RESTRICTED  
  
WT/TPR/G/419  
20 October 2021  
(21-7922) Page: 1/35 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
THE KINGDOM OF BAHRAIN  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by The 
Kingdom of Bahrain  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on The Kingdom of Bahrain . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  4 
2   FOREIGN TRADE  ................................ ................................ ................................ ..........  5 
2.1   Imports  ................................ ................................ ................................ ....................  5 
2.2   Exports  ................................ ................................ ................................ ....................  5 
3   ENHANCING PRODUC TIVITY AND CAPACITY  ................................ ...............................  6 
3.1   Developing commerce  ................................ ................................ ................................  6 
3.1.1   Legislations  ................................ ................................ ................................ ............  6 
3.1.2   Dispute Resolution  ................................ ................................ ................................ .. 7 
3.1.3   Innovative Ecosystem - Sijilat  ................................ ................................ ....................  7 
3.2   Developing Industry  ................................ ................................ ................................ ... 8 
3.3   Fiscal Policy  ................................ ................................ ................................ .............  10 
3.4   Monetary Policy  ................................ ................................ ................................ ........  11 
3.5   Islami c Banking  ................................ ................................ ................................ ........  12 
3.6   Monetary Stability  ................................ ................................ ................................ .... 12 
3.7   Bahrain Investment Market  ................................ ................................ ........................  13 
3.8   National Bureau for Revenue  ................................ ................................ ......................  14 
3.9   Privatization  ................................ ................................ ................................ ............  14 
3.10   Small and Medium Enterprises and Startups  ................................ ...............................  16 
3.11   Export Bahrain  ................................ ................................ ................................ ....... 17 
3.12   Environment and Sustainable Energy  ................................ ................................ .........  18 
3.13   Transportation, Logistics & Telecommunication  ................................ ...........................  20 
3.14   Digital Economy  ................................ ................................ ................................ ..... 20 
3.15   Encouraging Inward investment  ................................ ................................ ................  22 
3.16   Importance of Intellectual Property Rights  ................................ ................................ .. 24 
3.17   Skilled Human Resource Development  ................................ ................................ ....... 25 
4   GROWTH SECTORS  ................................ ................................ ................................ .... 26 
4.1   Economy  ................................ ................................ ................................ .................  26 
4.2   Financial services  ................................ ................................ ................................ ..... 26 
4.3   Customs ................................ ................................ ................................ ..................  28 
4.4   Manufacturing  ................................ ................................ ................................ ..........  29 
4.5   Education  ................................ ................................ ................................ ................  30 
4.6   Healthcare  ................................ ................................ ................................ ...............  30 
4.7   ICT ................................ ................................ ................................ .........................  31 
4.8   Real Estate  ................................ ................................ ................................ ..............  32 
4.9   Tourism  ................................ ................................ ................................ ..................  32 
5   TRADE POLICY  ................................ ................................ ................................ ..........  33 
5.1   Introduction  ................................ ................................ ................................ .............  33 
5.2   Bahrain and the Region  ................................ ................................ .............................  33 
5.2.1   GCC Membership  ................................ ................................ ................................ ... 33 WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  5.2.2   GAFTA membership  ................................ ................................ ................................  34 
5.3   Bilaterals  ................................ ................................ ................................ .................  34 
5.4   Bahrain an d the WTO  ................................ ................................ ................................  34 
 
 
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  1  INTRODUCTION  
1.1.  The information herewith is for the  fourth trade policy review of the Kingdom of Bahrain at the 
World Trade Organization . 
1.2.  The Kingdom of Bahrain confidently strides towards achieving its economic vision 2030, that 
was launched in 2008 by His Majesty King Hamad bin Isa Al Khalifa, King of Bahrain, to provide a 
clear direction for the continued development of the Kingdom 's economy and, at its heart, is a shared 
goal of building a better life for every Bahraini. The Kingdom is striving to move from an oil -based 
economy to a globally competitive, productive, sustainable, and diversified economy backed by a 
solid regulatory framework c reating an attractive domestic and foreign investment environment lead 
by a committed agile government working together with the privet sector towards a sustainable 
future.  
1.3.  The Government of the Kingdom of Bahrain led by His Royal Highness Prince Salman bi n Hamad 
Al Khalifa, the Crown Prince and Prime Minister, focuses on the principles of fairness, 
competitiveness, and sustainability to shape the vision of the Government, society, and the 
economy. The Vision 2030 also addresses the Sustainable Development Goals 2030 (SDGs).  
1.4.  Accordingly, these three principles are reflected in the government action plan which reflects 
the Government of Bahrain 's strategic priorities over a four -year period and focuses on delivering 
sustainable change in line with his majesty  King Hamad 's development programme. Built upon the 
principles of sustainability, transparency, fairness and competitiveness, the government action plan 
seeks to capitali ze on the Kingdom 's resources and capabilities to meet the needs of all Bahrainis.  
The Kingdom of Bahrain is currently amid the process of implementing the government plan for the 
years (2019 -22) focuses on the achievements of the Kingdom and its people in the light of the fiscal 
balance program me that aims at creating balance between publi c expenditure and revenues to 
achieve economic growth, financial stability, and sustainable development. The government plan 
(2019 -22) is based on the following strategic priorities:  
a) Upholding the values of the State and Society . 
b) Financial sustainability a nd economic development . 
c) Supporting an Enabling Environment for Sustainable Development . 
1.5.  Bahrain is looking forward to achieving the following general objectives through its Government 
Action Plan (2019 -22): 
a) Invest in citizens by enhancing, improving, and sustaining government services in education, 
health, and other sectors . 
b) Create a safe and stable society . 
c) Enhance sustainable development to achieve fiscal balance and maintain economic growth . 
d) Support the private sector to drive national development and c reate opportunities for citizens 
and investors . 
e) Optimize the use of resources and ensure their sustainability for the next generations . 
f) Family stability and achieving gender equity . 
g) Continue to finance development projects and infrastructure that enhance g rowth and serve 
citizens . 
h) Redefine the role of the public sector from operator to regulator and partner . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  i) Support creativity, excellence, and highlight the role of woman, youth, sports as well as 
expanding the role of small and medium enterprises in the eco nomy in all government 
program mes and initiatives . 
1.6.  Moreover, Bahrain is working continuously in implementing its trade policies in line with its 
WTO commitments and is fully applying the Trade Facilitation Agreement two years ahead of planned 
date.  
1.7.  In line with the Government 's Action Plan, the Kingdom of Bahrain is making strides towards 
digitizing its economy and improving the Kingdom 's ecosystem through emerging technologies, 
where the Government has identified the significance of technology to reinforc e its economic growth, 
jobs creation, and human development whilst creating new opportunities that improve quality of life 
for its people.  
1.8.  The hashtag "#TeamBahrain " was created in 2018 in response to the statement made by His 
Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister  that "Every 
soldier that protects our nation, every police officer that upholds our security and stability, every 
public and private sector employee that support our national progress – we are all part of 
#TeamBahrain. Together we can overcome any challenge, under the leadership of HM King Hamad ". 
The hashtag created huge reactions both from the public and private sector alike in support of the 
statement. #TeamBahrain is a model of private -public collaboration to create solutions for investors 
and entrepreneurs looking to base their activities in the Kingdom. Whether it 's a large multinational . 
1.9.  Based on the above -mentioned criteria the main axes of the achievements and aspirations of 
the Governme nt of Bahrain will be addressed in the context of this review report.  
2  FOREIGN TRADE  
2.1  Imports  
2.1.  Non-oil imports experienced (2.61%) average annual growth between 2010 -20.  
2.2.  According to 2020 imports data; mechanical and electrical equipment topped the five top 
imported commodities (28% of total imports), followed by chemicals products (14%), mineral 
products (9%), transportation vehicles and equipment (8%) and base metals and  articles of base 
metal (8%), while other commodities constitute around (32%) of total imports.  
2.3.  Furthermore, for imports in 2020, China topped the list of trading partners (14% of total 
imports), followed by Saudi Arabia (7%), Australia (7%), Unites State s of America (7%) and United 
Arab Emirates (6%).  
2.2  Exports  
2.4.  Total non -oil exports witnessed (5.37%) average annual growth between 2010 -2020, while the 
national origin exports average annual growth is about (3.93%) between 2010 -2020.  
2.5.  Moreover, the contributio n of non -oil exports to total exports increased from (27%) in 2010 to 
(53%) in 2020. Exported commodities during 2020 were dominated mostly by base metals and 
articles of base metal (59% of total exports), mineral products (11%), chemicals products (9%), 
plastic and rubber products (4%) and prepared foodstuffs, beverages, and tobacco (4%). Other 
exported commodities constitute only (13%) of total exports.  
2.6.  Saudi Arabia was ranked first with regard to top five exporting partners with a (22%) share of 
total e xports, United Arab Emirates was second at (9%), followed by the Unites States of America 
(8%), Sultanate Oman (7%) and Netherlands (6%) as for 2020.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3  ENHANCING PRODUCTIVITY AND CAPACITY  
3.1  Developing commerce  
3.1.1   Legislations  
3.1.  The Government of Bahrain has impleme nted several policies and passed a number of 
regulations to enhance the legislative framework for sectors that support economic growth, including 
the following commercial legislations:  
a) Decree -Law No. (15) of 2021 regarding External Auditors, replacing Decr ee-Law No. (26) of 
1996 regarding Auditors . 
b) Decree -Law No. (18) of 2021 amending some provisions of Law No. (51) of 2014 regulating 
the Practice of Engineering Professions . 
c) Law No. (5) of 2021 Regulating and Controlling International Trade in Endangered Sp ecies 
of Wild Fauna and Flora . 
d) Decree Law No. (28) of 2020 amending some provisions of the Commercial Companies Law 
promulgated by Decree Law No. (21) of 2001, The amendments are part of Bahrain's 
ongoing aim to develop its compliance and regulatory framew orks in line with international 
best practice . 
e) Decree -Law No. (29) of 2020 on Amending some Provisions of Decree -Law No. (4) of 2001 
on Anti -Money Laundering/Combating the Financing of Terrorism (AML/CFT), The Central 
Bank of Bahrain views the fight agains t money laundering ('AML') and combating the 
financing of terrorism ('CFT') as a key priority. Bahrain is part of the Financial Action Task 
Force ('FATF') through the full membership of the Gulf Cooperation Council in the FATF and 
is committed to the imple mentation of all international standards in this area. Bahrain is also 
a founding member of the regional MENA -FATF and hosts its secretariat . 
f) Decree Law No. (54) of 2018 promulgating the Electronic Communications and Transactions 
Law. 
g) Decree -Law No. (52) o f 2018 amending some provisions of Decree -Law No. (27) of 2015 
regarding the Commercial Register, that includes provision related to setting the criteria and 
rules for determining the ultimate beneficiary in accordance with best practices and 
standards rel ated to improve international tax compliance, combating money laundering and 
terrorist financing. As well a commitment on behalf of the trader to implement any 
obligations undertaken by Bahrain under international conventions and treaties, which would 
enhance tax compliance, combat tax avoidance and evasion, and combat money laundering 
and terrorist financing, in a manner that ensures the verification of the actual economic 
substance of the trader's activities in the Kingdom, which includes, without limitat ion, 
verifying that profits and returns result from the trader's actual economic activities in the 
Kingdom, and for this purpose MOICT may compel the trader to submit any reports or 
documents and keep them for the same legally prescribed period for keeping  commercial 
books . 
h) Decree -Law No. (51) of 2018 amending some provisions of the Commerce Law promulgated 
by Legislative Decree No. (7) of 1987, that includes maintain ing commercial books to show 
the trader's/ company's financial status and to keep these rec ords for a period of 10 years . 
i) Decree No. (22) of 2018 Promulgating the Reorganization and Bankruptcy Law. This law is 
a step towards strengthening the legal framework and business ecosystem in Bahrain, 
through boosting transparency and efficiency in the i nsolvency process and improving the 
ease of doing business in Bahrain . 
j) Order No. (97) of 2017 with respect to regulating incubators and accelerators activities, 
which opened an investment opportunity for the private sector to invest in the Business 
Incubat ors & Accelerators sector, boosting the Startups sector and encouraging them to WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  operate under a supporting environment. It also offered sector specific support and services 
for Startups . 
k) Law No. (65) of 2016 to issue the Implementation Regulation of the la w (system) with 
respect to Trademarks of The Gulf Cooperation Council countries. It is a unified law dealing 
with the protection, enforcement, and commercialization of trademarks across each of the 
GCC member states (Bahrain, Kuwait, Oman, Qatar, Saudi Ara bia, and the UAE). It is not a 
unitary GCC registration system and brand owners seeking protection of their trademarks 
still must file separate trademark applications with the Trademark Offices of each GCC 
country and pay separate official fees . 
l) Law No. (1 7) of 2016 ratifying the Protocol amending the Marrakesh Agreement to establish 
the World Trade Organization by adding the Trade Facilitation Agreement to Annex 1 (A) of 
the Agreement . 
m) Decree -Law No. (27) of 2015 Concerning the Commercial Register, a compl etely new law 
replacing Decree No. (1) Finance 1961 on the Establishment of the Commercial Register . 
n) Decree Law No (62) of 2014 with respect to Commercial Fraud The law establishes further 
grounds to trademark owners to file a complaint before the Bahraini  authorities to pursue 
and impose sanctions against traders and entities that supply counterfeit products, including 
foodstuffs, basic and luxury products, medical products, cosmetics, and other commodities . 
3.1.2   Dispute Resolution  
3.2.  The Bahrain Chamber for Dispute Resolution (BCDR) was established by Legislative Decree 
No. (64) of 2014 (as amended) and  operates with the  American Arbitration Association  (AAA). The 
BCDR adopted the UNCITRAL Model Law on International Commer cial Arbitration (Model Law) during 
2015 for both international and domestic arbitration. The BCDR Court administers disputes more 
than BHD 500,000 (approx. USD 1.3 million) in which at least one party is a financial institution 
licensed by the Central Ban k of Bahrain, or the dispute is of an international commercial nature.  
3.3.  Between its establishment in 2010 and the end of 2019, BCDR registered 282 cases equivalent 
to USD  1.44 billion, which covered disputes arising in aviation; banking and finance; constru ction; 
consultancy; insurance; Islamic finance; paintings and antiquities; pensions; real estate; steel 
management; and waste management . 
3.1.3   Innovative Ecosystem - Sijilat  
3.4.  With the aim to streamlines the business registration processes in Bahrain, in 2016 the Ministry 
of Industry, Commerce and Tourism 's Commercial Registration Portal "Sijilat " was launched. To push 
the Kingdom of Bahrain up among the business competitiveness ranks in various global indicators 
in line with the Bahrain Economic Vision 2030.  
3.5.  "Sijilat " is an advanced electronic system for the commercial registration and licensing o f 
commercial and industrial establishments in Bahrain, that allows full connectivity with all electronic 
systems of other relevant entities, which goes hand in hand with the Government 's plan for digitizing 
the Kingdom 's economy and improving its ecosystem . Some of the key features of Sijilat are:  
a) Provide all services electronically through a single virtual platform: e -application, 
e-submission, e -booking of commercial names, e -payment, e -notice, e -certificate, and 
e-verification of transactions . 
b) To approve  supporting e -services provided by the e -Government Authority (such as e -link 
with other ministries, e -payment gateway, and e -key). 
c) To provide multiple channels of service including e -gateway and a contact centre . 
d) To provide the unified procedures guide fo r registration and licensing processes and apply 
the International Standard Industrial Classification of all economic activities (ISIC4) . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  e) To separate the registration process from the licensing process . 
f) To develop activities and default record . 
g) To unify bu siness processes by resetting and facilitating procedures according to the best 
international practices . 
h) To link with all the relevant authorities competent with licensing . 
i) To adopt high transparency and electronic documents . 
3.2  Developing Industry  
3.6.  Since 1960 , the Kingdom of Bahrain developed an economic diversification strategy that 
included the establishment of industrial parks that target attracting businesses across several 
industries such as food and beverages, FMCG, pharmaceutical, alumin ium, light engineering, plastics 
and fiberglass. Currently there are seven designated industrial areas in Bahrain that are owned and 
managed by the Ministry o f Industry, Commerce and Tourism with a total size of 22  million m².  
Figure 1: Map of the 7 Industrial Parks  
 
 
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  3.7.  The history of the industrial parks in Bahrain started with Mina Salman Industrial Park that was 
established in the 1960s with a total area of 590,950 m² and a direct access to the sea, the park 
was named after the neighbo uring Salman Port and was a prime lo cation for manufacturing 
companies in addition to logistic companies. Whereas Salman Industrial City is the latest industrial 
park opened in 2010 with a size of 12 million sqm and is home to the Bahrain International 
Investment Park (BIIP), Bahrain Investm ent Wharf (BIW), and the Hidd Industrial Park . 
Figure 2: History of Industrial Parks in Bahrain  
 
 
3.8.  There are lands used for industrial purposes that are managed by the private sector. There are 
also factories located in private estates but licensed by the Ministry.  
3.9.  Bahrain is the home of major industrial projects  since the sixties including, for example: 
Aluminium of Bahrain "ALBA", Arab Shipbuilding and Repair Yard "ASRY ", Gulf Petrochemical 
Industries Company "GPIC" and Gulf Aluminium Rolling Mill Com pany "GARMCO",  JBF Bahrain 
W.L.L., Mondelez Bahrain Biscuits W.L.L., Mueller Middle East B.S.C. Closed, Arla Foods W.L.L, 
Reckitt  Benckiser W.L.L., Midal Cables Company Limited W.L.L.,  BFG International W.L.L. and other 
local and multinational investments.  
3.10.  Salman Industrial City is the latest industrial area with a size of 12 million m², and is home 
to the Bahrain International Investment Park, Bahrain Investment Wharf, and the Hidd Industrial 
Area.  
3.11.  Industrialization has formed the backbone of Bahrain 's drive for economic diversification for 
more than four decades. Bahrain's development strategy, Vision 2030, confirmed the importance of 
the manufacturing sector as a key driver for the diversification process, innovation, and 
knowledge -based economy.  
3.12.  Bahrain' s diversification plans focus on reducing positively correlated volatilities amongst 
industries, avoiding fluctuation, and attracting some optimal combination of industrial investments 
in this pursuit.  
3.13.  Manufacturers operating in Bahrain cover a number of s ectors from food and beverage 
manufacturing to fiberglass production and aluminium downstream industries.  
3.14.  A number of industrial services provided by the Ministry of Industry, Commerce and Tourism 
are available online:  
a) Industrial License: applications to obtain an industrial licence, to implement an industrial 
project, to add new industrial activity to the industrial licence, to add a branch to the 
industrial licence, to conduct an expansion of a plant, or to make any transactions related 
to an industrial licence . 
b) Industrial Registration: registration of existing factories that have entered into production 
by applying for Industrial Registration which should be submitted within 60 days from actual 
production commencement. Industrial Registration Certificate  renewal also included under 
this system.  
3.15.  Rental Payment Service: payment of the rent for the industrial plot . 
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  3.16.  Auction Services: to apply to participate in "Mazad Bahrain " auctions related to industrial 
plots.  
3.3  Fiscal Policy  
3.17.  Despite positive growth in the non-oil sector 's contribution to GDP, non -oil government 
revenues have not kept pace with economic growth leading to successive budget deficits. 
Recognizing the importance of restructuring Government expenditures and revenues to align with 
positive economi c growth, stabilizing debt and strengthening fiscal sustainability, the Government 
introduced several initiatives between 2015 and 2017. These initiatives were centred around three 
key priorities: streamlining government expenditure, increasing revenues, a nd redirecting 
government subsidies towards eligible citizens.  
3.18.  In late 2018 the Government launched the Fiscal Balance Program, which provides a roadmap 
for addressing Bahrain 's fiscal challenges over the medium -term, with the overall objective of 
achievin g a balanced budget by 2022. To achieve this goal, six initiatives were introduced:  
a) Reducing government operational expenditure through activating six dedicated Government 
Task Forces to identify and implement savings and setting criteria for the procureme nt of 
standard products and services . 
b) Introducing a voluntary retirement scheme for government employees providing them with 
the opportunity to contribute to the Kingdom's economic growth through entrepreneurship 
or participation in the private sector . 
c) Balancing the Electricity and Water Authority's expenditures and revenue . 
d) Streamlining the distribution of cash subsidies to citizens in need . 
e) Improving the efficiency of Government expenditure . 
f) Simplifying Government processes and increasing non -oil revenue, to drive economic 
growth, diversify government income streams and align non -oil revenue with positive 
economic growth.  
3.19.  Under these broad targets, the Fiscal Balance Program aims to strengthen the Kingdom 's 
fiscal and economic foundations to ens ure the sustainability of resources for future generations, 
through : 
a) further developing the provision of sustainable government services in education, health, 
and social services ; 
b) continuing the provision of subsidized electricity and water services to cit izens in their 
primary residences ; 
c) creating quality job opportunities for citizens and ample support to business ; 
d) establishing rules for the sustainable use of resources ; 
e) enhancing the efficiency and fairness of direct government support to citizens ; 
f) continuing funding development and infrastructure projects ; 
g) streamlining and improving the provision of government services to citizens and 
investors; and  
h) improving Bahrain's c redit rating, thereby reducing the cost of financing for citizens and 
investors.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.20.  Both the 2019 -20 and 2021 -22 state budgets demonstrate that Bahrain is prioritizing sound 
fiscal and economic policies while safeguarding the continued prosperity of citizens and reflects the 
Kingdom 's continued commitment to achieving the Fiscal Balance Program targets. The budget has 
envisaged a gradual reduction of the fiscal deficit, as the government non -interest expenditure 
remains under tight control while continuing to improve the quality and efficiency of the government 
services. Also, a new taskforce focusing on non -oil revenue development was created to review 
existing fees and generate new revenue streams without overburdening the economy; this is 
expected to further  drive the Kingdom 's economic diversification and enhance the role of the private 
sector.  
3.4  Monetary Policy  
3.21.  The Central Bank of Bahrain (CBB) is responsible for setting and implementing monetary 
policy in the Kingdom of Bahrain. Bahrain maintains a fixed exc hange rate regime between the 
Bahraini dinar and the US dollar. The exchange rate peg provides an anchor for monetary policy. 
Low inflation and a stable currency are important long -term features of the Bahraini economy which 
supports a stable business envi ronment and high levels of investment, both of domestic and foreign 
origin.  
3.22.  Bahrain has a free market economy, with no restrictions on capital movements, foreign 
exchange, foreign trade, or foreign investment. The Kingdom has a leading position in the regi on as 
an open, free, transparent, and welcoming environment for investors. The monetary policy 
framework is geared to support the general economic goals of the Kingdom.  
3.23.  The Reserve Management Directorate of the CBB offers a foreign exchange facility for bu ying 
and selling Bahraini dinars against US dollar at rates very close to the official exchange rate.  
3.24.  The CBB does not maintain any administrative controls over market interest rates. There are 
no interest rate caps or floors and the CBB does not seek to i nfluence directly the cost of credit or 
the distribution of credit in the economy. The private sector is thus free to allocate credit as it sees 
fit. 
3.25.  The CBB monetary policy operations aim to ensure that the liquidity situation in the banking 
sector is app ropriate. The Bahraini dinar liquidity of the retail banks consists mainly of the clearing 
account balances they hold with the CBB. These balances, which can be traded between banks in 
the money market, fluctuate day to day, mainly as a consequence of the Government 's conversions 
of US dollar to finance its domestic expenditure, the retail banks purchase of US dollars from the 
CBB, changes in the amount of currency in circulation and changes in the banks ' reserve balances 
with the CBB.  
3.26.  It is important to ha ve a monetary arrangement which mirrors that of major trading partners. 
The Bahraini dinar is pegged to the US dollar. The peg has been effectively unchanged since 1980. 
The use of a large foreign currency as a nominal anchor for monetary policy is a frequ ent 
arrangement among small open economies and has proven to be successful if supported by 
appropriate fiscal and structural policies. The US dollar peg serves to enhance credibility and 
transparency of monetary policy to maintain financial stability.  
3.27.  The CBB introduced additional amendments to the Operational Risk Management Module in 
May 2020 regarding outsourcing operation to cloud service providers. Cloud service providers are 
external companies (third parties) that provide a set of software, systems, a nd infrastructure over 
the Internet for storage and database services. These amendments require cloud service providers 
to comply with all laws and regulatory requirements in the Kingdom. The outsourcing contract must 
also clearly specify the procedures to  be followed when outsourcing.  
3.28.  The CBB issued in May 2020 new amendments to the Financial Crime and High -Level Controls 
Modules to ensure compliance with all anti -money laundering and combating terrorist financing 
requirements.  
3.29.  The CBB issued Resolution No . (12) of 2020 regarding amending some of the provisions of 
Regulated Services Regulations. The amendment includes the new definition of financial sector 
support institutions: managing clearing rooms, settling payments, checks and securities, providing WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  credit information services, providing negotiable electronic instruments services, and training 
services in the financial field, in addition to providing other support services related to the financial 
services industry.  
3.30.  The CBB continued with its efforts tow ards continuous improvement in the financial sector. 
As such, new initiatives in this direction included providing guidance and issuing directives to 
licensees to take measures to support contactless payments, tokenization and single national QR 
switch as well as prepare themselves for implementing e -KYC and providing APIs for open banking 
platform.  
3.31.  The Arabian Gulf System for Financial Automated Quick Payment Transfer (AFAQ) was 
launched on 10  December 2020, with the Central Bank of Bahrain and Saudi Centr al Bank being its 
first participants. AFAQ is the Real Time Gross Settlement system for cross -currency cross -border 
payments between the GCC countries. The first phase of AFAQ operational model will include several 
transferring services for the GCC member states currencies. The second phase will include other 
currencies like US  dollars  and euros  which will enable processing cross border payments in addition 
to same -day settlement for the balances of central and retail bank's funds and financial centres. The  
system involves multiple stakeholders, including the Gulf Payments Company as an operator of the 
service, National Central Banks (NCBs) as the account holding and customer service providing 
institutions as well as monetary authoritative figures and finall y certified retail banks as direct 
participants of the system.  
3.32.  Throughout 2020, The CBB had issued and continuously reviewed numerous measures to 
combat the financial repercussions of the pandemic. Such measures ranged from loan deferrals and 
concessions for all resident individuals and companies in the Kingdom of Bahrain, liquidity support 
for all licensees in the form of favourable rates and reduced LCR, NSFR, and cash reserves ratio 
requirements, easing of ECL requirements and staging, exemption and pos tponement of regulatory 
reporting requirements, reduction in eligible capital risk weights, and the promotion of near field 
communication technology (NFC), among others.  
3.5  Islamic Banking  
3.33.  The Shariah Board of the CBB has approved "Wakalah " which is a Shariah -compliant liquidity 
management tool for Islamic retail banks. It is the first of its kind in the region and aims to absorb 
the excess liquidity of local Islamic retail banks by placing it with the CBB. The total outstanding 
balance of W akalah deposited by Islamic Banks was USD 434.56 million in December 2020, 
compared to USD 308.71million in December 2019, with a 41% increase.  
3.34.  As part of the ongoing efforts towards the development of Islamic banking and promoting 
Capital Market in the Ki ngdom of Bahrain, the CBB in collaboration with Bahrain Bourse has 
developed a Murabaha Sukuk Service for clients and Banks, which is a Shari 'ah compliant liquidity 
and borrowing tool Launched on 1 June 2020. A total of 411 Murabaha Sukuk transactions were  
executed with a total value of USD 2,635.3 million during the year 2020.  
3.6  Monetary Stability  
3.35.  Monetary stability and a well -developed financial system significantly mitigate Bahrain 's 
vulnerability to economic shocks, as does the demand led nature of develo pments.  
3.36.  The Central Bank of Bahrain (CBB) aims to ensure the continued soundness and stability of 
financial institutions and markets.  The CBB believes that financial stability is critical for maintaining 
Bahrain 's position as an international financial cen tre and for ensuring that the sector continues to 
contribute significantly to growth, employment, and development in Bahrain. The Central Bank of 
Bahrain (CBB) defines financial stability as a situation where there is continuous and prudent 
provision of fi nancial services, even in the face of adverse shocks.  
3.37.  Monitoring financial stability is the primary responsibility of CBB 's Financial Stability 
Directorate (FSD), which conducts regular surveillance of the financial system to identify areas of 
concern and undertakes research and analysis on issues relating to financial stability.  The FSD is 
central to CBB 's responsibility of maintaining monetary and financial stability.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.38.  The FSD 's main strategic objective is to identify potential threats to the safety and soundness 
of the Bahraini financial system before they result in systemic financial crises.  In pursuit of its 
objective, the FSD has the following responsibilities:  
a) Conducting regular macroprudential surveillance of the financial system to identify areas 
of concern . 
b) Conducting regular analysis of the safety and soundness of the Bahraini financial system 
through Financial Soundness Indicators (FSI's) developed to continuously monitor the 
financial sector . 
c) Monitoring domestic and international macroeconomic d evelopments, with a view to 
assessing potential implications for financial stability in Bahrain . 
d) Advising CBB top management on issues and policies relating to maintaining the stability 
of the financial sector in Bahrain . 
e) Overseeing the operations, safety and efficiency of the national payment and settlement 
systems and the Financial Market Infrastructure (FMI) in the Kingdom of Bahrain for the 
evaluation of any financial stability risks.  
3.39.  A key component of CBB 's financial sector surveillance framework is t he Financial Stability 
Report (FSR). Produced semi -annually by the FSD, the FSR is prepared for the CBB management 
and is also a key tool aimed at informing the public.  Its principal purpose is macro -prudential 
surveillance, assessing the safety and soundn ess of the financial system, reviewing recent trends, 
detecting areas of concern that require supervisory and policy attention and identifying potential 
risks to financial stability to mitigate them before they develop into systemic risk.  
3.40.  As per the CBB La w, the CBB is the sole overseer of FMIs and Payment Systems in the 
Kingdom of Bahrain. The FMIs and Payment Oversight Division is under the FSD with the principle 
role to oversee:  
a) Systemically Important Payment Systems (SIPS) . 
b) Major Retail Payment Systems (MRPS).  
3.41.  The division relies on Principles for Financial Markets Infrastructures (PFMIs) proposed by the 
Committee on Payment and Settlement Systems (CPSS) at the Bank for International Settlement 
(BIS) in conducting and implementing the overall Oversight p rocess.  
3.42.  Following the rapid changes in the global financial sector and the emergence of new 
technologies in finance, the FMIs and Payment Oversight includes Payment Instruments, Payment 
Channels, Critical Service Providers (CSP), Third Party Payment Provid ers (TPPP), Payment Service 
Providers (PSP), Ancillary Services, Payment Initiation (PI), Payment Innovation, Open Banking, and 
Cyber Resilience.  
3.7  Bahrain Investment Market  
3.43.  Bahrain Investment Market is an innovative equity market that is designed to enable 
fast-growing companies in the Kingdom of Bahrain, the GCC and wider MENA region to obtain growth 
capital via direct offering.  
3.44.  It is a platform for non -listed Bahraini shareholding closed companies and it provides for the 
following services:  
a) Direct tradin g of shares between shareholders Real Time ownership transfers between 
shareholders . 
b) Value -added services like share options, dividend distribution, E -voting and AGM 
management . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  c) Streamlined services provided to closed companies by eliminating requirements of 
notarization in memorandum of association in cases of trade between shareholders . 
d) Assists these companies in order for them to qualify to convert from a closed shareholding 
companies into public companies in future.  
3.45.  BIM aims to attract listing of growth  companies in a number of key target sectors, namely: 
manufacturing, real estate, logistics, ITC, food and beverages, medical services, education and 
tourism and leisure.  
3.8  National Bureau for Revenue  
3.46.  The National Bureau for Revenue (NBR) was established by  Royal decree (45) of the year 
2018 as amended by  Royal decree (9) of the year 2019,  for the establishment and organi zation of 
NBR and is affiliated to H .E. the Minister of Finance and National Economy.  
3.47.  NBR is responsible for the registration of entities and individuals subject to VAT and Excise 
Tax, as well as the following:  
a) Validating the return filings of the entities and the related assessment . 
b) Collecting the VAT and Excise dues . 
c) Releasing refunds to the entities . 
d) Auditing and processing of any appeal . 
e) Monitoring and enforcement of compliance.  
3.48.  The Kingdom of Bahrain introduced Excise Tax system on 30 December 2017, in accordance 
with Law No. 39 of 2017 ratifying the Unified Agreement on Selective Tax for the Countries of the 
Cooperation Council for the Arab States of the Gulf. The Excise Tax is imposed on specific goods 
harmful to human health and the environment. The aim of the tax is to discourage citizens from 
consuming products that are harmful to health. Excise Tax revenues contribute to the treatment of 
diseases resulting from the consumption of these products. Excise Tax are imposed on the retail 
price of the following products: carbonated drinks (50%), energy drinks (100%) and tobacco and 
its derivatives (100%).  
3.49.  In 2018, B ahrain has issued Decree -Law No. (47) of 2018 ratifying the Unified Agreement for 
Value Added Tax for the Countries of the Cooperation Council for the Arab States of the Gulf as well 
as Decree -Law No. (48) of 2018 Issuing the Value Added Tax Law. According ly, Value Added Tax 
(VAT) has been applied in the Kingdom of Bahrain from 1 January 2019. VAT is imposed on the 
import and supply of Goods and Services at each stage of production and distribution, including 
"Deemed Supplies ". The standard rate is (5%). Ce rtain goods and services are subject to a zero -rate 
(0%) of VAT and others are exempt from VAT.  
3.9  Privatization  
3.50.  The Kingdom of Bahrain Privatization Program falls in line with the Kingdom 's economic 
development goals as part of its Economic Vision 2030 that aims for a diversified economy beyond 
the oil sector towards high -potential, export -oriented sectors, such as tourism, manufacturing, and 
business services.  
3.51.  The Privati zation Programme – which falls under the supervision of the Ministry of Finance 
and Nat ional Economy and the EDB – concentrates on tourism, communications, transportation, 
electricity and water, the ports and airport service, oil and gas, and postal service.  
3.52.  In March 2021, Bahrain hosted a global event, the Bahrain Metro Market Consultation,  to seek 
out private enterprises interested in establishing a public private partnership (PPP) for the 
development of its metro system. It is the latest development in Bahrain 's privatization efforts as WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  the Government has continuously emphasized the creati on of a business -friendly environment 
to attract investors to the country.  
3.53.  Such efforts have been recogni zed by the World Bank, which currently ranks Bahrain as the 
second -best country in the Middle East and North Africa, for the ease of doing business.  This comes 
as part of the effort to diversify and develop the economy in line with the country 's Vision 2030.  
3.54.  The Government also adopted a Legislation with respect to Regulating Government Tenders 
and Procurements, creating a Tender Board to establish effe ctive procurement practices and systems 
to facilitate private sector growth. These measures form the basis of privati zation initiatives in 
Bahrain, supporting privati zation projects in several sectors, including the public bus network in 
2015.  
3.55.  In 2017, the  Ministry of Housing Launched the "Mazaya " mortgage financing scheme with a 
number of private banks. Moreover, the Ministry of Housing in 2019 has launched the Developing 
Government Lands Program, which entails the construction of 15,000 housing units over  a 10-year 
period by the private sector. On 23 October 2013, His Excellency Sheikh Khalid bin Abdullah 
Al Khalifa, Deputy Prime Minister, patronized the inauguration ceremony of the Social Housing 
Financing Scheme "MAZAYA ", which provides citizens access t o housing finance from banks 
participating in the program me, with government financial support, to contribute in the monthly 
instalments. The program me allows citizens to select and purchase housing units that meet their 
needs at affordable prices .1 
3.56.  Similar investments are equally seen in infrastructure:  
a) Khalifa bin Salman Port (KBSP) commenced its operation in 2009 with a total cost of 
USD 361.5 million. The port is operated by an international private company with an 
investment of USD 62 million int o the port . 
b) Moreover, work is underway on the USD  3.5 billion King Hamad Causeway, the second 
land crossing linking Bahrain and Saudi Arabia, after an agreement was signed with the 
governments of the two countries, in 2019. King Hamad Causeway bridge would  be parallel 
to the existing King Fahd Causeway (first land linkage between the two countries was in 
1986) and complementary to the Gulf Railway Network project. The project   will be 
implemented in partnership with multinational private enterprises.  
3.57.  Further , Aldur phase -II IWPP is already launched to boost the electricity production to 
1,234 MW and water production to 48  MGPD. Currently, the private sector produces around 90% of 
power generation capacity, and 80% of water requirement of the Kingdom. The privatization 
initiative is further extended to produce green power through development of grid interactive solar 
park in Askar to provide more than 100 MW of power, some part of which around 50  MW. 
Development of modern and efficient Aldur phase -II IWPP has p hased out the old and inefficient 
Sitra Power and Water Station.  
3.58.  Thus, privati zation will contribute to Bahrain 's long -term plans for economic development and 
diversification. This becomes particularly relevant amidst the COVID -19 pandemic, which, together  
with the global oil price collapse in 2020, has led to a fall in the economic growth rate to a decade 's 
low of -5.1% as unemployment levels rose to 4.9% in 2020.  Such a hit to the economy has 
challenged government efforts to generate revenue and reduce sp ending. Indeed, the Government 
introduced a USD 11.2 billion stimulus package in April 2020, combined with business subsidies, as 
the budget deficit increased from -9% of GDP in 2019 to -18.3 % of GDP in 2020. In this sense, the 
impetus behind continued pr ivatization efforts is likely to gain increasing traction as Bahrain 
attempts to recover from the pandemic.  
 
1 https://ministryofhousingstaticfiles.s3.me -south -1.amazonaws.com/reports/files/MOH+ -
+En+2017.pdf . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.59.  The private sector is designed to stimulate economic growth by:  
a) enhancing productivity to achieve the ambition of being on par with global productiv ity 
leaders ; 
b) increasing the skill set of the population and offering quality, high -wage employment 
opportunities in high -value added sectors to ensure that every Bahraini household has 
at least twice as much disposable income in real terms ; and 
c) achieve the Government's aims of creating new and improved infrastructure, as well as 
offering a higher quality of services at large in the country, while downsizing the public 
sector and freeing up a sizeable portion of government funds.  
3.60.  Indeed, here the private sector can aid Bahrain 's expansion into knowledge -based sectors by 
stimulating entrepreneurship and innovation, all of which will open new global markets to Bahrain 
and increase its regional and international competitiveness . 
3.10  Small and Medium Enter prises and Startups  
3.61.  Small and medium enterprises are one of the most vital factors serving sustainable 
development in the Kingdom through a variety of projects and investments supporting Bahrain's 
efforts in terms of economic diversification, as they repre sent 98% of locally registered companies.  
3.62.  Based on the directives of HRH the Crown Prince and Prime Minister, Chairman of the Bahrain 
Economic Development Board "EDB", the Small and Medium Enterprises Development Board (SDB) 
was created during 2017.  
3.63.  The SMEs Development Board (SDB) is a public -private collaboration initiative that aims to 
strengthening SMEs capacities to boost their competitiveness in domestic, regional, and global 
markets. It is chaired by the Minister of Industry, Commerce, and Tourism and includes on its board 
the Minister for Youth and Sports, the Chief Executive of the EDB, the Chief Executive of Labour 
Fund "Tamkeen ", the CEO of Bahrain Development Bank (BDB).  
3.64.  The EDB board endorsed the SDB 's strategic plan within the National Plan for the development 
of the sector during February 2018, with an aim as well to:  
a) Increasing the SMEs contribution to the Kingdom's GDP to reach 40% by the year 2022.  
b) Increasing their exports shares to reach 20% by the year 2022.  
c) Increasing the  number of job opportunities to reach 43,000 by the year 2022.  
3.65.  The SDB strategic plan has launched 17 initiatives within its framework during 2018 under 
five strategic pillars, which are: access to finance, access to market, streamline business 
environment , foster skill development, and foster innovation. In addition to that, the Cabinet 
Ministerial Committee for Financial and Economic Affairs and Fiscal Balance has endorsed 
five additional initiatives in January 2020.  
3.66.  In 2017, the Government of Bahrain iss ued a Cabinet decision to allocate 20% of the value 
of government procurements and tenders for SMEs, and to obtain a preference of 10% in the 
biddings for the utilities that take place within the Government 's facilities.  
3.67.  The Kingdom of Bahrain launched mu ltiple program mes to assist SMEs in accessing markets 
in different sectors, as well as multiple initiatives related to access to finance for SMEs.  
3.68.  Additionally, Bahrain 's digital transformation is in support of building a world -class 
springboard for innova tors and start -ups. The Kingdom 's regulatory environment and trusted digital 
infrastructure is encouraging an increasingly diverse range of world -class tech companies to choose 
Bahrain as the base for growing their businesses.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.69.  "Startup Bahrain " initiative  supported by Bahrain Economic Development Board (EDB) offers 
an ecosystem that works to guide, develop, and support startups, as well as forging new connections 
that bring together investors, accelerators, incubators, and governments. The initiative focus es on 
six pillars: the start -up community, incubators and accelerators, finance, education, regulation, and 
corporate partnership.  
3.70.  Moreover, in May 2017 the Central Bank of Bahrain (CBB) issued "The Regulatory Sandbox 
Framework " through its Fintech and Inn ovation Unit, which is a virtual space for both CBB -licensed 
financial institutions and other firms to test their technology -based innovative Startups relevant to 
FinTech or the financial sector in general. Since its issuance date until 2020 the CBB has re ceived 
more than 100 applications to join the Regulatory Sandbox, 11 of which succeeded in exiting.  
3.71.  "Al Waha Fund of Funds " is a US D 100 million venture capital fund which aims to provide 
funding access to Bahrain 's start -up industry. The fund is focused on investing in technology, fintech 
and smart cities with the objective of bringing Bahrain and the MENA region to the forefront of global 
technological advances, as a hub for venture capital, startups, and technology companies. It 
primarily invests in ven ture capital funds that in turn invest directly in companies that are at the 
early stages of funding and/or can provide strategic impact through their expertise and network. 
The fund is managed by Bahrain Development Bank and its subscribers including Bahr ain 
Mumtalakat Holding Company.  
3.72.  Solar Financing Scheme as part of Tamkeen 's Tamweel Scheme to empower enterprises and 
enable them to purchase solar energy panels to generate energy which in turn will help them reduce 
their costs.  
3.73.  The Business Development Program Tamkeen is a co -financing program me that provides 
financial grants to aid growth and development within enterprises located in Bahrain. Tamkeen shall 
cover up to 50% of the cost for approved items/services based on the grant allocated to the 
enterp rise. The grant allocated shall be determined by the enterprise's business requirements. The 
grant provided can be utilized across the following support schemes offered by the program me, 
Machinery & Equipment, Marketing & Branding, Information & Communicat ion Technology, Cloud 
Computing, Exhibition Participation, Business Consulting, Quality Management, Accounting & Audit.  
3.74.  The Supreme Council for Women 's Riyadat  Financing Program is specifically designed to 
support woman -owned start -ups to help them develop  and grow. Tamkeen, in collaboration with the 
Bahrain Development Bank, provides these companies with access to Sharia -compliant financing at 
a competitive profit rate, wherein Tamkeen provides support 60% of the annual nominal profit rate 
(capped at an 8%  reducing balance).  
3.75.  Microfinance is a way for entrepreneurs to obtain affordable financing that they wouldn 't be 
able to access through conventional banking. Tamkeen and the Family Bank offer the Microfinance 
Program which enables to obtain microfinancing that is Sharia -compliant and affordable. The 
program me empowers individuals with limited income to be able to establish new micro -business 
activities as well as support existing businesses.  
3.76.  The launch of business incubators and accelerators to nurture, dev elop and accelerate the 
growth of innovative Start -ups and SME business by offering a full range of services, facilities, 
support mechanisms and consultation for a specific period of time, in order to ease the challenges 
and difficulties faced by companies  during their first stage of operation. Until July 2021, 
24 incubators and accelerators have been licensed incubating 761 start -up businesses in various 
fields such as IoT, Technology, Fintech, E -commerce, Media, Creative industry & Medical.  
3.77.  Bahrain is con currently focusing on developing a competitive SME sector, delivering 
international quality products and services, and contributing to quality employment opportunities.  
3.11  Export Bahrain  
3.78.  Export Bahrain is the Kingdom 's first dedicated platform and the nationa l export development 
and internationalization support arm of Bahrain that was launched in November 2018, under the 
purview of the SME Development Board as part of a national effort to support SME business 
expansion and international growth. Export Bahrain acts as a local partner to all businesses, creating WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  a successful roadmap for exporting to reinforce the Kingdom of Bahrain 's position as a strategic 
global export hub and an international trade partner.  
3.79.  Export Bahrain 's key mission is to promote, nurture and accelerate the growth of local 
businesses, products and services made in the Kingdom of Bahrain and enable exporters to take on 
more challenging, high -growth export markets.  
3.80.  Since its establishment Exports Bahrain facilitated in exporting 46 ty pes of goods and services 
equivalent to USD 74 million (7% of services exports). Export Bahrain achieved a new milestone by 
facilitating over USD 100  million  SME exports as of June 2021 to 55 markets globally, of which 36% 
are new markets, 18% are new exporters, 36% are businesses owned by women.  
3.81.  Since the inception of Export Bahrain, the company has strived to partner up with 
organizations that will add value  to the exporting trade economy in Bahrain where customers would 
benefit from these partnerships by making their exporting procedures easier, faster and more cost 
effective in order to encourage more Bahraini based businesses to export.  
3.82.  Sustainability supp ort schemes (with the introduction of VAT): Support program me for 
accounting and financial audit services aims to adopt accounting systems in accordance with 
international standards.  
3.83.  Export Bahrain has initiated and developed key solutions and services to support and nurture 
Bahraini based businesses in their export procedures. Through these solutions, Export Bahrain 
targets to deliver Bahrain to the global map by facilitating exporting deals of products and services 
that are made in Bahrain.  
3.84.  Export Bahrain 's vision of putting Bahrain in the forefront of the globe in the export trade 
economy is well in route and it has had many great achievements and success. The desire to keep 
pushing Bahrain based businesses to export and reach global markets and expand th eir reach to 
new levels in the market is stronger than ever as more businesses are encouraged to complete their 
exporting deals.  
3.12  Environment and Sustainable Energy  
3.85.  In 2019, Decree No. (87) of 2019 was issued establishing the Sustainable Energy Authority 
(SEA), with an aim to develop a cohesive and sustainable energy policy and to promote renewable 
energy and energy efficiency in the Kingdom of Bahrain to ensure rapid progress towards the 
Kingdom 's National Renewable Energy Targets and National Energy Effici ency targets by highlighting 
barriers to their achievement and taking clear and decisive action to ensure the barriers are 
overcome.  
3.86.  SEA works with both the public and private sector energy stakeholders as well as the private 
commercial, industrial, and re sidential end users of energy to promote and recommend legislation 
where needed to ensure uptake of sustainable energy best practices.  
3.87.  Go Green Initiative:  
a) Prepared by the Sustainable Energy Authority in cooperation with the Ministry of Works, 
Municipaliti es Affairs and Urban Planning as one of the twenty -two initiatives included in 
the National Energy Efficiency Plan. This guide is considered a pioneering and important 
step in the history of The Kingdom of Bahrain, as it constitutes a basic reference for a ll 
sectors with regard to the standards and special requirements that must be adhered to 
when requesting new building permits, which encourage and contribute to building more 
energy -efficient buildings, thus saving an estimated 20% to 30% of electric energ y and 
water The Green Building Guide includes ten mandatory requirements and 64 optional 
requirements . 
b) Work is currently underway, in coordination with the Ministry of Works, Municipalities 
Affairs and Urban Planning, to prepare complementary policies to t he green building guide 
through which buildings are classified according to their energy and water savings and 
their compliance with the mandatory and optional requirements included in the green WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  building guide. Green building classification policies will b e one of the important and basic 
tools for evaluating investments in buildings. and determining investment returns from 
integrating renewable energy solutions into buildings and applying techniques for 
improving energy efficiency in them.  
3.88.  The Electricity a nd Water Authority (EWA) launched a 5  MW hybrid solar and wind pilot power 
plant at Ras AbuJarjur to produce 3  MW from solar and 2  MW from wind to address the issues of 
greenhouse gas emission for the protection of environment.  
3.89.  Ministry of Industry, Commer ce and Tourism (MOICT) have launched numbers of the Energy 
Efficiency initiatives in cooperation with relevant entities to increase energy efficiency potential in 
Bahrain:  
a) MOICT in cooperation with the World Bank and EWA launched the phase out of 
condensat e lamp project on year 2015, initiated the Min. Energy Performance & 
Labelling for lightening Technical Regulation by issuing the Ministerial Order No. (3) 
2015, the initiative was implemented, and Technical Regulation have been published 
for a directional  lighting which making a considerable impact in improving the energy 
efficiency of the country's buildings. They last 5 times longer than traditional lightbulbs 
and produce the same amount of light while using up to 80% less electric power. The 
Technical R egulation direct the retailers to no longer be able to sell the majority of 
halogen bulbs for general household use in the Kingdom of Bahrain . 
b) Energy Performance Technical Regulation & Labe lling: AC's: As per the Ministerial Order 
No. (70) 2015, the regula tion on energy labelling and minimum energy performance 
requirements for air -conditioners has been implemented in Bahrain. This regulation 
specifies the Minimum Energy Performance Standard (MEPS) and the energy labelling 
requirements for air conditioning u nits and heat pumps used in residential and 
commercial sector and will be implemented in the industrial sector in the future.  This 
minimum energy efficiency of air conditioners sold in Bahrain, and labels have been 
developed to increase consumers' awarenes s of energy efficiency in their choices when 
purchasing air conditioners. On 1  April 2021 , a new electronic platform for the Energy 
Efficiency Rate label has been developed and came into force, which enables the 
economic operators, notifying bodies and the  regulating bodies to complete all the 
required procedures online through the system . 
c) Vehicles & Tires Efficiency Technical Regulation & Labe lling: Implementation of the 
Efficiency technical regulation on labe lling of vehicles and tires with respect to fue l 
efficiency and other essential parameters have been entered into force for the models 
of year 2018 and after those imported to Bahrain market through the custom borders 
to the purpose of commercial use. Massive awareness campaigns conducted by the 
Testin g and metrology Directorate to educate merchants, citizens, and residents. 
Market surveillance campaigns carried out in order to verify the conformity of technical 
regulations . 
d) Electric Vehicles Technical Regulation: The National Technical Regulation BH 1: 2021 
has been approved as per the Ministerial Order No (16) for 2021 regarding Electric 
Vehicles. This technical regulation covers Electrical Vehicles, with maximum GVW less 
than 3 ,500 kg, and a maximum design speed exceeding 25 km/h has been entered into 
force by 28 July 2021 in the Kingdom of Bahrain. The Technical Regulation for electric 
vehicles covers the vehicle, battery, charger, charging station and the energy efficiency 
labels. The ministry confirms that it meets the national directives to develop an 
integrated strategy to adopt and integrate sustainable mobility solutions and 
technologies in the Kingdom, as the Ministry works in cooperation and coordination with 
the Sustainable Energy Authority to develop strategies with an integrated and 
comprehen sive perspective to sustain the transition from traditional vehicles to 
high-efficiency and environmentally friendly vehicles, and the Ministry seeks through 
the national energy efficiency plan adopted by the Cabinet and set clear initiatives and 
objective s to increase energy efficiency by rationalizing energy consumption by 6% and 
raising the reliance on renewable energy to 5% and raised to 10% in 2035. More such 
projects of power generation from renewable sources are being planned in view 
mitigating the g lobal warming issues.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.90.  Bahrain has also participated in the development of a cross border grid named GCCIA (Gulf 
Cooperation Council Interconnection Authority) together with other member States KSA, UAE, 
Oman, Qatar, and Kuwait to exchange power and save co st on avoided generation and reduce 
emission.  
3.13  Transportation, Logistics & Telecommunication  
3.91.  Along with so many  business opportunities, Bahrain offers a wide range of  logistics business 
opportunities  for international companies looking to establish a cost -effective distribution and 
fulfilment base in the region with companies such as DHL and Agility choosing Bahrain as a hub for 
their operations in the Gulf.  
3.92.  Strategically situated in the heart of the Gulf, Bahrain offers transportation and  logistics 
business es unparalleled access to a growing regional customer base throughout the Middle East. 
Offering the shortest transit time between seaport, airport, and industrial zones within the GCC, 
allowing for superior freight turnaround times and procedures.  
3.93.  To ensure the availability of infrastructure required to maintain and enhance the Kingdom 's 
position as a regional telecommunication hub, a single national broadband network infrastructure 
was created through the separation of the wholesale unit of the incumb ent operator and the creation 
of a separate legal entity Bahrain Network BSC(c) (BNet) to deliver ultra -fast broadband products 
and services (The Separation Project). BNet 's mandate is to supply wholesale products and services 
based on fibre optic technolo gy to all licensed operators in the Kingdom on a non -discriminatory 
basis (2016 -19). 
3.94.  As a result of the aforementioned separation project, The Kingdom of Bahrain was awarded 
the "Regulatory Initiative of the Year in the MENA region " award in 2019 at CommsM EA's annual 
Awards ceremony in Dubai. The Kingdom of Bahrain was the first country in the Middle East and 
North Africa region to have successfully accomplished the project, with only seven countries 
achieving this worldwide.  
3.95.  Bahrain's telecommunications s ector generates skilled job opportunities, especially for youth. 
Presently, 2,922 people work in the sector, marking a 52% increase since the launch of the 
liberalization policies in 2003. Bahrain is the regional headquarters for Huawei for the creation an d 
acceleration of Bahrain 's 5G ecosystem.  
3.14  Digital Economy  
3.96.  The past few years have been marked as the most definitive chapter yet in Bahrain 's journey 
to becoming a fully -fledged digital economy, as the Kingdom has continued to invest in its 
world -class ICT infrastructure and pioneers ' regulations that nurture innovation and is seeing digital 
transformation of key sectors across the board.  
3.97.  Bahrain currently houses a number of international companies, as the region 's hyperscale 
data centre in which i t has left its imprint on the country as the Kingdom now has a vital role to play 
as the regional base of these companies ' global cloud network. The business landscape has been 
enriched by the cloud 's benefits, promising to deliver a digital ecosystem that  makes companies 
more efficient, more competitive, and more attractive.  
3.98.  Bahrain 's government Cloud First policy has played a key role in the ICT sector 's 
transformation, it gives companies within the Kingdom the support to grow and innovate through its 
agile regulatory system encouraging forward -thinking investment. Government departments from 
top down have leveraged the cloud to underpin one of the region 's most progressive e -governments, 
and the private sector has followed suit using could network technol ogies to drive innovation.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.99.  Bahrain continues to enhance its investment ecosystem by implementing  legislative and policy 
reforms to maintain the Kingdom 's position at the forefront of enabling a digital economy, examples 
of those are the following laws:  
a) The Personal Data Protection Law, issued in 2018, which promotes the efficient and 
secure processing of big data for commercial use and provides guidelines for the 
effective transfer of data across borders .2 
b) Tradeable Electronic Records Law, issued in 2018, modelled on the United Nations 
Commission on International Trade Law (UNCITRAL) e -commerce model laws, Bahrain 
has become the first country to enact an Electronic Transferable Records Law.  This new 
piece of legislation allows for electronic transferable do cuments including bills of lading, 
promissory notes among others, equivalent to traditional commercial documentation 
issued on paper. This fully paperless approach allows the holder of the electronic 
documents to claim payment of a sum of money or delivery  of certain goods, ultimately 
creating unparalleled efficiency in the logistics supply chain's financial workflow. This 
modern new law further facilitates the future potential use of blockchain in FinTech and 
logistics .3 
c) Law   for the Provision of Cloud Com puting Services by Foreign Parties, issued in 2018, 
that aims to encourage the use of cloud computing services by foreign parties and 
investments in data centres in Bahrain, which means that authorities in designated 
foreign states will retain jurisdiction  over the data of government entities and 
corporations established or constituted in such countries when they use designated data 
centres in Bahrain .4 
d) Law Approving Bahrain Joining the United Nations Convention on the Use of Electronic 
Communications in I nternational Contracts, issued in 2020, which aims at facilitating 
the use of electronic communications in international trade by assuring that contracts 
concluded, and other communications exchanged electronically are as valid and 
enforceable as their tra ditional paper -based equivalents.5 
3.100.   The transformation of Bahrain 's vibrant FinTech ecosystem has been driven by unmatched 
regulatory reform, paving the way for emerging industries to establish themselves, including:  
a) CRYPTO -Asset Platform Operators (CPO), which includes rigorous customer background 
checks, governance standards and controls on cybersecurity risks, will serve Bahrain 
and its investors well as they capitali ze on a rapidly evolving industry . 
b) The Central Bank of Bahrain (CBB) furthered The Kingdom's reputation as the region's 
leading testbed for innovative regulation with the launch of new cryptocurrency laws, 
paving the way for the Middle East's first fully licensed exchange, Rain. 
Insurance -Aggregators Rules, which is an important step to transforming Bahrain's 
insurance market by the CBB. The new framework will open -up new opportunities within 
"InsureTech", a technology led evolution of the sector that is rapidly gathering 
momentum globally, giving customers the flexibility to review quote s from several 
brokers under a single electronic platform.  The CBB issued new Rules on open banking 
requirements under the General Requirements Module with the objective of supporting 
Bahrain's role as a global fintech hub. Accordingly, the Banking Supervi sion Directorates 
in cooperation with the Fintech and Innovation Unit at CBB continued their close 
monitoring of the industry's adoption and application of open banking practices, while 
advising licensees with unsatisfactory track record to enhance their c ompliance with 
the same.  
3.101.   The FinTech & Innovation Unit at the Central Bank of Bahrain, in partnership with Fintech 
Galaxy, launched a beta version of FinHub 973 in October 2020, which will operate as Bahrain 's 
central digital lab, overseen by the CBB. The digital lab will enable financial institutions to connect 
 
2 https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=14320 . 
3 https://www.legalaffairs .gov.bh/Media/LegalPDF/K0120.pdf . 
4 https://www.legalaffairs.gov.bh/LegislationSearchDetails.aspx?id=14594 . 
5 https://www.legalaffairs.gov.bh/Media/LegalPDF/K0120.pdf . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  with fintechs from all over the world through open APIs, where companies will be able to test 
innovative solutions through a centralized marketplace.  
3.102.   Due to the agile governmental regulatory framewo rk and its recent reforms, ABC Bank 
launched "ila" its digital, mobile -only bank in Bahrain, the latest in a series of initiatives to promote 
Bahrain as a FinTech hub for the region. The bank uses an instant virtual card for online transactions, 
offering f lexible funding options, in -app card controls and accounts that allow the customer to store 
money in foreign currency. The Bank employs the latest AI technology to best answer customer 
queries and one of its most innovative features is perhaps the first th at can be enjoyed: opening an 
account takes just two minutes and requires nothing more than two IDs and a selfie.  
3.103.   The Ministry of Industry, Commerce and Tourism launched the National eCommerce Strategy 
2019-2022   which aims to create an eCommerce ecosystem striving to make the Kingdom as a 
regional eCommerce preferred centre, through developing and streamlining regulatory policies and 
frameworks, improving consumer confidence in eCommerce and supporting SMEs via a range of 
initiatives aimed to achieve the fo llowing:  
a) Regulating and fostering eCommerce in the Kingdom of Bahrain . 
b) Elevating the level of eCommerce standards . 
c) Empowering SMEs . 
d) Supporting the local market by attracting international companies in eCommerce . 
e) Boosting Bahrain exports competitiveness . 
3.104.   Given the Kingdom of Bahrain 's digital development and the availability of a secure and 
strong infrastructure in the field of communications and information technology, e -commerce has 
become increasingly popular at a rapid pace and has bro ught about a remarkable leap in electronic 
stores in the Kingdom of Bahrain, where the percentage of e -commerce is expected to grow to higher 
levels by the year 2022, an increase of 16.4%, globally.  
3.15  Encouraging Inward investment  
3.105.   The Government of Bahrain h as adopted a strategic plan to develop six key economic 
sectors, namely financial services, information and communication technology, industry, logistics, 
tourism, and oil. The Economic Development Board has enhanced engagement with investors at 
home and a broad by highlighting the investment opportunities offered by the Kingdom in these 
areas. As a result, the volume of inward foreign direct investment into the Kingdom of Bahrain 
reached USD 31.7 billion while flows about USD 1 billion in 2020.  
3.106.   A number of  initiatives has been implemented to increase the volume of foreign and local 
investments and create job opportunities: The Economic Development Board continues to target 
international markets, operating through more than 22 global offices. The board 's efforts contributed 
to an increase of compound annual growth rate of 3.6% in foreign direct investment between 2010 
and 2020.  
3.107.   In August 2021, a decision was issued by HRH the Crown Prince and Prime Minister specifying 
the commercial activities that companies  with foreign capital may be licensed to practice in Bahrain.  
Foreign -owned companies have had access to a wide range of economic activities being permitted 
to have full ownership in 64% of economic activities. The newly issued decision liberalized 33% of 
economic activities (previously restricted to 49% foreign ownership) by allowing a higher percentage 
in foreign ownership in these activities subject to the presence of a Bahraini shareholder (percentage 
of foreign ownership is determined and agreed upon b y the shareholders). Furthermore, 100% 
foreign ownership can be granted for the majority of retail activities which mandate the presence of 
a Bahraini shareholder, subject to satisfying a set of criteria issued by the Ministerial Cabinet. Of the WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  remaining economic activities 3% restrict foreign ownership to 49%, while foreign access is 
prohibited in the other 3%.6 
3.108.   In accordance to the amendments made to the Commercial Register Law in in 2018, the 
Ministry of Industry, Commerce, and Tourism issued an order in 2018, stipulating the need for all 
registered companies (new and existing) to disclose their Ultimate Beneficiary. As such, a company 
must disclose the names of shareholders holding a 5% or more stake or interest. They should 
indicate the name of the na tural person who holds shares in the company natural person on whose 
behalf a transaction is being conducted (the final beneficiary). The step is in line with global best 
practices and aims at ensuring compliance to good governance and limiting misuse for illicit 
purposes, including money laundering (ML), bribery and corruption, insider dealings, tax fraud, 
terrorist financing (TF), and other illegal activities. The misuse of corporate vehicles could be 
significantly reduced if information regarding both th e legal owner and the beneficial owner, the 
source of the corporate vehicle 's assets, and its activities were readily available to the authorities.  
3.109.   Measures were implemented to streamline visa procedures, aimed at increasing tourism and 
business activitie s. Currently, more than 121 nationalities are able to obtain an electronic visa, with 
68 nationalities able to obtain a visa on arrival.  
3.110.   A national strategy to revive the pearling industry was launched to strengthen and capitali ze 
on Bahrain 's historic st atus as a global pearling centre, providing the necessary services and 
infrastructure to encourage pearl diving trips for locals and tourists. The strategy also established 
the Bahrain Institute for Pearls and Gemstones (DANAT), which aims to serve as an i nternational 
hub for gemological research and expertise.  
3.111.   "Start Up Bahrain " was launched in 2016, with the aim to stimulate and encourage 
entrepreneurial culture in the Kingdom. The initiative focuses on six pillars: the start -up community, 
incubators and  accelerators, finance, education, regulation, and corporate partnership.  
3.112.   A comprehensive strategy for the development of the logistics sector was implemented to 
ensure Bahrain capitali zes on its strategic location as a logistics hub for the region.  
3.113.   To ac hieve that aim the legislative system got Updated including introduction of a new law 
for the maritime sector in line with national and international requirements. Taking the necessary 
procedures to join the international and regional conventions and treat ies related to the maritime 
sector and the port sector, a nd introducing a manual of rules and regulations related to the 
management of the Bahrain Logistics Zone . 
3.114.   To further upgrade the services provided at Khalifa Bin Salman Port, private berths, marine 
navigation and the Bahrain Logistics Zone, the performance of the company operating the Khalifa 
Bin Salman was reviewed and evaluated to provide high quality port services. The single window 
system was applied at Khalifa Bin Salman Port. Also, the ship traf fic management system and control 
tower operations got developed and updated. Authorities continuously kept reviewing the tariffs of 
private ports and berths and ensuring their application, in order to  enhance competitiveness at the 
regional level.  
3.115.   Development of the infrastructure, logistics and port facilities included deepening the main 
shipping channel by the end of 2016. Building special warehouses in cooperation with the private 
sector in the logi stics area. Developing the Bahrain Logistics Zone gate and constructing the Security 
and Customs building.  
3.116.   Bahrain hosted the first Gulf Gateway  Investment forum in 2018, which highlighted 
significant investment opportunities in vital economic sectors. The  inaugural event was attended by 
more than 850 international investors, business leaders and public sector officials from more than 
40 countries and showcased USD 26 billion worth of investment projects.  
3.117.   Several projects were also discussed at the "Peace to Prosperity " Workshop that was held in 
Bahrain in 2019 which focused on the role of the private sector in securing the economic outlook of 
the Middle East with panels and conversations on some key topics including infrastructure 
 
6 https://www.legalaffairs.gov.bh/Media/LegalPDF/RCAB4021.pdf . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  development, supporting t he entrepreneurial ecosystem, the importance of women 's empowerment, 
and the need for workforce development.  
3.118.   Furthermore, Bahrain International Airport 's USD  1.1 billion new passenger terminal began 
operations in January 2021 – marking a new era for the Ki ngdom of Bahrain 's aviation sector. At 
207,000 square metres in size, it is roughly quadruple the size of the old terminal. The new, 
expanded, airport will have the capacity for handling about 14 million passengers per year.  
3.119.   According to the provisional re sults of the 2020 Foreign Direct Investment survey issued by 
the Information and eGovernment Authority and conducted in collaboration with the Central Bank 
of Bahrain (CBB) and the Economic Development Board (EDB), the inflows of foreign direct 
investment to Bahrain by end of 2020 amounted to about USD 1 ,002.83  million , increasing the value 
of the stocks to USD 31.57  billion  by end of 2020. On the other hand, flows decreased during 
Q4 2020, by 1.7% compared to Q3 2020. In terms of stocks, the financial and insurance activities 
dominate with about USD 20 ,724.60  million , a decrease of 3.3% compared to Q3 2020, followed by 
manufacturing sector stocks which amounted to USD 4 ,324.37  million , an increase of 0.5% 
compared to Q3 2020. Kuwait remains the biggest cont ributor in term of stocks with 28.1% of total. 
FDI inflows during 2020 were dominated mostly by professional, scientific, and technical activities 
(USD 981.87  million ), construction (USD 393.70  million ), and the wholesale and retail sectors 
(USD  369.83  million). Foreign investment from Luxembourg constituted 65.6%, or 
USD 658.47  million , of the total inflows, followed by the Cayman Islands with USD 247.52  million  
(24.6%), and India with USD 181.99  million  (18.1%).  
3.120.   Bahrain was named  Global Best to Invest Per  Capita  in the Mac Conway Awards 2016, 2017 
and 2018. Conway 's Best to Invest rankings are determined by the level of capital investment in 
each country, along with performance on key international indices published by organi zations such 
as the World Bank,  WEF and UNDP. The rankings also saw EDB included in the list of  Top Investment 
Promotion Agencies (IPAs)  for 2018 – one of only four agencies from the region. Selection criteria 
included access to recent investors, investor confidentiality and after -care services. This recognition 
reflects Bahrain 's outstanding FDI performance.  FDI grew by 114% in 2017, marking the highest 
growth rate in the GCC, and a testament to the bold reforms underway to continue leading the pack 
as an investment destination.  
3.121.   Bahrain  has started the economic transformation since the sixties of the last century by 
focusing on key growth sectors and opening them up to competition. The result is that Bahrain is 
now the region 's most diversified economy, with non -oil sectors contributing 81.4% of GDP. At the 
heart of that success is the understanding that it takes a unified effort by Government, in dialogue 
with business, to create an environment in which wealth creators can thrive. We call it our  Team 
Bahrain  approach. Team Bahrain is about Bahrain 's agile Government  working together and with the 
private sector to create bespoke solutions for investors and entrepreneurs looking to base their 
activities in the Kingdom.  
3.122.   The Team Bahrain approach applies whether it 's a large multinational looking to invest or a 
startup with a bold idea needing a supportive environment. Amazon Web Services ' (AWS) decision 
last year to  base its first Middle East region in Bahrain  was evidence of the Team Bahrain philosophy 
in action. The Kingdom 's business -centred approach and ability to make things happen – including 
the successful introduction of a Cloud First Policy across government – were decisive in AWS 's 
landmark investment, which will deliver enormous benefits to technology - and data -driven 
businesses across the region. Similarly, numerous branches of the Government worked successfully 
together to ensure that Mondelez was able to  establish its sixth global mega -plant in Bahrain  – 
leading to the adoption of their slogan "Ocean to Oreos ". The USD  90 milli on, 250,000 square metre 
'factory of the future ' has a capacity of nearly 45,000 ton nes per year and serves as a hub for exports 
from Bahrain to the World.  
3.16  Importance of Intellectual Property Rights  
3.123.   Bahrain is a Member State Country of several Internationa l IPR's treaties and conventions, 
which administrated by WIPO and WTO International Organizations. Also, Bahrain is continuing to 
apply, enforce and administrate IP national laws that keep pace with IPR 's international treaties and 
promote Intellectual Pro perty Protections to nationals, inventors, entities, SMEs, and entrepreneurs 
in Bahrain 's local markets.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  3.124.   In 2020, the Kingdom of Bahrain ranks 79th among the 131 economies featured in the Global 
Innovation Index (GII 2020) on innovation capabilities. Ther efore, Bahrain aims to move forward 
with policies and reforms that focus on utilizing intellectual property rights that enhance the 
environment for a focused knowledge -based economy which relies on innovative markets and 
creative outputs.  
3.125.   The Ministry of Industry, Commerce and Tourism during the period 2020 -21, applied several 
measures to mitigate the impact of COVID -19 on the services for IP rights and enforcement of these 
IP rights, such impact that can results unprecedented closures and quarantines, which consequently 
may affect the filing, applications proceedings, statutory, court -imposed deadlines relating to 
intellectual property rights. These measures include shifting the applications of patents, designs, 
trademarks, and infringement s complaints to online portal environments.  
3.126.   The Ministry of Industry, Commerce and Tourism provide intensive efforts for the digital 
transformation of governmental services and as part of these intensive efforts, shifting all IP services 
to an online port al environment in the year 2020. In such steps, Bahrain 's Industrial Property Rights 
"IPR" competent authority worked and manage an online shifting project for IPR services in 
cooperation with the WIPO organization and e -commerce government authority.  
3.127.   Bahrain has focused on education and awareness of industrial property rights to public and 
private sectors for the past years. Bahrain applies several efforts on the scope of the understanding 
of the importance of Industrial property rights. The IPR competent authority in the Ministry of 
Industry, Commerce, & Tourism in Bahrain adopt and continue providing lectures, seminars, 
trainings, and workshops for the students, inventors, trade entities, SMEs, and entrepreneurs.  
3.128.   Bahrain aims to enhance the national intel lectual property laws to keep pace with the cycle 
of emerging technologies and raising the base of innovation in different sectors. These initiatives of 
enhancing IP national laws are in progress. The last updates are on the scope of trademarks: In 
2016, t he Government implemented the Trademark Law of the Gulf Cooperation Council States 
(No. 6 of 2014), which stipulates a set of provisions that apply uniformly across the GCC regarding 
the prosecution and enforcement of trademark rights.  
3.129.   Furthermore, in the  scope of Patents, in 2018, the Government implemented the Decision 
(No. 101 of 2018) Issuing the Executive Regulations for Law No. 1 of 2004 Concerning Patents and 
Utility Models related to implement regulations for Patent and utility models. Also, the Go vernment 
implemented Decision No. 102 of 2018 determining the categories of fees payable for the registration 
of patents and utility models related to patents and utility models registration official fees.  
3.130.   Bahrain as a member State, based on Bahrain 's IP n ational laws and civil law, the national 
judicial authorities adopt effective provisional measures against infringements of Intellectual 
Property rights that include fair and equitable civil and administrative procedures. The Ministry of 
Industry, Commerce  and Tourism in Bahrain established Trade Inspection Directorate specialize in 
the inspections of trade violations in the local market. Accordingly, Bahrain expands its efforts 
against trade violations and IP infringements against trademarks, patents, and industrial designs in 
local markets.  
3.17  Skilled Human Resource Development  
3.131.   Bahrain in 2015, under the guidance of the His Royal Highness Crown Prince, Deputy 
Supreme Commander and Prime Minister, started a fellowship programme meant to further 
bolstering nati onal skills and capabilities to support the Kingdom's programme of sustainable 
development. The significant amount of applications to the fellowship programme reflected the 
commitment of Bahraini youth to further develop their skill sets and to capitali ze on opportunities 
that facilitate the development of their performance. The fellowship programme became at the 
forefront of government development programmes and contributes to increasing the proficiency of 
the national workforce through improving the leade rship and analytical skills of the fellows.  
3.132.   Now Bahrain is at the sixth intake of the Prime Minister 's Fellowship Programme, which 
highlights the importance of investing in the Kingdom 's citizens to secure sustainable economic 
development. The youth of Bah rain play a significant role towards reali zing the goals of the 
Kingdom 's comprehensive development. Advancing the capabilities of government employees is a WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  central goal that will be continued throughout all strategic development plans in Bahrain. The 
achievements of Bahrainis across various government agencies became visible, and support will 
continue to be provided to further enhance the capabilities of Bahr ainis, which contribute towards 
the Government 's overall development.  
3.133.   Participants are selected following a rigorous evaluation process and take part in a yearlong 
program me, which aims to further hone their professional development and leadership skills a cross 
areas of public service. the Fellowship 's administrators are committed to moderni ze the program me's 
initiatives and ensure the returning fellows apply the knowledge they have retained during the 
program upon their return to their workplaces.  
4  GROWTH S ECTORS  
4.1  Economy  
4.1.  The structure of the Bahraini economy has been transformed by a rapid process of economic 
diversification since the turn of the century. While the share of the hydrocarbons sector (crude oil 
and natural gas) more than halved in relative term s from 43.6% to 18.6% of GDP between 2000 
and 2020, all other sectors with the exception of real estate have shown an increasing contribution 
to Bahrain's GDP.  
4.2.  In terms of each sector 's contribution to GDP during 2020, the Financial Services sector remain s 
the largest non -oil sector, contributing 17.9% to the GDP, followed by the manufacturing sector 
(14.3%) and the government services sector (12.9%).  
Table 1: Compound annual growth rate GDP , 2010 -20 
 
4.3.  According to preliminary GDP results for Q1 2021, Bahrain 's economy witnessed growth in 
nominal terms of 0.3% on an annual basis and 1.5% on a quarterly basis, while real GDP registered 
a drop of 2.1% on an annual basis and remained consistent on a quarterly basis with a slight drop 
of 0.1% compared to the previo us quarter . Sector performance in Q1 2021 reflected signs of 
recovery with the ongoing efforts to counter the effects of the pandemic, especially with the 
extension of various support initiatives under the Stimulus Package and the successful vaccination 
campaign run by the Kingdom. The transport and communications sector led the way in terms of 
quarterly growth, with a 6.5% nominal growth and 8.2% real growth. By contrast, the hotels and 
restaurants sector is still hampered by the effects of the pandemic re gistering the biggest annually 
decline.  
4.2  Financial services  
4.4.  The financial services sector is one of Bahrain 's strongest assets. Not only does it contribute 
heavily to the country 's GDP, but it is also one of the most important employers in the economy, 
providing around 13,737 jobs, with the highest average wage of any sector.  
4.5.  In 2020, the financial sector represented 17.9% of real GDP. There is a growing market demand 
for financial services and products, particularly for Islamic financial instruments. The Ba hrain   Year 2010  Year 2020  CAGR %  2010 share 
of GDP (%)  2020 share 
of GDP (%)  
Real GDP (USD  million)  25,713.28  32,793.76  2.5%  100.0%  100.0%  
Crude oil and natural gas 5,429.47  6,105.71  1.2%  21.1%  18.6%  
Non-oil sector 20,283.81  26,688.05  2.8%  78.9%  81.4%  
Manufacturing   3,714.18  4,669.26  2.3%  14.5%  14.3%  
Construction   1,914.30  2,491.47  2.7%  7.4%  7.6%  
Trade   1,201.86  1,418.10  1.7%  4.7%  4.3%  
Hotel & Rest.   693.05  482.71  -3.6%  2.7%  1.5%  
Trans. & Comm.  1,720.98  1,809.99  0.5%  6.7%  5.5%  
Social & Pers. Serv.  1,176.37  1,891.14  4.9%  4.6%  5.8%  
Real Est. & Bus. Act.   1,591.47  1,739.95  0.9%  6.2%  5.3%  
Finance  4,511.50  5,875.43  2.7%  17.5%  17.9%  
Government  2,697.71  4,218.10  4.6%  10.5%  12.9%  
Other  1,052.71  2,081.52  7.1%  4.1%  6.3%  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  Financial Harbour and the Bahrain World Trade Centre, and Bahrain Bay along are some of the 
witnessed projects that have successfully developed since 2005.  
4.6.  Bahrain is currently home to 370 financial institutions (as of December 2020), with total 
Banking Assets of USD  207.4 billion at December 2020.  
4.7.  Bahrain has become host to the largest number of Islamic banks in the world, as well as a 
growing support industry. There are 46 Islamic financial institutions, which includes banks, insurance 
companies an d investment funds.  
4.8.  Insurance is a well -developed industry in Bahrain (11 foreign insurance firms, 22 locally 
incorporated insurance firms.), and has an important growth potential.  
4.9.  As part of the Central Bank of Bahrain 's ongoing initiatives towards financ ial digital 
transformation in the Kingdom and developments in digital financial services, the CBB established a 
dedicated Fintech & Innovation Unit to ensure that best services are provided to individual and 
corporate customers in the financial services se ctor by encouraging an agile regulatory framework 
that fosters FinTech and innovation.  
4.10.  This follows the CBB 's other initiatives, which include introducing a Regulatory Sandbox that 
will allow startups, FinTech firms and licensees to provide innovative bank ing and financial solutions, 
in addition to the issuance of a host of new regulations such as but not limited to, crowdfunding 
regulations, open banking regulations, cryptoasset  regulations for both conventional and 
Sharia -compliant services.  
4.11.  The CBB 's FinTech & Innovation Unit is also responsible for the approval process to participate 
in the Regulatory Sandbox, supervision of authorized Sandbox companies ' testing progress, 
monitoring technical and regulatory developments in the FinTech field, both regionally and 
internationally, to lead on strategic FinTech initiatives and to work closely with all stakeholders within 
the FinTech ecosystem in the Kingdom and to collaborate with r egulators regionally and 
internationally to share experiences and learnings and to embark on cross -border trials.  
4.12.  FinHub 973, by the Central Bank of Bahrain (CBB), is the region 's first cross -border, digital 
innovation platform that connects and facilitate s collaboration between financial institutions and 
FinTech 's under the supervision of the central bank. Powered by Fintech Galaxy, FinHub 973 enables 
local and global fintech 's to connect seamlessly with Bahrain 's financial institutions for exploring, 
testing, and prototyping on a centralised digital sandbox. FinHub973 integrates the technical testing 
and validation of digital solutions with the regulatory framework of the CBB. The platform also 
showcases qualified FinTech 's for collaboration, procurement, partnerships, and investment within 
Bahrain 's ecosystem, while also interfacing with regulatory authorities to facilitate quicker and easier 
regulatory testing and supporting business scalability.  
4.13.  The Global Financial Innovation Network (GFIN) was formerly  launched in January 2019 by 
an international group of financial regulators and related organisations, including the Financial 
Conduct Authority (FCA). This built on the FCA 's early 2018 proposal to create a global sandbox. 
The GFIN is a network of 60 orga nizations committed to supporting financial innovation in the 
interests of consumers. The CBB is a member of the 'Co -ordination Group' within GFIN, which is the 
highest tier of membership.  
4.14.  The GFIN seeks to provide a more efficient way for innovative firms  to interact with regulators, 
helping them navigate between countries as they look to scale new ideas. This includes a pilot for 
firms wishing to test innovative products, services, or business models across more than 
one jurisdiction. It also aims to crea te a new framework for cooperation between financial services 
regulators on innovation related topics, sharing different experiences and approaches.  
4.15.  Bahrain is recognized as the global leader in Islamic finance, ranking 1st in MENA and 2nd 
globally for Isl amic finance development (ICD 2019). We set the benchmark early for Islamic banking 
regulation by establishing the Bahrain Islamic Bank in 1978, and have nurtured the concepts, rules, 
and standards of Shari 'a banking compliance in Islamic banks ever since.  In this way, we are able 
to cater to the needs of both mainstream Islamic finance and the new breed of FinTech entrepreneurs WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  who offer Shari 'a-compliant products. Our continued focus on innovation and customer service has 
made Bahrain a top destination fo r Islamic finance development.  
4.16.  Bahrain has the highest concentration of Islamic finance institutions in the region: 
10 wholesale Islamic banks and 6 retail Islamic banks. A highly connected ecosystem, our expertise 
spans every area of Islamic financing, fr om asset management and Sukuk issuance to 
Shari'a-compliant insurance and reinsurance.  
4.17.  Bahrain, currently home to 6 Takaful firms and 2 Retakaful firms, is the ideal jurisdiction for 
the industry. The Central Bank of Bahrain has also implemented the new Ta kaful model which 
enhances solvency status assessment of these firms.   Total Islamic banking assets held in Bahrain 
stood at USD 31.6  billion  in 2020, making it one of the region 's largest Islamic finance and banking 
markets. The Central Bank of Bahrain is continuously implementing new initiatives and policy tools 
to further develop Bahrain 's standing in Islamic finance, most recently: a new Takaful model and a 
new Shari 'a-compliant Wakalah investment tool.  
4.18.  Bahrain is home to several international financial institutions, for example American Express 
Middle East, HSBC, Citibank, BNP Paribas, Standard Chartered, State Bank of India, among others.  
4.19.  FinTech, the intersection of finance and technology, is experiencing unprecedented industry 
growth across the globe,  none more so than in the Middle East. At the heart of this digital 
transformation, Bahrain is continually evolving its long -established financial services ecosystem to 
unlock opportunities for FinTech ventures and global financial institutions with a digi tal agenda. 
Bahrain is home to MENA 's leading FinTech hub, Bahrain FinTech Bay, which provides facilities 
including dedicated coworking, innovation labs, advisory services, and collaboration platforms.  
4.20.  The transformation of Bahrain 's FinTech ecosystem has been driven by unmatched regulatory 
reform, paving the way for emerging industries including crowdfunding, InsurTech, robo -advice and 
crypto -asset platforms. The Central Bank of Bahrain is continuously reforming policies to enhance 
the activity, funding, q uality, and competitiveness of financial sector services.  
4.21.  In 2016, The Central Bank of Bahrain pioneered a regulatory sandbox that allows FinTech 
firms and digitally focused financial institutions around the world to test new products and services 
in Bahra in. Since its inception, the sandbox has nurtured a number of innovative FinTech businesses, 
including  the Middle East 's first licensed cryptocurrency exchange Rain.  
4.22.  The Central Bank of Bahrain introduced crowdfunding regulation to enable the establishment 
and growth of equity, debt -based and  Shariah -compliant  crowdfunding activity.  
4.23.  Bahrain 's highly connected economy and young, digitally a dept population make it the perfect 
testbed for financial tech startups and scale -ups to launch, gain funding and expand into regional 
and even global markets.  
4.3  Customs  
4.24.  The vital role played by Customs Affairs at the Ministry of Interior in controlling and managing 
customs outlets is considered one of the mainstays in facilitating international trade, protecting 
society and preventing smuggling in its various forms, and an essential supporter in the economy 
by supplementing the state budget with revenues, es pecially after the implementation of the 
selective tax and the value -added tax, which increased the duties of Customs Affairs in the collection 
of these taxes.  
4.25.  The local, regional, and international developments make it imperative for Customs Affairs to 
take into account in its procedures these developments within a strategic plan capable of dealing 
with them through modern technologies and optimal use of resources to move through them at a 
steady pace towards progress and prosperity. Therefore, the strate gy of Customs Affairs 2017 -2020 
was a confident start for the better.  
4.26.  This strategy contributed to the provision and development of distinguished customs services 
at the regional level by facilitating the movement of legitimate travel and trade and enhanc ing the 
security of the Kingdom of Bahrain, where Customs Affairs was keen in its objectives to develop WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  institutional work and enhance the resources of Customs Affairs and partnership with Customers 
and partners to keep pace with the requirements of custom s work.  
4.27.  Given the importance of continuing the development and in order for Customs Affairs to be 
able to establish an integrated institution that works at all levels to carry out the tasks, it considered 
in its strategy 2021 -2024 continuity to face the bi ggest challenge in how to implement the concepts 
of facilitating the movement of legitimate travel and trade on the one hand, and enhancing security 
and protecting Society on the other hand, as it was keen to continue work on removing barriers and 
simplify ing and developing customs security procedures through "Align, Reinforcement, and Build. "  
4.28.  The 2021 -2024 strategy emphasizes the consistency of the work of customs affairs with 
Bahrain Economic Vision 2030 the foundations of government work and the policie s of the World 
Customs Organization, preserving the gains and achievements made by customs affairs, and 
continuing to build and invest in human and technical resources as they are the basis of work to 
keep pace with developments and continue implementing d uties and tasks.  
4.29.  In order to further facilitate trade, Customs Affairs launched the "Authorized Economic 
Operator (AEO) " program me whereby a certificate is granted by Customs Affairs to the entities that 
meet the conditions and requirements for this program me in order to conforms to international 
customs regulations or to equivalent adopted standards of supply chain security. The eco nomic 
operator includes importers, exporters, manufacturers, brokers, transportation companies, ports, 
airports, ports operators, warehouses and distributors.7 
4.30.  Implementing Customs pre -clearance at the border to save time through allowing importers 
to com plete the customs procedures and the payments of customs duties and taxes prior to the 
arrival of the goods and speed up the release of the goods within a short time.  
4.31.  Signing more than 10 Service level agreements (SLA's ) with other government authorities 
(OGAs) to expedite clearance aims of developing the efficacy services provided to both parties and 
the clients, by clarifying the terms and conditions of exchanging responsibilities and experiences on 
customs laws and other relevant laws.  
4.4  Manufacturing  
4.32.  Bahrain have worked hard to set the ground for the development of its industrial sector, 
providing a lot of services and incentives to attract industries to set up.  
4.33.  Providing a ONE -STOP -SHOP electronic services to industrial licensee which enables them to 
get the approvals of Ministry of Industry, Commerce and Tourism (MOICT) along with other entities 
necessary approvals. Complete the review of the criteria for granting industrial licen ces within the 
Common Regularity Industrial Law and focusing on the utiliza tion of machinery and complete 
production lines with minimal human interference.  
4.34.  Bahrain launched the Industrial Services System ( www.Industry.bh ) in 2016 which provides 
the main industrial services for the industrial  licensee. It has facilitated providing the services to 
them and increased the customer satisfaction.  
4.35.  Continuous enhancements and development of the Industrial Services system to enable the 
investors to complete and process all related operations. Some ind ustrial establishments have been 
expanding by increasing their production capacity and introducing new lines of productions through 
their applications to add new products and increase the production capacity.  
4.36.  MOICT has granted a number of industrial licen ces to investors in aluminium, food and 
pharmaceutical sectors. During COVID -19 pandemic, new licen ces and approvals for expansion has 
been granted to investors to produce essential products such as hand sanitizers and masks.  
4.37.  In order to enhance competitive ness of national industry, contribute to the growth of national 
export, duty exemption is granted to all industries having industrial licen ce from MOICT and it covers 
all industrial inputs used for their immediate industrial production such as machineries, equipment 's, 
 
7 https://www.bahraincustoms.gov.bh/en/authorized -economic -operator . WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  parts, raw materials, semi -manufactured martials, finished materials and packing materials, in 
accordance to the GCC Law of the Amended Rules for Exempting Industry Inputs from customs 
duties in the GCC countries.  
4.38.  Bahrain Launched  and implemented "Made in Bahrain " initiative in early 2020, which is a 
verified trademark that is granted to national licensed and registered factories wishing to obtain it 
with condition of the local content of its products is not less than 35%, to stimu lating the Bahraini 
industry by supporting national products and to enhance consumer confidence in the national 
product.  
4.39.  "In line with the Government of Bahrain 's efforts to combat the coronavirus pandemic, MOICT 
has licensed number of factories to manufac ture essential health and safety products such as hand 
sanitizers and masks. That is to ensure that the market is supplied with enough quantities that 
enables citizens and residents to take all precautionary measures to prevent the spread of the virus. 
In addition, duty exemptions were granted to all licensed factories on importing machineries, 
equipment 's, parts, raw materials, semi -manufactured martials, finished materials and packing 
materials, as well as exempting all businesses from industrial land ren tal fees for three months from 
April 2020, and renewing it for the most effected sectors for another three months starting 
July 2021. " 
4.5  Education  
4.40.  Investment in education is growing quickly in Bahrain, making it a valuable opportunity for 
international educa tion companies looking to tap into the GCC market. The Kingdom has an 
unrivalled commitment to educational excellence, with the region 's longest -established education 
system which celebrated its century in 2019. Combined with our dynamic economy and pro -business 
stance, the Kingdom offers significant opportunities for investing in education, particularly in 
specialised higher education and executive training.  
4.41.  Private provision of education has grown rapidly. Employment in private sector education 
increased by 20% between 2008 -2012, and real output of the sector increased by 69% over the 
same period. While government output still constitutes the majority of real GDP output, private 
sector share of education service output has risen from 36% to 42% in the five -year period.  
4.42.  Education in Bahrain is in high demand and requires further investments and resources to 
support its growth. In Bahrain, education investors and providers have access to high -quality 
opportunities, both domestically and regionally, and can al so benefit from savings when it comes to 
taxes. The education sector is exempt from value added tax (VAT).  
4.6  Healthcare  
4.43.  Aligned with Economic Vision 2030 of his Majesty the King, the Ministry of Health (MOH) is 
committed to work as unified governmental syste m to ensure Sustainability, Competitiveness, and 
fairness in providing health care services. Ministry of Health adopted Fourth Industrial Revolution 
technologies and opened the way for investments in the health sector.  
4.44.  MOH managed through these factors to set new health strategies and policies to keep up with 
latest global technologies, which helped in the development of health and therapeutic services by 
the serious follow -up of latest technologies in medical device industry. As it worked through 2030 
Economic Vision to adopt developed E -Systems to enhance the performance of medical and nursing 
professionals and raise the quality of health services provided to patients.  
4.45.  The commitment to 2030 economic vision is evident in the private sector and experienced 
medical corporations inside and outside the kingdom, as MOH is keen on the involvement of private 
sector in health field through its donations and provision of high -tech medical devices in addition to 
the establishment of major health projects to strengthe n the community partnership between the 
two sectors.  
4.46.  National Health Regulatory Authority (NHRA) launched an online professional licensing and 
registration system as part of its continued efforts to streamline its day -to-day process.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  4.47.  HEALTH CAPITA: The b iggest impact of digital transformation in the healthcare sector can be 
seen in Health Capita. This comprehensive healthcare platform uses cutting edge technology to shift 
healthcare services from a curative, to a more preventative, mindset. This Bahrain -based company 
began with a focus on the local market but has already expanded to Saudi Arabia, Kuwait, and 
Malaysia. Health Capita uses Cloud -based medical records with separate patient/ physician access 
and scheduling technologies and has put diet consulta tions in place to tackle lifestyle related 
diseases.  
4.48.  BAHRAIN GENOME PROJECT: The digital transformation of the Healthcare sector has acted as 
a springboard in the development of life -saving advances. The Bahrain Genome Project is a Ministry 
of Health initi ative born from a clear goal: to elevate Bahrain 's medical understanding by establishing 
a specialist, world -class centre for genetic analysis in the Kingdom. The centre will use cutting edge 
scientific innovations to prevent genetic, intractable, and dead ly diseases. A database analysing the 
DNA of Bahrain 's population will be set up and used for early detection and diagnosis to lower the 
risk of contracting such diseases. The centre is also working on the identification and prevention of 
genetic diseases as well as developing more effective cures.  
4.49.  Telemedicine is the practice of doctors treating their patients remotely. Technology has 
allowed physicians all over the world to diagnose and treat their patients without being physically 
present, for example vi a video conference, for a more convenient and efficient experience. Bahrain 
has implemented regulations governing the practice of telemedicine in 2019 to maintain their leading 
role in the regional healthcare industry. Doctor i, an online platform that conn ects patients and 
doctors via video calls for non -urgent medical advice, became Bahrain 's first licensed telemedicine 
platform.  
4.7  ICT 
4.50.  A compact and highly connected ecosystem brings together a diverse range of IT companies 
in Bahrain within the areas of IT s ervices, IT distribution, IT consultancy, data management systems, 
software development and customer support centres. Ranked first in MENA for ICT readiness by the 
World Economic Forum, Bahrain offers the most competitive and affordable environment for 
technology and innovation businesses in the region.  
4.51.  Cloud  traffic is growing faster in MENA than anywhere else in the world at 41% year over 
year. As  the first Gulf country to adopt a nation -wide 'cloud -first' policy, Bahrain is ideally placed to 
take advantage of the ICT opportunities this trend is creating in areas such as  business services 
outsourcing , cybersecurity , digital entertainment, gaming and e -commerce . 
4.52.  Bahrain offers internet bandwidth to connect to regional nodes in MENA, Europe, the 
Americas, Asia, and Australia. With strong market conditions created by high mobile penetration, 
the roll -out of commercial 5G and a business -friendly regulatory environment, Bahrain offers an 
ideal testbed for communication technology companies looking to take advantage of a  region 
undergoing rapid digital transformation and technological advances.  
4.53.  Bahrain provides Superior internet and networking capabilities; 4 Submarine fibr e optics 
systems, 2 Terrestrial dark fib re systems; Bahrain offers nationwide high -speed 5G network. As a 
pioneer within the region, Bahrain is ready for more ICT and communication technology companies 
and help them prosper.  
4.54.  "Telecommunication services in Bahrain generated USD  1,216.93 million in 2020 compared 
to USD 1 ,183.23 million in 2019, an increase of around 3%; Telecommunication sector revenues 
represent 3.5% of the GDP as of 2020; the proportion of mobile revenue to total retail revenue 
slightly decreased to reach 45% in 2020, compared to 4 7% in 2019 . Between 2019 and 2020 , total 
retail revenue increased by 1% while reported wholesale revenue decreased by 0.1%. Other revenue 
increased by 8% for the same period. " 
4.55.  There were 2,922 employees are working in the telecommunication sector as of 202 0. The 
sector achieves high degree of Bahraini zation, 73% of the employees in the sector are Bahrainis in 
2019. Females represent 32% of employees in the telecom sector.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  4.56.  In 2017, the Government of Bahrain contracted with Amazon Web Services (AWS) on a 
strategic level to introduce and benefit from deploying infrastructure as well as services in the AWS 
cloud. In 2019, AWS Middle East (Bahrain) Region was launched consisting of three Availability 
Zones in order to attract more public/private customers from th e GCC region, to enable developers, 
startups, and enterprises, as well as government, education, and nonprofit organizations, to run 
applications and serve end users across the Middle East with low latency. Bahrain 's sovereign wealth 
fund "Mumtalakat " has become the first government organisation to migrate cloud services to AWS 's 
new datacent res in the country.  
4.8  Real Estate  
4.57.  The Real Estate Regulatory Authority (RERA) was officially formed with the issuance of Royal 
Decree 69/2017. RERA will deliver on the vi sion of His Royal Highness Prince Salman bin Hamad bin 
Isa Al Khalifa the Crown Prince and Prime Minister to deliver effective and fair regulation in the real 
estate market, promote economic growth and investment in Bahrain.  
4.58.  The central role of RERA is to ensure that the real estate industry in Bahrain is aligned to 
international best practice standards and to deliver a professional service in a cost -effective and 
transparent manner.  
4.59.  RERA works closely with Government and industry stakeholders to oversee th e development 
of a National Real Estate Policy supported by a national five -year sector strategy and plan to bolster 
the real estate sector, improve consumer protection and streamline real estate services.  
4.60.  Regulation in the real estate sector reflects the high priority the Government is placing on the 
real estate sector in Bahrain. Therefore Law No. 27 of 2017 with respect to regulation of the real 
estate sector in Bahrain will help deliver on a national plan for the organization of the sector through 
the development of a general strategy and policy to achieve the objectives of RERA.  The Law No . 27 
of 2017 officially came into effect on 1 March  2018.  
4.61.  To develop a safe, transparent, and sustainable real estate sector, in a way that encourages 
investment attra ction and the development of innovative real estate projects, enhances the 
professional competence of real estate professionals, and seeks to preserve the rights of all 
stakeholders in light of these changes and current challenges.  
4.62.  RERA prepared the "Natio nal Real Estate Sector Plan 2021 -2024", which includes many 
important elements as it consists of 5 pillars, 17 priorities for actions and 21 initiatives that will be 
implemented over a period of four years.  
4.63.  Noting that the five pillars are (leading in serv ice innovation - supporting and enabling real 
estate development projects and launching incentive packages for real estate developers - providing 
accurate, updated, and reliable information - achieving sustainability - promoting disclosure and 
transparency ). 
4.9  Tourism  
4.64.  Bahrain aims to strengthen and develop regional and international tourism through promoting 
the uniqueness of the Kingdom of Bahrain with offer both rich historical offerings and modern city 
life.  
4.65.  A new tourism strategy in 2015 was launched by the Bahrain Tourism and Exhibition Authority 
(BTEA) aimed at developing tourist attractions, increasing the number of events and activities, 
easing access to Bahrain through all entry ports (sea, land, and air), and providing quality 
accommodation for tour ists. It was termed as the "4A's" as it was made up of four pillars: Awareness, 
Attraction, Access, Accommodations , and was launched with the slogan "BAHRAIN, OURS YOURS ". 
By the end of 2019 tourism contribution to GDP rose from (3.4%) (2015) to (6.9%) . 
4.66.  Construction work of the BTEA 's new exhibition and convention cent re is currently under way. 
The new cent re is located next to Bahrain International Circuit where Formula -1 races are hosted 
and is currently being built on a 309,000 square meter of land, wher e the building will be constructed 
on 149,000 square meters of the total land area. The exhibition and convention cent re will include WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  10 exhibition halls totaling  95,000 square meters equipped with the latest services necessary to host 
international events and exhibitions and the main convention cent re with an area of 4,500 m2. of 
4,500 square meters, will be equipped with the most advanced means of display, and a capacity for 
approximately 4,000 people, in addition to halls of various uses in medium and small spaces, along 
with dedicated areas for retail and events.  
5  TRADE POLICY  
5.1  Introduction  
5.1.  Being a traditional free market economy, and liberal trading country, Bahr ain maintains a 
profound interest in its trade expansion and its investment growth. Accordingly, Bahrain 's trade 
policy objectives are to ensure a fair and predictable international trading environment; allowing 
liberal access to international markets for its exports and minimize impediments to the flow of 
imports.  
5.2.  These goals are pursued through the sustained maintenance and enlargement of Bahrain 's 
adherence and engagement with its trading partners multilaterally, regionally, and bilaterally. This 
would a lso contribute to the attainment of the long -term objectives of Bahrain 's Economic Vision 
2030, which aims for attaining sustainable development by moving towards economic diversification 
to increase economic viability; raise productivity levels and enhanc e Bahraini competitiveness as a 
knowledge -based economy.  
5.3.  At a very top level we strive to achieve our business -friendly aspiration by continuously working 
to reduce red -tape and creating an environment that makes it as easy as possible to invest and grow 
your business.  
5.4.  Bahrain has a liberal business environment – that offers 100% foreign ownership, coupled with 
comparatively lower operating costs as currently the cost of running a business in Bahrain is 
approximately comparatively 30% lower than other regio nal cent res. 
5.5.  Import trade enjoys duty -free entry for basic raw materials, industrial inputs, and spare parts.  
5.6.  Bahrain 's trading environment is stable and transparent. There are no import restrictions 
except for patrimonial heritage, environmental, health or security considerations.  
5.7.  There is a continuous discussion between the different government entities and the private 
sector whereby consultations are undertaken on how to improve and develop the services provided 
to further enhance the development of Bah rain's economy which stems from the firm belief that the 
Government is a regulatory entity and that the economy is driven by the private sector.  
5.2  Bahrain and the Region  
5.2.1   GCC Membership  
5.8.  Bahrain as a member of the Cooperation Council for the Arab States of the Gulf (GCC), works 
with the rest of the GCC member countries to facilitate intra -GCC trade and investment as well as 
developing unified trade and economic related laws, most recently the GCC Unified Consumer 
Protection Law and the law amending the Law Regulating the GCC Patent Office that was approved 
by the GCC Supreme Council in its meeting in Al 'Ula in January 2021.  
5.9.  The GCC countries are evaluating the feasibility impacts of negoti ating Free Trade Agreements 
(FTA) with other countries and regions in order to finali ze the priorities of negotiations in this regard.  
5.10.  The GCC has concluded a Free Trade Agreement (FTA) with Singapore, which came into force 
on 1 of September 2013 . Bahrain and GCC signed the European Free Trade Association (EFTA), 
which c ame into force on 1 July 2015, according to Law No. (7) 2012. In active negotiations with 
6 countries for new FTA 'S. WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  5.2.2   GAFTA membership  
5.11.  Bahrain is a founding member of the Greater Arab Free Tr ade Area (GAFTA), which was signed 
on 19 February 1997 and entered into force on 1 January 1998. Currently the Arab league is in 
discussions about setting the concept of the Arab Customs Union.  
5.3  Bilaterals  
5.12.  Bahrain enjoys a number of bilateral agreements and  MOUs with brotherly and friendly 
countries including an FTA with the United States, 35 agreements for the protection and promotion 
of investment, four entered into force during the review period, 41 avoidance of double taxation 
agreements8 were also signed during the review period , along with  food security -related MOUs.  
5.13.  Additionally, there are high -level joint committees with a number of countries which facilitates 
on-going discussions between both sides on different range of subjects including the encour agement 
and facilitation of bilateral trade and investment.  
5.4  Bahrain and the WTO  
5.14.  Bahrain is a founding Member of the WTO  and is fully applying the trade facilitation agreement 
2 years ahead of the planned timeline which was notified to the Secretariat  of the WTO . 
5.15.  The Kingdom of Bahrain was one of the first member of the WTO, which ratifies the Trade 
Facilitation Agreement (TFA). Bahrain notified all the measures under category (A, B, C) to the WTO. 
Kingdom of Bahrain has notified 32 measures under Category A , 12 measures under category B, 
and 2 measures under category C.  
5.16.  Bahrain is actively participating in the various WTO negotiations and positively engages in 
discussions with the WTO Members.  
5.17.  As a small economy, Bahrain endorses the application of the Speci al and Differential 
Treatment for developing and small economy countries and values the fairness and objectivity of 
WTO's Dispute Settlement Body.  
  
 
8 Algeria, Austria, Barbados, Belarus, Belgium, Bermuda, Brunei, Bulgaria, China, Czech Republic, Egypt, 
Estonia, France, Georgia, Hungary, Iran, Ireland, Isle man, Jordan, Lebanon, Luxembourg,  Malaysia, Malta, 
Morocco, Mexico, Netherlands, Pakistan, Philippines, Republic of Korea, Seychelles, Sudan, Singapore, Sri Lanka, 
Switzerland, Syria, Thailand, Turkey, Tur kmenistan, United Kingdom, Uzbekistan, Yemen.  WT/TPR/G/ 419 • The Kingdom of Bahrain  
 
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  ANNEX I: TRADE RELATED TECHNICAL ASSISTANCE  
Bahrain's technical assistance requirements include the following areas:  
1. Enhancing Aid for Trade related technical and institutional support, within the WTO and other 
relevant international institutions and funds.  
2. Supply -chain infrastructure enhancement, and adjustment needs support.  
3. IPR institutional upgrading , and HRD.  
4. Sanitary and Phytosanitary (SPS), Technical Barriers to Trade (TBT), and Standards institutional 
upgrading, notifications, awareness and HRD.  
5. Multilateral Trade Negotiations (MTN) and FTAs Negotiating Skills upgrading, and HRD.  
6. Export promotion technical and institutional support.  
7. Trade capacity building, and competitiveness enhancement, awareness, and networking.  
8. Enhancing institutional capacity and export potential for SMEs, as well as in negotiations and 
implementation of trade in goods and services agreements.  
9. Development of competition policy and legislation . 
10. Ensuring Bahrain's participation in national, regional, and international HRD and training 
program mes for government, parliamentarians, and private sector, whether at WTO or other 
relevant agencies.  
 
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