process and requirements are prescribed in the CBB Rulebook. CBB, Laws 
and Regulations . Viewed at:  https://cbben.thomsonreuters.com/ . 
21 CBB, Annual Report 2019 . 
22 The CBB issued a circular to banks including the template for conventional and Islamic banks to use 
for reporting of LCR on a consolidated basis in July  2019.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 89 - 
 
  on a set of rules issued in 2018.23 As part of the first stage of the assessment process, financial 
information was collected from all retail banks and based on a scorecard methodology three D -SIBs 
were reportedly identified: National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait and Ahli 
United Bank of Bahrain .  
4.78.  Among measures that were adopted to further mitigate risks in the banking sector,  the 
Operational Risk Requirements and the Credit Risk Management Modules were revised in 2019 and 
2021, respectively24, to align Bahrain's regulatory framework with the Guidance and Principles of 
Basel Committee on Banking Supervision. In addition, under the new capital adequacy requirements, 
Bahraini retail banks licensees must maintain a minimum shareholders' equity of BHD  100 million 
(USD  100 million for wholesale bank licensees).  
4.79.  Persons wishing to undertake regulated Islamic banking services must be licensed by the CBB 
as an Islamic bank licensee. Regulated services consist of three main activities: acceptance of Sharia 
money pl acement/deposits , management of Sharia profit -sharing investment accounts , and offering 
of Sharia financing contracts. Various supplementary activities may also be undertaken. Islamic bank 
licences are divided into two categories: Islamic retail banks and Islamic wholesale banks.  In 2015, 
the CBB established a centralized Sharia Supervisory Board (SSB) and launched the Sharia  
governance framework, which became effective in June  2018. Under the framework, all Islamic 
banks are required to undergo an independ ent external Sharia compliance audit annual ly. The 
accounting standards of the Accounting and Auditing Organization for Islamic Financial Institutions 
(AAOIFI) are compulsory for all Islamic banks, and for conventional banks if they are maintaining 
Islamic  units/windows.  
4.80.  Bahrain hosts the AAOIFI, an international autonomous non -profit corporate body. The AAOIFI 
prepares accounting, auditing, governance, ethics, and Sharia standards for Islamic financial 
institutions. The CBB requires the adoption of AAOIFI recommendations on the computation of 
capital adequacy, which recognizes the risk undertaken by investment holders.  
4.4.1.3   Securities  
4.81.  The CBB's Capital Markets Supervision Directorate is in charge of supervising capital markets 
in Bahrain.  Bahrain Bourse (BHB) is  a self -regulated multi -asset marketplace that offers to its 
investors, issuers, and intermediaries exchange -related facilities including offering, listing , and 
trading of various financial instruments.  In 2017, BHB established Bahrain Clear, a clearing ho use 
with an authori zed capital of BHD  5 million, as a fully owned subsidiary. Bahrain Clear offers pre - and 
post-trade services to investors , as well as transactions depository, clearing, settlement , and 
registration services. Two indices are used to track the performance of the Bahraini stock market , 
and both are weighted by market capitalization. The Bahrain All -Share Index is the main index , 
which includes all listed companies. The Bahrain Islamic Index is reconstituted periodically by adding 
and removing listed companies from the constituents to abide by Sharia principles. 
Fifteen  Sharia -compliant companies were included within the Bahrain Islamic Index as of May  2021.  
4.82.  At end -2020, the market capi talization of the BHB stood at BHD  9.2 billion  (Table  4.8).25 The 
commercial banks sector accounted for 52.55% of the total market capitalization , followed by the 
investment sector with 18.70%.  
4.83.  During the review period, an important development that took place in Bahrain Bourse 
consisted of the initial public offering (IPO) by APM Terminals on 9  December  2018. According to the 
authorities, the offer of 18  million shares was open to corporate and individual Bahraini and 
non-Bahraini applicants. The IPO generated a total demand of 97.4 million shares (BHD  64.3 million) 
 
23 The authorities note that CBB's D -SIB methodology is based on Basel Committee of Banking 
Supervision guidance.  
24 CBB, Revised Operational Risk Management Module (Module OM) , 31 December  2019. Viewed at: 
https://cbben.thomsonreuters.com/rulebook/revised -operational -risk-management -module -module -om31 -
december -2019-0; and Revised Credit Risk Managem ent Module (Module CM) , 26 May 2021. Viewed at: 
https://cbben.thomsonreuters.com/rulebook/revised -credit -risk-management -module -module -cm26 -may-
2021. 
25 BHD 9.5 billion in May  2021.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 90 - 
 
  between both the institutional and retail tranches, resulting in an oversubscription from funded 
applications 5.4  times (441%) the offer size.  
Table 4.8 Key indicators of Bahrain Bourse , 2013 -20 
Indicator  2013  2014  2015  2016  2017  2018  2019  2020  
All-Share Index 1,248.9  1,426.6  1,215.9  1,220.5  1,331.7  1,337.3  1,610.2  1,489.8  
Highest  1,248.9  1,476.0  1,474.8  1,220.5  1,356.0  1,369.9  1,610.2  1,668.7  
Lowest  1,085.9  1,294.3  1,215.9  1,110.5  1,276.7  1,257.9  1,391.4  1,232.4  
Market cap (BHD 
million)  6,963.0  8,327.1  7.199.9  7,248.2  8,146.3  8,198.5  10,134  9,277.3  
Total value (BHD 
million)  225.9  269.1  110.0  124.5  211.3  323.8  286.4  212.8  
Total volume ( BHD 
million)  1,867.8  1,126.1  515.6  734.4  1,129.8  1,441.1  1,157.3  1,209.3  
No. of transactions  14,197  16,211  11,248  10,592  19,440  19,225  20,712  19,309  
No. of companies 
listed  47 47 46 44 43 44 44 43 
Source:  Bahrain Bourse.  
4.84.  Companies listed on the BHB must: (i)  comply with Law No.  21 of 2001 (Commercial 
Companies Law); (ii)  issue annual audited financial statements and hold annual general meetings 
within three months following the end of their financial year; (iii) have no less than 100 registered 
shareholders; (iv)  have a ratio of approximately 120% of the total shareholders' equity to issued 
paid-up capital; (v)  maintain a free float of at least 10% of the total issued outstanding shares; and 
(vi) issue quarterly audited financial statements published within 45 days after the end of the 
quarter . 
4.85.  BHB was established as a shareholding company pursuant to Law No.  60 of 2010 . The Law 
stipulates that the company is managed by a board of directors consisting of  no less than 5 and no 
more than 11 members, who are appointed by a decision of the EDB. 
4.86.  Among other roles, the CBB issues guidelines and rules on the capital market; renews the 
licences of all members of BHB; inspects all BHB's brokers; approves prospectu ses for IPO s and the 
offer documents for other issues; provides an orderly framework within which takeovers, mergers 
or acquisitions , and share repurchases are to be conducted for listed companies; gives approval for 
any off -market transactions; gives appr oval/authorization on admitting brokers to be authorized 
market makers; and approves all amendments to the internal regulations or rules of BHB. In 
addition, the fees imposed by the Clearing, Settlement and Central Depository Module, a licensed 
clearing ho use or licensed central depository, must be approved by the CBB . 
4.87.  Since its establishment, the BHB has joined several regional and international organizations, 
such as the Arab Federation of Exchanges, the International Organization of Securities Commission s, 
the World Federation of Exchanges, the Africa & Middle East Depositories Association, and the 
Association of National Numbering Agencies. It is also a partner in the Sustainable Stock Exchange 
Initiative and the Middle East Investor Relations Association.26 
4.88.  During the review period, the CBB continued to take measures geared towards enhancing 
transparency, developing capital markets, and protecting investors. In De cember  2019, the CBB 
instructed the listed companies to immediately announce any recommendation of declaration of 
dividends (including bonus shares, if any), stating the rate and amount per share, the record date , 
and the date of payment. Other measures al ong the same lines included amendments made to the 
relevant rules and regulations mandating listed companies' insiders to meet specific requirements, 
general framework for financial penalty imposition within the capital markets, and fine-tuning the 
dispute  resolution and disciplinary proceedings' frameworks within self -regulatory organizations.  
4.89.  Several amendments were also brought to Volume  6 (Capital Markets) of  the CBB Rulebook 
with regard to, inter alia, procedures for testing compliance with the Anti -Money Laundering and 
 
26 Bahrain Bourse, Annual Report , 2019.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 91 - 
 
  Combating Financial Crime  framework ; new obligations of crowdfunding platform operators and 
equity crowdfunding offer s in market -making practices ; and takeovers, mergers , and acquisitions.  
4.4.1.4   Insurance  
4.90.  In 2019, the insurance subsector represented about 5.5% of GDP and 32.8% of the financial 
sector.27 Motor insurance remains the single largest segment of the insurance market (Table 4. 9). 
Life insurance represented 23.6% of gross premiums, while non -life/general insurance repres ented 
76.4%. For non -life insurance, motor and medical insurance had the largest share in terms of their 
contribution to gross premiums. The large share of these subsectors is mainly explained by the fact 
that third -party motor insurance is mandatory, and also many institutions provide health insurance 
to their employees. The authorities indicate that h ealth insurance for expatriates is to be provided 
by sponsors, if the sponsor opts not to enrol the expatriate in the government scheme.  
Table 4.9 Gross premiums and claims for all insurance firms by class , Q3 2018 and 
Q3 2019  
(BHD '000)  
 Gross premiums  Net premiums 
written  Gross claims  Net claims  
Q3 2018  Q3 2019  Q3 2018  Q3 2019  Q3 2018  Q3 2019  Q3 2018  Q3 2019  
Long term (life)  37,365  50,355  33,039  45,875  24,983  19,330  22,654  16,633  
Fire, property , and 
liability  23,929  24,147  5,577  4,355  42,405  -1,460  2,249  573 
Miscellaneous 
financial loss  3,279  3,087  599 383 2,285  648 213 23 
Marine and aviation  5,672  5,330  1,196  1,141  1,390  1,225  361 221 
Motor  61,897  60,190  59,054  58,055  48,693  47,873  39,123  40,060  
Engineering  13,736  4,777  1,352  693 33,363  -3,696  1,996  376 
Medical  55,570  57,096  36,752  37,721  30,580  33,521  21,781  24,469  
Others  8,071  8,149  3,325  3,868  1,828  2,871  440 969 
Total  209,519  213,130  140,894  152,091  185,526  100,312  88,816  83,324  
Source:  CBB. 
4.91.  The insurance sector is made up of two main segments: conventional and takaful. As of 
September  2019, conventional insurance represented 68.1% of total gross premiums , accounting 
for BHD  145.2  million. As of December  2019, the insurance market in Bahrain comprised 23  locally 
incorporated firms and 13  overseas firms carrying out insurance, reinsurance, takaful , and retakaful. 
These institutions offer all basic and modern insurance services , such as medical and health 
insurance and long -term insuranc e (life and savings products).  
4.92.  All insurance services are regulated by the C entral Bank of Bahrain  and Financial Institutions 
Law No. 64 of 2006 . The Insurance Supervision Directorate at the CBB is responsible for the stability 
of the sector. Insurance ser vices providers (insurance licensees) must submit their year -end financial 
statements to the CBB and attend meetings at the CBB with their external auditors when requested. 
In August  2019, the CBB issued new directives on insurance aggregators. The new rul es define 
insurance aggregators as intermediaries licensed by the CBB operating on an online platform 
(website or app) that provide price comparisons and facilitate the purchase of insurance policies 
from several insurance licensees. They provide that a br oker that receives a licence to undertake 
insurance aggregator activities can only implement such activities through online platforms and may 
not undertake the activities of a traditional broker. On 25  March  2019, the CBB prohibited insurance 
licensees fro m having any form of direct or indirect exposure to their controllers (including 
subsidiaries and associated companies of the controllers). Licensees that already had an exposure 
as of the date of the circular were requested to submit  to the CBB an action plan to address such 
exposures.28 
4.93.  The Insurance Rulebook  (Volume  3) covers insurance licensees, i.e. CBB licensees that solely 
undertake regulated insurance services. The Rulebook includes prudential requirements (such as 
rules on minimum capital and risk management) and conduct of business requirements (such as 
 
27 CBB, Financial Stability Report , Issue No.  28, March 2020.  
28 CBB, Annual Report , 2019.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 92 - 
 
  rules on providing insurance services and the treatment of policyholders). These requirements are 
aimed at ensuring the safety and soundness of the licensees and providing an appropriate level of 
protection for policyholders.  
4.94.  As at the time of the previous Review, an insurance firm must satisfy the CBB's requirements 
for each type and class of insurance business for which it is seeking authorization. With the exception 
of captive insurance and pure r einsurance, an insurance firm cannot undertake both general and 
long-term insurance activities. Insurance firms (including captive insurers) must operate on either 
conventional insurance principles or on takaful principles; they cannot combine the two. The re is no 
limitation with respect to foreign ownership in the insurance licensees. The authorities indicate that 
insurance premiums are set by insurance companies based on actuarial study. The CBB only 
regulates Compulsory Motor Third Party Insurance.  
4.95.  Licensed insurance firms must seek CBB approval if they intend to open a new branch in a 
foreign jurisdiction. However, reinsurance firms can freely cover risks cross -border. Non -licensed 
insurance firms cannot cover risks in Bahrain ; however, non -resident rein surance firms can.  
4.96.  Bahraini insurance firms must maintain sufficient capital to meet at all times their insurance 
and other obligations: the minimum Tier  1 Capital requirement is BHD  5 million, except for firms 
whose business is limited to reinsurance; reinsurance firms must have minimum Tier  1 Capital 
requirement of BHD  10 million. Overseas insurance firms and captive insurers are not subject to 
minimum Tier  1 Capital but must comply with the required solvency margin and minimum fund 
requir ements, as defined in the Insurance Rulebook  (Volume  3). In addition, all insurance firms must 
at all times maintain available capital in excess of the greater of the required solvency margin and 
the minimum fund. The minimum paid -up capital requirement fo r insurance brokers is BHD  50,000. 
The authorities retain the right to require higher capitalization.  
4.97.  The previous Review indicates that insurance companies are required to set aside 10% of 
their annual net profits in a statutory reserve until the amount r eaches 50% of the capital. Insurance 
firms must maintain a cash deposit with a retail bank licensed to do business in Bahrain , in the 
amount of BHD  50,000 for life insurance,  BHD 75,000 for any non -life insurance , and BHD  150,000 
for reinsurance.  
4.4.2   Telecommu nications and postal services  
4.98.  In 2019, telecommunications services generated BHD  446 million in revenues (3% of GDP). 
A total of 2,743  people are employed in the telecommunications sector, in steady decline since 
2016.29 Regarding prices of telecommunicati ons services, the authorities note that in general 
between 2015 and 2020 the prices of fixed broadband in Bahrain decreased by up to 56%, while the 
prices of mobile broadband decreased by up to 10%. During the same period, the prices of mobile 
data and voice services remained almost constant.30 For fixed voice, while pricing was broadly static 
over the period 2016 -18 for most users, the inclusion of 5% VAT for 2019 resulted in a cost increase 
for residential users, and in 2020, Batelco increased prices . 
4.99.  In 2015, the GCC Ministerial Committee for Post, Telecommunications and Information 
Technology adopted GCC roaming price caps through Decision No.  9 of 2015. This Decision aims at 
allowing Bahrain i users to benefit from lower GCC prices. The Ministry of Tr ansportation and 
Telecommunications (MTT) issued Decision No. 9 of 2015 in this regard, which was published in the 
Official Gazette , Issue 3238. The Telecommunication Regulatory Authority (TRA) announced that 
roaming users in Bahrain will soon be able to b enefit from lower GCC roaming prices for voice, SMS , 
and mobile data, and this was to be effective on 1  April 2016. Bahrain implemented the decision 
through Regulation No.  4 of 2016.  
 
29 TRA (2020) , Telecommunication Market Indicators  in the Kingdom of Bahrain . Viewed at : https://tra -
website -prod-01.s3 -me-south -1.amazonaws.com/Media/Documents/Mark et-
indicators/20201011123832525_3fjhnixs_r3g.pdf . 
30 TRA (2020) , Telecommunications Retail Price Benchmarking for Arab Countries 2020 . Viewed at: 
https://tra -website -prod-01.s3 -me-south -1.amazonaws.com/Media/Documents/Market -
indicators/20210321132303548_2kbmb2hq_nhj.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 93 - 
 
  4.100.   The authorities indicate that Bahrain does not maintain foreign ownership  restrictions in its 
telecommunications sector. In recent years, Bahrain  successfully attracted global investors in the 
ICT space, with Amazon Web Services choosing Bahrain  as its regional hub in 2019.  
4.101.   Legislative Decree No.  48 of 2002 promulgating the Tel ecommunications Law remains the 
main regulatory piece in the telecommunications sector. It is supported by a large body of 
implementing regulations. Pursuant to Telecommunications Law No.  48 of 2002, the TRA is the main 
regulator for the sector. Its main d uties are to: (i) protect the interests of subscribers and users in 
respect of the tariffs charged for services, the availability, provision, and quality of services, and 
protection of personal particulars and privacy of services; (ii) promote effective an d fair competition 
among new and existing licensed operators; and (iii) ensure that applicants are able to provide 
public telecommunications services when assessing applications. The TRA regularly reviews and 
assesses the level of competition in the teleco mmunications market and introduces the relevant 
remedies to protect and promote competition. Recent reviews targeted the market for access to call 
services, the retail market for international outgoing calls from Bahrain , and the market for 
international c onnectivity. The TRA imposes a series of measures , such as wholesale, retail access, 
and price regulation on operators that are found to hold significant market power (SMP) and/or 
dominance.  
4.102.   The TRA grants either an individual licence or a class licence for the operation of a 
telecommunications network or for the provision of telecommunications services (Tables  4.10 
and 4.11). Under the Telecommunications Law, to be eligible for a licence, the applicant must be an 
entity incorporated in Bahrain, o r a branch of a foreign company licensed to operate in Bahrain in 
accordance with the Commercial Compan ies Law (No.  21 of 2001) and have all the infrastructure 
and personnel associated with the provision of telecommunications services located in Bahrain. 
Licences are granted for 15  years, renewable for a further term of 10  years. Since 2020, the TRA is 
in the process of moving from technology -specific licences to technology -neutral licences so that 
frequencies can now be used for both wimax and mobile servi ces. 
Table 4.10 Types of class licence issued by the TRA 
Licence  Availability  Initial fee  Annual fee  
Internet Service Provider licence  
Allows the provision of Internet services , 
not including voice  Since 2003  
 
No restriction on the 
number of licences 
available  
 BHD 5,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
Value Added Services licence  
Allows the provision of value -added 
telecommunications data and voice 
services that act on the format, content, 
code, or protocol of information  Since 2003  
 
No restriction on the 
number of licences 
available  BHD 1,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
Source:  Telecommunications Regulatory Authority.  
Table 4.11 Types of individual licence issued by the TRA 
Licence  Availability  Initial fee  Annual licence 
fee 
Mobile Telecommunications licence  
Allows provision of mobile 
telecommunications service by its own 
network  Three operating licen ces 
have been granted (to 
Batelco, Zain Bahrain , and 
STC Bahrain) . 
 
No further licences of this 
type are currently 
available .  1% of gross 
annual turnover 
attribut able to 
licensed activity  
Paging Service licence  
Allows the commercial use of paging 
services to subscribers  Since Q1 2004  
 
No restriction on number 
of licences available  BHD 5,000  1% of gross 
annual turnover 
attributable to 
licensed activity  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 94 - 
 
  Licence  Availability  Initial fee  Annual licence 
fee 
VSAT licence  
Grants  the use of Very Small Aperture  
Terminal  (VSAT) , a digital  satellite  data 
network  with small  antenna  diameter,  for 
private use  only Since Q1 2004  
 
No restriction on number 
of licences available  BHD 5,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
Public Access Mobile Radio Service 
licence  
Allows the use of Public Access Mobile 
Radio in dispatch applications  (e.g. by 
truck  and taxi fleets)  Since Q1 2004  
 
No restriction on number 
of licences available  BHD 5,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
International Telecommunications 
Facilities licence  
Authorizes the termination/landing/ 
establishment of international 
connectivity and obligation and right to 
connect to other Bahrain licensed 
networks  Since Q1 2004  
 
No restriction on the 
number of licences 
available  BHD 20,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
International Telecommunications 
Service licence  
Allows the provision of international 
voice and data services with 
requirement to deploy physical traffic 
aggregation structure  Since Q3 2004  
 
No restriction on the 
number of licences 
available  BHD 10,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
National Fixed Services licence  
Allows the provision of national fixed 
voice and data services by its own 
network  Since Q3 2004  
 
No restriction on the 
number of licences 
available  BHD 35,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
Internet Exchange Licence  
Provides the holders of Internet service 
licences with a connection mechanism in 
which Internet communications are 
aggregated, transmitted , and distributed 
to licensed Internet service providers  Three licences have been 
granted (to Bahrain 
Internet Exchange  (BIX), 
Gateway Gulf , and 
Batelco). However, the 
licence granted to 
Gateway Gulf has been 
revoked.  
 
No further licences of this 
type are currently 
available. Additional such 
licences might have been 
granted after the second 
anniversary of the grant 
of the first licence (BIX) , 
which is 14  March  2006.  BHD 5,000  1% of gross 
annual turnover 
attributable to 
licensed activity  
Source:  Telecommunications Regulatory Authority.  
4.103.   The Telecommunications Directorate of the MTT is tasked with the development of the 
telecommunications sector. It is in charge of the preparation, implementation , and oversight of 
Bahrain's telecommunications plans.31 Every three  years, the MTT prepares a National 
Telecommunication Plan (NTP), stipulating the general policy for the subsector. The NTP must be 
approved by the Council of Ministers before its implementation. The fifth NTP was issued in 2020. 
The Government's vision for  telecommunications, as set out in the fifth NTP, seeks to, inter alia, 
consolidate the national network and provide world leading telecommunications services at fair and 
reasonable prices; ensure that the majority of Bahrain's  population have access to mo bile 5G 
networks; ensure that the increasing demand for international connectivity is met; ensure that 
consumers can take informed decisions and support consumer groups; ensure that Bahrain's 
telecommunication infrastructures are robust against modern thre ats; and develop the digital 
economy and ICT ecosystem through innovation, investment , and a clear regulatory framework.  
 
31 Ministry of Transportation and Telecommunications, Telecommunications Overview . Viewed at: 
http://www.mtt.gov.bh/content/overview . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 95 - 
 
  4.104.   The m obile penetration rate reached 119% in 2020, down from 176% in 2013 and a peak 
of 210% in 2016. According to the authorities, the decline can be explained by the change in 
consumer behaviour of moving to post -paid. The proportion of post -paid subscribers in 2013 was 
20% and reached to 32% in 2020. Fixed line penetration also decreased from 20% in 2013 to 15% 
in 2019. Broadband penetr ation also decreased in recent years (Table  4.12). According to the TRA's 
2019 annual report, part of the recent decrease in broadband penetration is due to the TRA adopting 
a new methodology to define broadband subscribers and removing Machine to Machine subscribers 
from the database.32 
Table 4.12 Main telecom indicators, 2013 -19 
Indicator  2013  2014  2015  2016  2017  2018  2019  2020  
Number of fixed line 
telephony (excluding 
ISDN)  251,643  246,696  242,439  234,368  238,969  228,717  226,390  221,056  
Fixed line telephony 
penetration (%)  20 19 18 16 16 15 15 15 
Total mobile 
subscribers  2,210,190  2,328,994  2,541,688  2,994,865  2,364,477  2,092,714  1,900,361  1,754,728  
Mobile penetration 
(%) 176 177 185 210 158 139 126 119 
Total broadband 
subscribers  1,507,971  1,679,681  1,977,402  2,407,837  2,372,742  2,160,052  2,152,496  2,010,168  
Broadband 
penetration (%)  118 128 145 171 158 144 143.7  136.5  
Percentage of 
individuals using the 
Internet (%)  90 91 93 98 96 99 99  
Telecommunications 
revenues 
(BHD  million)  423 430 453 435 424 431 446 460 
Number of employees 
in the telecom sector  3,000  3,092  3,206  3,230  2,914  2,837  2,743  2,832  
Note:  The number of subscribers refers to the end of the  period.  
 Number of broadband subscribers include fixed wired, wireless , and mobile.  
 The source of "percentage of individuals using the Internet " is the ITU and TRA residential  survey.  
 Penetration is based on mid -year population estimated by  the Statistics Office . 
Source:  TRA (2020), Telecommunications Markets Indicators in the Kingdom of Bahrain , October.  
4.105.   The deployment of 5G towers began in June  2019. Since then, Bahrain has achieved full 
national 5G coverage . 
4.106.   The major telecom operators (mobile and fixed lines) are Batelco, STC Bahrain , and Zain 
Bahrain, with respective market shares, at end -2020, of 34%, 33% , and 33% (for prepaid mobile 
telephone services); 20%, 40% , and 40% (for post -paid mobile services); 88%, 8% , and 1% (for 
fixed lines services); 84%, 2% , and 5%  (for fixed broadband services); and 32%, 39% , and 29% 
(for mobile broadband services).  
4.107.   In 2019, the TRA completed the legal separation of Batelco into two independent entities: 
BNet (the new infrastructure company for the national broadband network) and t he current Batelco 
Bahrain. A new category of licence, National Fixed Infrastructure License, was introduced and issued 
by the TRA to BNet . The legal separation of Batelco and BNet is in line with the TRA's New Economic 
Regulatory Framework (NERF) , whose o bjective is to promote service -based competition in a fair, 
effective, and sustainable telecommunications market. Under the new architecture, Batelco would 
lease telecom infrastructure under the same terms as STC Bahrain and Zain Bahrain among other 
ISPs t hat offer retail services to end users. Eleven ISPs are currently in operation.  
4.108.   Interconnection requirements have remained unchanged since the previous Review. 
Pursuant to Article  57 of the Telecom munications  Law, tariffs shall be fair, reasonable, and 
non-discriminatory and shall be based on forward -looking incremental costs. By law, any licensed 
telecom operator has interconnection and access rights that must be negotiated in good faith with 
any other interested licensed telecom operator. Regulated access  to interconnection covers all types 
 
32 TRA, Annual Report 2019 . Viewed at: https://tra -website -prod-01.s3 -me-south -
1.amazonaws.com/Media/Documents/Annual_Reports/20201208153620870_0ey51e3v_24h.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 96 - 
 
  of telecommunications facilities and services, including fixed, mobile , and satellite facilities and 
services, but excludes broadcasting.  
4.109.   The Telecommunication s Law requires a licensed operator in a dominant position to  offer 
access to its telecom  network and facilities on fair and reasonable terms to any licensed operators 
on request. According to the authorities, Batelco currently holds SMP in some retail markets and 
dominance in some wholesale markets.33 Moreover, STC  Bahrain and Zain Bahrain hold dominance 
in the mobile termination market.  
4.110.   An Access Regulation was issued by the TRA in April  2005, making it mandatory for licensees 
declared in a dominant position in telecom markets to make publicly available their refer ence 
interconnection offers (RIOs), including tariffs for access to their network. RIOs must be 
pre-approved by the TRA. During the review period, the TRA determined that Batelco holds a 
dominant position in several segments of the telecom market, includin g broadband Internet access 
from fixed location (in 2014)34, premium access to call services (in 2016)35, and international 
connectivity (2019).36 As a consequence, Batelco was subject to retail tariff notification requirements 
to protect the competition in the relevant market and required to offer access to relevant services 
to other operators to enable them to compete on a level playing field.  
4.111.   Regarding universal telecommunication services, the  Telecommunications Law stipulates 
that an operator enjoying a position of SMP will be subject to Universal Service obligations. For this 
purpose, it has been determined that Batelco enjoys such a position in  the non -residential broadband 
market, domestic connectivity market , and retail market for premium access to call services, 
including domestic calls made from a fixed location.  
4.112.   The 2009 Wireless Telecommunications Network Facility Sharing Regulation define s 
procedures and timeframes for finali zing the terms of sharing agreements. Prime Minister's Decision 
No. 45 of 2015 encourages shared usage of telecommunications towers among operators and limits 
the replication of towers without operational need. Telecom munications towers ' sharing rate reached 
20% by the end of 2020 , compared to 16% in 2014.  
4.113.   Some of the most recent developments in Bahrain's telecommunications regulation include 
new provisions on international roaming tariffs (Resolution No.  6 of 2020), wh ich set forth some 
transparency obligations of mobile telecommunications service provider s in relation to international 
roaming services, and the establishment of a regulatory framework for public radiocommunications 
(Decision No.  10 of 2018).37 On 4 Decem ber 2017, the TRA issued a Consumer Protection Regulation 
to empower consumers to make informed decisions , and establish the rights of consumers and the 
corresponding obligations of licensed operators. This was followed by a consumer dispute regulation 
in 2018, which set forth procedures for resolution of disputes raised by subscribers.  
4.114.   The authorities are aware that while Bahrain is transforming into a digitalized economy, this 
process generates new challenges as the delivery of essential services relies heavily on the integrity 
of cyberspace, infrastructure, systems, and data that underpin it. A loss of confidence in the integrity 
endangers the benefits of the technological revolution.  
 
33 The authorities indicate that the concept of SMP generally reflects a company's ability to influence 
competition in retail markets, while dominance reflects such power in wholesale markets.  
34 TRA, Determination of Significant Market Power and Determination of Dominant Position in the 
Markets for Provision of Broadband Internet Access Services from a Fixed Location , 27 March  2014. Viewed at: 
https://tra -website -prod-01.s3 -me-south -
1.amazonaws.com/Media/mediafiles/document/MCD%2003%2014%20018%20Final%20SMP%20and%20Domi
nance%20Determination%20Broadband%20PV.pdf . 
35 TRA, Determination of Significant Market Power in the Retail Markets for Access to  Call Services 
including Domestic Calls from a Fixed Location , 20 April 2016. Viewed at: https://tra -website -prod-01.s3 -me-
south -
1.amazonaws.com/Media/mediafiles/document/Determination%20of%20SMP%20in%20the%20Retail%20Mark
ets%20for%20Access%20to%2 0Call%20Services%20including%20Domestic%20Calls%20from%20a%20Fixed
%20Location%20 -%20PV.pdf . 
36 TRA, Determination of Significant Market Power and Dominance in International Connectivity Markets , 
23 July 2020.  Viewed at:  https://tra -website -prod-01.s3 -me-south -
1.amazonaws.com/Media/Documents/Determinations_&_Decisions/20201028155315198_twsm01la_3bi.pdf . 
37 TRA, Regulations . Viewed at: https://www.tra.org.bh/en/category/regulations . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 97 - 
 
  4.115.   Regarding cybersecurity, the National Cybersecurity Centre is responsib le for developing 
Bahrain's national strategy for cybersecurity  and information security projects and programmes, and 
assumes the legislature's role in cybersecurity and personal data protection. The TRA's role in 
cybersecurity is limited to the public tel ecommunications sector, and it is responsible for setting out 
the requirements to ensure that cybersecurity concerns are addressed by the licensed operators. 
The TRA works closely with the National Cybersecurity Centre to ensure that the objectives of the 
national strategy for cybersecurity are met by the licensed telecom operators.  
4.116.   In recent years, the TRA has implemented measures to strengthen Bahrain's  cybersecurity 
readiness, as the authorities regard cybersecurity, in particular a safe ICT infrastructu re, as a pillar 
of the Kingdom's economic development.  
4.117.   The Regulation on Critical Telecommunications Infrastructure Risk Management38 aims to: 
(i) establish a risk management process for the identification and designation of critical 
telecommunications infrastructure; (ii) establish a uniform and coordinated approach to assess and 
protect the security and availability of critical telecommunications i nfrastructure; (iii) define the 
responsibilities and obligations of licensees in relation to timely detection of and response to security 
incidents and security breaches; (iv) define the responsibilities and obligations of licensees in 
relation to the mana gement of risks; and (v) define the responsibilities and obligations of affected 
licensees in relation to the risk management process of their critical telecommunications 
infrastructure.39 
4.118.   Along the lines of ensuring safety in the telecommunication sector,  the Regulation on the 
Approval and Importation of Telecommunications Equipment Connected to Public 
Telecommunications Networks was adopted in August 2017 with the aim to regulate the approval 
and importation of telecommunications equipment that is used or  intended to be used for 
telecommunications purposes and that is a part of or connected to, or comprises, a public 
telecommunications network. The TRA also rolled out its Telecommunications Security Strategy in 
2019 for the period 2019 -21. It aims to addre ss security requirements in the telecommunication 
sector. Furthermore, in July  2018, a personal data protection law was issued and came into force on 
1 August  2019.40 Other recent regulations concerning personal data protection include the 2018 
Decree -Law No. 54 on Issuance of Letters and Electronic Transactions, and the 2018 Decree No.  36 
of the Prime Minister regulating the technical requirements for sending, receiving, and updating the 
electronic records and signatures of the public bodies.  
4.119.   Bahrain has a relatively well -defined national cybersecurity framework managed by the 
General Directorate of Anti -Corruption and Economic and Electronic Security at the Ministry of 
Interior  (MOI)  for sectors other than the public sector. The Information and eGovernment Authority 
manages the cybersecurity of the government sector and protects its data network.  
4.120.   Postal services are regulated by the MTT. According to Law No.  49 of 2014 with Respect to 
Postal Services , the state-owned Bahrain Post has the exclus ive right to carry out the following 
activities throughout the  country : accepting, collecting, distributing , and transporting various postal 
items to all parties through various and appropriate means; issuing and printing postage stamps, 
money orders, repl y coupons (IRCs) , and postal orders of various categories, types , and shapes; 
opening and closing post offices throughout Bahrain ; installing and removing letter deposit boxes; 
and organizing other postal services with the approval of the Minister  in charg e of postal services . 
The courier and express services are operated by a number of domestic and foreign companies. 
According to the authorities , there is no other foreign investment restriction in postal services.  
4.4.3   Transport  
4.121.   The MTT is the government body r esponsible for the development and regulation of Bahrain's 
transportation sector, with responsibilities that include the regulation and streamlining of Civil 
Aviation Affairs, Ports and Maritime Affairs, and Land Transportation.  
4.122.   In the transport sector, the MTT's strategy aims to, inter alia, develop and regulat e the 
transport sector by setting a policy and a regulatory framework for its governance , provid e 
 
38 Resolution No.  5 of 2017.  
39 TRA, Regulations . Viewed at: https://www.tra.org.bh/en/category/regulations . 
40 Law No.  30 of 2018 on the Protection of Personal Data.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 98 - 
 
  high-quality and affordable transport services , and develop transport infrastructure to establish 
Bahrain as a major transhipment hub in the region. The MTT also aims to encourag e investment and 
job opportunities with a view to increasing the contribution of the sector to the economy.41 
4.123.   Under Export Ba hrain's incentives programme, discounted transport costs are granted to 
some exporting SMEs, when exporting their merchandise by air, land , and sea ( Section  3.2.4. 1). 
4.4.3.1   Maritime transport  
4.124.   The carrying capacity of Bahrain's national fleet decreased markedly i n 2019 (compared with 
2010 and 2015), as carrying capacity of oil tankers nearly disappeared (Table  4.13). However , 
maritime shipping showed growth in 2019 and 2020 (Table  4.14). 
Table 4.13 National fleet: carrying capacity by type of ship , 2010, 2015, and 2019  
(DWT '000)  
 2010  2015  2019  
Total fleet  613.4  601.3  306.4  
Oil tankers  154.4  155.4  2.4 
Bulk carriers  85.5 0.0 36.7 
General cargo  1.9 32.5 39.8 
Container ships  270.9  230.0  8.9 
Other types of ships 100.8  183.4  218.6  
Source:  UNCTADSTAT, Maritime Profile, Bahrain.  
Table 4.14 Shipping and maritime transport services, 2018 -20 
(DWT)  
 2018  2019  2020  
Total merchant fleet  920,679  1,022,077  1,036,887  
Bulk carriers  164,253  164,253  164,253  
Container ships  81,256  81,256  81,256  
General cargo  308,145  314,254  317,527  
Oil tankers  0 0 0 
Other  367,025  462,314  473,851  
Source:  Information provided by the authorities.  
4.125.   The Ports and Maritime Affairs (PMA) Directorate under the MTT is in charge of regulating, 
developing, and promoting the ports and maritime industry. In port management, the PMA is 
responsible for overseeing the ports and private jetties' operations and performance, and managing 
the issuance of licences for port and marine services, as well as overseeing commercial activities 
including the coordination between all the stakehol ders and adopting ports' standards and 
recommended practices as per international standards. It is responsible for overseeing the shipping 
and other maritime activities, including the registration of ships under the Bahraini flag and the 
issuance of releva nt certificates as well as adopting and enforcing international standards and 
recommended practices as per the local legislation and international guidelines. The PMA is 
responsible for the licensing of 14  activities , including  operating private jetties, ship agents, freight 
forwarder s, ship chandelling, stevedoring, sea passenger transport, marine surveying units, 
navigational aids, pilotage, towage, ship recycling, bunkering services, ship repair , and ship 
management.42 
4.126.   The authorities indicate that Bahra in has signed several memoranda of understanding to 
facilitate shipping procedures and trade with foreign countries including China, Turkey, Morocco, the 
United Arab Emirates, Turkmenistan, and Oman.  During the review period, it also changed ownership 
requirements to allow 100% foreign participation in, inter alia, re-exportation of goods and other 
logistics value -added services, stevedoring, sea and coastal passenger water transport, ship 
management and operation services, ship chandelling agency, ship bui lding and repair services, 
 
41 MTT, Strategic Objectives . Viewed at: http://www.mtt.gov.bh/content/strategic -objectives . 
42 MTT, Licences and Applications . Viewed at: http://www.mtt.gov.bh/ content/licenses -and-applications . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 99 - 
 
  pilotage , and towage. Prices of freight, towage, and other transport services (excluding passengers) 
are set by the operators, subject to PMA approval.  All other prices of maritime services are set and 
regulated by the MTT.  
4.127.   The o nly commercial port, Mina Khalifa bin Salman Port (MKSP), which opened in 2009, has 
a 900 m2 container terminal, as well as general cargo, roll on/roll off , and passenger facilities. 
Located in Salman Industrial City, it is 13  km from Bahrain International  Airport (BIA) and is linked 
to Mina Salman, the old port, by a 5  km causeway. Access to the Kingdom of Saudi Arabia is a 30  km 
drive. The port is under the management of APM Terminals, a private operator. The PMA supervises 
and regulates the port's functions in line with a concession agreement.43 
4.128.   The maritime subsector is regulated mainly by the Bahrain Maritime Code (Law No.  23 of 
1982); the Ship Registration Law, the legislative decree with regard to the promulgation of 
registration of ships and determination of safety conditions; Law No.  20 of 1979 on Small Vessel 
Registration and Safety Requirements; and Ministerial Resoluti on No.  6 of 2001 regulating merchant 
shipping (manning, training, certification , and related seafarer's matters). In 2014, Bahrain 
approved the GCC member States ' safety list for vessels with tonnage not covered by international 
maritime conventions.44 
4.129.   Bahrain is a party to the International Convention on Load Lines of 1966, the 1972 
International Convention for Safe Containers, and the 1996 International Convention on Limitation 
of Liability for Maritime Claims. Bahrain joined the International Convention on Civil Liability for 
Bunker Oil Pollution in 2017.  
4.130.   The authorities indicate that the Draft Maritime Law, which was initiated during the previous 
Review , is set to be adopted in 2021. It covers issues related to international maritime conventions 
and prot ocols and the operation of port facilities , as well as defining the responsibilities and functions 
of the PMA. It will also establish jurisdiction with respect to international conventions to which 
Bahrain is presently, or will in the future be, a signator y. The new code will supersede the 1982 
Maritime Code and bring Bahrain up to date with developments in international maritime law.45 
4.131.   Maritime transport services may be provided by the private sector (foreign and Bahraini). 
Companies wishing to provide shi pping and passengers transport services require approval  from the 
PMA. The authorities indicate that all maritime services are provided by private companies after 
obtaining commercial licen ces from the PMA. 
4.132.   A small number of shipping companies operate in Bahrain. Hapag -Lloyd, which acquired the 
United Arab Shipping Company in 2017, deals with cargo services. Bahrain, the United Arab 
Emirates, and the State of  Kuwait  have a combined share of 3.6% in Hapag -Lloyd. A few other 
companies deal with th e shipping of construction materials. According to the authorities, main 
shipping companies include Maersk, APL, CMA -CGM, Evergreen , and MSC. They are either 49% 
owned by foreigners or are represented through local agents.  
4.133.   Requirements to fly Bahraini flag  have not changed. The only conditions associated with 
flying the Bahraini flag are registration and certification. Any ship may acquire Bahraini nationality 
if it is registered at any port in Bahrain, and if the owner or owners are Bahraini nationals; in the 
case of a corporation, it must have Bahraini nationality. The MTT may, with the consent of the 
Council of Ministers, award Bahraini nationality to ships owned by foreigners. There are no 
restrictions on nationality of crew and key personnel employed on  ships or by shipping companies 
in Bahrain.  
4.134.   Regarding cabotage, under Article  4 of the Maritime Code, coastal navigation, fishing, 
towing, and pilotage in territorial waters, as well as navigation between Bahraini ports, are permitted 
exclusively to ships flying the Bahraini flag. As indicated in the previous report, multimodal transport 
is encouraged and regulated through national laws.46 
 
43 MTT, Khalifa bin Salman Port . Viewed at: http://www.mtt.gov.bh/content/khalifa -bin-salman -port. 
44 Act No.  11 of 2014, which entered into force on 1  August  2014.  
45 MTT, Laws and Regulations . Viewed at: http://www.mtt.gov.bh/content/pma -law-and-regulation . 
46 Chapter 3 of Decree No.  23 1982 of issuing Maritime Law, Act No.  61 of 2006 wit h respect to 
promulgating the law of Ports and Maritime Navigation and its amendments issued by Decree No.  46 of 2012, WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 100 - 
 
  4.135.   According to the authorities, no special government funding is available to the maritime 
subsector, although the MTT holds a general reserve for use in case of an emergency, i.e. when the 
safety of navigation at sea or the marine environment are at risk.  
4.4.3.2   Air transport  
4.136.   The performance of air transport services has suffered from the COVID -19 pandemic. While 
cargo services continued to grow, passenger movements plummeted in 2020 (Table  4.15 and 
Chart  4.1). 
Table 4.15 Selected statistics on air transport, 2013 -20 
 2013  2014  2015  2016  2017  2018  2019  2020  
Passengers  7,371,651  8,102,502  8,586,645  8,766,151  8,477,331  9,082,707  9,578,797  2,269,095  
Arrivals  3,626,794  3,992,295  4,253,667  4,382,778  4,227,335  4,508,942  4,739,174  1,098,239  
Departures  3,577,890  3,954,556  4,201,326  4,302,485  4,217,302  4,554,189  4,816,575  1,162,892  
Transit  166,967  155,651  131,652  80,888  32,694  19,576  23,048  7,964  
Cargo services 
(tonnes) 306,278  276,390  256,411  263,956  289,267  288,235  291,017  300,176  
Aircraft 
movement  90,837  96,193  100,625  101,345  95,966  96,030  95,486  38,203  
Source:  Information provided by the authorities.  
Chart 4.1 Domestic and international passenger flights, January to December 2019 and 
2020  
 
Source:  ICAO. Viewed at: https://data.icao.int/ COVID -19/operational.htm . 
 
Regulation No.  6 2010 of issuing executive rules of Ports and Maritime Navigation Law, Regulation No.  12 of 
2016 on the disclosure of the  total weight of container loaded with goods, Regulation No.  9 of 2017 of the list 
of marine services licences, and Regulation No.  15 of 2017 of issuing Ports and Maritime Navigation Tariff.  
 
 
Source:  ICAO. Viewed at: https://data .icao.int/coVID -19/operational.htm . 
0102030405060708090100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020Chart 4.[BHR]  Domestic and international passenger flights, January to December , 2019 and 2020
Domestic passenger flights 
05001,0001,5002,0002,5003,0003,5004,0004,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecInternational passenger flights
2.6%
-62.3%
-95.4%-96%-93.2% -89.8%-89.6% -88%-82.8% -80.9%-78.2%Year-on-year change: -71.6%
Source:  ICAO. Viewed at: https://data.icao.int/coVID -19/operational.htm41.9%92.9%114.8% 111.1% 75%148.5%214.3%
61.9%58%
-45.3%-30.6%12.1%
0.8%Year-on-year change: 58.4%WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 101 - 
 
  4.137.   The authorities indicate that no major new policy measures have been taken related to civil 
aviation since the last Review. The 2013 Civil Aviation  Law establishes the legal framework governing 
the Civil Aviation Affairs' (CAA) role as the regulatory authority; it is responsible for regulating BIA, 
airline operations and safety, and passenger rights. Other regulations for the subsector include the 
Air Navigation Technical Regulations; the executive regulation issued by the Ministerial Decree 
No. 21 of 2013, which regulates the role of the CAA and its operations; and Ministerial Decree No.  25 
of 2016 on fees related to aviation services.  
4.138.   The CAA under the MTT is Bahrain's aviation and supervisory authority responsible for all 
civil aviation regulatory matters, the provision and management of air traffic services, meteorology, 
and the management of all air -transport -related services at BIA. The CAA also assumes responsibility 
for issuing licences/permits and certification for various activities including aircraft registration, 
personnel licences, aircraft operations, and airline schedules.  
4.139.   BIA, the only international airport, is managed and operated by Bahrain Airport Company 
(BAC), a state -owned company established in 2008 as a private limited company in which Gulf Air 
Holding Group is the sole shareholder, which in turn is fully owned by Bahrain Mumtalakat Holding  
(Section  3.3.5) . BAC carri es out aircraft handling services for airlines and manages BIA. Other 
facilities include aircraft refuelling services, which are provided by the BAC Jet Fuel Company WLL, 
on behalf of its shareholders , BAC and Noga Holding; duty -free facilities, which are p rovided by the 
Bahrain Duty Free Company under a concession agreement; and hospitality services , which include 
passenger services, airport lounge operations, luxury vehicles rental with driver, and private aircraft 
handling  (provided by Hala Bahrain, a who lly owned subsidiary of BAC ). Bahrain Airport Services 
carries out ground, cargo, and mail handling and in -flight catering, and operates catering facilities 
in the terminal. Airlines may handle some or all of these services themselves, subject to the Air 
Services Agreement signed between Bahrain and the State of the airline. BIA's old terminal had a 
design capacity of 4.2  million  passengers , and a processing operational capacity of over 9  million.  
4.140.   In 2016, the MTT, in coordination with BAC, embarked on an a irport modernization 
programme to further improve BIA's infrastructure, handling capacity , and service offerings in an 
effort to improve passenger travel experience and increase the airport capacity to 14.5  million 
passengers a year.  According to the autho rities, the project was complete d in January  2021.  
4.141.   Gulf Air is Bahrain 's flag carrier.  It is owned by  the State  through Bahrain Mumtalakat 
Holding, the sovereign wealth fund of Bahrain (Section  3.3.5) . The carrier recently reinforced its 
boutique airline positioning in the Gulf region, focusing on, inter alia, premium leisure and corporate 
segments. As part of this strategy, Gulf Air has extended its network , focusing on segments such as 
Malaga, Maldiv es, Singapore, Mykonos , and Santorini. In Gulf Air's current flight structure, 80% of 
the flights are short - and medium -haul routes (less than 4 ,000 km) and 20% are long-haul routes 
(more than 4 ,000 km). The authorities note that Gulf Air has accelerated i ts digital transformation 
to deliver a world -class digital customer experience. This includes a mobile app allowing passengers 
to control travel through their smartphone, a contact -less airport experience , and the launch of 
interactive solutions (chatbots)  allowing a seamless interaction between the airline and its 
customers.  
4.142.   Air India, Air India Express, Egypt Air, Emirates, Saudi Arabia Airlines, KLM Royal Dutch 
Airlines, Etihad Airways, Kuwait Airways, Sri Lankan Airlines, British Airways, Lufthansa, Sal am Air, 
Fly Dubai, Jazeera Airways, Oman Air, Air Arabia, Turkish Airlines, and Pakistan International Airlines 
are the foreign air companies flying to Bahrain.  
4.143.   Airlines operating in Bahrain require approval from the CAA under the provisions of an air 
transport services agreement or through a temporary operating permit. As of June  2021, Bahrain 
had 96  bilateral air transport agreements , 39 of them are open skies  agreements,  and temporary 
operating permits are in force. Key parameters in bilateral air transp ort agreements are reciprocity 
of capacity and frequency. Airlines are free to set prices. Bahrain adopts a multiple designation 
approach in its bilateral negotiations.  
4.144.   The authorities indicate that currently BIA has a mechanism for slot -coordination where by 
airlines, including Gulf Air, submit their requested slots to BAC for assessment and approval, or 
provision of an alternative slot. Subsequently, tentative schedules are submitted by airlines on a 
seasonal basis for approval by the CAA and BAC, followin g discussions with the relevant authorities. WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 102 - 
 
  There is a difference in slot allocation between peak and off -peak hours , and "grandfather" rights 
are respected. Schedule clashes at peak periods are resolved by mutual agreement between the 
airlines concerned and BAC.  
4.145.   According to the authorities, the CAA grants some incentives on a non -discriminatory basis  
(e.g. exemption from landing and parking fees for two years for new airline entrants and exemption 
from air navigation fees for two  years)  to promote BIA as a regional hub. In addition, other benefits, 
including special rebates, discounts, and incentives on landing, take -off, and parking charges, are 
provided to airlines on a case -by-case basis. Some classes of aircraft are exempt by law fro m 
payment of these charges; these include aircraft belonging to/used by the State, the United Nations 
and its agencies, the League of Arab States and its agencies, aircraft used without remuneration, 
and any other aircraft that may be exempted by the CAA.47 In February  2020, the MTT issued a 
decision to cancel fees imposed on some services in the civil aviation sector and the fee on departing 
services by air.  
4.4.3.3   Road and railway transport  
4.146.   Since 2014, the MTT's Land Transport Regulation Directorate has been responsible for 
licensing and regulating public transport vehicles and enforcing the related rules. In general, to be 
licensed to undertake land transport services in Bahrain, foreigners must partner with a Bahraini. 
The allowed percentage of foreign ownershi p depends on the licen ce type. For taxi services , foreign 
ownership is limited to 49%. An interested investor must submit an application online (via 
www.sijilat.com ), and the application will be processed taking into account the relevant Ministerial 
Orders . 
4.147.   Main developments during the review period include d the establishment by the MTT of a 
strategic plan, in line with Vision  2030 (Section  2.2)48, to develop the current public transportation 
system (including the infrastructure) and regulate the land trans port sector. The first phase of this 
plan consisted of enhancing the current bus system, terminal refurbishment, and reconstruction of 
bus shelters. Investments in bus transportation and infrastructure were undertaken notably through 
different public -private partnerships. Steps were also taken to establish regulations that govern the 
internal transport sector, tourism, and the international transport for passengers. These include 
Ministerial Order No. 11 of 2015 on licences for public transport and the over all requirements and 
conditions of operations; Ministerial Order No. 22 of 2016 (amended in 2017) on licences for internal 
transport for passengers, international transport for passengers, internal transport of tourists , and 
for international tourism trans port; and Ministerial Order No. 7 of 2018 on Licences for Goods 
Transport (internal and international transport of goods).49 
4.148.   The second phase of the plan, however, is still being implemented. This phase has a set of 
projects, such as the light rail project  and Bus Rapid Transport , that will enhance urban transport.  
4.149.   At the GCC level, the King Hamad Causeway project is set to connect Bahrain to the Kingdom 
of Saudi Arabia with a causeway that will include four lanes of road and two rail tracks. The 75  km 
railway will link the proposed freight yard at K BSP to the existing railway line in Dhahran , passing 
by the proposed King Hamad International station in the Ramli area of Bahrain.  
4.150.   Bahrain is also part of the pan -GCC rail network. The project will connect all GCC member 
States  and will provide an alternative mode to road, air , and sea transportation.  
4.4.4   Tourism  
4.151.   Tourism accounted for 5% of GDP in 2017. Development of tourism activities i s a key policy 
objective, as part of Bahrain's diversification efforts in line with the Vision  2030 (Section  2.2). 
Bahrain has an incentive scheme of up to USD  100 per tourist (depending on a minimum number of 
nights) for domestic operators. The scheme see ks to encourage them build partnerships with their 
international counterparts to attract more tourists. Bahrain has various plans to invest over 
USD 10 billion in tourism and related infrastructure projects, including the expansion of BIA to boost 
 
47 Law No.  13 of 2013, Article  134. 
48 MTT, Land Transport . Viewed at: http://www.mtt.gov.bh/content/land -overview . 
49 MTT, Laws and Regulations . Viewed at: http://www.mtt.gov.bh/content/land -laws-and-regulations . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 103 - 
 
  passenge r capacity by 40%  (Section  4.4.3.2) . In addition, the national carrier, Gulf Air, has a plan 
to enhance its fleet with  fuel-efficient aircrafts.  
4.152.   According to the authorities, tourism policy seeks to, inter alia, increase the contribution of 
tourism to GDP,  develop unique tourism products and experiences that can give Bahrain a 
competitive edge over other destinations, enhance the institutional and legislative framework that 
supports the tourism industry, and guarantee a constant development of the industry based on a 
sound sustainable infrastructure, and social and cultural practices. The authorities also aim to attract 
prominent international events that engage large numbers of tourists and strengthen the position of 
Bahrain as an important tourism attracti on on both the regional and international level s. According 
to the authorities, tourism establishments are eligible to charge up to a 10% service charge for their 
benefit. A 5% government levy applies to the quarterly revenue of tourism businesses that pro vide 
short-stay accommodation and to tourism restaurants. This levy was temporarily lifted as part of 
the COVID -19 support measures (see Box  1.1). 
4.153.   Around 1.9  million tourists visited Bahrain in 2020 (down from 11.1  million in 2019) and the 
average length of stay stood at 3.6  nights (up from 3.4  nights in 2019). Over the same period, 
occupancy rates for rooms decreased from 45% to 21% for four -star hotels and from 52% to 28% 
for five -star hotels.  Bahrain's tourism is mainly from neighbouring GCC memb er State s. The majority 
of tourists originate from the Kingdom of Saudi Arabia and the State of Kuwait (7,961,349 and 
294,607 , respectively , in 2019), and they were mostly responsible for the decrease observed 
between 2018 and 2019.50 There are also signif icant arrivals from European countries, mainly France 
and Germany.  
4.154.   The key tourist attractions include historical and cultural sites, shopping malls, spas and 
resorts, golf, water sports, pearl -diving expeditions, scuba -diving, the Bahrain International Ci rcuit 
(holding Formula  1 races since 2004), Sakhir City, and the Bahrain Financial Harbour. Bahrain has 
a well -developed infrastructure including high -standard hotel accommodation, consisting of 
134 classified hotels, with approximately 16,000  rooms in 202 0. 
4.155.   There is a moratorium on new licences for one -, two-, and three -star hotels in Bahrain due 
to the lack of further market needs for new hotels of these categories . Licences are granted only for 
four- and five-star hotels.  In 2015, Bahrain adopted Decisio n No.  4 of 2015 with respect of hotel 
classification , and MOICT  issued a Hotel Classification Manual for any type of hotel, to help guests 
make informed choice s.51 The Monitor ing and Licensing Directorate is in charge of hotel classification 
and all hotels under go a review of their classification every two to three years.  
4.156.   Foreign participation is allowed up to 100% in all tourism activities,  except for travel 
activities , for which foreign ownership is allow ed up to 49% . 
4.157.   The Bahrain Tourism and Exhibitions Authority (BTEA) is the main regulator of the sector. It 
was established in 2015 under Royal Decree No. 76 of 2015. All tourism facilities and activities must 
be licensed by the BTEA prior to completing com mercial registration procedures.  
4.158.   The following laws and regulations were adopted during the review period : 
Regulations issued in 2015:  
• Decision No.  4 of 2015 with respect of hotel classification  
• Decision No.  37 of 2015 with respect of amending some provisions of Resolution No.  2 
of 1989 regarding the conditions and procedures for granting licen ces to practice 
tourism services and their renewal  
• Decree No.  76 of 2015 with respect of organizing the BTEA 
Regulations  issued in 2016:  
• Decision No.  64 of 2016 with respect of the prohibition of imposing additional amounts 
on the consumer when providing food and drink services in non -tourist restaurants 
and cafes  
 
50 Bahrain Open Data Portal, Tourism . Viewed at: https://www.data.gov.bh/en/ResourceCenter . 
51 BTEA. Viewed at: http://www.btea.bh/editordocs/file/Classification -decisi on-en.pdf . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 104 - 
 
  Regulations issued 2017:  
• Decision No.  93 of 2017 with respec t of regulating the activities of domestic sea 
tourism  
• Decision No. f154 of 2017 with respect of the tourism statistics system  
Regulations issued 2018:  
• Law No.  11 of 2018 with respect of amending some provisions of Decree -Law No.  15 
of 1986 regarding the r egulation of tourism  
• Decision  No. 96 of 2018 with respect of settlement in tourism violations  
Regulations issued 2019:  
• Decision No.  34 of 2019 with respect of the regulation of practicing the activity of 
restaurants dedicated for tourism services  
• Decision No.  35 of 2019 with respect of regulating the practice of renting furnished 
tourist apartments  
• Decision No.  36 of 2019 with respect of  regulating the activities of travel and tourism 
offices  
• Decision No.  54 of 2019 with respect of the requirements and criteria for licensing the 
restaurants dedicated for tourism servicesWT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 105 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports (including re -exports) by group of products,  2014 -20 
 
2014  2015  2016  2017  2018  2019  2020a 
Total exports 
(USD  million)  23,213.3  16,692.7  12,921.0  15,525.7  18,043.9  18,117.4  14,084.5  
 
(% of total)  
Total primary products  78.9 64.7 70.4 76.7 78.6 76.7 72.0 
Agriculture  2.8 2.7 2.9 3.4 3.4 3.4 4.3 
Food 2.7 2.7 2.8 3.4 3.3 3.4 4.2 
0242 - Processed 
cheese, not grated or 
powdered  0.6 0.1 0.1 0.9 0.7 0.6 0.9 
0484 - Bread, pastry, 
cakes, biscuits and 
other bakers' wares  0.1 0.1 0.1 0.2 0.5 0.6 0.9 
Agricultural raw material  0.0 0.1 0.1 0.1 0.1 0.1 0.1 
Mining  76.1 62.0 67.4 73.2 75.2 73.3 67.8 
Ores and other minerals  4.2 3.9 7.1 6.5 6.4 8.5 6.9 
2816 - Iron ore 
agglomerates (sinters, 
pellets, briquettes, etc.)  2.6 2.3 6.0 5.6 5.5 7.3 5.5 
Non-ferrous metals  8.7 11.4 12.6 11.9 10.6 10.6 19.1 
6841 - Aluminium and 
aluminium alloys, 
unwrought  0.9 0.9 1.0 3.3 3.7 5.1 14.1 
6842 - Aluminium and 
aluminium alloys, 
worked  7.7 10.5 11.6 8.6 6.8 5.4 4.8 
Fuels 63.3 46.7 47.7 54.8 58.3 54.1 41.7 
3330 - Petroleum oils 
and oils obtained from 
bituminous minerals, 
crude  23.4 16.1 17.3 18.6 21.7 20.0 16.2 
334 - Petroleum oils or 
bituminous minerals  39.1 29.8 29.5 35.4 35.9 33.1 24.6 
Manufactures  20.8 34.5 29.5 23.3 21.1 21.3 26.6 
Iron and steel  2.8 3.0 3.7 3.3 3.8 2.6 4.4 
6726 - Semi-finished 
products of iron or 
non-alloy steel  1.1 1.1 1.5 1.8 1.7 1.4 1.7 
6713 - Granules and 
powders, of pig -iron, 
spiegeleisen, iron or 
steel 1.3 0.8 0.9 0.1 1.6 0.8 1.2 
6768 - Angles, shapes 
and sections (excluding 
rails) and sheet piling, 
of iron or steel  0.1 0.7 0.9 0.2 0.1 0.0 1.1 
Chemicals  4.2 4.9 4.9 5.0 4.6 4.8 5.7 
5621 - Mineral or 
chemical fertilizers, 
nitrogenous  1.1 1.2 1.2 0.9 1.0 1.2 1.2 
5822 - Other plates, 
sheets, film, foil and 
strip, of plastics, non -
cellular and not 
reinforced  0.5 0.9 1.0 0.6 0.6 0.6 1.0 
5121 - Acyclic 
monohydric alcohols  0.9 1.1 1.1 1.0 0.9 0.9 0.8 
Other semi -manufactures  3.1 3.4 3.0 4.2 3.9 4.1 4.1 
6911 - Structures and 
parts of structures  0.1 0.1 0.1 1.3 1.6 1.7 1.6 
Machinery and transport 
equipment  7.2 12.6 10.0 6.1 4.8 6.1 9.1 
Power generating 
machines  0.3 0.4 0.5 0.2 0.2 0.3 0.6 
Other non -electrical 
machinery  1.6 3.2 2.9 1.3 1.2 1.3 2.2 
Office machines & 
telecommunication 
equipment  1.3 3.3 1.7 0.5 0.3 0.5 1.0 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 106 - 
 
   
2014  2015  2016  2017  2018  2019  2020a 
Other electrical machines  0.4 1.5 1.2 0.4 0.3 0.4 0.7 
Automotive products  2.6 3.2 1.7 3.2 2.2 2.8 3.2 
7812 - Motor vehicles 
for the transport of 
persons, n.e.s.  1.8 2.0 1.0 2.4 1.6 1.9 2.3 
Other transport 
equipment  1.0 1.0 1.9 0.6 0.6 0.8 1.5 
Textiles  0.5 0.9 1.2 1.0 1.1 1.0 0.9 
Clothing  0.7 4.8 2.5 0.8 0.5 0.4 0.4 
Other consumer goods  2.2 5.0 4.2 2.8 2.4 2.4 2.0 
Other  0.3 0.7 0.2 0.1 0.3 2.0 1.3 
9710 - Gold, 
non-monetary 
(excluding gold ores 
and concentrates)  0.0 0.0 0.0 0.0 0.3 2.0 1.2 
a Preliminary data.  
Note:  Based on SITC Rev.  3. 
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; and statistical information prov ided 
by the authorities.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 107 - 
 
  Table A1. 2 Merchandise imports by group of products, 2014 -20 
(USD million)  
  2014  2015  2016  2017  2018  2019  2020a 
Total imports  19,704.7  16,390.0  14,748.5  17,390.9  20,597.6  18,589.0  15,536.0   
(% of total)  
Total primary products  57.9 45.8 42.2 45.3 49.7 53.1 44.0 
Agriculture  10.1 12.4 12.8 11.0 9.9 10.3 12.2 
Food 9.5 11.6 11.9 10.3 9.2 9.7 11.6 
Agricultural raw material  0.6 0.7 0.8 0.7 0.6 0.5 0.6 
Mining  47.9 33.4 29.4 34.2 39.9 42.8 31.8 
Ores and other minerals  6.4 6.1 5.4 5.8 8.5 10.9 11.3 
2852 - Alumina 
(aluminium oxide), other 
than artificial corundum  1.3 3.1 2.9 2.8 4.4 4.9 5.7 
2815 - Iron ore and 
concentrates, not 
agglomerated  2.9 2.1 1.8 2.5 3.6 5.4 5.0 
Non-ferrous metals  0.9 1.7 1.3 2.3 1.6 1.6 1.0 
Fuels 40.5 25.6 22.8 26.1 29.7 30.3 19.5 
3330 - Petroleum oils and 
oils obtained from 
bituminous minerals, 
crude  37.8 24.0 21.3 24.4 27.8 28.7 17.9 
3354 - Petroleum 
bitumen, petroleum coke 
and bituminous mixtures, 
n.e.s.  0.4 0.5 0.5 0.6 0.9 0.6 0.8 
Manufactures  40.4 52.0 56.3 53.4 48.9 45.7 55.0 
Iron and steel  1.9 2.1 2.0 2.9 2.5 2.4 2.8 
Chemicals  5.5 6.9 7.4 6.3 6.0 6.5 7.7 
5429 - Medicaments, 
n.e.s.  0.9 1.1 1.2 1.0 1.0 1.2 1.4 
Other semi -manufactures  4.6 5.2 6.1 6.0 5.2 5.0 6.3 
Machinery and transport 
equipment  21.4 28.7 31.0 28.6 26.7 24.3 29.0 
Power generating machines  0.5 1.0 1.4 2.6 2.2 2.3 2.6 
Other non -electrical 
machinery  3.6 4.8 4.8 5.8 5.9 4.1 8.9 
7415 - Air-conditioning 
machines  0.4 0.5 0.6 0.6 0.5 0.5 1.3 
7417 - Gas generators, 
distilling or rectifying 
plant, heat -exchange 
units and machinery for 
liquefying air or other 
gases  0.0 0.0 0.0 0.1 0.1 0.1 1.1 
Office machines & 
telecommunication 
equipment  3.8 4.6 4.8 4.0 4.3 4.0 4.6 
7643 - Transmission 
apparatus for radio -
telephony, radio -
telegraphy, radio -
broadcasting or television  1.8 2.2 2.2 2.1 1.9 2.0 2.2 
Other electrical machines  2.0 2.5 3.1 4.6 4.2 4.0 4.9 
7731 - Insulated wire, 
cable and other insulated 
electric conductors  0.5 0.6 0.8 0.9 1.1 1.1 1.6 
Automotive products  9.2 12.6 11.3 7.6 6.6 6.5 6.5 
7812 - Motor vehicles for 
the transport of persons, 
n.e.s.  7.2 9.5 8.8 5.5 4.9 4.8 4.8 
Other transport equipment  2.3 3.3 5.5 3.9 3.5 3.4 1.5 
7131 - Internal 
combustion piston 
engines for aircraft, and 
parts thereof, n.e.s.  0.1 0.2 0.2 0.2 0.3 1.2 0.8 
Textiles  1.0 1.1 0.9 0.7 0.6 0.6 0.9 
Clothing  1.4 1.8 2.1 2.0 1.6 1.5 1.7 
Other consumer goods  4.7 6.2 7.0 7.0 6.3 5.3 6.5 WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 108 - 
 
    2014  2015  2016  2017  2018  2019  2020a 
Other  1.7 2.2 1.4 1.3 1.3 1.2 1.0 
9710 - Gold, non -
monetary (excluding gold 
ores and concentrates)  1.4 1.9 1.4 1.3 1.3 1.2 0.9 
a Preliminary data.  
Note:  Based on SITC Rev.  3. 
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; and statistical information provided 
by the authorities.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 109 - 
 
  Table A1. 3 Merchandise exports (including re -exports) by destination, 2014 -20 
 
2014  2015  2016  2017  2018  2019  2020a 
Total exports 
(USD  million)  23,213.3  16,692.7  12,921.0  15,525.7  18,043.9  18,117.4  14,084.5  
 
(% of total)  
Americas  5.4 8.7 11.6 7.0 5.2 6.3 7.9 
United  States  5.0 7.8 10.9 6.5 4.6 5.1 5.9 
Other America  0.4 0.9 0.6 0.5 0.6 1.2 2.0 
Europe  5.0 4.3 5.5 6.6 8.2 7.0 9.4 
EU-27 3.4 2.7 3.1 3.8 6.0 5.7 7.2 
Netherlands  1.9 1.2 1.4 1.5 3.9 3.8 4.1 
Italy 0.7 0.3 0.4 1.0 0.6 0.6 1.0 
EFTA 0.1 0.2 0.1 0.3 0.2 0.1 0.1 
Other Europe  1.5 1.5 2.2 2.6 2.0 1.2 2.1 
Turkey  1.2 0.7 0.6 1.7 1.4 1.1 1.4 
CISb 0.1 0.0 0.1 0.1 0.0 0.1 0.1 
Africa  9.4 7.6 6.8 7.8 9.0 8.2 7.4 
Egypt  2.1 2.0 1.7 1.3 3.1 2.6 2.4 
Middle East  44.3 53.6 48.6 43.6 40.1 42.0 37.6 
United Arab 
Emirates  15.0 15.4 17.3 21.0 18.7 21.1 15.4 
Saudi 
Arabia, 
Kingdom of  14.8 27.0 18.1 12.3 13.0 13.9 14.7 
Oman  1.7 1.6 3.4 3.3 4.8 2.4 3.8 
Kuwait, State of  0.9 2.4 2.9 1.3 1.4 1.8 1.6 
Asia 35.6 25.3 27.1 32.6 37.2 35.9 36.9 
China  4.3 1.8 4.2 7.0 6.4 5.1 8.9 
Japan  14.0 11.8 8.6 7.7 12.9 10.0 6.5 
Other Asia  17.2 11.7 14.3 17.9 17.9 20.8 21.4 
Malaysia  1.6 0.7 2.0 2.9 3.9 3.9 4.8 
India 2.0 1.4 3.6 3.4 4.7 2.2 3.6 
Singapore  5.1 3.0 2.3 2.5 2.0 2.6 3.2 
Korea, Republic of  2.4 2.3 0.6 1.7 0.8 4.9 3.0 
Separate Customs 
Territory of Taiwan, 
Penghu, Kinmen 
and Matsu  
(Chinese  Taipei ) 1.9 0.8 1.3 2.2 1.9 2.8 2.3 
Thailand  0.8 1.7 2.4 2.8 2.4 2.6 1.9 
Other  0.3 0.4 0.3 2.3 0.3 0.5 0.8 
Memo:         
EU-28 3.7 3.4 4.7 4.7 6.6 5.9 7.7 
GCC 38.4 50.2 47.4 42.3 39.2 40.7 36.5 
a Preliminary data.  
b Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open Data 
Portal. Viewed at: https://www.data.gov.bh/en/ResourceCenter ; and statistical information provided by 
the authorities.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 110 - 
 
  Table A1. 4 Merchandise imports by origin, 2014 -20 
(USD million)  
  2014  2015  2016  2017  2018  2019  2020a 
Total imports  19,704.7  16,390.0  14,748.5  17,390.9  20,597.6  18,589.0  15,536.0   
(% of total)  
Americas  8.6 11.4 12.2 11.1 11.1 10.5 12.1 
United  States  4.8 7.0 8.6 5.6 5.9 4.5 5.3 
Other America  3.8 4.4 3.5 5.5 5.2 5.9 6.7 
Brazil  2.4 2.5 2.2 2.5 3.3 4.6 5.2 
Europe  14.2 16.6 18.9 19.2 18.1 17.6 21.5 
EU-27 9.6 10.9 11.9 13.3 12.0 11.4 14.1 
Germany  2.9 3.3 3.1 3.5 2.8 3.1 3.4 
Italy 1.7 1.9 2.2 2.1 2.1 1.9 3.4 
France  1.3 1.4 1.8 2.3 2.4 1.6 1.3 
Spain  0.5 0.8 0.9 0.9 0.8 0.8 1.2 
EFTA 1.7 1.6 2.1 1.9 1.9 1.9 3.5 
Switzerland  1.5 1.5 1.7 1.9 1.9 1.7 3.4 
Other Europe  2.9 4.1 4.9 3.9 4.1 4.3 3.9 
United Kingdom  1.7 2.6 3.3 2.1 2.3 2.6 2.3 
Turkey  1.1 1.5 1.6 1.6 1.6 1.5 1.4 
CISb  0.0 0.1 0.1 0.1 0.6 0.2 0.2 
Africa  0.8 1.3 1.2 1.3 0.9 1.1 1.4 
Middle East  49.7 38.1 36.6 39.1 41.1 40.7 31.4 
Saudi Arabia, 
Kingdom of  42.1 28.7 26.8 29.6 33.1 33.7 23.9 
United Arab Emirates  5.4 6.9 7.1 7.6 6.4 5.0 5.3 
Oman  0.5 0.5 0.5 0.6 0.6 1.0 0.9 
Asia 26.2 32.0 30.8 28.9 27.8 29.8 33.2 
China  8.2 9.6 9.7 9.5 9.1 11.1 11.4 
Japan  5.1 6.8 6.1 4.6 3.9 3.8 4.5 
Other Asia  13.0 15.6 15.0 14.7 14.9 14.8 17.4 
Australia  4.0 4.8 3.9 3.4 4.6 5.0 5.7 
India 2.6 3.1 3.4 3.7 3.7 3.7 3.7 
Korea, Republic of  1.3 1.4 1.6 2.2 1.2 1.4 3.0 
Thailand  1.3 1.5 1.5 1.1 1.4 0.9 1.2 
Other  0.4 0.5 0.3 0.4 0.4 0.2 0.2 
Memo:         
EU-28 11.3 13.5 15.1 15.5 14.4 14.0 16.4 
GCC 49.2 37.5 36.0 38.6 40.6 40.2 30.8 
a Preliminary data.  
b Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on Information and eGovernment Authority, Bahrain Open data 
Portal. Viewed at: https:// www.data.gov.bh/en/ResourceCenter ; and statistical information provided 
by the authorities.  
  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain   
 
- 111 - Table A1. 5 Inward FDI stocks by sector, 2014 -20 
(USD million)   
2014  2015  2016  2017  2018  2019  2020  2014  2020  
% of total  
FDI stock in Bahrain  25,747.1  25,812.3  26,055.3  27,481.4  29,181.1  30,683.8  31,690.4  100.0  100.0  
By sources         
  
GCC 16,600.6  17,275.5  17,020.4  17,946.7  19,788.9  20,692.7  20,372.7  64.5 64.3 
Kuwait , State of  6,498.8  7,009.2  7,296.7  7,943.6  8,877.3  9,349.8  8,897.8  25.2 28.1 
Saudi Arabia , Kingdom of  6,799.4  6,943.0  6,395.1  6,650.6  8,281.3  8,874.6  8,880.4  26.4 28.0 
United Arab Emirates  2,119.4  2,126.1  2,237.7  2,329.8  1,687.5  1,587.5  1,707.8  8.2 5.4 
Qatar  917.4  930.0  828.1  869.7  827.5  756.5  760.1  3.6 2.4 
Oman  265.6  267.2  262.9  153.0  115.3  124.4  126.6  1.0 0.4 
Libya  3,465.0  3,232.5  3,282.3  3,394.9  2,989.9  3,130.4  2,895.3  13.5 9.1 
Cayman Islands  1,448.7  1,406.9  1,708.3  1,862.3  1,713.6  1,561.7  1,809.8  5.6 5.7 
India 1,262.2  959.2  1,004.2  773.6  1,023.1  1,135.5  1,317.9  4.9 4.2 
United Kingdom  737.1  544.6  561.9  482.4  794.9  796.6  913.6  2.9 2.9 
EU-27 -81.9 76.9 187.3  427.9  346.8  762.5  1,566.6  -0.3 4.9 
Jersey  386.9  436.3  469.2  596.6  472.6  398.3  310.1  1.5 1.0 
Turkey  279.5  308.5  214.3  233.7  477.4  530.4  598.3  1.1 1.9 
United  States   386.4  252.9  253.7  256.8  326.7  347.1  517.8  1.5 1.6 
Iran, Islamic Republic of  247.3  275.8  294.9  304.1  307.8  310.0  311.3  1.0 1.0 
Japan  180.9  181.8  208.6  211.3  395.1  370.2  399.9  0.7 1.3 
Rest of World ( RoW) 834.4  861.5  850.2  991.1  544.4  648.4  677.2  3.2 2.1 
By sector        
      
Finance and insurance activities (banks and 
non-banks)  21,422.9  20,899.8  21,000.1  20,755.6  20,995.1  22,129.0  20,776.0  83.2 65.6 
Non-financial sector  4,324.2  4,912.5  5,055.3  6,725.8  8,186.0  8,554.8  10,914.4  16.8 34.4 
Agriculture, forestry and fishing  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Mining and quarrying  0.2 0.1 1.2 0.9 4.0 4.3 189.1  0.0 0.6 
Manufacturing  2,389.3  2,936.6  2,795.9  3,409.3  4,129.2  4,186.8  4,335.2  9.3 13.7 
Electricity, gas, steam and air conditioning 
supply  42.2 78.8 250.0  248.6  388.1  338.4  338.4  0.2 1.1 
Water supply; sewerage, waste 
management and remediation activities  39.3 17.7 19.6 21.2 4.9 4.9 4.5 0.2 0.0 
Construction  102.1  111.0  116.6  115.4  177.4  261.9  656.7  0.4 2.1 
Wholesale and retail trade  214.1  217.9  217.5  1,093.4  1,445.7  1,691.0  2,061.6  0.8 6.5 
Transportation and storage  37.8 39.5 33.4 32.9 58.7 119.8  148.6  0.1 0.5 
Accommodation & food service activities  162.4  162.9  152.5  120.8  123.6  126.6  117.2  0.6 0.4  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 112 -  
2014  2015  2016  2017  2018  2019  2020  2014  2020  
% of total  
Information and communications  428.5  442.5  438.4  468.5  1,024.6  1,129.5  1,138.4  1.7 3.6 
Real estate activities  533.9  521.0  529.4  603.0  665.3  497.8  689.1  2.1 2.2 
Professional, scientific & technical 
activities  285.6  275.8  407.4  506.4  38.4 72.1 1,056.3  1.1 3.3 
Administrative & support service activities  18.6 23.9 21.5 22.0 8.0 2.6 17.0 0.1 0.1 
Education  51.7 63.5 54.8 58.1 65.7 68.4 88.8 0.2 0.3 
Human health and social work activities  15.9 19.7 15.6 22.6 50.2 49.2 71.5 0.1 0.2 
Arts, entertainment and recreation  0.9 0.9 1.0 0.8 0.9 0.9 1.5 0.0 0.0 
Other service activities  1.4 0.7 0.6 2.0 1.2 0.6 0.5 0.0 0.0 
Sources:  Compiled by the WTO Secretariat, based on Information and eGovernment Authority, Kingdom of Bahrain  
 Annual Foreign Investment Surveys. Viewed at: https://www.data.gov.bh/en/ResourceCenter . WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 113 - 
 
  Table A2. 1 Selected notifications to the WTO, 1  January  2014 -31 December  2020  
WTO  Agreement  Description of 
requirement  Periodicity  Most recent 
notification  Comment  
Agreement on Agriculture  
Articles 10 and 18.2 
ES:1  Domestic support   G/AG/N/BHR/8  
24 April 2014 
 
G/AG/N/BHR/9  
30 April 2018 
 
G/AG/N/BHR/12  
9 September  2019 
 
G/AG/N/BHR/13  
20 February  2020 Export subsidy 
commitments for 
1997-2013 
Export subsidy 
commitments for 2014 -17 
 
Export subsidy 
commitments for 2018  
 
Export subsidy 
commitments for 2019  
Article  18.2 DS:1  Domestic support   G/AG/N/BHR/7  
24 April 2014 
 
G/AG/N/BHR/10  
3 May 2018 
 
G/AG/N/BHR/11  
9 September  2019 
 
G/AG/N/BHR/12  
20 February  2020 Domestic support 
commitments for 
1998-2005, 2013  
Domestic support 
commitments for 2012 -17 
 
Domestic support 
commitments for 2018  
 
Domestic support 
commitments for 2019  
General Agreement on Trade in Services  
Article  III:3 Notification   S/C/N/969  
16 October  2019 Legislative Decree No.  34 of 
2015 of partial amendments 
of the Central Bank of 
Bahrain  and Financial 
Institutions L aw No. 64 of 
2006 
Article  V:7(a)    WT/COMTD/N/45/Rev.1  
S/C/N/807/Rev.1  
14 July 2015 Agreement between the 
GCC and Singapore , in force 
on 1 September  2013 
General Agreement on Tariffs and Trade  
Article  XXVIII:5 
1994 Invocation of Paragraph 5 of  
Article  XXVIII   G/MA/320  
23 December  2014 Exercising rights on 
modification of 
Schedule  XCVIII  
Agreement on the Implementation of Article  VI of the GATT  1994  
Article  16.4 
 Laws and regulations  Once, then 
changes  G/ADP/N/280/BHR  
25 February  2016 
 
G/ADP/N/286/BHR  
31 August  2016 
 
G/ADP/N/294/BHR  
29 March  2017 
 
G/ADP/N/300/BHR  
29 August  2017 
 
G/ADP/N/308/BHR  
10 April 2018 
 
G/ADP/N/314/BHR  
26 September  2018 
 
G/ADP/N/322/BHR  
23 April 2019 
 
G/ADP/N/328/BHR  
21 October  2019 
 
G/ADP/N/335/BHR  
18 May 2020 
 
G/ADP/N/342/BHR  
5 October  2020 Semi-annual report  
1 July-31 December  2015 
 
Semi-annual report  
1 January -30 June 2016 
 
Semi-annual report  
1 July-31 December  2016 
 
Semi-annual report  
1 January -30 June 2017 
 
Semi-annual report  
1 July-31 December  2017 
 
Semi-annual report  
1 January -30 June 2018 
 
Semi-annual report  
1 July-31 December  2018 
 
Semi-annual report  
1 January -30 June 2019 
 
Semi-annual report  
1 July-31 December  2019 
 
Semi-annual report  
1 January -30 June 2020 
Article  18.5 
   G/ADP/N/1/BHR/3  
G/SCM/N/1/BHR/2  
G/SG/N/1/BHR/3  
15 January  2015 Notification of laws and 
regulations under 
Articles  12.6, 18.5, and 
32.6 
Agreement on the Implementation of Article  VII 
Implementation of 
Customs Value 
Agreement  Customs Valuation   G/VAL/N/3/BHR/1  
1 March  2019 Notification of valuation of 
carrier media  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 114 - 
 
  WTO  Agreement  Description of 
requirement  Periodicity  Most recent 
notification  Comment  
Agreement on Trade Facilitation  
   G/TFA/N/BHR/1  
2 March  2018 
G/TFA/N/BHR/2  
1 March  2019 
G/TFA/N/BHR/3  
4 March  2019 Category A commitments  
 
Contact points  
 
Articles 1.4,  10.6.2 , and 
12.2.2  (WT/L/931)  
WT/L/911    WT/PCTF/N/BHR/1  
24 November  2015 Provisions of the Agreement 
under Category A  
Agreement on Import Licensing    
LIC Article  7.3 Import Licensing  Once, then 
changes  G/LIC/N/3/BHR/3  
17 December  2019 
 Replies to questionnaire on 
import licensing  procedures  
Agreement on Subsidies and Countervailing Measures  
Article  25.1,   
Article  XVI:1  Subsidies  Annual  G/SCM/N/253/BHR  
27 March  2014 
 
 
G/SCM/N/284/BHR  
G/SCM/N/315/BHR  
13 February  2018 Not grant or maintain within 
its territory any subsidy 
within the  meaning of 
Article  1.1 
 
Agreement on Safeguards  
Article  32.6 Safeguards  Once, then 
changes  G/ADP/N/1/BHR/3  
G/SCM/N/1/BHR/2  
G/SG/N/1/ BHR/3  
15 January  2015 Notification of laws and 
regulations under 
Articles  12.6, 18.5, and 
32.6  
Article  12.1(a)    G/SG/N/6/BHR/1  
10 June 2016 
 
G/SG/N/6/BHR/3  
3 October  2017 
 
 
 
 
G/SG/N/6/BHR/4  
24 October  2019 GCC notification  
 
 
GCC notification on 
prepared additives for 
cements, mortars , or 
concretes (chemical 
plasticizers)  
 
GCC notification on certain 
steel products  
Article  12.1(b)    G/SG/N/8/BHR/1  
17 January  2017 
 
 
G/SG/N/8/BHR/2  
17 May 2018 
 
G/SG/N/10/BHR/2, 
G/SG/N/11/BHR/3  
5 April 2019 
 
G/SG/N/8/BHR/3  
23 July 2020 GCC notification on flat-
rolled products of iron or 
non-alloy steel  
 
GCC notification on chemical 
plasticizers  
 
GCC notification on chemical 
plasticizers  
 
 
GCC notification on certain 
steel products  
Article  12.1(c)    G/SG/N/10/BHR/1, 
G/SG/N/11/BHR/2  
15 June 2017 GCC notification on 
flat-rolled products of iron 
or non -alloy steel  
Article  12.4   G/SG/N/7/BHR/1, 
G/SG/N/11/BHR/1  
21 October  2016 GCC notification on ferro-
silico-manganese  
Article  12.6   G/ADP/N/1/BHR/3  
G/SCM/N/1/BHR/2  
G/SG/N/1/BHR/3  
15 January  2015 GCC Common Law on Anti -
Dumping, Countervailing 
and Safeguard Measures  
Article  9.1 fn2    G/SG/N/7/BHR/1, 
G/SG/N/11/BHR/1  
21 October  2016 
G/SG/N/10/BHR/1, 
G/SG/N/11/BHR/2  
15 June 2017 
 
G/SG/N/10/BHR/2, 
G/SG/N/11/BHR/3  
5 April 2019 GCC notification on ferro-
silico-manganese  
 
GCC notification on 
flat-rolled products of iron 
or non -alloy steel  
 
GCC notification on chemical 
plasticizers  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 115 - 
 
  WTO  Agreement  Description of 
requirement  Periodicity  Most recent 
notification  Comment  
Agreement on Sanitary and Phytosanitary Measures  
Article  7, Annex B  Sanitary and Phytosanitary 
Measures  Regulation  28 in 2014  
2 in 2015  
8 in 2016  
20 in 2017  
14 in 2018  
13 in 2019  
10 in 2020  G/SPS/N/BHR/126 -153 
G/SPS/N/BHR/154 -155 
G/SPS/N/BHR/156 -163 
G/SPS/N/BHR/164 -183 
G/SPS/N/BHR/184 -196 
G/SPS/N/BHR/197 -208 
G/SPS/N/BHR/209 -219 
Agreement on Technical Barriers to Trade   
Article  2.9 Notifications   52 in 2014  
48 in 2015  
34 in 2016  
53 in 2017  
38 in 2018  
8 in 2019  
21 in 2020  G/TBT/N/BHR/326 -377 
G/TBT/N/BHR/378 -425 
G/TBT/N/BHR/426 -460 
G/TBT/N/BHR/461 -513 
G/TBT/N/BHR/514 -556 
G/TBT/N/BHR/557 -567 
G/TBT/N/BHR/568 -589 
Articles 2.9  and 5.6 Notifications   
1 in 2014  
1 in 2016  
1 in 2017  
5 in 2018  
 
4 in 2019  
1 in 2020  G/TBT/N/BHR/325  
G/TBT/N/BHR/430  
G/TBT/N/BHR/476  
G/TBT/N/BHR/514, 
516-518, 546  
G/TBT/N/BHR/561, 564 -566 
G/TBT/N/BHR/576  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Copyright and neighbouring 
rights  Once, then 
changes  IP/N/1/BHR/5/Rev.1  
2 September  2014 
 
IP/N/1/BHR/5/Rev.2  
14 July 2016 Main laws and regulations  
under Article  63.2  
Source:  WTO Secretariat.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 116 - 
 
  Table A2. 2 Legal requirements relating to companies  
Company type  Definition  Primary requirements  Notes  
Bahrain 
Shareholding 
Company (BSC)  Such types of 
company consist 
of a number of 
partners who 
underwrite 
negotiable shares 
with no liability 
for the company's 
debts and 
obligations  except  
by the amount of 
the value of their  
shares.  - The share  capital  is required  to be 
adequate  to achieve the purposes 
of a company with  share capital 
not less than BHD 1 million.  
- The company is required to have 
an issued share capital , and the 
articles of a company may specify 
an authorized share capital not to 
exceed 10 times the issued share 
capital.  The issued share capital is 
required to be fully underwritten 
where all the underwriters are 
required  to pay at least a quarter  of 
the nominal value of cash shares 
provided that the rest of such 
value shall be paid within a period 
not exceeding five years as of the 
date of incorporation.  
- The shares of a shareholding 
company shall be  issued  with their 
nominal  value  and may not be 
issued with less value. If such 
shares are issued  with higher  
value,  the increase  shall first be 
allocated to fulfil the issue costs, 
then the legal  reserve.  
- The share shall be indivisible ; 
however, two or more persons 
may hold one or a numb er of 
shares where they shall be 
represented  before the company 
by one person and the joint 
partners shall be jointly liable for 
the obligations of such an  
acquisition.  
- The shares shall be nominal and  
negotiable.  
- The company is required to 
appoint an audit or or more who 
shall prepare, at each fiscal  year, 
a report on the activity of the 
company during the fiscal year, 
and its financial position, budget, 
and profit and loss  account.  
- 10% of net profit shall be 
deducted per annum to be 
allocated to a statutory reserve 
account unless the articles of the 
company specify a higher 
percentage. Such a deduction may 
be suspended  if the reserve  
reaches  50% of paid-up share 
capital unless the articles of the 
company specify a higher  
percentage.  
- The shareholding  companies are 
entitled to borrow by means of 
issuing bonds by a resolution of 
the ordinary general meeting and 
based on a suggestion from the 
board of directors, including the 
company's need for borrowing and 
the conditions of issuing  bonds.  - The number of  founders 
may not be less than two, 
save for companies that 
the Government solely 
establishes  or participates 
in their incorporation.  
- The share value may not 
be less than 100  fils and 
not more than BHD 100.  
- Shareholding companies 
may be incorporated into a  
variable share capital 
according to the Ministerial 
Resolution.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 117 - 
 
  Company type  Definition  Primary requirements  Notes  
Closed Bahrain 
Shareholding 
Company 
(Closed BSC)  Such types of 
company consist 
of a number of 
persons, no less 
than two, who 
underwrite 
negotiable shares 
among 
themselves and 
without 
underwriting such 
shares in public.  - The minimum share capital of the 
company shall be BHD 250,000.  
- The share value may not be less 
than 100 fils and no more than 
BHD 100.  
- The company is required to 
appoint one auditor or more.  
- The entire value of shares, o r at 
least 50% thereof, shall be 
deposited at approved banks 
provided that the remaining value 
of shares is fulfilled with a period 
not exceeding three  years.  
- The shares of closed shareholding 
companies shall not be traded 
except after fulfilling the entir e 
value of shares save for the 
trading operations implemented 
by the founders during that 
period.  
- The share capital of a company 
(100%) may be owned by non -
Bahrainis.  - Save for companies listed 
on the stock exchange, the 
articles of closed 
shareholding comp anies 
may contain a restriction 
of the shareholder's right 
to dispose of their shares 
in both of the registers or 
one of them (shareholder 
preferential right to 
purchase after consent of 
Board on the share buyer). 
It shall be excluded from 
the two  register s in case of 
disposition between 
shareholders, spouses, 
assets, and subsidiaries , 
and the company shall not 
be listed on the stock 
exchange if the articles of 
the company contain any 
of these two registers.  
- If the share capital of the 
company increases, 
shareholders shall have 
the priority to underwrite 
new shares.  
Limited Liability 
Company  A company with a 
maximum of  
50 partners 
where none of 
them is liable 
except by the 
amount of their 
share in the share 
capital of the  
company.  - There is no minimum share 
capital.  
- The share capital of a company is 
divided into equal shares with a 
value no less than BHD 50 each. 
The share shall not be indivisible 
or a non -negotiable share.  
- The company shall not be 
incorporated unless all cash and 
in-kind shares are distributed 
among the partners as well as 
being fully paid and the in -kind 
shares are  delivered to the 
company.  
- The company shall maintain a 
reserve share capital as per the 
prescribed rules for the 
shareholding companies.  
- The company is required to 
appoint one auditor or more who 
shall be selected by the general 
meeting of partners.  
- The p artners may submit a letter 
of assurance by the auditor as an 
alternative to the financial report 
unless the loss reaches 50% of 
the share capital.  - If the number of partners 
is less than two  
shareholders, then the 
company shall be 
converted by law to a 
single person company 
unless the company 
completes the quorum 
within 30  days from the 
date of acquisition of the 
company shares by one 
partner or the dissolution 
of the company.  
- The LLC shall not be 
responsible for the 
business relating to 
insurance, banks, o r 
investment of others' funds 
in general.  
- Neither incorporation of 
the company, increase in 
its share capital, nor 
borrowing for its account 
may be done by 
underwriting shares in 
public.  
- The company may not 
issue negotiable shares or 
bonds of any kind.  
- Transfer of shareholders' 
shares shall be subject to 
redemption from partners 
and the special conditions 
stated within the 
Memorandum of 
Association in addition to 
what is prescribed thereon.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 118 - 
 
  Company type  Definition  Primary requirements  Notes  
Joint Liability 
Company  A company that 
consists of two  or 
more persons 
under a certain 
name , and the 
partners shall be 
jointly liable for 
all their funds and 
the obligations of 
the company.  - The partners shall be jointly and 
personally liable in all their funds 
for the obligations of the 
company.  
- The partner shall acquire the 
capacity of merchant.  - The law permitted to 
establish joint liability 
companies, whatever their 
kind, between Bahraini and 
non-Bahraini partners in 
terms of the practice of 
freelance jobs or others in 
accordance with rules and 
controls issued by  a 
resolution from the MOITC.  
- Bankruptcy of a joint 
liability company shall lead 
all partners to bankruptcy.  
- The creditors of a joint 
liability company shall 
have the right to recourse 
against the company in its 
funds and they are also 
entitled to recourse  against 
any partner that was a 
member at the time of 
contracting their own 
funds.  
Limited 
Partnership 
Company  A company that 
consists of one  or 
more person s 
who are jointly 
liable in all their 
funds for the 
obligation of the 
company and 
between one 
partn er or more 
who have funds 
therein and are 
not part of the 
administration; 
they are called 
limited partners. 
None of the 
limited  partners 
shall be liable for 
the obligation of 
the company 
except by the 
amount of their 
share in the share 
capital.   - The limite d partner may 
not interfere in managing 
the company even under 
power of attorney ; 
otherwise that person shall 
be jointly liable with the 
joint partners for the 
obligations resulted from 
such works.  
- The name of a limited 
partnership company shall 
only inclu de the names of 
joint partners, so in case of 
being a single joint 
partner, the term "& Co." 
is required to be added to 
the name.  
- If the limited partner name 
appears in the name of a 
company, they shall be 
liable as a joint partner 
towards well -meaning thi rd 
parties that dealt with the 
company (if their name is 
mentioned with their 
knowledge).  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 119 - 
 
  Company type  Definition  Primary requirements  Notes  
Limited by 
Shares 
Company  A company  that 
consists  of two 
classes of 
partners, one  of 
which  is the class 
of joint partners 
who are jointly 
liable in all their 
funds for the 
obligation of the  
company  and the 
other class is the 
limited partners 
(shareholders) 
who are not liable 
for the obligations  
of the company 
except by the 
amount of their 
shares in the 
share capital.  - The number of founders shall not 
be less tha n four. 
- The company is required to 
appoint one auditor or more.  
- The minimum share capital of a 
company shall be BHD 20,000.  
- The share capital of a company 
shall be divided into par value, 
negotiable, and indivisible shares.  - The limited partner 
(shareholder ) may not 
interfere in managing the 
business of the company 
relating to third parties 
even if based on an 
authori zation.  
- If the limited partner name 
(shareholder) appears in 
the name of the company 
without knowing the same, 
they shall be deemed a 
joint par tner towards the 
wellbeing of the third 
parties they dealt with.  
- The name of the company 
consists of the name of 
one joint partner or more 
and a designation that is 
innovative or derived from 
the purpose thereof may 
be added to the name of 
the company.  
- Each legal person, whose 
purposes include s the 
purpose of incorporation of 
such company , may be a 
founder.  
- The company shall have a 
supervision council 
consisting of at least 
3 members , where the 
constituent assembly of 
the company shall elect 
among them the limited 
partners (shareholders) if 
their number exceeds 10.  
- The term of a supervision 
council shall expire upon 
the holding of an ordinary 
general meeting of a 
company.  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 120 - 
 
  Company type  Definition  Primary requirements  Notes  
Single Person 
Company ( SPC) Each economic 
activity whose  
share  capital  is 
fully owned by 
one natural or 
legal person. The 
owner  of company 
share capital shall 
not be liable for 
the obligations  of 
the company 
except by the 
amount of the 
allocated share 
capital for the  
company.  - The share capital of a company 
shall be fully paid. The own er of 
the company shall be liable within 
the limits of the specified share 
capital of the company.  
- The company shall have an 
auditor.  
- The company shall submit an 
audited budget per annum to the 
Company Affairs Directorate or a 
letter of assurance by the au ditor 
as an alternative to the financial 
report unless the loss reaches 
50% of the share capital.  - The SPC shall not 
undertake any business 
related to insurance, 
banks, or investment of 
others' funds in general.  
- Neither incorporation of a 
company, increase of its 
share capital, nor 
borrowing for its account 
may be done by 
underwriting shares in 
public. As well, no 
transferable shares or 
bonds may be issued 
thereto.  
- The owner of company 
share capital shall 
differentiate between their 
personal financial 
disclo sure and the share 
capital of the company.  
- The company shall be 
dissolved in the following 
cases:  
- Death of its owner 
unless the right of heirs 
in the share capital of 
the company and its 
assets is confined to one 
person or the heirs 
decide to continue the 
company by turning it 
into another legal form.  
- The company shall 
cease to practi ce its 
business due to the 
insolvency of its owner, 
failure to pay its 
liabilities, or its 
bankruptcy.  
Foreign Branch  Each foreign 
branch, 
incorporated and 
registered 
outside of 
Bahrain, that is 
licensed to 
practise certain 
business in 
Bahrain.  - Head office for the branch in 
Bahrain is  required.  
- All the documents submitted to 
establish the company must be in 
Arabic or English. In case of being 
written in another language, an 
Arabic or English translation 
certified  by a competent  authority 
shall be attached  therewith.  
- The branch is required to have a 
brand  name  identical  to the original 
name  of the company  and followed 
by the statement  "Foreign  Branch".  
- The branch is required to submit 
an audited annual financial 
statement showing the financial 
position of the  company.  
- The branch shall be subject to the 
applicable laws in  Bahrain.   WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 121 - 
 
  Company type  Definition  Primary requirements  Notes  
Representative 
Office  Each foreign 
branch, 
incorporated and 
registered 
outside of 
Bahrain, that is 
licensed to 
practi ce its 
business as a 
representative 
office for the  
parent company 
so as to follow 
up and supervise 
its interests in  
Bahrain.  - Head office for the branch in 
Bahrain is  required.  
- The representative offi ce shall be 
subject to the applicable laws in 
Bahrain.  
- All the documents submitted to 
establish the representative office 
are required to be written in  
Arabic or English. In case of being  
written in another language, an 
Arabic or English translation 
certified by the competent 
authorities shall be attached 
therewith.  
- Each representative office 
incorporated in Bahrain is  required 
to have a brand name identical to 
the name of the parent company 
and followed by the statement 
"Representative  Office".  - The represe ntative office 
may not, in any case, 
practi ce any direct 
business with  the clients  of 
a company  in Bahrain , and 
the branch business shall 
be confined to the 
marketing and promotion 
of a parent company 
without entering into direct 
transactions under its  
name.  
Source:  MOICT.  
  WT/TPR/S/419 /Rev.1  • The Kingdom of Bahrain  
 
- 122 - 
 
  Table A3. 1 Bahrain's applied MFN tariff summary, 2021  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%)c 
Total  7,521  4.7 0-100 5.4 11.7 0.7 
HS 01 -24 1,434  5.0 0-100 11.9 27.1 2.5 
HS 25-97 6,087  4.6 0-20 1.7 8.1 0.3 
By WTO category        
WTO agricultural products  1,217  5.4 0-100 12.8 24.7 3.0 
Animals and products thereof  157 3.0 0-5 2.5 40.1 1.9 
Dairy products  35 5.0 5.0 0.0 0.0 0.0 
Fruit, vegetables, and plants  364 3.6 0-5 2.3 28.3 1.6 
Coffee, tea, and cocoa and cocoa 
preparations  38 3.4 0-5 2.3 31.6 0.0 
Cereals and preparations  184 3.5 0-5 2.3 29.9 0.0 
Oils seeds, fats, oil and their 
products  101 4.8 0-5 1.0 4.0 3.0 
Sugars and confection ery 40 3.3 0-5 2.4 35.0 0.0 
Beverages, spirits and tobacco  100 24.2 0-100 39.4 18.0 21.0 
Cotton  5 5.0 5.0 0.0 0.0 0.0 
Other agricultural products, n.e.s.  193 4.2 0-5 1.8 16.1 1.6 
WTO non -agricultural products  6,304  4.6 0-20 1.7 9.2 0.3 
Fish and fishery products  303 3.5 0-5 2.3 29.0 0.0 
Minerals and metals  1,215  5.0 0-20 1.3 2.1 0.8 
Chemicals and photographic 
supplies  1,324  4.6 0-20 1.9 9.7 0.1 
Wood, pulp, paper and furniture  469 4.8 0-20 2.3 8.7 0.0 
Textiles  724 5.0 0-20 0.7 0.6 0.0 
Clothing  254 5.0 5.0 0.0 0.0 0.0 
Leather, rubber, footwear and 
travel goods  207 5.0 5.0 0.0 0.0 2.4 
Non-electric machinery  652 4.2 0-5 1.8 16.3 0.0 
Electric machinery  328 3.2 0-5 2.4 35.1 0.3 
Transport equipment  248 4.5 0-5 1.5 10.5 0.0 
Non-agricultural products, n.e.s.  545 4.6 0-20 1.7 8.6 0.2 
Petroleum  35 5.0 5.0 0.0 0.0 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  539 3.0 0-100 8.9 52.7 3.3 
ISIC 2 - Mining and quarrying  123 4.9 0-5 0.8 2.4 1.6 
ISIC 3 - Manufacturing  6,858  4.9 0-100 5.0 8.7 0.5 
By stage of processing        
First stage of processing  980 3.9 0-100 6.6 29.6 2.2 
Semi-processed products  2,251  4.8 0-20 1.4 4.6 0.0 
Fully processed products  4,290  4.9 0-100 6.3 11.4 0.7 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
c Including prohibited tariff lines.  
Note:  Calculations for averages are based on the national tariff line level (8 -digit). Tariff schedule is based 
on HS17. In case of non -ad valorem  rates, the ad valorem  part is used for mixed rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
__________  