RESTRICTED  
  
WT/TPR/S/294  
 
18 March 2014  
(14-1700)  Page: 1/78  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
KINGDOM OF BAHRAIN  
This report, prepared for the third Trade Policy Re view of the Kingdom of Bahrain, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the Kingdom of Bahrain on its 
trade policies and practices.  Any technical questions arising from this report may be addressed to: Ms Mena Hassan 
(tel.: 022 739 6522). 
 Document WT/TPR/G/294 contains the policy statement submitted by the Kingdom of Bahrain. 
 
 
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. This report 
was drafted in English. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
Economic envi ronment ...................................................................................................... 6  
Institutional framework ...................................................................................................... 6  
Trade policy instruments .................................................................................................... 6  
Sectoral policies ............................................................................................................. .. 7 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Introduction .............................................................................................................. 9  
1.2   Recent econom ic developments ................................................................................... 9  
1.2.1   Macroecono mic indica tors ........................................................................................ 9  
1.2.2   Employment ......................................................................................................... 10 
1.2.3   Balance of payments .............................................................................................. 11 
1.2.4   Fisca l position .......................................................................................................  12 
1.3   Developments in Trade .............................................................................................. 12 
1.3.1   Composit ion of trade .............................................................................................. 12 
1.3.2   Direction of trade ................................................................................................... 14 
1.4   Foreign direct investment trends ................................................................................. 14 
1.5   Outlook ................................................................................................................... 14 
2   TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES .......................................... 16  
2.1   Institutio nal framework ............................................................................................. 16 
2.2   Trade poli cy formulation ............................................................................................ 17 
2.2.1   Main trade laws ..................................................................................................... 17 
2.3   Economic and trade policy objectives ........................................................................... 17 
2.4   Trade agreements  and arrang ements .......................................................................... 18 
2.4.1   WTO ................................................................................................................... . 18 
2.4.2   Regional and bilateral agreements ............................................................................ 18 
2.4.2.1   The Gulf Co-o peration Co uncil (G CC) ..................................................................... 18 
2.4.2.2   PAFTA ...............................................................................................................  19 
2.4.2.3   United States ..................................................................................................... 19 
2.4.2.4   Singapore .......................................................................................................... 19 
2.4.2.5   Agreements not yet in force .................................................................................. 20 
2.4.3   Other agreements .................................................................................................. 20 
2.5   Trade disputes  and consul tations ................................................................................ 20 
2.5.1   Dispute settl ement in the WTO ................................................................................ 20 
2.5.2   Other ................................................................................................................. .. 20 
2.6   Investme nt regime ................................................................................................... 20 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 22  
3.1   Introduction ............................................................................................................. 22 
3.2   Measures direct ly affectin g imports ............................................................................. 22 
3.2.1   Procedures ........................................................................................................... 22 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3.2.2   Custom s valuation ................................................................................................. 23 
3.2.3   Rules of origin .......................................................................................................  23 
3.2.4   Tariffs ............................................................................................................... ... 24 
3.2.4.1   MFN a pplied tariffs .............................................................................................. 24 
3.2.4.2   Tari ff bindings .................................................................................................... 25 
3.2.4.3   Other duties and taxes ......................................................................................... 27 
3.2.4.4   Duty and tax co ncessions and exemptions .............................................................. 27 
3.2.4.5   Tariff preferences ................................................................................................ 28 
3.2.5   Import prohibitions, restrictions, an d licensing ........................................................... 29 
3.2.6   Continge ncy measures ........................................................................................... 30 
3.2.7   Governme nt procurement ....................................................................................... 30 
3.2.8   Other measures ..................................................................................................... 32 
3.3   Measures direct ly affectin g exports ............................................................................. 32 
3.3.1   Procedures ........................................................................................................... 32 
3.3.2   Export taxes,  charges and levies .............................................................................. 32 
3.3.3   Export prohibitions, restrictions and licensing ............................................................. 32 
3.3.4   Export subsidies .................................................................................................... 33 
3.3.5   Export pr ocessing zones ......................................................................................... 33 
3.3.6   Export finance, insurance and guarantees ................................................................. 33 
3.3.7   Export promotion and marketing assistance ............................................................... 34 
3.4   Measures affectin g production and trade ...................................................................... 34 
3.4.1   In centives ............................................................................................................  34 
3.4.2   Standards and othe r technical requirements .............................................................. 34 
3.4.2.1   Standards, metrolog y, testing and certification ........................................................ 34 
3.4.2.2   Sanitary and phytosanitary measures .................................................................... 37 
3.4.2.3   Marking, labelling, and packaging requirements ....................................................... 38 
3.4.3   Intellectual property rights ...................................................................................... 38 
3.4.3.1   Overview ........................................................................................................... 38 
3.4.3.2   Patents .............................................................................................................. 39 
3.4.3.3   Copyright and related rights ................................................................................. 40 
3.4.3.4   Trade marks ....................................................................................................... 41 
3.4.3.5   Industrial design and layout-designs of integrated circuits ......................................... 41 
3.4.3.6   Geograph ical indications ...................................................................................... 41 
3.4.3.7   Trade secrets ..................................................................................................... 42 
3.4.3.8   Enforcement ....................................................................................................... 42 
3.4.4   Role of state-owned enterprises and privatization ....................................................... 42 
3.4.5   Competition policy  and regulato ry issues ................................................................... 43 
4   TRADE POLICIES BY SECTOR ..................................................................................... 44  
4.1   Introduction ............................................................................................................. 44 
4.2   Agriculture ............................................................................................................. . 44 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.2.1   Policy  objectives .................................................................................................... 45 
4.3   Energy .................................................................................................................. .. 45 
4.3.1   Features ............................................................................................................... 45 
4.3.2   Petroleum ............................................................................................................. 46 
4.3.3   Na tural gas ...........................................................................................................  48 
4.3.4   Electricity and water ............................................................................................... 48 
4.4   Manuf acturi ng .......................................................................................................... 49 
4.4.1   Features ............................................................................................................... 49 
4.4.2   Policy  objectives .................................................................................................... 50 
4.4.3   Aluminium ............................................................................................................ 50 
4.4.4   Petr ochemicals ...................................................................................................... 50 
4.5   Services ................................................................................................................ .. 51 
4.5.1   Banking, finance, and insurance ............................................................................... 51 
4.5.1.1   Overview ........................................................................................................... 51 
4.5.1.2   Banking .............................................................................................................  52 
4.5.1.3   Securities ..........................................................................................................  53 
4.5.1.4   Insura nce .......................................................................................................... 55 
4.5.2   Telecommunications ............................................................................................... 57 
4.5.3   Postal  services ...................................................................................................... 58 
4.5.4   Transport .............................................................................................................  59 
4.5.4.1   Mariti me tran sport .............................................................................................. 59 
4.5.4.2   Air transport ....................................................................................................... 61 
4.5.4.3   Road and railway transport ................................................................................... 62 
4.5.5   Tourism ................................................................................................................ 63 
REFERENCES .................................................................................................................. 6 4 
5   APPENDIX  TABLES .................................................................................................... 65  
 
CHARTS 
 Chart 1.1 Share of GDP by  economic ac tivity, 2012 .............................................................. 10
 
Chart 1.2 Merchandise trade, 2011 ..................................................................................... 13 
Chart 1.3 FDI flows and stocks , 2006-12  ............................................................................. 15 
Chart 3.1 Applied MFN tari ff distribu tion, 2013 ..................................................................... 25 
Chart 3.2 Average MFN tariff rates,  by WTO product categories , 2013 ..................................... 28 
Chart 4.1 Insurance companies and organi zations authorized in Bahrai n, 2012 ......................... 56 
 
TABLES 
 
Table 1.1 Balance of payments, 2006-12 ............................................................................. 11 
Table 3.1 Structure of applied MFN tariffs in Bahrain,  2013 .................................................... 24 
Table 3.2 Bahrain's applie d MFN tariff summary , 2013 .......................................................... 25 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table 3.3 Applied MFN tariff rates high er than bound rates in Bahrain, 2013 ............................. 26 
Table 3.4 Bahrain's applied MFN, USA FTA and Singapore FTA tariffs , 2013 .............................. 28 
Table 3.5 Prohibited  imports,  2014  ..................................................................................... 29 
Table 3.6 Restricted  imports,  2014  ..................................................................................... 30 
Table 3.7 Prohibited  exports,  2014  ..................................................................................... 33 
Table 3.8 Restricted  exports,  2014  ..................................................................................... 33 
Table 3.9 Import controls based on stan dards, 2014 ............................................................. 36 
Table 3.10 Summary of IPR legislation in Bahrain ................................................................. 39 
Table 3.11 Applications for trademarks, industrial designs, and patents, and patents 
granted, 2009-12 ............................................................................................................ 40 
Table 3.12 Selected state- owned enterpri ses, 2013 .............................................................. 43 
Table 4.1 Ownership structure of  NogaHolding su bsidiari es, 2013 ........................................... 46 
Table 4.2 Production, consumption, and export s of oil, gas, and re fined products, 2006-12 ........ 47 
Table 4.3 Electricity generation plants, 2013 ........................................................................ 49 
Table 4.4 Structure of the ba nking system, August 2013 ....................................................... 52 
Table 4.5 Market capita lization, Au gust 2013 ....................................................................... 54 
Table 4.6 Insurance prem iums and cl aims, 2011-12 ............................................................. 56 
Table 4.7 Selected telecommunication indicators, 2007-12 ..................................................... 57 
Table 4.8 Shipping and maritime transport services, 2008-12 ................................................. 59 
Table 4.9 Air transpor t services , 2008-12  ............................................................................ 61 
 
APPENDIX TABLES 
 Table A1.1 Selected macroeco nomic indicato rs, 2006-12 ....................................................... 65
 
Table A1.2 Merchandise exports, including re-exports, 2006-11 .............................................. 67 
Table A1.3 Merchandis e imports,  2006-1 1 ........................................................................... 68 
Table A1.4 Merchandise exports by dest ination, including re-exports , 2006-11  ......................... 69 
Table A1.5 Merchandise im ports by orig in, 2006- 11 .............................................................. 70 
 
Table A2.1 Main trade-related laws, November 2013 ............................................................. 71 
Table A2.2 Selected notifications to the WTO, 1 January 2007-31 December 2013 ..................... 73 
 
Table A3.1 Applied MFN tariff aver ages by HS 2-d iigit leve l, 2013 ........................................... 75 
 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  SUMMARY 
Economic environment 1. Since its last Review in 2007, the Kingdom of  Bahrain’s economy has continued to grow, 
despite the global financial crisis, some sporadic domestic tension since 2011, and oil production 
dips in 2012. Bahrain’s growth in 2013 was driven  primarily by the oil sector, with real GDP 
expected to reach 4.8%. Bahrain's balance of payments featured current account surpluses during the review period, and the trade surplus increased to US$6,795 million in 2012, up from 
US$2,865 million in 2007. The annual average inflatio n rate in Bahrain remained low, on average 
(2%). There was a sharp decline of the inflation rate to -0.4% in 2011, due largely to a decrease in housing rents, but it rebounded to normal levels in the second half of the year. 
2. Since 2008, Bahrain has been implementing a development strategy, Economic Vision 2030 
aimed at, inter alia,  reducing its high dependence on oil and gas. The strategy has helped 
diversification efforts: the services sector, led by financial services, contributed 58% of Bahrain's real GDP in 2012, and the manufacturing sector based on Bahrain's comparative advantages in 
energy-intensive industries (mainly aluminium and petrochemicals) contributed 15.2% of real 
GDP. 
Institutional framework 
3. Formulation and implementation of the trade po licy are the responsibility of the Ministry of 
Industry and Commerce (MOIC). The MOIC consults with relevant ministries and other institutions that also take part directly or indirectly, including the Economic Development Board. The private sector provides inputs to trade policy formulation, on an ad hoc basis, through the Chambers of 
Commerce and Industry. The National Committee and its sub-committees deal with WTO-related 
matters under the ambit of the MOIC.  
4. Bahrain has been reviewing and amending its laws  with a view to their conformity with WTO 
obligations. Several new laws have been introduced since its last TPR, including a new Civil 
Aviation Law (2013), a trade remedies law covering anti-dumping, subsidies and countervailing, and safeguards measures (2011), as well as other laws related to government procurement and 
maritime transport. 
5. Bahrain is an original member of the WTO. It is a signatory to the WTO Information 
Technology Agreement (ITA), and an observer to the Plurilateral Agreement on Government 
Procurement. Bahrain has not been involved in any dispute under the WTO Dispute Settlement 
Mechanism, either directly or as a third party. Bahrain grants at least MFN treatment to all its 
trading partners. It has difficulties in meeting a number of the notification requirements under 
certain WTO Agreements, most notably TRIPS. 
6. Bahrain is a member of the Gulf Cooperation Council (GCC), and participates in the Pan-Arab 
Free Trade Area (PAFTA). In the context of the GCC, Bahrain has signed an FTA with EFTA and 
Singapore. It also has its own bilateral trade agreements, notably with the United States. Bahrain 
was the first country in the region to have such a bilateral agreement, followed by Oman. GCC 
Heads of States consider both of these agreements as an exception and all future trade agreements are to be negotiated collectively as a group. As at January 2014, the GCC countries are evaluating the feasibility of negotiating future FTAs with other countries and regions. 
Trade policy instruments 
7. Bahrain has applied the GCC common external tariff (CET) since 1 January 2003. Bahrain's 
simple average applied MFN was 5.1% in 2013. All rates are ad valorem  (except on tobacco), and 
there are no tariff quotas, no nuisance rates, and no other duties and taxes on imports. Bahrain's 
exceptions to the GCC CET include alcohol (125%) and tobacco (subject to an alternate tariff, with an ad valorem  component of 100%). On the basis of the WTO definition, tariffs average 7.5% in 
agriculture and 4.6% on non-agricultural products. Using ISIC (Revision 2) definition, the least 
tariff-protected sector is agriculture with 3.0% , followed by mining and quarrying (4.9%) and 
manufacturing (5.2%). WT/TPR/S/294 • Kingdom of Bahrain 
 
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  8. On aggregate, Bahrain's tariff displays positive escalation, from first-stage processed 
products, with an average tariff of 3.9% to semi -finished goods, with an average rate of 4.8%, 
and fully processed products, on which tariffs average 5.5%. Bahrain has bound 70.6% of its tariff lines. Most bound tariffs are at a ceiling rate of 35%: however for tobacco and alcohol products 
(24 lines), tariffs are bound at 100% and 200% respectively, thus leaving ample margins for 
applied tariff increases. Bahrain has never take n any anti-dumping, countervailing or safeguard 
actions. Duty concessions may be granted (including on a selective basis) as part of various 
investment incentives. 
9. The documentation for all imported products must be authenticated by the Consulate of 
Bahrain in the country of origin. Non-tariff measures are maintained on imports and exports, mainly for health, security, and moral reasons. Bahrain has largely harmonized its regime on 
standards and technical regulations with other GCC members.  
10. In 2010, Bahrain adopted a new government procurement regime; it still provides for 10% 
and 5% price preferences for local and GCC products, respectively. Bahrain has no competition 
legislation per se, but the telecommunications and financial sectors are well regulated for anti-
competitive practises. 
Sectoral policies 
11. The Bahraini economy continues to be dominated by the oil sector and connected industries, 
although Bahrain's oil and natural gas reserves are limited. As part of its Economic Vision 2030, attempts are under way to diversify the economy, particularly into financial services and manufacturing. The petroleum subsector accounted for 24.6% of GDP in 2012 and 75% of 
government income. 
12. Agriculture represents a meagre share of Bahrain's economy, accounting for only 0.3% of 
GDP. Due to lack of arable land and scarce wa ter supply, Bahrain remains a net food importer. 
Agricultural production is supported through the provision of subsidies and preferential loans to 
farmers. The simple average applied MFN tariff for agricultural products is 3%. 
13. The manufacturing sector continued to grow during the review period and constituted the 
third largest contributor to Bahrain's economy after hydrocarbons and financial services. As part of 
its diversification process, Bahrain has focused on high-value-added and energy-intensive industries such as aluminium, petrochemicals, metal products, and steel. These industries are primarily managed by large state-owned companie s, most notably Aluminium Bahrain (ALBA) and 
Gulf Petrochemicals Industries Company (GPIC). Bahrain may authorize up to 100% of foreign 
investment in companies in the industrial sector. The simple average applied MFN tariff for manufacturing products is 5.2%. 
14. Bahrain has continued to expand its services sector, which represented around 58% of GDP 
in 2012. However, the sector as a whole was strongly affected by the recent financial crisis as well as by the domestic tension in 2011. The financial sector, the cornerstone of Bahrain's 
diversification strategy, is well regulated by the Central Bank of Bahrain (CBB). In recent years, 
Bahrain has been focusing on developing its Islamic banking and its insurance subsectors in an attempt to create a niche in a highly competitive market in the Gulf region. However, the size of the banking sector remains a key structural vulnerability; assets for retail banks and wholesale 
banks accounted for 248% and 390% of GDP respectively in August 2013. 
15. The telecommunications market has been liberalized since 2003. A mobile operator, Viva 
Bahrain, entered the market in 2009, making it the third telecom provider after the partially state-
owned operator BATELCO and Zain Bahrain. As the regulator of the market, the 
Telecommunications Regulatory Authority (TRA) undertakes periodic reviews to ensure that 
operators do not hold significant market power or dominance in the market. 
16. Bahrain's transportation sector has been streamlined by the Ministry of Transportation 
(MOT), which has taken over responsibility fo r the development of Bahrain's transportation 
infrastructure systems, including air, port and maritime, and land transportation. Important legislation that has entered into force on civil aviation and maritime transport, helps to align air WT/TPR/S/294 • Kingdom of Bahrain 
 
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  and maritime transport with international practices. After making large losses, in 2007, Gulf Air, 
the principal flag carrier of Bahrain was fully bought by the state holding company, Mumtalakat. 
17. The tourism sector in Bahrain draws on the country's cultural and historical heritage but also 
on its sports and business tourism potential. The sector was badly affected by the domestic 
tension of 2011, with tourist arrivals plummeting by 32.7% but rebounded in 2012. In 2010, the 
Tourism Sector under the Ministry of Culture became responsible for tourism activities in Bahrain. Foreign investment is allowed up to 100% in the sector. 
 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Introduction 1.1.  The archipelago of Bahrain is located at  the centre of the Gulf between Qatar and the 
Kingdom of Saudi Arabia.
1 Bahrain is the smallest country among the Cooperation Council for the 
Arab States of the Gulf (GCC) countries. In 2011, Bahrain's population was 1,195,020, of which 
51% were non-Bahraini nationals.  
1.2.  Although Bahrain was the first regional economy to discover oil, in 1932, the country has 
relatively modest hydrocarbon resources compared  with its neighbours. As a result, Bahrain has 
for decades followed an economic diversificatio n strategy and expansion has been rapid across 
much of the non-oil economy. 
1.3.  Bahrain’s business-friendly environment has improved notably since its last TPR in 2007. This 
is evidenced by Bahrain's ranking as the 12th most open economy, according to the Heritage 
Foundation Index of Economic Freedom, up from 39th place in 2007. In 2012, Bahrain ranked 48th (out of 187 countries) on the UNDP's Human Development Index
2; 42nd out of 184 countries in 
ease of doing business, according to the World Bank, and 53rd out of 176 countries in the 
corruption perception index.3 
1.2  Recent economic developments 
1.4.  Since 2008, Bahrain has been implementing  a development strategy, Economic Vision 2030, 
aimed at, inter alia,  reducing its high dependence on oil and gas. The ultimate objective of 
Bahrain's long-term strategy is to ensure that every Bahraini household has at least twice as much disposable income, in real terms, by 2030. In order to achieve this long-term vision, a National 
Economic Strategy was developed in 2008 to enha nce private-sector growth while the Government 
creates an enabling environment by investing in infrastructure projects. The main objectives of the strategy include establishing a more competitive and sustainable economy; stimulating growth by 
enhancing productivity and skills; and focusing on existing high-potential sectors that are labour-
intensive. 
1.5.  Since its last Review, Bahrain has continued to grow, despite the global financial crisis, some 
sporadic domestic tension since 2011, and oil production dips in 2012. After several years of 
continued growth, backed by high oil prices an d a thriving financial services sector, growth 
decelerated sharply in 2009 to 2.5%, mainly as a result of declining oil prices in the first half of the year. In 2010, the economy recovered slowly, and real GDP grew at 4.3%. However, in 2011, non-
oil sectors such as financial services and tourism were greatly affected by the Euro-zone crisis as 
well some domestic tension; and in 2012, real GDP grew by 3.4%, despite an 8.5% fall in oil production due to unscheduled maintenance in Bahrai n's main oil field, Abu Sa'afa. Thus, growth in 
2012 was driven primarily by the non-oil sector, which expanded by 6.7%. 
1.6.  In 2011, the GCC countries established an aid fund worth US$10 billion to support Bahrain's 
economy, providing various forms of financial su pport to the Government on generous terms. 
Bahrain will use these funds to build new developm ent projects, especially basic services projects. 
1.2.1  Macroeconomic indicators 1.7.  Bahrain's GDP per capita was estimated at US$24,399 for 2011; it is considered a high 
income country (Table A1.1). In 2011, around  80% of government income and merchandise 
exports were from crude oil and petroleum products. While Bahrain is becoming more of a 
services-based economy, mining and quarrying products, including crude oil and natural gas accounted for almost a quarter of real GDP in 2012. The services sector, led by financial services, 
                                               
1 Bahrain is an Arabic word meaning two seas. Bahrai n is connected to the Kingdom of Saudi Arabia by 
a 23-km causeway, in use since 1986. A causeway connection to Qatar is being planned (Bahrain's Economic Development Board online information. Viewed at: http://www.bahrainedb.com/defa ult.asp?action=c ategory&id=26 ). 
2 UNDP (2012). 
3 World Bank (2013) and Transparency International (2013). Viewed online at: 
http://www.transparency.org/country#BHR . WT/TPR/S/294 • Kingdom of Bahrain 
 
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  contributed over half of Bahrain's real GD P in 2012 and employed over 14,000 people. The 
manufacturing sector, based on Bahrain's comparative advantages in energy-intensive industries (mainly aluminium and petrochemicals), contribu ted 15.2%, while the share of agriculture and 
fishing continues to fall. 
Chart 1.1 Share of GDP by economic activity, 2012 
(%) 
Agriculture & fishing 0.3Crude petroleum & 
natural gas
24.6%Other mining & quarrying 
0.6 Manufacturing 
15.2Import duties 1.0
15.8
11.4
6.4
6.0
5.1
5.1
8.6Services
58.3
Financial services
Government services
Transport and communication
Construction
Social & personal services
Real estate & business activities
Other
 
a Provisional data. 
 Source: Central Informatics and Telecommunication Organization, Annual Report 2011 and Bulletin of 
Quarterly National Accounts , fourth quarter, 2012. 
1.8.  The annual average inflation rate, as measured by the Consumer Price Index (CPI)4, has 
fluctuated since 2007, but remained low on average (2%). However, in 2011 there was a sharp 
decline of the inflation rate to -0.4% due largely to a decrease in housing rents; but it rebounded 
to normal levels within the second half of the year. 
1.9.  Bahrain has a fixed exchange rate policy. The Bahraini Dinar (BD), the national currency has 
been pegged to the U.S. dollar (1 BD = US$2.659) since 2001. The main goals of monetary policy 
continue to be price stability, low inflation, and maintaining the peg against the U.S. dollar. 
1.2.2  Employment 1.10.  Unemployment in Bahrain is relatively lo w, estimated at 3.9% in December 2012. Out of a 
total of 716,473 people employed in 2013 in  both the private and public sectors
5, nationals 
account for only 26.3% of the total, with private sector participation of about 17%. This relatively low participation of Bahrainis in the labour market has led the authorities to establish several 
government organizations to help Bahraini nationals better compete for jobs, known as 
Bahrainization. One such organization, Tamkeen, ( empowerment in Arabic) was set up in 2006 to 
foster the formation and growth of local firms, and help Bahraini nationals obtain employment in 
the private sector by funding training initiatives. 
1.11.  Small and medium-size enterprises (SMEs) play an important role in Bahrain's economy, 
contributing nearly 30% of nominal GDP and pr oviding jobs for about 73% of private sector 
employees. A new labour law was adopted in July 2012 (Law No. 36) to improve labour standards 
for national and foreign workers (replacing Law No. 73 of 2006). With the aim to establish better 
working conditions and increase salaries, the new law, inter alia,  aligns private sector labour 
practices with the Government sector; expedites the process for labour disputes; extends legal 
protection for domestic staff; and increases employee benefits. 
                                               
4 Housing and food carry the largest weights in the CPI, at 24% and 21% respectively. 
5 Based on preliminary statistics from the Ce ntral Informatics Organization of Bahrain. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  1.2.3  Balance of payments 
1.12.  In most of the recent years, Bahrain' s balance of payments featured current account 
surpluses; the highest at 13.4% of current GDP in 2007 and the lowest in 2009 with 2.4% of current GDP (Table 1.1). In 2011 and 2012, increases were at 11.1% and 7.3% respectively. This 
better-than-expected performance in Bahrain's exte rnal current account is due to a decline in 
capital outflows. Bahrain's trade surplus incr eased almost three-fold between 2006 and 2012. 
1.13.  Balance-of-payments data indicate that Bahrain is, increasingly, a net exporter of services, 
with a surplus averaging US$1,701 million per year during 2006-11 (up from US$417.2 million 
during the last review period), and peaking at US$2,142 million in 2010. The balance of travel services suffered from the global crisis and decreased from US$592 million in 2006 to US$322 million in 2011; transportation services fluctuated during the same period and were 
largely affected by the crisis, plummeting to a deficit of US$144 million in 2008, then rebounding 
to a surplus of US$101 million in 2012. 
Table 1.1 Balance of payments, 2006-12  
(US$ million) 
  2006 2007  2008  2009  2010 2011 2012  
Current account 2,188 2,907 2,257 560 770 3,247 2,222 
Goods 2,386 2,865 3,245 2,439 2,643 7,800 6,795 
  General merchandise 2,246 2,708 3,069 2,261 2,457 7,544 6,529 
  Exports (f.o.b) 12,200 13,634 17,316 11,874 13,647 19,650 19,768 
  Oil 9,218 10,796 13,789 8,914 10,181 15,491 15,194 
  Non-oil 2,982 2,838 3,527 2,960 3,466 4,160 4,574 
  Imports (f.o.b) -9,954 -10,926 -14,246 -9,613 -11,190 -12,106 -13,239 
  Oil -4,902 -5,864 -7,204 -4,354 -5,393 -7,469 -8,931 
  Non-oil -5,052 -5,061 -7,042 -5,259 -5,797 -4,636 -4,309 
  Repairs on goods 140 157 176 178 186 256 266 
Services (net) 1,717 1,823 1,710 1,912 2,142 1,261 1,339 
  Credit 3,322 3,524 3,740 3,653 4,047 3,040 2,819 
  Debit -1,605 -1,701 -2,030 -1,741 -1,905 -1,778 -1,495 
  Transportation 48 51 -144 40 43 87 101 
  Travel 592 626 663 710 856 316 322 
  Communication services 618 643 665 700 752 572 580 
  Financial services 
  (including insurance) 427 467 487 434 474 267 324 
  Other business services 31 36 40 27 16 19 12 
Income (net) -385 -299 -924 -2,400 -2,373 -3,765 -3,838 
  Credit 7,634 10,374 7,088 1,680 1,468 6,822 2,998 
  Debit  -8,019 -10,672 -8,012 -4,080 -3,841 -10,586 -6,835 
  Investment income -385 -299 -924 -2,400 -2,373 -3,765 -3,838 
    Direct investment 
    Income  -839 -1,190 -1,274 -295 -2,088 -3,390 -3,195 
    Portfolio income 1,591 2,054 1,087 16 -43 351 372 
   Other investment 
   Income -1,137 -1,163 -737 -2,121 -242 -725 -1,013 
Current transfers (net) -1,531 -1,483 -1,774 -1,391 -1,642 -2,050 -2,074 
  Workers' remittances -1,531 -1,483 -1,774 -1,391 -1,642 -2,050 -2,074 
Capital and financial 
account (net) -2,199 -2,916 -2,227 -494 -877 -3,319 -2,340 
  Capital account (net) 75 50 50 50 50 76 100 
    Capital transfers 75 50 50 50 50 76 100 
  Financial accounta -2,274 -2,966 -2,277 -544 -927 -3,395 -2,440 
  Direct investment 1,935 87 173 2,049 -178 -113 -31 
    Abroad -980 -1,669 -1,620 1,791 -334 -894 -922 
    In the Kingdom of 
    Bahrain 2,915 1,756 1,794 257 156 781 891 
  Portfolio investment -8,831 -8,560 9,277 8,276 4,756 5,583 3,843 WT/TPR/S/294 • Kingdom of Bahrain 
 
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    2006 2007  2008  2009  2010 2011 2012  
  (net) 
       Assets -10,527 -9,890 6,287 6,710 2,052 5,164 2,741 
       Liabilities 1,696 1,330 2,990 1,565 2,704 419 1,102 
   Other in vestment net) 5,445 6,921 -12,021 -10,988 -4,225 -9,453 -5,579 
     Assets -30,235 -38,505 -3,265 18,124 2,740 17,327 2,809 
     Liabilities 35,680 45,426 -8,756 -29,111 -6,965 -26,780 -8,388 
     Reserve assets (net) -822 -1,415 294 119 -1,280 587 -673 
Errors and omissions 11 10 -30 -66 107 72 118 
 
a A negative sign means net outflo ws/increases in external assets. 
 Note: Based on provisional data.  Source: Central Bank of Bahrain, Statistical Bulletins  (February and December 2011, January and March 
2013). Viewed at: http://www.cbb.gov.bh/page- p-statistical_bulletin.htm . 
1.2.4  Fiscal position 
1.14.  Bahrain’s fiscal position remains chal lenged compared with the GCC’s wealthier oil 
producers. Increased social spending has left Bahrain more reliant on high oil prices, and vulnerable to swings in the energy markets. Since its last Review, Bahrain's fiscal position has been in deficit, mainly due to the increase in capital expenditures for infrastructure, housing, and 
development projects, coupled with a decrease in revenue from oil.
6 The overall public sector 
balance was characterized by deficits (increasing after rollover) during 2009-11 but has improved since 2011 and is likely to be stable for 2013-14. Bahrain is trying to offset its unsustainable 
subsidy system by considering direct and indirect taxes, diversifying its public revenue sources, 
and encouraging more private sector involvement.  
1.15.  Total outstanding public debt at the end of  the third quarter of 2013 was at 33.6% of GDP, 
up from 30% in 2011, according to the Central Ba nk of Bahrain (CBB). Bahrain has been financing 
its public debt through a combination of treasury  bills, development bonds, and various Islamic 
financing instruments. 
1.3  Developments in Trade
7 
1.3.1  Composition of trade 
1.16.  Bahrain's economy is highly dependent on international trade; the ratio of trade to GDP was 
128% on average over the period 2009-11. In 2012, Bahrain ranked 51st among world 
merchandise exporters (considering the EC member  states as one and excluding intra-EC trade) 
and 62nd among importers. In services trade, Bahrain ranked 62nd among exporters and 94th 
among importers (Chart 1.2).8 
1.17.  Bahrain's exports continued to grow over the review period but fell sharply from 
US$13 billion in 2008 to US$8.3 billion in 2009, due to the impact of the global economic crisis. By 
2011, total exports including re-exports had more than doubled, to reach US$22.5 billion. Hydrocarbons are major contributors to Bahrain's exports. The share of fuels in total merchandise 
exports averaged around 72% during 2006-11 (Table A1.2), while non-oil exports, in particular 
aluminium products, represented around 11.7% on average. 
 
                                               
6 EDB (2013a). 
7 Trade statistics were not made available to the Secretariat for the year 2012. 
8 WTO (2013). WT/TPR/S/294 • Kingdom of Bahrain 
 
- 13 - 
  Chart 1.2 Merchandise trade, 2011 
(%) 
Export (f.o.b.) Import (c.i.f.)
(a)    Composition of merchandise trade
Mineral products
(V)
80.7
Machinery, 
electrial  
machines (XVI)
12.6Chemicals  & 
prodcuts 
(VI)
5.1
Ores, slag 
and ash
7.8Mineral 
products (V)
52.4
Other 
mineral
products
2.3Base metals 
& articles 
(XV)
5.6Live animals & 
products (I)
3.0
(b)    Direction of merchandise trade
Middle East
18.4
Asia
6.6Areas ,not 
elsewhere 
specified
68.8America
1.9Europe
2.5
Africa
1.7Other
1.8
America
13.0
Europe
13.4Asia
21.2United 
States
4.7
Brazil
7.1Other 
America
1.1
EU (27)
11.6
Other 
Europe
1.9
Saudi Arabia
45.9Middle East
50.6China
7.7Japan
3.3Other Asia
10.1
Other 
Middle East
4.8Prepared food, 
bevarages &  
tobacco (IV)
3.4Light oil and 
preparations      
68.7Crude oil 
42.3Base metals (XV)
11.3Other
8.0Other
11.3
Transport 
equipment 
(XVII)
6.6Ores, slag 
and ash
11.6Other 
mineral
products
0.4
Total:  US$ 22.6 billion Total:  US$ 17.6 billion  a
 
a Based on HS section and major HS chapters. 
 Data in brackets refer to the HS Section number.  Note: Exports including re-exports.  
Source: UNSD, Comtrade database. 
1.18.  Although the trade to GDP ratio is inflated due to oil, oil revenue from exports helps 
maintain Bahrain's trade balance, the exchange  rate, and the currency peg to U.S. dollar, 
according to Bahrain's Economic Development Board (EDB).9 However, the trade base is still 
vulnerable to oil shocks and Bahrain therefore needs to further diversify its economy to increase 
the contribution of non-oil exports to the trade balance. 
                                               
9 Oxford Business Group (2013). WT/TPR/S/294 • Kingdom of Bahrain 
 
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  1.19.  Bahrain's imports continued to grow, on average, during the review period, reflecting the 
country's economic growth. Imports peaked at US$18.4 billion in 2008 (from US$8.9 billion in 
2006), fell to US$11.9 billion in 2009, and rebounded to US$17.6 billion in 2011 (Table A1.3). While the share of fuels in total merchandise imports decreased from 55.6% in 2006 to 43.9% in 
2011, the share of machinery, electrical machines  and transport equipment increased, accounting 
for 19.2% in 2011. Bahrain remains a net-food importer. 
1.3.2  Direction of trade 
1.20.  Bahrain's export destinations are relatively diversified (Table A1.4).
10 In 2011, the Middle 
East accounted for 18.4% of Bahrain's total export s, with the Kingdom of Saudi Arabia, Qatar, and 
Oman the main destinations in the region. In Asia, India is the main destination. The European Union and the United States are also important destinations for Bahraini exports. 
1.21.  The Kingdom of Saudi Arabia was the main origin for Bahraini imports in 2011, with a share 
of 45.9%, followed by the European Union, China,  Brazil, and the United States (Table A1.5). 
1.4  Foreign direct investment trends 
1.22.  Bahrain's inward stocks of foreign direct investment (FDI) reached US$16,826 million in 
2012, up 23% from 2007. However, Bahrain's annua l inflow of FDI fluctuated over the review 
period and was negatively affected by the financial crisis; FDI inflows plummeted from 
US$1,794 million in 2008 to US$257 million in 2009; however they bounced back in 2011 and 
2012 reaching US$781 million and US$891 million respectively (Chart 1.3). In addition, as a percentage of GDP, the stock of inward FDI decreased from 70.6% in 2006 to 59.6% in 2011. On the basis of UNCTAD's Inward FDI Pe rformance Index, Bahrain ranked 121
st out of 141 economies 
in 2010 (30th in 2008).11 Bahrain's annual FDI outflows averaged US$617.6 million over 2006-11 
and fluctuated over the review period. They we re strongly hit by the crisis, and decreased 
significantly to US$-1,791.5 million in 2009. However, FDI outflows increased slowly, to reach 
US$922 million in 2012. In terms of sources of FDI inflows for 2012, India, the Kingdom of Saudi 
Arabia, and Kuwait accounted for the largest shares.12 
1.23.  Bahrain's position in UNCTAD's Inward FDI Potential Index improved from 28th in 2006 to 
23rd in 2009.13 Nevertheless, Bahrain needs to attract more investors in the non-oil sector in order 
to support the country's economic diversification plans. Since the global financial crisis, Bahrain has been trying to attract FDI in sectors other than financial services, such as downstream industries. Under the Economic Vision 2030, poli cy-makers are focusing on enhancing FDI to 
support technology diffusion, increasing high-val ue added exports and employment opportunities. 
1.5  Outlook 1.24.  According to the EDB, real GDP growth is expected to reach 4.8% in 2013; as hydrocarbons 
remain a major contributor to growth.
14 Largely due to the normalization of oil production from the 
Abu Sa'afa field, as well as planned further increases in production from the Bahrain field, the EDB expects real GDP growth to revert to 3.7% in 2014. 
                                               
10 For 2011, a large share of exports by destination (68.8%) is categorized as "other"; thus accurate 
data for this section were not available.  
11 UNCTAD's Inward FDI Performance Index measures th e extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receiv e relative to their economic size. It is calculated as 
the ratio of a country's share in global FDI inflows to its share in global GDP. 
12 UNCTAD (2013). 
13 UNCTAD's Inward FDI Potential Index measures th e extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receiv e relative to their potential. It is calculated on the 
basis of structural variables, such as country risk, and trade-related measures. 
14 EDB (2013b). WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Chart 1.3 FDI flows and stocks, 2006-12 
(US$ billion) 
-3.0-2.0-1.00.01.02.03.04.0
0.02.04.06.08.010.012.014.016.018.0
2006 2007 2008 2009 2010 2011 2012Inward stocks Outward stocks Inflows OutflowsFlows
UNCTAD, UNCTADstat.  Viewed at http://unctadstat.unctad.org/ (Access to database in October 2013). Source:Stocks
 
Source UNCTAD, UNCTADstat. Viewed at: http://unctadstat.unctad.org/  (Acess to database in October 
2013). 
1.25.  Exports will be driven mainly by manufactured goods, primarily aluminium and 
petrochemicals, as competition in the area of services increases from other countries in the region. However, for financial services, Bahrain's reputation for being well-regulated as well as its Islamic 
finance niche will help sustain growth in this sector. 
1.26.  The Government will continue to increase spending on subsidies, infrastructure, and social 
housing and count on private sector engagement to help alleviate some pressure on the public 
finances. The Government is planning a fiscal break-even oil price of more than US$110 in 2013 
and 2014. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  Institutional framework 2.1.  Bahrain has been ruled as a Constitutional  monarchy since 2002. The legal system is based 
on the 2002 Constitution, amended in 2012. The Shar ia (Islamic Law) is the basis of national 
legislation, and Islam is the state religion. 
2.2.  The system of government is based on a sepa ration of the legislative, executive, and judicial 
authorities.
1 Legislative authority is vested in the King and the National Assembly, while executive 
authority is vested in the King together with the Council of Ministers. The King exercises his 
powers directly and through the Ministers, jointly answerable to him for general government policy. The King also appoints and dismisses the Prime Minister, by Royal Order, and appoints and 
dismisses Ministers, by Royal Decree, as proposed  by the Prime Minister. The King is also the 
supreme commander of the armed forces and ha s the right to propose amendments to the 
Constitution
2, propose laws, and is the ratification and promulgation authority. 
2.3.  The Council of Ministers is headed by th e Prime Minister. Entrusted with overseeing state 
interests, the Council of Ministers implements government policy, and supervises government 
business. Cabinet resolutions may only be passed when a majority of members are present and with the approval of a majority of those presen t. The Cabinet also submits recommendations to 
the King on economic, political, social, environm ental, executive, and administrative matters of 
concern to the Government, and proposes draft law and decrees for his approval. Where a Royal 
Decree is required, Cabinet resolutions are submitted to the King for ratification.  
2.4.  Bahrain established its Parliament, a bicameral National Assembly, in 2002 for a four-year 
term. The National Assembly consists of the Council of Representatives, a 40-seat lower house; 
and the Consultative "Shura" Council, a 40-seat upper house. Members of the Council of Representatives are elected by direct, secret, general ballot while members of the Consultative 
Council are appointed by Royal Order.
3 The latest parliamentary elections took place in 2010, 
followed by a parliamentary bi-election in 2011. 
2.5.  Under the 2012 constitutional amendments, the King is required to consult with the Chairman 
of the Council of Representatives, the Chairman  of the Shura Council and the President of the 
Constitutional Court before he can dissolve the Council of Representatives by a decree outlining the reasons of the dissolution.
4 Furthermore, the Council of Representatives, acting alone, has the 
right to pass a no-confidence vote against the Prime Minister and submit the matter to the King, 
who is the final authority to decide on whether to dismiss the Prime Minister and appoint a new 
cabinet or to dissolve the Council of Representatives.5 
2.6.  The judiciary is an independent and separa te body. The highest judicial authority is the 
Constitutional Court, which is chaired by the King, who also retains the power of pardon. The 
Constitution also provides for a Higher Judicial Council to supervise the functions of the courts and their offices. At a lower level, the judiciary consists of civil courts and Sharia or Islamic courts. 
Decisions taken by the Sharia and civil courts may be appealed to the High Court of Appeals, 
which is the highest appellate court. Although Bahrain does not have a commercial court, Royal Decree No. 30 of 2009 established the Bahrain Chamber for Dispute Resolution.
6 
2.7.  Bills are prepared by the relevant minist ries, and presented successively to the Council of 
Ministers, the Council of Representatives, and the Consultative Council, and then for approval by 
the King through a Royal decree. Under the Constitution, the Council of Representatives has the 
                                               
1 Article 32 of the Constitution. 
2 Articles 35a and 120 of the Constitution. 
3 During its first session, the Council of Representatives chooses a President and two-Vice Presidents 
from among its members. In the case of the Consultative Council, the King appoints its President for the same term as the Council, and the Council elects two Vice-P residents for each convenin g period. Members of both 
Chambers serve for a four-year term and may be re-elected , in the case of the Council of Representatives, or 
re-appointed by the King for the Consultative Council. 
4 Article 42 paragraph C of the Constitution amended in 2012. 
5 Article 67 paragraph D of the Constitution amended in 2012. 
6 Bahrain Chamber for Dispute Resolution. Viewed online at: http://www.bcdr-aaa.org . WT/TPR/S/294 • Kingdom of Bahrain 
 
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  power to comment on and alter legislation presented by the Prime Minister as well as suggest new 
laws. In principle, laws cannot be promulgated unl ess approved by both Chambers and ratified by 
the King. In the event of the Consultative Council twice rejecting the proposals of the Council of Representatives, a joint vote is held.
7 The Consultative Council has no legislative powers and can 
only make recommendations on the draft laws. Once a bill is signed by the King, it becomes a 
Royal decree and must be published in the Official Gazette  within two weeks of promulgation; it 
enters into effect one month after publication unless otherwise specified.8 Treaties and 
international agreements concluded by Bahrain have legal power in national courts.9 
2.2  Trade policy formulation 2.8.  The Ministry of Industry and Commerce  (MOIC) continues to formulate and implement 
Bahrain's trade policy, in coordination with other ministries and trade-related bodies including the 
Economic Development Board (EDB), Ministry of Finance, and Central Bank of Bahrain. Private 
sector participation in trade policy formulation is through the Bahrain Chamber of Commerce and Industry (BCCI). 
2.9.  Bahrain's National Committee (NC), which deals with WTO-related matters, was established 
in 1996 (Law No. 25 of 1996 amended by decree  No. 59 of 2011). Sub-committees and ad-hoc 
working groups are in place for trade in services, trade facilitation and sanitary and phytosanitary 
(SPS) issues. The private sector is represented in these committees. The National Committee of 
the WTO was formed by a decision of the Prime Mi nister and chaired by the Minister of Industry 
and Commerce.  
2.10.  In line with the GCC Customs Union and according to GCC resolutions, bilateral and regional 
trade agreements are conducted collectively by the GCC as a group, the only exceptions being the 
Bahrain-U.S. FTA and the Oman-U.S. FTA. 
2.11.  The EDB continues to provide strategic direction on the management of the economy, and 
in particular to facilitate private sector and foreign investment. Since its inception in 2001, the 
EDB's aim has been to increase economic competitiveness, raise productivity levels, and focus on creating a skilled workforce that contributes to th e development of Bahrain. The EDB is chaired by 
the Crown Prince and its Board of Directors, which includes government ministers as well as 
industry executives, in order to enable public and private sectors to work closely together. 
2.2.1  Main trade laws 2.12.  The main trade-related laws are the G CC Common External Customs Tariff (2012) and GCC 
Common Customs Law (2012); Law of Commerce (1987); Commercial Companies Law No. 21 of 
2001; Commercial Registration Law No.1 of 1961 and amendments (Table A2.1). 
2.3  Economic and trade policy objectives 
2.13.  As part of its Economic Vision 2030, Bahrain is striving for sustainable development through 
economic diversification away from oil. In order to achieve this long-term vision, in 2008, a National Economic Strategy was developed by the EDB and coordinated with relevant ministries. 
The main aim of the strategy is to transform Bahrain into a knowledge-based economy that is 
competitive and sustainable. The main focus is on existing high-potential, labour-intensive sectors where both the private sector and the Government can play crucial complementary roles. 
2.14.  To meet some of these economic objectiv es, the Ministry of Industry and Commerce (MOIC) 
is focusing to: (i) foster a fair and transparent re gulatory environment; (ii) increase the level of 
competition; (iii) facilitate entrepreneurship for small and medium-size enterprises (SMEs); (iv) strengthen the manufacturing sector; (v) maximize  benefits from foreig n trade relations, and 
(vi) mprove the quality and efficiency of MOIC services using information technology. 
                                               
7 Article 85 of the Constitution. 
8 Article 122 of the Constitution. 
9 Article 121(a) of the Constitution:”The application of this Constitution does not breach the treaties and 
agreements which Bahrain has concluded with states and international organisations”. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  2.4  Trade agreements and arrangements 
2.4.1  WTO 2.15.  Bahrain is an original Member of the WTO. It is a signatory to the WTO Information 
Technology Agreement (ITA). On 9 December 2008, Bahrain became an observer to the WTO 
Plurilateral Agreement on Government Procurement. 
2.16.  Bahrain's trade-related notifications to the WTO are presented in Table A2.2. 2.17.  Bahrain grants at least most-favoured-nation (MFN) treatment to all its trading partners. It 
is an advocate of the multilateral trading system and is a member of the Arab Group. Its main 
interests in the Doha Development Agenda (DDA) include greater non-agricultural market access (NAMA) and further liberaliza tion of trade in services. 
2.4.2  Regional and bilateral agreements 
2.4.2.1  The Gulf Co-operation Council (GCC) 
2.18.  The GCC, created in May 1981, comprises Bahrain, Kuwait, Oman, Qatar, the Kingdom of 
Saudi Arabia, and the United Arab Emirates. Its main objectives are regional cooperation and 
integration in all economic, social, and cultural affairs. Its specific objectives are to achieve a 
common market, with equal treatment of GCC citizens (about 40 million), in each member country, in respect of freedom of movement, work, residence, ownership of real estate, movement 
of capital, as well as financial and monetary coordination. A free-trade area among GCC members 
was established in 1983. 
2.19.  The Unified Economic Agreement among the GCC countries was notified to GATT contracting 
parties on 15 August 1984. The GCC customs union  was originally notified by Kuwait under the 
Enabling Clause. Following its accession to the WTO, the Kingdom of Saudi Arabia notified the 
customs union under Article XXIV of the GATT, but su bsequently requested a change in notification 
status to paragraph 4(a) of the Enabling Clause. On 6 October 2009, the GCC Agreement was re-
notified by the Kingdom of Saudi Arabia under Article XXIV:7(a) of the GATT 1994.
10 
2.20.  Since January 2003, the GCC states have a pplied a common external tariff (CET) of 0% and 
5% for most products (Chapter 3.2.4.1.), and a common law on customs procedures and 
valuation. On 1 January 2008, the members of the GCC also formed a common market for 
services. This aspect of the GCC agreement is yet to be notified to the WTO. As at November 2013, the GCC had common legislation on contingency measures, veterinary quarantine and plant quarantine. Under the GCC Agreement, each member state maintains its own list of 
restricted and prohibited items. 
2.21.  While all the members apply a common external tariff on most imports, certain differences 
remain (e.g. on alcohol products). In addition, customs checks between GCC members are 
maintained for security and other reasons (e.g. statistics, and to avoid piracy and commercial 
cheating). Prohibited goods may not circulate be tween members' territories; restricted products 
may transit the territory of members who restrict their import, with the appropriate 
documentation. 
2.22.  GCC members are still in the process of reaching agreement on how to allocate customs 
revenues from applied tariffs. Full implementation of the customs union is expected to be by end 2015. 
2.23.  In December 2005, an initiative was launched for the adoption of a common currency by 
2010. The five macroeconomic and convergence criteria were: a limit on budget deficits as a share of GDP; a limit on public debt as a share of GD P; adequacy levels for foreign exchange reserves; 
and convergence criteria on inflation; and on inte rest rates. In December 2009, Bahrain, Kuwait, 
Qatar, and the Kingdom of Saudi Arabia ratified an agreement to establish a monetary union. 
                                               
10 WTO documents WT/REG222/N/1, 20 November 2006, WT/COMTD/N/25, 31 March 2008 and 
WT/REG276/N/1/Rev.1, 17 November 2009. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Oman and the United Arab Emirates opted not to join for the time being. In 2013, the common 
currency project had not yet been implemented and the date to achieve a single currency was still to be determined. 
2.24.  The GCC, as a group is a relatively open economy, with trade (imports and exports) 
representing some 48% of GDP in 2010. However, intra-regional trade among GCC countries is 
fairly low, accounting for an average of about 5% of exports and 6% of imports. This is partly explained by the similar factor  endowment of the members. 
2.25.  While two GCC members (Bahrain and Oman) have FTAs on an individual basis with the 
United States (see 2.4.2.3. below), the GCC considers the latter an exception and has decided that all future agreements will be negotiated collectiv ely. As a group, the GCC has concluded free-trade 
agreement negotiations with the European Free Tr ade Association (EFTA) states, and Singapore. 
Negotiations with other countries were ongoing as at November 2013 (see 2.4.2.5. below). 
2.4.2.2  PAFTA 2.26.  Under the Pan Arab Free-Trade Area (PAFTA) Treaty
11, in force since 1 January 1998, most 
trade barriers among its members were eliminated on 1 January 2005, with some products 
excluded from liberalization for health, environmental, security, and religious reasons. Numerous implementation problems and non-tariff barriers ar e still reported, such as differing standards, 
lengthy bureaucratic and administrative procedures at the borders, and transit fees. For products 
imported from PAFTA countries, local value-added of at least 40% is required in order to qualify for preferential treatment. Currently, 17 me mbers are implementing the agreement.
12 The principal 
entity responsible for implementing the programm e is the Economic and Social Council of the 
League of Arab States. The PAFTA was notified to the WTO by the Kingdom of Saudi Arabia in 
2006.13 
2.4.2.3  United States 
2.27.  A free-trade agreement (FTA) between Bahrain and the United States was concluded in 
2004.14 Bahrain was the first GCC country to do so.15 This FTA, which entered into force in August 
2006, covers trade in goods and services; it also has provisions on investment, intellectual 
property rights, e-commerce, labour, environment, and dispute settlement. It provides for tariff 
elimination in agricultural and non-agricultural goods over a maximum of ten years, although a large share of products were granted duty-free access immediately. 
2.28.  Special provisions apply to trade in textile and apparel goods. In government procurement, 
U.S. suppliers are given the same price preference of 10%, wherever this privilege is extended by 
the GCC to domestic suppliers. All services sector s were liberalized, except for fishing, customs 
clearance, and postal services, and publishing of local newspapers. 
2.4.2.4  Singapore 
2.29.  A free-trade agreement between Singapore an d the member states of the GCC entered into 
force in September 2013. The agreement covers trade in goods and services, investment, rules of 
origin, standards, customs procedures, government procurement, e-commerce, intellectual 
property, movement of natural persons, and ec onomic cooperation. The agreement has not yet 
been notified to the WTO. 
2.30.  With the agreement's entry into force, ap proximately 94% of all GCC members' tariff lines 
qualified for immediate duty-free treatment, while an  additional 2.7% of tariff lines will be duty-
free as of 2018. In services, both parties committed to liberalize various sectors beyond their WTO 
                                               
11 The agreement is sometimes referred to as GAFTA (General Arab Free Trade Agreement). 
12 Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Morocco, Oman, Palestinian 
Authority, Qatar, the Kingdom of Saudi Arabia, Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, 
and Yemen. 
13 WTO document WT/REG223/N/1, 20 November 2006. The text of the agreement has not yet been 
made available to the Secretariat. 
14 WTO documents WT/REG219/N/1 and S/C/N/375, 15 September 2006. 
15 An FTA between Oman and the United  States entered into force in 2009. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 20 - 
 
  commitments. Singapore citizens, permanent reside nts, and companies incorporated in Singapore 
benefit from preferential access in professional services i.e. legal, accounting, and engineering 
services; and business services, i.e. constructi on, distribution, and hospital services. In 
government procurement, Singaporean suppliers are given the same price preference of 10%, 
wherever this privilege is extended by the GCC to domestic suppliers. 
2.4.2.5  Agreements not yet in force 2.31.  The FTA signed by EFTA member states and the member states of the GCC in June 2009 
had not entered into force as at November 2013, as not all GCC member states have concluded 
the official ratification procedures. 
2.32.  As at January 2014, the GCC countries are evaluating the feasibility/impact of negotiating 
future FTAs with other countries and regions. 
2.4.3  Other agreements 
2.33.  Bahrain has signed bilateral economic cooperation agreements with 61 countries.
16 
2.34.  Bahrain does not participate in the Glob al System of Trade Preferences (GSTP) among 
developing countries; it neither provides nor receives trade preferences under the Generalized 
System of Preferences (GSP). 
2.5  Trade disputes and consultations 
2.5.1  Dispute settlement in the WTO 
2.35.  Bahrain has not been involved in any dispute under the WTO Dispute Settlement 
Mechanism, either directly or as a third party. 
2.5.2  Other 
2.36.  Bahrain has not been involved in any disputes under its regional or bilateral agreements.  
2.6  Investment regime 2.37.  The Commercial Companies Law (No. 21 for 2001) sets out the rules and regulations 
governing permitted legal structures for companies, while the Commercial Registration Law (No. 1 
for 1961) sets out the rules and regulations govern ing individual establishments. An individual 
establishment is a non-incorporated entity owne d by one individual who must be a citizen of 
Bahrain or another GCC country. Under the Commerc ial Companies Law, depending on the activity 
to be undertaken, up to 100% foreign equity ownership in companies is permitted in: general partnership companies; joint-stock companies; limited partnership by shares; limited liability companies; single person companies; and holding companies. The same treatment is extended to 
the establishment of representative offices or br anches of foreign companies. Article 348 of the 
Commercial Companies Law requires any branch, agency or office to provide a guarantee to ensure performance of its obligations. This guaran tee could be sponsorship by the head office or 
by a Bahraini sponsor, or a bank deposit.  
2.38.  To start most businesses in Bahrain, a licence or approval is required by one or more 
government authorities. In addition, commercial registration (CR) may also be required, depending 
on the type of business. Commercial registrati on applications may be made at the Bahrain 
Investors Centre I (for companies) and at Bahrain Investors Centre II (for individual establishments), located in Bait Al Tijjar  Building, which houses the Bahrain Chamber of Commerce 
and Industry. Work permits and residency permits are also required to hire foreign workers. A flat 
commercial registration fee of BD 50 and an annua l renewal fee of BD 50 are also required. The 
payment of a licence fee may be requested from othe r ministries depending on the type of activity. 
In 2012, 8,689 new commercial licences were issued. 
                                               
16 Ministry of Finance online information. Viewed at: 
http://www.mof.gov.bh/Cate goryList.asp?ctype=agree  on 12 January 2014. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 21 - 
  2.39.  As at December 2013, the Commercial Companies Law was being amended and had 
reached Parliament for approval. According to the authorities, the main proposed changes include, the elimination of the minimum capital requirements for setting up a business in Bahrain and the requirement that partners must own at least 10% of the company. 
2.40.  As part of its investment strategy, Bahr ain promotes several key sectors for investment. 
These include financial services, professional and industrial services, education and training, logistics, information and communications technology, manufacturing, consultancy, real estate, 
construction, chemicals and plastics, aluminium, water, and healthcare. Foreign investment in 
petroleum extraction is permitted through explorat ion and production-sharing agreements with the 
Government of Bahrain; private investment in refining activities is permitted. 
2.41.  Bahrain permits 100% foreign ownership of bu sinesses in most types of economic activities 
with the exception of business activities that are reserved for Bahraini nationals and GCC citizens. 
For trade and retail activities, a minimum of 51% Bahraini ownership is required. A Bahraini partner is required for GCC companies and for tourism and travel offices. For medical clinics and 
centres, licensing is confined to Bahraini and GCC citizens (resident in Bahrain) with medical 
qualifications (not applied to hospitals). At least 50% of each pharmacy must be owned by a Bahraini pharmacist. 
2.42.  Economic activities reserved exclusively fo r Bahraini nationals are real estate services, and 
rental and management of land and buildings (not including buying and selling of real property, or 
management and development of private property); press, publication, and distribution houses 
(daily, non-daily, and specialized newspapers and magazines); printing press; oil supply in gas 
stations; gas bottling and distribution; cooker re-f illing and repair, gas cylinder distribution, Hajj 
and Umra services; foreign manpower supply; commercial agencies; and small business activities. Business activities allowed for only Bahraini and GCC citizens and companies are book-keeping and 
accounting services (not including auditing); import, export, and sale of racing car fuel; cargo 
clearing; and fishing. 
2.43.  Investment is prohibited or restricted for domestic and foreign investors in: gambling; 
alcoholic drinks manufacturing; narcotics manufacturing; weapons manufacturing; import of all 
types of waste and treatment; storage and dumpin g of radioactive materials and toxic waste in 
Bahrain; import, manufacturing, and dealing of asbestos and its by-products (not including asbestos removal); import and industrial use of restricted chemicals; pearl farming; cigarette 
manufacturing; import of automatic cigarette vending machines; postal services (exclusive to 
Bahrain Post). 
2.44.  Bahrain has no personal, corporate or withholding tax. There are no restrictions on capital 
repatriation, currency exchange, or transfer of divi dends. Land ownership is permitted to Bahraini 
and GCC nationals in all areas of Bahrain. For non-GCC nationals, land ownership was permitted in 2006 in areas designated for foreign land ownership. 
2.45.  There are no restrictions on investment abroad by Bahraini nationals. Bahrain has signed 
bilateral investment treaties with 31 countries
17 and the OPEC Fund for International Development. 
Bahrain has also signed double taxation agreements with 39 countries.18 Bahrain is a member of 
the Multilateral Investment Guarantee Agency (MIGA). 
 
                                               
17 Algeria, Belarus, China, Egypt, France, India, Iran, Jordan, Lebanon, Malaysia, Morocco, Philippines, 
Syria, Thailand, United Kingdom, Un ited States, Yemen, Sudan, Germany,  Italy, Bulgaria, Czech Republic, 
Netherlands, Uzbekistan, Brunei Darussalam, Turkmeni stan, Singapore, Turkey, Belgium-Luxembourg, Spain, 
and Mexico. 
18 Jordan, Algeria, Syria, Lebanon, Egypt, Morocco, Ye men, Sudan, Ireland, Belg ium, Bulgaria, Belarus, 
Turkey, Czech Republic, Estonia, Isle of Man, Georgia, France, Luxembourg, Malta, Austria, Netherlands, U.K., 
Uzbekistan, Iran, Pakistan, Brunei, Thailand, Turkmenistan, Singapore, China, Philippines, Malaysia, South Korea, Sri Lanka, Bermuda, Mexico, Seychelles, and Barbados. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  As a member of the Gulf Cooperation Co uncil (GCC), Bahrain has been applying the GCC 
Common External Tariff (CET) since 2003. Bahrain's tariff consists of three rates: zero (11.1% of 
all tariff lines), 5% (87.4% of all lines) and 100% (0.01% of all lines). Bahrain has a relatively 
simple MFN tariff; all rates are ad valorem  (except on tobacco), and there are no tariff quotas, no 
nuisance rates, and no other duties and charges on imports. Bahrain maintains its own list of 
restricted and prohibited goods. 
3.2.  The documentation for all imported produc ts must be authenticated by the Consulate of 
Bahrain or any Arab Embassy in the country of origin. Importers in Bahrain are not required to use a commercial agent. An eCustoms Single Window was established in 2011 to expedite the release 
and clearance of goods. Non-tariff measures are maintained on imports and exports, mainly for 
health, security, and moral reasons. Bahrain has largely harmonized its regime on standards and 
technical regulations with other GCC members. 
3.3.  The Government of Bahrain continues to have a strong influence on the economy, mainly 
through various state-owned companies, such as ALBA (aluminium), BANAGAS (gas), BAPCO 
(petroleum), and Gulf Air. Bahrain's privatization programme has slowed down in recent years. 
3.4.  Since its last TPR in 2007, Bahrain has amended some of its laws and regulations, notably on 
government procurement, civil aviation, maritime transport, and intellectual property rights. A new commercial company law is expected. The government procurement regime provides for price preferences of 10% and 5% for local and GCC products, respectively. Bahrain has no competition 
legislation per se . It has adopted the GCC Treaty provisions on contingency trade remedies. The 
Ministry of Industry and Commerce is currently working on a draft for competition legislation. 
3.2  Measures directly affecting imports 
3.2.1  Procedures 
3.5.  All imports into Bahrain, including those destined for bonded areas, must be accompanied by, 
inter alia , four copies of the bill of landing (airway bill for air cargo); the original of the certificate 
of origin (for statistical purposes)
1; three copies of the commercial invoice; and insurance 
certificates for all shipments insured by the exporter or shipper. Commercial invoices must be certified by a Chamber of Commerce in the country of origin, stating origin and current export price of the product. The certificate of origin must be stamped by the relevant Consulate of 
Bahrain or any Arab Embassy in the country of origin before the goods may be exported to 
Bahrain. Consular fees are waived for U.S. tr aders. In the event that the documents are not 
authenticated, the goods may still be cleared afte r inspection by Customs and duties paid in the 
form of a deposit, which is forfeited if the au thenticated documents are not provided within six 
months of the date of import. 
3.6.  Product-specific documentation is also required for imports of drugs and medicines, food 
products, live animals, birds and fish, and all me at and poultry products. Import permits must 
accompany certain products, including special breed horses (Arabian horses), armaments, 
insecticides, and fungicides. (section 3.2.5 below). 
3.7.  All importers and exporters must be listed  in the commercial registry maintained by the 
Ministry of Industry and Commerce (MOIC), and be members of the Bahrain Chamber of 
Commerce and Industry (BCCI). Since July 2012, the company registration fee has increased to BD 50 per year previously BD 30. 
3.8.  Importers in Bahrain are not required to use a commercial agent. Bahrain has no laws or 
regulations on pre-shipment inspection. Goods received on a through-bill-of-lading, for a destination outside Bahrain and dispatched overland, are cleared on a transit bill. A deposit or 
guarantee is required by Customs Affairs, and is  refunded on proof of exit of the goods from 
                                               
1 Where the certificate of origin is not available, a BD 10 deposit is payable until it is provided. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Bahrain within 30 days of the date of the transit bill. If the consignment is dispatched by sea, 
directly from the port (ship-shore-ship or ship-t o-ship), the goods are cleared on a transhipment 
bill. 
3.9.  Customs duties are suspended for goods stored in government bonded warehouses, until 
re-export, whereupon they are cancelled. If the g oods are not re-exported and are sold in Bahrain, 
the appropriate duties are levied. Customs may inspect all goods stored in bonded warehouses. Bahrain has seven customs offices. 
3.10.  In 2007, Bahrain implemented the Custom s Automation System (eCAS), a computerized 
bilingual (Arabic/English) system, aimed at automa ting and managing all local customs activities 
relating to the movement of goods from and to Ba hrain. According to the authorities, this system 
was not effective and was terminated in 2011. 
3.11.  In 2011, a new eCustoms System for Single  Window and International Trade Facilitation 
known as OFOQ was established. OFOQ aims to provide integrated, seamless, electronic trade operations between Bahrain’s customs and regula tory authorities and the trade and logistics 
operators. It is a single window platform for su bmissions and enquiries, wi th particular emphasis 
on reducing the cost and time of transactions whilst ensuring compliance through intelligent risk 
management. The system allows traders to expedi te the release and clearance process of goods. 
OFOQ is fully operational at Bahraini ports and its airport. According to the authorities, around 
90% of goods are released without inspection typically the same day. 
3.12.  In 2012, Bahrain acceded to the Revised Kyoto International Convention on the 
Simplification and Harmonization of Customs Procedures. 
3.2.2  Customs valuation 
3.13.  No changes have been made to Bahrain's valuation methods since its last Review. Imported 
goods are valued on the basis of the transaction value. If the transaction value of the imported 
good cannot be determined the transaction value of a similar or identical good is used. If neither of 
these values can be determined, the valuation methods used are the deductive value, the computed value or the flexible method. The importer may request application of the computed 
value method before the deductive value method.
2 This request must be made in writing at the 
time of submitting the customs declaration. If the value cannot be determined using the computed 
value method, the goods will be valued using the deductive value method. Customs tariffs are 
valued on the c.i.f. value of imports. 
3.14.  The importer or any person liable for payment of the customs duties may object and appeal 
against the assessment of a customs value, without penalty, first at the administrative level to the head of a customs point and/or to the Customs Valuation Committee, then second, to an 
independent judiciary body.
3 
3.15.  Since its last TPR, Bahrain has notified the GCC customs laws 2008 and 2012 to the 
Committee on Customs Valuation.4 
3.2.3  Rules of origin 
3.16.  Bahrain applies non-preferential and preferen tial rules of origin. Under the non-preferential 
scheme, products are generally considered as orig inating from the country where they are wholly 
obtained or where they underwent substantial transformation, with at least 40% of local value-
added. A certificate of origin produced by the original exporter and legalized by a recognized 
authority in the country of export, is required for import clearance. This applies within the GCC customs union. 
3.17.  Bahrain's preferential rules of origin ar e also generally based on a value-added content 
criterion, as in the case of the GCC customs uni on. However, for products imported from PAFTA, 
                                               
2 WTO document G/VAL/N/2/BHR/1, 17 March 2008. 
3 Rules of implementation of the GCC Co mmon Customs Law (Article 61 and 62). 
4 WTO documents G/VAL/N/1/BHR/1, 6 May 2009 and G/VAL/N/1/BHR/2, 15 October 2012.  WT/TPR/S/294 • Kingdom of Bahrain 
 
- 24 - 
 
  local value added of at least 40% is required in order to qualify for preferential treatment. Under 
the bilateral trade agreement with Singapore and wi th the United States, local value added of at 
least 35% is necessary. The latter agreement stipulates specific rules of origin for textiles, including a "yarn forward requirement". 
3.2.4  Tariffs 
3.2.4.1  MFN applied tariffs 3.18.  Bahrain has a relatively simple MFN tariff, comprising 7,303 lines.
5 All rates are ad valorem  
(except on tobacco), and there are no tariff quotas, and no nuisance rates. (Table 3.1) Bahrain's 
tariff is based on the GCC Common External Tariff, which consists of three rates: zero (11.1% of all tariff lines), 5% (87.4% of all lines) and 100% (0.01% of all lines) (Chart 3.1). Bahrain applies a 125% tariff on alcoholic beverages; and an alternate tariff of 100% ad valorem  or a specific 
amount (whichever is higher)
6 on tobacco products (Table 3.3). 
Table 3.1 Structure of applied MFN tariffs in Bahrain, 2013 
  2007  2013 Final bounda 
1. Bound tariff lines (% of all tariff lines) 72.7 70.6 70.6 
2. Simple average tariff rate 5.3 5.1 34.5 
 Agricultural products (WTO definition) 7.4 7.5 37.6 
 Non-agricultural products (WTO definition) 4.9 4.6 33.6 
 Agriculture, hunting,  forestry and fishing (ISIC 1) 3.3 3.0 35.7 
 Mining and quarrying (ISIC 2) 4.9 4.9 35.0 
 Manufacturing (ISIC 3) 5.4 5.2 34.4 
3. Duty-free tariff lines (% of all tariff lines) 5.9 11.1 2.0 
4. Simple average rate of dutiable lines only 5.6 5.7 35.5 
5. Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
6. Non- ad valorem  tariffs (% of all tariff lines)b 0.3 0.4 0.0 
7. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)b 0.3 0.4 0.0 
8. Domestic tariff peak s (% of all tariff lines)b, c 0.9 0.9 0.2 
9. International tariff peaks (% of all tariff lines)b, d 0.9 0.9 68.6 
10. Overall standard deviation of applied rates 7.9 8.3 11.5 
11. Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 
 
a Final bound rates are based on the 2013 tariff schedule in HS12 nomenclature. b Prohibited items are not taken into account in calculations. c Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%. 
 Note: The 2007 tariff is based on HS02 nomenclature co nsisting of 7,166 tariff lines (at 8-digit tariff line 
level). 
 The 2013 tariff is based on HS12 nomenclature consisting of 7,303 tariff lines (at 8-digit tariff line 
level). 
 In case of non- ad valorem  tariffs, the ad valorem  part is used for alternate rates. 
 Source: WTO Secretariat calculations, based on tariff information provided by the authorities of Bahrain, and 
WTO CTS database. 
3.19.  Duty free lines increased from 5.9% in 2007 to 11.1% in 2013, due to changes in the HS 
nomenclature.  
                                               
5 The 2013 tariff is based on HS12 nomenclature at 8-digit tariff line level. 
6 The specific components of the alternate tariffs fo r tobacco and tobacco-related products are (HS code 
in parentheses): BD 2 per kg gross (2401.1000 to 2401.3090); BD 15 per kg (2402.1000 and 2402.9010); 
BD10 per thousand cigarettes (2402.2000 and 2402.9020); BD 4 per kg net (2403.1010 to 2403.9930); BD 0.6 per kg (2403.9940 and 2403.9950); and BD 4 per kg gross (2403.9990).  WT/TPR/S/294 • Kingdom of Bahrain 
 
- 25 - 
  3.20.  Bahrain's overall average MFN applied tariff is 5.1% (down from 5.3 in 2007). The 
coefficient of variation, at 1.6, reflects the ze ro rate and 100-125% tariffs applicable on a few 
items (Tables 3.2 and A3.1). On the basis of the WTO definition, tariffs average 7.5% in agriculture and 4.6% in non-agricultural products . Using ISIC (Revision 2), manufacturing is the 
highest protected sector at 5.2%, followed by  mining and quarrying, then agriculture. 
Chart 3.1 Applied MFN tariff distribution, 2013 
(Share of total tariff lines) 
Duty-free rate (11.1%)
Duty rate of 5% (87.4%)Duty rate of 20% (0.3%)Duty rate of 100% 
(0.01%)Duty rate of 125% (0.4%)
Mixed duty rate (0.3%)
Prohibited (0.5%)
 
Source: WTO Secretariat calculations, based on tariff information provided by the authorities. 
3.21.  On aggregate, Bahrain's tariff continues to display slight positive escalation, from first-stage 
processed products to semi-finished goods, and to fully processed products. This positive tariff 
escalation stems from the lower applied tariffs (on average) to agricultural raw materials. Further 
desegregation shows mixed results: in some industries (e.g. textiles and apparel, basic metal products) tariffs are uniform from the first to the final stage of processing. Otherwise, tariff escalation is mixed (negative from the first to the second stage, and then positive) in food and 
beverages, reflecting the high rates on tobacco and spirits, and in non-metallic mineral products. 
Escalation is slightly negative in chemicals and in paper and printing, because of duty-free imports of pharmaceuticals and certain books. 
3.2.4.2  Tariff bindings 
3.22.  Bahrain has bound 70.6% of its tariffs. Most are bound at a ceiling rate of 35%; however, 
tobacco and alcohol products (24 lines) are bound at 100% and 200%, respectively. 
3.23.  Bahrain's average bound tariff is 34.5%. The overall average MFN applied tariff is 5.1% 
(Table 3.2). 
Table 3.2 Bahrain's applied MFN tariff summary, 2013
 
 Number 
of lines Average 
(%) Range 
(%) CVa Duty free 
(%) 
Total 7,303 5.1 0-125 1.6 11.1 
HS 01-24 1,374 6.9 0-125 2.7 25.0 
HS 25-97 5,929 4.7 0-20 0.4 7.9 
By WTO category      
WTO agricultural products 1,194 7.5 0-125 2.7 22.3 
Animals and products thereof 157 3.0 0-5 0.8 40.1 
Dairy products 35 5.0 5 0.0 0.0 
Fruit, vegetables, and plants 358 3.7 0-5 0.6 25.4 
Coffee and tea 38 10.0 0-125 2.7 26.3 
Cereals and preparations 183 3.5 0-5 0.7 30.1 
Oils seeds, fats, oil and their products 100 4.9 0-5 0.2 3.0 
Sugars and confectionary 40 6.4 0-125 3.0 32.5 WT/TPR/S/294 • Kingdom of Bahrain 
 
- 26 - 
 
   Number 
of lines Average 
(%) Range 
(%) CVa Duty free 
(%) 
Beverages, spirits and tobacco 84 50.4 0-125 1.1 1.2 
Cotton 5 5.0 5 0.0 0.0 
Other agricultural products, n.e.s. 194 4.8 0-125 1.8 15.5 
WTO non-agricultural products 6,109 4.6 0-20 0.4 8.9 
Fish and fishery products 266 3.5 0-5 0.6 29.3 
Minerals and metals 1,202 5.0 0-20 0.3 2.2 
Chemicals and phot ographic supplies 1,259 4.6 0-20 0.4 9.1 
Wood, pulp, paper and furniture 426 4.7 0-20 0.5 9.6 
Textiles 718 5.0 0-20 0.1 0.6 
Clothing 254 5.0 5 0.0 0.0 
Leather, rubber, footwear and travel 
goods 212 5.0 5 0.0 0.0 
Non-electric machinery 640 4.2 0-5 0.4 16.1 
Electric machinery 313 3.4 0-5 0.7 32.6 
Transport equipment 233 4.4 0-5 0.4 11.2 
Non-agricultural products, n.e.s. 551 4.7 0-20 0.4 8.9 
Petroleum 35 5.0 5 0.0 0.0 
By ISIC sectorb      
ISIC 1 - Agriculture, hunting and fishing 504 3.0 0-100 3.0 53.6 
ISIC 2 - Mining and quarrying 123 4.9 0-5 0.2 2.4 
ISIC 3 - Manufacturing 6,675 5.2 0-125 1.6 8.0 
By stage of processing      
First stage of processing 938 3.9 0-100 1.7 30.1 
Semi-processed products 2,166 4.8 0-20 0.3 4.5 
Fully processe d products 4,199 5.5 0-125 1.9 10.2 
 
a CV refers to coefficient of variation. 
b International Standard Industrial  Classification (Rev.2). Electricity, gas and water are excluded 
 (1 tariff line).  Note: The 2013 tariff is based on HS12 nomenclature co nsisting of 7,303 tariff lines (at 8-digit tariff line 
 level). In case of  non-ad valorem  tariffs, the ad valorem  part is used for alternate rates. 
 Source: WTO Secretariat calculations, based on data provided by the authorities. 
Table 3.3 Applied MFN tariff rates high er than bound rates in Bahrain, 2013  
Tariff 
level Product description 2013 applied tariff Bound 
tariff 
17049080 White chocolate containing alcohol  125 35 
18063110 Other, in blocks, slabs or bars: filled, containing 
alcohol 125 35 
18063210 Other, in blocks, slabs or bars: not filled, 
Containing alcohol 125 35 
22072090 Ethyl alcohol and other spirits, denatured, of any 
strength: Other 125 35 
23070010 Wine lees 125 35 
24039950 Tobacco extracts and essences 100 35 
24021000 Cigars, cheroots and cigarillos, containing tobacco  100% ad valorem  with minimum charge of 
BD 15 per kg. Gross 35 
24022000 Cigarettes containing tobacco 100% ad valorem  with minimum charge of 
BD10 for 1,000 cigar 35 
24029010 Cigars of tobacco substitutes (not containing 
tobacco or nicotine ) 100% ad valorem  with minimum charge of 
BD 15 per kg. Gross 35 
24029020 Cigarettes of tobacco substitutes (not containing 
tobacco or nicotine) 100% ad valorem  with minimum charge of 
BD 10 for 1,000 cigar 35 
24031100 Water pipe tobacco specified in Subheading Note 
1 to this Chapter 100% ad valorem  with minimum charge of 
BD 0.600 per kg Gross 35 
24031910 Chopped or pressed tobacco for smoking 
(cigarettes) 100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24031920 Chopped or pressed tobacco for pipes  100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 WT/TPR/S/294 • Kingdom of Bahrain 
 
- 27 - 
  Tariff 
level Product description 2013 applied tariff Bound 
tariff 
24031930 Chopped or pressed tobacco for smoking 
(cigarettes) 100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24031990 Other: 100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24039100 Homogenised or reconstituted tobacco  100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24039910 Pressed or liquored tobacco for making snuff  100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24039920 Chopped or pressed tobacco for chewing  100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24039930 Snuff 100% ad valorem  with minimum charge of 
BD 4 per kg. Gross 35 
24039940 Jirak 100% ad valorem  with minimum charge of 
BD 0.600 per kg Gross 35 
24039990 Othe r 100% ad valorem  with minimum charge of 
BD 4 per kg net 35 
 
Source: WTO Secretariat calculations, based on tariff information provided by authorities, and WTO CTS 
 database. 
3.2.4.3  Other duties and taxes 
3.24.  Bahrain does not apply other duties and taxes, except on some fresh agricultural products, 
where a municipality tax of up to 2% may be charged for statistical purposes. Bahrain bound other 
duties and taxes at zero, with the exception of 40 tariff lines (HS 08) for which they were bound at 2%. 
3.25.  Bahrain does not levy valu e-added tax (VAT) or sales tax. 
3.2.4.4  Duty and tax concessions and exemptions 3.26.  Bahrain grants tariff exemptions on raw materials, machinery, and equipment imported for 
local factories qualifying under the local and GCC In dustries Laws (Law No. 1 of 2006). In addition, 
duty and tax concessions are granted to all industries or companies on imports necessary for their operational use. Duty-free imports are also allowed for, inter alia , international organizations, 
diplomatic missions, the armed forces, police, and charity institutions.
7 
3.27.  Duty and tax concessions are granted under the import for re-export, temporary admission, 
or transit regimes. Importers using the import for re-export regime make a deposit or provide a bank guarantee in lieu of the duty payment, whic h is refunded/released upon proof of re-export. 
Goods remaining in Bahrain after 180 days are li able for duty payment. Goods declared under 
temporary admission, such as goods imported for exhibitions; equipment used in construction, scientific research, development projects; and items for repair or maintenance, must be re-
exported within a maximum of three years. Importer s do not need to hold a trading licence if they 
are engaged in re-export, temporary admission, or transit.  
3.28.  Duty drawback is allowed under Article 16 of the Executive Supplementary Notes to the GCC 
Customs Law. It permits exporters to recover the duty paid on an imported product once the 
product is re-exported from Bahrain. The qualifying  conditions include: that the exporter is also 
the original importer of the product; that the original c.i.f. value of the re-exported goods is not less than BD 1,890 (around US$5,000); that the goods are re-exported within three years of 
payment of the import duty, in the same condit ion and packaging as when they were imported; 
and that the exports are not restricted or granted protective duty under Bahraini Law, unless prior permission is obtained from the relevant authority.
8 Proof is required that the goods being 
exported are identical to the goods that were imported. Customs imposes a service charge of 
0.5% of the c.i.f. value of the goods if the cust oms duty did not exceed 20%; and 1% of the c.i.f. 
value of the goods with customs duty above 20%. 
                                               
7 Section VIII of the Common Customs Law of GCC St ates specifies the agencies and goods exempt 
from duty. 
8 Customs Handbook, Resolution No. 2 (1986) Regarding Drawback of Import Duty paid on foreign 
goods, on re-export. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 28 - 
 
  3.29.  Tariff concessions and exemptions are specific to each GCC member and may therefore 
differ from one State to another; except those under section VIII of the GCC Common Customs Law. 
Chart 3.2 Average MFN tariff rates, by WTO product categories, 2013 
(%) 
01020304050607080
1 2 3 4 5 6 7 8 9 1 01 11 21 31 41 51 61 71 81 92 02 12 22 32 41 WTO Agriculture
2 Animals and products3 Dairy products
4 Fruit, vegetables, and 
plants5 Coffee and tea6 Cereals and preparations7 Oils seeds, fats, oil and their products8 Sugars and confectionary
9 Beverages, spirits and tobacco
10 Cotton
11 Other agricultural products12 WTO Non-agriculture13 Fish and fishery products14 Minerals and metals15 Chemicals and 
photographic supplies16 Wood, pulp, paper and 
furniture
17 Textiles18 Clothing19 Leather, rubber, 
footwear and travel goods20 Non-electric machinery
21 Electric machinery
22 Transport equipment23 Non-agricultural products24 PetroleumApplied rates
Bound rates
Average applied rate
(5.2%)Average bound rate
(34.5%)
 
Source: WTO Secretariat calculations, based on data provided by the authorities, and WTO CTS database. 
3.2.4.5  Tariff preferences 
3.30.  Products from a GCC member circulate free of duty across the customs union. With the 
exception of tobacco and alcohol products, whic h are excluded from Bahrain's preferential 
arrangements, imports originating from the other members of PAFTA enter Bahrain duty free, 
provided that the goods meet the respective origin  criteria (section 3.2.3 above). Products from 
Singapore and the United States benefit from preferential treatment (Table 3.4). 
Table 3.4 Bahrain's applied MFN, US A FTA and Singapore FTA tariffs, 2013  
 MFN USA Singapore 
Average 
rate (%) Range (%)  Average 
rate (%) Range (%)  Average 
rate (%) Range (%)  
Total 5.2 0-125 0.6 0-125 0.9 0-125 
HS 01-24 7.8 0-125 3.3 0-125 4.0 0-125 
HS 25-97 4.7 0-20 0.02 0-4 0.2 0-20 
WTO Agriculture 8.5 0-125 3.8 0-125 4.0 0-125 
WTO Non-agriculture 4.6 0-20 0.02 0-4 0.3 0-20 
 
Note: The 2013 tariff is based on HS12 nomenclature co nsisting of 7,303 tariff lines (at 8-digit tariff line 
level). In case of non- ad valorem  tariffs, the ad valorem  part is used for alternate rates. 
 Source: WTO Secretariat calculations, based on data provided by the authorities. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 29 - 
  3.2.5  Import prohibitions, restrictions, and licensing 
3.31.  Under the GCC Common Customs Law, each GCC state determines its own list of prohibited 
or restricted products. According to the authoritie s, they do not foresee developing a common list. 
Imports that are prohibited in some GCC member states and permitted in others must not transit 
through the states in which they are prohibited. Transit of restricted imports is allowed. 
3.32.  In Bahrain, import prohibitions are maintained for various reasons, including environmental 
protection, health and safety, and religious and moral considerations (Table 3.5). 
Table 3.5 Prohibited imports, 2014  
HS Code Product description Reasons for prohibition Responsible ministry 
01.03.00.00 Live swine Religious reasons Minist ry of Industry and 
Commerce 
.. Drugs Drugs and narcotics 
reasons Ministry of Interior 
.. Indian betel nut Health reasons Minist ry of Industry and 
Commerce 
40.12.00.00 Retreated or used pneumatic 
tyres of rubber Safety reasons Ministry of Industry and 
Commerce 
.. The promotion of goods for 
all kind of cigarettes Health reasons Minist ry of Industry and 
Commerce and Ministry of Health 
.. Asbestos and articles of 
asbestos Safety and health reasons Ministry of Industry and 
Commerce 
71.01.21.00 71.01.22.00 
71.16.10.10 Cultured pearls Assist regeneration of 
natural pearl industry Ministry of Industry and 
Commerce 
95.03.00.90 (Other) Models of aircraft its 
work by remote control Security and safety 
reasons  Ministry of Interior 
95.03.00.90 Children toys in the form of 
gun, with power Security and safety 
reasons Ministry of Interior and 
Ministry of Industry and Commerce 
95.07.10.00 
96.01.10.00 
96.01.90.00 Ivory and articles of ivory Preserve the natural 
environment Ministry of Industry and 
Commerce 
.. Not available. 
Source:  Information provided by the authorities. 
3.33.  Bahrain has notified the WTO Committee on Import Licensing Procedures that it has no 
import licensing system.9 Nonetheless, goods subject to import restrictions must be accompanied 
by certificates from the relevant authorities. Most of the import restrictions maintained by Bahrain are on safety, health or moral grounds, and apply to, inter alia , special breed horses, armaments, 
insecticides and fungicides, and radioactive materials (Table 3.6). 
3.34.  Food, plant, and animal imports that are re stricted for health reasons, must be accompanied 
by sanitary and phytosanitary health certificat es from the exporting country. Imports of food 
products must be accompanied by a certificate decl aring them to be free of radiation and dioxin 
(section 3.4.2.2 below). In addition, pharmaceutical products must be imported directly from a 
manufacturer with a research department, and the products must be licensed in the country of manufacture and in at least two GCC countries other than Bahrain, one of which must be the 
Kingdom of Saudi Arabia. 
                                               
9 WTO document G/LIC/N/3/BHR/2, 23 January 2012. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table 3.6 Restricted imports, 2014  
HS Code Product description Conditions for release of 
import Authorizing ministry 
01.01.10.10 Horses, of Arab breed No-objection certificate from 
Equestrian and Horse Racing Club; and valid certificate from Veterinary Authority Crown Prince Court and 
Ministry of Municipal and Agriculture Affairs 
01.06.19.90 
and 
95.08.10.00 Other live wild dangerous 
and animals for circus only No-objection certificate from 
Ministry of Interior; and valid 
certificate from Veterinary 
Authority Ministry of Interior and 
Ministry of Municipal and 
Agriculture Affairs 
22.07.20.19 Unadulterated ethyl 
alcohol of isopropyl, isopropanol No-objection certificate Ministry of Interior 
28.44.40.10 Radioactive chemical 
elements and active 
isotopes Permission Ministry of Health 
31.01.00.00 
to 31.05.00.00 Animal or vegetable 
fertilizers whether or not mixed together or chemically treated No-objection certificate Ministry of Municipal and 
Agriculture Affairs 
38.08.00.00 Insecticides and fungicides No-objection certificate  Ministry of Municipal and 
Agriculture Affairs 
73.26.90.99 Handcuffs made from iron 
and steel No-objection certificate Ministry of Interior 
87.01.10.00 Pedestrian controlled four-
wheel mini car No-objection certificate  Ministry of Interior 
93.00.00.00 
to 93.07.00.00 Arms and ammunition, 
military weapons, and parts thereof; bombs, grenades, torpedoes, mines, missiles, and parts thereof, swords, cutlasses, bayonets, lances, and similar arms and parts thereof No-objection certificate Ministry of Interior 
Source:  Information provided by the Bahraini authorities. 
3.2.6  Contingency measures 
3.35.  In 2009, Bahrain notified to the WTO that it has adopted a GCC Common Law on Anti-
dumping, Countervailing Measures and Safeguards since 22 December 2003 and a related 
regulation dated 11 October 2004, relevant to the Agreements on Anti-dumping, Subsidies and 
Countervailing Measures and Safeguards.10 Bahrain has never taken anti-dumping, countervailing 
or safeguard measures. However, on the GCC level, two safeguard investigations were initiated in 2009 on imports of iron but were terminated without measures being taken in 2010. In 2011, 
Bahrain adopted the new GCC Common Law on Anti-dumping, Countervailing Measures and 
Safeguards (Law No. 48 of 2011). 
3.2.7  Government procurement 
3.36.  Bahrain's Tender Board (TB) oversees and supervises all tendering, purchasing, and 
awarding processes related to the public sector and government-owned organizations. As an independent body that reports directly to the Council of Ministers, the TB is composed of a 
Chairman, Deputy Chairman, and seven other members. The term of office for members of the TB 
is two years, renewable only once
11; all are appointed by Royal Decree. 
                                               
10 WTO documents G/ADP/N/1/BHR/2, G/SCM/N/1/BHR/1, G/SG/N/1/BHR/2, 17 July 2009. 
11 Article 9 of Legislative Decree No. 36/2002 allows for one third of the TB members to be reappointed 
for a further tw o-year term. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3.37.  The tendering procedures specified in the Government procurement regime for local or 
international tenders12 are: (i) public tender as the main method for the purchases of goods or 
construction; (ii) limited tenders, applied, for example, if there is a limited number of suppliers, or the intended purchase is of small value that does not justify a large number of bids; 
(iii) negotiated tenders, applied, for example, if no tender has been submitted at the end of public 
procedures, and when goods cannot be identified by precise specifications; (iv) direct purchase, if it is established that the needs can only be supplied by a single source; and (v) requests for 
proposals, the main method for services, through local or international advertisement, or in a 
specialized publication, or applications for pre-qualification.
13 According to the authorities, an 
additional tendering method, the "two phase tender", is used when it is not feasible to draft detailed specifications for goods or to determine the characteristics of the services to obtain the 
best solution to meet the requirements of the procuring entity. 
3.38.  The TB must award the tender to the bi dder who offers the best terms and the lowest 
price.
14 The successful bidder must submit a performance bond within 10 days for local tenders or 
20 days for international tenders of notification of the provisional intention to award the contract 
(this may be extended, in both cases, by a furthe r 10 days). The amount of the performance bond 
is determined by the TB on the basis of the nature and value of the project.15 Successful bidders 
must be notified individually. All final awards are published in the Official Gazette , in the press, 
and on the TB's website.16 The TB also publishes online, both in Arabic and English, the weekly list 
of tenders that have been opened, those that w ill be opened during the year, and the dates of 
each tender. 
3.39.  In 2010, Bahrain amended its government procurement regime through Law No. 29 of 2010 
amending the Legislative Decree No. 36 of 2002 with respect to "Regulating Government Tenders and Purchases". Some of the main changes cover the value of tenders that are conducted directly 
by the purchasing authorities. These are currently up to BD 50,000 for government-owned 
companies and BD 25,000 for ministries. In additi on, the law was amended to make the Tender 
Board responsible for auctions covering the sale of goods and equipment, rental leases, and 
investments, as well as tenders. Other changes include allowing negotiations between the supplier 
and the purchasing authority regarding the price, up on approval of the TB; allowing the purchasing 
authority to process a variation order to an existing contract up to 15% of the contract value; and waiving the requirement of the initial bond, upon a substantiated decision and a request from a 
purchasing government authority. 
3.40.  Since the last TPR of Bahrain, the TB has implemented the first phase of a new full-fledged 
electronic tendering system (e-tendering), introduced in 2011. The system enables the 
government purchasing authorities to create and publish their documents on the e-tendering 
system. The suppliers are then allowed to use th eir credit cards to purchase and download the 
tender documents from the system. The rest of  the tender process takes place outside the e-
tendering system as per the current procedure. The second phase of this online system is intended 
to cover the whole tendering process and become operational in 2014. 
3.41.  Complaints may be submitted in the first instance, for reconsideration by the procuring 
entity and/or the TB, prior to the contract's entry into effect. A decision is to be taken within 
                                               
12 The criteria for choosing between local and internat ional tenders are based upon the nature of the 
goods, construction or services to be purchased; volume; complexity; and standards required. The TB is 
empowered to select an international tender based on such criteria. Local tenders are limited to companies and organizations registered in Bahrain (GCC companies are co nsidered as local), and are advertised in one or two 
local newspapers, or as deemed appr opriate by the TB, while international tenders are advertised in Bahrain 
and abroad in both Arabic and English. In all cases, th e TB may advertise in other media of wider circulation. 
Public procurement, through tendering, for BD 1 million or more must be advertised in the Official Gazette . 
13 Requests for submissions of propos als may be made directly to a numb er of suppliers if: the services 
are unavailable except with a limited number of suppliers ; the costs of the evaluation exceeds the value of the 
required services; and confidentiality or national in terests so require (Article 51 of Legislative Decree 
No. 36/2002). 
14 The TB estimates in monetary terms, where possible,  all the criteria of comparison between tenders, 
such as maintenance costs and quality. 
15 If the winning bidder fails to submit the performanc e bond within the deadline, he/she is deemed to 
have withdrawn from the tender, and cannot participate in  tenders for at least one year. The performance bond 
is returned when a supplier or a contractor fu lfils the terms of contract. 
16 See TB online information. Viewed  at: http://www.tenderboard.gov.bh. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  30 days after the complaint is made.17 Judicial review is available for contractors or suppliers to 
challenge the decisions taken by the procuring entity or the TB before the competent law courts within 60 days after the decision is made. The Tender Board received a total of 102 requests for review and complaints during 2013. Most of the grievances were related to the procedures 
followed by purchasing authorities in issuing, evaluating, and awarding tenders. 
3.42.  Price preferences are given for goods produced in Bahrain and in other GCC states, provided 
that the prices of these goods are within spec ified margins of the value of their imported 
equivalents (10% for goods produced in Bahrain and 5% for goods produced in the GCC). In the 
context of Bahrain's regional and bilateral free-tr ade agreements, suppliers from the United States 
and Singapore will benefit from the same price preferences of 10%. 
3.43.  The Tender Board has awarded 17,258 tenders up until 31 December 2012, with a total 
estimated value of BD 9.2 million and an award value of BD 8.9 million. On 9 December 2008, 
Bahrain became an observer to the WTO Plurilateral Agreement on Government Procurement. 
3.2.8  Other measures 
3.44.  Bahrain does not apply any sanctions ap art from those adopted by the United Nations 
Security Council. No official countertrade or offsetting arrangements, or agreements designed to 
influence the quantity or value of goods and servic es imported by Bahrain are currently in force. 
The authorities indicate that no agreements have ever been concluded with foreign governments or foreign firms to restrict exports to Bahrain. Bahrain does not maintain any compulsory reserve 
stocks, and has never taken any measures  for balance-of-payment purposes.  
3.3  Measures directly affecting exports 
3.3.1  Procedures 
3.45.  Like imports, exports may only be ca rried out by companies or individuals who are 
registered with the commercial registry at the Mi nistry of Industry and Commerce (MOIC) and are 
members of the Bahrain Chamber of Commerce an d Industry (BCCI). Documents required for 
exports include the commercial invoice and a certif icate of origin stamped by the Bahrain Chamber 
of Commerce and Industry. 
3.46.  Additional documentation may be required by Customs Affairs if exports of the products are 
restricted, e.g. if they are subject to permits. 
3.3.2  Export taxes, charges and levies 
3.47.  According to the authorities, Bahrain does not apply any export duties or taxes.
18 
3.3.3  Export prohibitions, restrictions and licensing 
3.48.  Based on Law No. 18 of 1975 on Price Controls, the Minister of Industry and Commerce has 
the right to prohibit exports or re-exports on any product.19 
3.49.  Bahrain prohibits exports of some products, including certain foodstuffs and fuels 
(Table 3.7). Export restrictions apply to, inter alia , live horses, camels, and antiques (Table 3.8).  
                                               
17 Complaints are to be filed within 10 days of becoming aware of the decision or action in case of local 
tenders, and 20 days in the case of international te nders. According to Article 56 of Legislative Decree 
No. 36/2002, a refusal must be substantiated. However, if no decision is taken with respect to the complaint within the 30 days, it shall be deemed as an implicit rejection.  
18 Bahrain abolished export duties  on 1 September 1986 and eliminat ed export fees on ready-made 
clothes in 2005. 
19 Article 6.3 of Law No.18 of 1975. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 33 - 
  Table 3.7 Prohibited exports, 2014  
HS Code Product description Authority 
0106.3920 "Bul-bul" bird Crown Prince Court 
2707.1000 
2707.3000 
2711.3100 All kinds of fuel as subsidized goods, 
like diesel National Oil and Gas Authority 
.. All kinds of flour as subsidized goods Ministry of Industry and Commerce 
0105.9410 Fresh chicken of trade mark "Delmon", 
as subsidized goods Ministry of Industry and Commerce 
.. Red meat as subsidized goods Ministry of  Industry and Commerce  
..  Not available. 
Source:  Information provided by the authorities. 
Table 3.8 Restrict ed exports, 2014  
HS Code Product description Authority 
0101.1010 
0101.9010 0101.9020 Live horses Equestrian and Horse Racing Club 
0106.1910 Camels Royal Court 
0602.2010 Palm tree offshoot Ministry of Municipality and Agricultural 
Affairs 
.. Garbage, wastes Public Commission for the Protection of 
Marine Resources, and Wildlife 
Environment  
9706.0000 Antiques Ministry of Information 
.. Not available. 
 
Source:  Information provided by the authorities. 
3.3.4  Export subsidies 
3.50.  In 2012, Bahrain notified to the WTO that it  does not grant or maintain within its territory 
any subsidies within the meaning of Article 1.1 of the Agreement on Subsidies and Countervailing 
Measures, which is specific within the meaning of Article 2 of the Agreement, or which operates directly or indirectly to increase exports from or reduce imports into its territory within the meaning of Article XVI:1 of the GATT 1994.
20 
3.51.  Duty and tax concessions are also granted to exporters (section 3.2.4.4). 3.3.5  Export processing zones 
3.52.  Bahrain does not have free zones or export processing zones. 
3.3.6  Export finance, insurance and guarantees 
3.53.  The Bahrain Development Bank (BDB), owne d by the Government, is the primary financial 
development institution. It was established in 1992 to encourage and develop investment, meet 
the financing needs of small and medium-sized enterprises (SMEs), and help diversify Bahrain's 
economic base.
21 The BDB facilitates exports by SMEs through, inter alia , export financing for 
goods manufactured in Bahrain, and project loans at market interest rates, as well as flexible grace periods (up to 3 years) and repayment term s. The BDB has plans to offer export credit 
guarantee programmes to SMEs. 
                                               
20 WTO document G/SCM/N/220/BHR, 24 January 2012. 
21 BDB online information. Viewed at: http://www.bdb-bh.com . WT/TPR/S/294 • Kingdom of Bahrain 
 
- 34 - 
 
  3.3.7  Export promotion and marketing assistance 
3.54.  Export promotion activities are carried  out by the Economic Development Board (EDB) 
in lieu of the Bahrain Promotions and Marketing Board (BPMB). Sectors that benefit from EDB export promotion activities include downstream aluminium and information technology and 
support services. 
3.55.  In 2012, Bahrain's Chamber of Commerce an d Industry established an Export Development 
Centre to provide export advisory services to small and medium size enterprises (SMEs). 
3.4  Measures affecting production and trade 
3.4.1  Incentives 3.56.  Bahrain offers various investment incentives to national and foreign investors. The 
incentives include short- and long-term loans with low interest rates from the Bahrain 
Development Bank for financing capital assets, and a core portion of working capital for small and 
medium-sized industrial projects; low rents for land in government industrial areas
22; low energy 
tariffs for production; and flexible regula tions and procedures to import workforce.23 
3.57.  Some incentives are provided in industrial zones. In the North Sitra Industrial Estate, 
foreign-owned firms have the same investment opportunities in these zones as Bahraini companies. Raw materials intended for processing in Bahrain, and equipment and machinery 
imported by Bahraini-registered firms are duty free. 
3.58.  The Bahrain International Investment Park (BIIP), established by the Ministry of Industry 
and Commerce (MOIC) in 2010, offers incentives including 100% foreign ownership; 0% corporate tax (with a 10-year guarantee); exemption from im port duties on raw materials and equipment; 
duty-free access to all GCC markets (unlike free zones in the region); free trade access to the 
United States and Singapore; 100% repatriation of capital; no recruitment restrictions; and no minimum capital requirements. 
3.59.  Investors in industrial or industry-related zones are required to launch a project within one 
year from the date of receiving the land, and development must conform to the specifications, terms, and drawings submitted with the applicat ion. Changes are not permitted without approval 
from the Ministry of Industry and Commerce (MOIC). The Government provides electricity, water, 
and sewerage services at below-market costs. Support for infant industries was phased out in 2005. 
3.4.2  Standards and other technical requirements 
3.4.2.1  Standards, metrolog y, testing and certification 
3.60.  The Bahrain Standards and Metrology Directorate (BSMD)
24 within the Ministry of Industry 
and Commerce (MOIC) is the standardization body and the national enquiry point in Bahrain. The 
BSMD is responsible for standardization, metrolog y, conformity, and quality assurance. The BSMD 
prepares, revises, amends, and publishes approved Bahraini technical regulations and conformity assessments as well as Bahraini national standards, to meet international demands for quality, 
design, performance, safety and environmental im pact of products and services. The BSMD also 
accepts and adopts, as appropriate, the technical regulations, standards, guides, recommendations 
of other foreign countries and of regional (Gulf and Arab States) and international organizations. The BSMD regulates eight product categories (Table 3.9). 
3.61.  The National Committee for Standards and Metrology (NCSM) is chaired by the Minister of 
Industry and Commerce and comprises representatives of stakeholders from relevant ministries, the Bahrain Chamber of Commerce and Industry (B CCI), and independent technical experts. The 
                                               
22 As from January 2001, foreign firms may lease industrial land in Bahrain, for a maximum of 50 years. 
The Industrial Area Directorate at the MOIC oversees long-term land leases. Government lease arrangements 
are governed by Legislative Decree No. 28/1999 on the Establishment and Organizing of Industrial Areas. 
23 A new Labour Law No. 36/2012 replaced Law No. 73/2006. 
24 The BSMD was established in 1988 under Legislative Decree No. 16 of 1985. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 35 - 
  NCSM is responsible for: (i) drawing up the polic y of standards and metrology in Bahrain; (ii) 
forming Technical Committees that participate in the preparation of standards; (iii) approving national technical regulations and standards prior to their publication in the Official Gazette;  (iv) 
proposing the fees to be charged for the services  rendered by the Directorate of Standards and 
Metrology; and (v) adopting all resolutions of the Board of Directors of the GCC Standardization 
Organization (GSO) prior to their publication in the Official Gazette  and implementation in Bahrain.  
3.62.  According to the authorities, Bahrain develops technical regulations and standards at the 
national level only if there is a pressing need. All technical regulations and standards must be 
adopted by the NCSM; all proposed standards or te chnical regulations related to food, vehicles and 
tyres, and oil and gas are examined by one of the seven NCSM technical committees, which has seven to ten months to approve it. 
3.63.  Bahrain had 6,693 national standards in place as of March 2013, of which 3,433 (50%) 
were adopted from international standards an d 3,260 were based on modified international 
standards by the Gulf Standards Organization (GSO) or foreign standards. In addition, Bahrain has 
1,601 technical regulations. Bahrain has a nati onal technical regulation on local bread.
25 All 
standards and technical regulations are adopted by  Ministerial Orders and then published in the 
Official Gazette . Technical regulations normally enter into effect after six months, unless there is 
an emergency situation. 
3.64.  All technical regulations in Bahrain apply equally to locally produced and imported products, 
with the exception of quality marks on gold. Regu lated products are granted entry if they comply 
with the provisions of the applicable technical regulation and conformity assessment procedure 
(Table 3.9).  Bahrain notifies the WTO of all draft technical regulations and conformity assessment 
procedures. Bahrain issued 310 notifications between 2007 and November 2013. It has not concluded any mutual recognition agreements. 
3.65.  At the GCC level, Bahrain continues to harmonize its technical regulations and standards. 
GCC-wide standards may be proposed/initiated by a body in a member country, and are formulated by the GSO, which is based in Riyadh. The proposal requires support from at least two 
member countries in order to be included in the GSO work programme. Once approved, GSO 
standards are circulated to all GCC member stat es for adoption. In general, GCC standards are 
based on international standards. Technical regulations are proposed by the Gulf Conformity Assessment Committee (GCAC), which is part of the GSO and its membership includes 
representatives from national standardizat ion organization of GSO member states. 
3.66.  The BSMD, together with GSO and the othe r national standardization bodies of the GCC, 
established a Regional Conformity Assessment Sc heme (RCAS) in 2007, with the support of the 
Joint Accreditation System of Australia and New Zealand. The RCAS is intended to develop a 
harmonized unified regional regulatory system for the custom union, and single entry point for GCC member states. The system introduced a conformity marking to indicate a product's 
conformity with the requirements provided in th e related regulation. The scheme is composed of 
horizontal technical regulations applied to all products, and sectorial regulations for specific categories such as toys and electrical appliances. 
3.67.  The GCAC is responsible for proposing the uni fied Gulf technical regulation for the regional 
scheme, which is then approved by the GSO Board of directors and adopted by Member states. As 
of 1 January 2011, the Gulf Toys Technical Regulation was uniformly enforced in all GCC member states as the first product regulated under the re gional regulatory system. In addition to toys, 
Bahrain adopted the Gulf horizontal technical regulations for GCC Conformity Marking by 
Ministerial Order No. 88 of 2011 and General Produc t Safety by Ministerial Order No. 88 of 2011. 
3.68.  In addition to standards, all precious metals, whether imported or locally produced, must be 
hallmarked. The quality mark is issued by the Assay Office. The GSO is developing a voluntary 
quality mark for the GCC area (Table 3.9).  
                                               
25 Since 2007, two other Bahraini-specific standards, on safety and warehouses for foodstuff, and 
general safety requirements for the products and th eir suitability for use have been converted to GCC 
standards.  WT/TPR/S/294 • Kingdom of Bahrain 
 
- 36 - 
 
  Table 3.9 Import controls based on standards, 2014  
Product Category Requirements 
Tyres (passenger cars 
and trucks) Mechanical systems and 
components for general use Copy of: GSO conformity certificate for the 
models shipped statin g compliance with the 
required standards; customs release document; and invoice of lot. 
Motor vehicles 
(passenger cars and 
trucks) Mechanical systems and 
components for general use Copy of: GSO conformity certificate for the 
models shipped stating the compliance with the 
required standards; customs release 
document; and invoice of lot. 
Car batteries – lead-acid 
starter batteries used for 
motor cars and internal combustion engines Mechanical systems and 
components for general use Copy of: GSO conformity certificate for the 
models shipped; an d customs release 
document conformity certificate from the manufacturer complying with the technical regulation based on GCC standard No. 34-35/1984 for controlling lead–acid starter batteries used for motor cars and internal combustion engines, and its methods of test; the certificate is valid for one year. 
Cement Building materials Pre-approval compliance with the physical, 
chemical and mechanical requirements from 
the Ministry of Works. 
Cigarettes - general Food and agriculture Visual inspection of samples to ensure that: the 
nicotine yield shall not exceed 0.6 mg/cigarette, the tar yield shall not exceed 
10.0 mg/cigarette, and the carbon monoxide 
yield shall not exceed 12 mg/cigarette. The following labelling information must be available: trade mark, number of cigarettes 
(max. 20 cigarettes per packet), name of producer or importer, packaging date (month and year), and batch number; customs release document; invoice of lot. 
The following warning shall be printed on the 
front of the packet in both Arabic and English with clear letter size not less than black 8: 
"Health warning:  smoking is the main cause for lung cancer and diseases and for heart and arteries diseases". The colour of the packets or letters shall not affect the clarity of such 
warning. 
Asbestos – importing, 
manufacturing, and 
circulation of asbestos 
materials and products Chemical product Documents stating that the item is free from 
asbestos: Conformity certificate from the 
manufacturer or declaration of "asbestos free 
products" on the package 
Otherwise: A sample from the consignment will 
be tested at the cost of the importer, and 
goods released/rejected according to the 
results. 
Household electrical 
appliances Electrical product – selected 
items Approval of BSMD for importing electrical 
products; safety mark on the regulated products; customs release document;  and invoice of lot 
Otherwise: A sample from the consignment will 
be tested at the cost of the importer, and goods released/rejected according to the results. 
Toys – importing 
children's toy Mechanical and chemical A GSO Conformity mark on toys; and importer 
declaration of conformity with the Gulf 
technical regulation for toys' safety No.: 
BD 20507070. 
Lavatory flush tanks Building materials None, under study 
Weighing scales, weights, 
measuring tapes and 
meters Metrology A signed declaration for not selling the scales 
before obtaining calibration certification from 
BSMD. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 37 - 
  Product Category Requirements 
Food Food and agriculture Requirements are determined by the Ministry 
of Health for verification of conformity of food (Law No. 3/1985 concerning the control of foodstuff). 
Source: Information provided by the authorities. 
3.69.  Bahrain is a member of the Arab Centre for Standardization and Metrology in the Arab 
Organization for Industrial Development and Mining (AIDMO); and a full member of the 
International Organization for Standardization (ISO), associate member in the International 
Electrotechnical Commission (IEC), and a correspondent member in the International Organization of Legal Metrology (OIML). Bahrain has also signed a memorandum of understanding on technical 
cooperation in standardization with ASTM Internat ional, Egypt, Iran, Jordan, Syria, Morocco, and 
Yemen. 
3.4.2.2  Sanitary and phytosanitary measures 3.70.  The Directorate of Public Health under the Mi nistry of Health is the national enquiry point on 
food safety. The Directorate of Plant Health under the Ministry of Municipal Affairs and Agriculture 
(MMAA) is the national enquiry point for plant health. Bahrain's notification authority on SPS is the Directorate of Foreign Trade Relations under the Ministry of Industry and Commerce (MOIC).  
3.71.  Since its last TPR, Bahrain has provided 126 SPS notifications to the WTO (since 2008). 
Recent notifications relate to draft mandatory stan dards on energy drinks, high fructose syrup, and 
molasses.
26 All SPS measures are published in the Official Gazette . 
3.72.  A health certificate and prior permission, from the MMAA are required to import live animals 
from all countries, including GCC countries. Health certificates are required for all birds; cats and dogs may be imported from all countries, but must be accompanied by a health certificate from the competent authority stating that the animal is free from rabies. 
3.73.  Imports of foodstuffs are inspected organolepticaly
27 by the Ministry of He alth to ensure that 
they are free from physical or visible contamin ants. All meat and poultry products must be 
accompanied by an Islamic (Halal) slaughter certificate issued by an approved Islamic centre in 
the country of origin. All imported eggs must be  individually stamped. Random samples are drawn 
from shipments for laboratory analysis according to a predetermined plan. All consignments that 
are imported for the first time are analysed before release. Results are assessed against GCC and 
Codex Alimentarius standards to ensure that impo rted food items are safe for human consumption. 
Unfit foodstuffs are rejected at the port of entr y; they are either destroyed or returned to the 
country of origin (the decision is left to the importer).28 According to the authorities, the same 
treatment applies to locally produced foodstuffs.  
3.74.  The Food Safety Committee oversees all food safety and control issues, including the 
imposition of product bans. The interagency committee comprises representatives from the Ministry of Health, the Directorate of Standards and Metrology, Director of Consumer Protection, 
MOIC and the Directorate of Agriculture, MMAA. 
3.75.  Since 2003, Bahrain has been applying the GCC Laws on Veterinary Quarantine and Plant 
Quarantine. Imports, exports, and domestic prod uction of plants and animals are subject to 
inspection by the Agricultural Quarantine Unit  (AQU) of the MMAA. The AQU also examines and 
issues SPS certificates for all agricultural products prior to their export.
29 All imports of plants must 
be accompanied by agricultural clearance certificates issued by the appropriate authorities in the country of export. Phytosanitary certificates are also required for imports of flour, rice, wheat 
seed, and agricultural seeds and plants.  
                                               
26 WTO documents G/SPS/N/BHR/123-133, 6 February 2014; G/SPS/N/BHR/123-125, 17 April 2012; 
G/SPS/N/BHR/126-130, 4 February 2014; G/SPS/N/BHR/131-134, 6 February 2014. 
27 Organolepticaly refers to the physic al properties of food, such as colour, smell, taste, and texture. 
28 Any complaint is examined by a Committee of experts,  and a decision is made to accept or reject the 
consignment. 
29 WTO (2007) Trade Policy Review of Bahrain. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3.76.  Bahrain is a member of the World Organization for Animal Health (OIE), the International 
Plant Protection Convention (IPPC), and Code x Alimentarius. Bahrain has also adopted the 
International Codex Standards regarding food a dditives, food contaminants, pesticides, and 
veterinary drugs. At the GCC level, the GSO food standards committee has been working to 
harmonize existing GCC standards within the guidel ines of the Codex Alimentarius, ISO, and other 
international organizations. However, in some cases, differences still exist between some of the proposed new standards and international guidelines. As of April 2013, the GSO had developed 
more than 900 food and food related standards.
30 
3.4.2.3  Marking, labelling, and packaging requirements 3.77.  In 2010, Bahrain approved GSO standards for labelling (GSO 9/2007) and shelf life (GSO 
150/2007) to replace Ministerial Order No.3/2004. General requirements for food packaging are 
regulated under GS 839/1999. In 2008, GSO standard 1683 was issued to regulate general 
requirements for plastic packaging. 
3.78.  Labels must be in Arabic; although a small number of products with labels only in English 
may be approved, on a case-by-case basis, for marketing test purposes. Small consignments of 
20 cartons or less as well as ethnic food products may be exempt from the Arabic label requirements, provided prior authorization is  obtained from the Ministry of Health. 
3.79.  Food labels must contain product and brand names, production and expiry dates, country of 
origin, name of the manufacturer, net weight in metric units, and the list of ingredients and additives in descending order of importance.
31 Prior approval of food labels may be possible before 
imports. Goods with minor labelling infractions may be granted a one-time waiver, provided that 
the goods are safe for human consumption.  
3.80.  Bahrain has strict marking and labelling requirements for meat and poultry products, 
including that the product was slaughtered according to Islamic halal procedures, if so required. 
Products containing pork should be labelled a ccordingly. Packaged fresh or frozen meat and 
poultry must also carry the following information: bilingual labelling, of which one language must be Arabic; country of origin; production (slaughtering or freezing) and expiry dates, including the 
name of the month; shelf life of the product; metric net weight; and product identification. Pre-
packaged processed meat and poultry must be a ccompanied by production and expiry dates as 
well as the net weight of the product.   
3.4.3  Intellectual property rights 
3.4.3.1  Overview 
3.81.  Since its last TPR, Bahrain has not made any substantial changes to its intellectual property 
regime. Most of its IPR legislation remains unchanged. However, it continues its harmonization 
efforts within the GCC, and in accordance with its commitments under the WTO TRIPS Agreement. 
To comply with international treaties, Bahrain has recently updated some of its legislation on trade secrets (Law No. 35) by amending Article No. 5 of Law No. 7 of 2003 and in geographical 
indications (Law No. 16 of 2006) by amending Law No. 16 of 2004. In addition, a law on plant 
varieties is in the legislative process (Table 3.10).
32 Notifications of Bahrain's IPR legislation to the 
WTO remain overdue. 
3.82.  The main institutions responsible for intellectual property matters are the Industrial Property 
Directorate (IPD) of the Ministry of Industry and Commerce (MOIC), which includes the National 
Patent Office, the Trademark Office, and the Industrial Property Control Section; the Copyright Protection Office (CPO) within the Information Affairs Authority; the Directorate General of 
Customs within the Ministry of Finance, responsible for matters related to border measures; and 
courts of law, responsible for enforcement issues . At the GCC level, the GCC Patent Office is 
responsible for patent protection (based in Riyadh). 
                                               
30 USDA (2013). 
31 GCC Technical Regulation No. 9 of 1995. 
32 The proposed Plant Variety Bill gran ts breeders protection on new plan t varieties. It is based on the 
UPOV Model law.  WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table 3.10 Summary of IPR legislation in Bahrain  
IPR Main legislation Duration of protection Minimum duration of 
protection under 
TRIPS 
Copyright Law No. 22 of 2006 on 
Copyright and Neighbouring Rights Life of author plus 20-70 ye ars Life of author plus 50 
years 
Patents Law No. 1 of 2004 (as 
amended by Law No. 14 of 
2006) on Patents and 
Utility Models 20 years from the date of filing 
for patents; and 10 years from 
the date of filing for utility 
models. 20 years from date of 
filing 
Trade marks Law No. 11 of 2006 on 
Trademarks 10 years, renewable indefinitely 
for periods of 10 years At least 7 years;  
renewable indefinitely 
Trade secrets Law No. 35 amending 
Article No. 5 of Law No.7 
of 2003 with respect to 
Trade Secrets and 
Law No. 12 of 2006 
(amending Law No. 7 of 
2003) 5 years for new pharmaceutical 
products and 10 years for new 
agricultural/chemical products 
(from date of approval) No specific period 
Geographical indications Law No. 16 of 2004 on 
Protection of Geographical Indications 
Law No. 16 of 2006 
amending Law No. 16 of 
2004 with respect to 
Geographical Indications Not specified Unlimited 
Integrated 
circuits  Law No. 5 of 2006 for 
Integrated Circuits 10 years from date of filing or 
the first commercial 
exploitation, whichever is 
earlier, and renewable for 5 
years. Ten years from first 
commercial exploitation 
Industrial 
designs Law No. 6 of 2006 for 
Industrial Designs 10 years, renewable for 5 years At least 10 years 
Plant varieties New Plant Variety Law 
(draft) Not specified No specific period 
Source: Information provided by the authorities. 
3.83.  Bahrain is party to various intellectual property treaties and conventions. It acceded to the 
WIPO Convention in June 1995; the Paris Convention  on the Protection of Industrial Property in 
October 1997; and the Berne Convention on Lite rary and Artistic Works in March 1997. In 
December 2005, Bahrain acceded to five additional treaties: the Patent Law Treaty (PLT); the 
Madrid Protocol (Madrid Agreement Concerning the International Registration of Marks); the Nice 
Agreement on International Classification of Goods and Services; the WIPO Copyright Treaty 
(WCT); and the WIPO Performances and Phonograms Treaty (WPPT).33 In March 2007, Bahrain 
also became party to the Patent Cooperation Treaty (PCT), and to the Trademark Law Treaty (TLT). According to the authorities, in November 2012 Bahrain became a contracting party to the Budapest Treaty on the International Recognition of the Deposit of Micro-Organisms for the 
Purpose of Patent Procedure. Bahrain is in the process of becoming party to: the Vienna 
Agreement Establishing an International Classifica tion of the Figurative Elements of Marks; the 
Budapest Treaty on the International Recognition of the Deposit of Micro-Organisms for the 
Purpose of Patent Procedure; and the International Union for the Protection of New Varieties of 
Plants (Law No. 12 of 2005 accepting to join the inte rnational treaty of the Protection of New Plant 
Varieties). 
3.4.3.2  Patents 
3.84.  Under Law No. 1/2004 (as amended by Law No. 14/2006) on Patents and Utility Models, 
technical inventions based on human necessities, performing operations, chemistry, physics, 
                                               
33 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/profile.jsp?code=BH . WT/TPR/S/294 • Kingdom of Bahrain 
 
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  pharmaceutics, biotechnology, and mechanics are pa tentable provided they are new, involve an 
inventive step, and are capable of industrial application. Pharmaceutical products are also patentable. 
3.85.  Patent protection is for 20 years from the date of filing, while protection of utility models is 
10 years from the filing date. In both cases, annual maintenance fees (ranging from BD 40-76 for 
individuals and from BD80-152 for companies) are due from the beginning of the second year until 
expiry of the protection period. The decision to gr ant a patent or utility model is published in the 
Official Gazette. Once granted, a third party may request the IP authority to cancel the registration 
where a rejection is justified or if the patent was granted based on deceit.  
3.86.  The number of patent applications reached 165 in 2012, out of which only two were granted 
(Table 3.11). According to the authorities, the large number of patent applications is due to 
Bahrain's participation in the Patent Cooperation Treaty (PCT) since 2007. 
Table 3.11 Applications for trademarks, indu strial designs, and patents, and patents 
granted, 2009-12 
 2009  2010  2011 2012  
Trademark applications     
Resident 2,690 3,001 3,175 3,163 
Non-resident 5,136 3,852 4,951 4,417 
Total 7826 6,853 8,126 7,580 
Trademark registrations 1,855 4,063 5,828 7,580 
Industrial designs applications 86 60 54 70 
Industrial designs registrations 37 96 44 78 
Patent applications     
National 7 4 4 5 
Patent Cooperation Treaty (PCT) 120 122 133 160 
Total 127 126 137 165 
Patents granted 0 2 0 2 
Source:  Bahraini authorities, last update November 2013. 
3.87.  The GCC Patent Office (GCCPO) is not a member of the Paris Convention, but it respects the Convention’s rules. With regard to the PCT, of all the six countries of GCC, only Kuwait, has not 
yet deposited its instrument of accession to the PCT. 
3.4.3.3  Copyright and related rights 3.88.  Copyright protection in Bahrain covers books, pamphlets and other writings, lectures, 
sermons, dramatic works, musical works, musical compositions, cinematographic works, works of 
drawing, painting, architecture, sculpture, engravin g, photographic works, works of applied art, 
illustrations, maps, plans, sketches and three-dimensional works, as well as computer programs. The neighbouring rights covered are performers, producers of sound recordings, and broadcasting 
organizations. 
3.89.  Bahrain's Law No. 22/2006 on Copyright and Neighbouring Rights
34 increased the term of 
protection (the author’s lifetime plus 70 years), introduced protection of neighbouring rights, and 
provided retroactive protection. Moreover, the Law gives authors and their successors in title the 
right to authorize or prohibit the commercial rental to the public of originals or copies of their copyright works within the limits allowed under Arti cle 11 of the TRIPS Agreement. It also provides 
for moral rights, and regulates acts permitted without the authorization of the right holder, such 
that those acts, whenever allowed, are within th e limits stipulated under the Berne Convention and 
the TRIPS Agreement. In order to ensure protection and deter possible violations, penalties for copyright infringements were reinforced. 
                                               
34 Published in the Official Gazette  No. 2745, 28 June 2006. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3.4.3.4  Trade marks 
3.90.  The procedures for application, publication, and registration of trademarks, service marks, 
collective marks, and certification marks are regulated by Law No. 11/2006. The definition of a trade mark is in line with TRIPS Article 15.1; where it allows for smell and sound to be 
"registrable" as part of the mark; and introduces a definition of the concept of certification and 
collective marks. The decision to grant a trade mark is published in the Official Gazette for 
opposition by any interested party within 60 days of publication. Other features of the law include 
the introduction of priority rights for registration of well-known trademarks, allowing for their 
protection even if they are not registered (as provided under the Paris Convention); and granting 
privileges to the holder of a registered trade mark.
35 
3.91.  According to the Law, a registered mark can be protected for ten years from the filing date; 
and the right holder may request renewal, for equivalent periods during the last year of the term 
of protection. Temporary protection for trademarks used in local and international exhibitions may also be granted.  Registration may be cancelled by the Court if it is satisfied that the trade mark 
has not been used for an uninterrupted pe riod of five years for no valid reason.
36 
3.92.  GCC common trade mark law adopted by the GCC supreme council in December 2012, has 
not been applied yet by member states. The purpose of the GCC Trademarks Law is to create 
unified implementing regulations for trade mark protection in all member states. However, unlike 
the GCC patent Law where applicants file only one application, through the GCC Patent Office, and the granted patent is protected in all GCC member states, the GCC Trademarks Law does not offer a unified filing system. Trade mark applications will continue to be filed separately in each GCC 
member state for protection. 
3.4.3.5  Industrial design and layo ut-designs of integrated circuits 
3.93.  Law No. 5/2006 and Law No. 6/2006 on integrated circuits and industrial designs, 
respectively, specify requirements for registrati on, renewal, ownership transfer, and licensing. 
Protection for industrial designs and for integrated circuits is for ten years from the date of filing the application or the first commercial exploitation anywhere in the world (for integrated circuits 
only), whichever is earlier. It is renewable once, for five years.   
3.94.  Law No. 6/2006 adopts the definition of indu strial designs provided for by Article 25.1 of the 
TRIPS Agreement, introduces the possibility of multi-designs per application for registration, and the concept of provisional measures as provided for by TRIPS Article 50. It also incorporates the 
priority right for registration as provided under the Paris Convention, and allows for temporary 
protection for designs displayed in international and local exhibitions. In addition, cumulative 
protection is permitted under other laws (such as copyright) and other agreements and 
conventions to which Bahrain is a party. The regi stration system is based on non-examination and 
the law allows for request for cancellation of registration either by IP authorities or by third parties after registration. 
3.4.3.6  Geographical indications 
3.95.  The protection of geographical indication s is regulated by Law No. 16/2004 (as amended by 
Law No. 16 of 2006) and is administered by the Trademark Office. Under Articles 1 and 3 of the law, geographical indications identify a good as originating in a territory or a region in a WTO 
Member, where the quality, reputation or other characteristics of the good, which affect the sales 
promotion thereof, are essentially attributable to its geographical origin. Such indications are protected provided that they have acquired protec tion in the country of origin. The law explicitly 
states that any person may claim more favourable protection granted to a geographical indication 
under any agreement, convention or treaty to which Bahrain is a party. The law excludes protection for a geographical indication that is not or ceases to be protected in its country of 
origin, or which has fallen into disuse in that country. 
                                               
35 For instance, owners may assign trade marks with or without the transfer of the business to which 
they belong. 
36 Under Article 4 of Law No. 11/2006, either use or intended use qualifies for registration. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  3.4.3.7  Trade secrets 
3.96.  Law No. 12/2006 on trade secrets sets out measures to be taken against violations. 
Protection is for five years for new pharmaceutical products and ten years for new agricultural-chemical products, from the date market approval was granted. It also incorporates the provisions 
of Article 39 of the TRIPS Agreement on protec tion of undisclosed information, and extends 
coverage to data exclusivity. Since Bahrain is a party to the Paris Convention, Article 10bis of that Convention on Unfair Competition is cons idered part of Bahrain's national law. 
3.4.3.8  Enforcement 
3.97.  Criminal sanctions are the same for infringement of all categories of IPRs. The penalty is a 
fine of BD 500 to BD 2,000 (US$1,320 to 5,320) or a prison term of three months to one year, or both.
37 For repeat offenders, the upper limit of both  the fine and imprisonment is doubled. In 
addition, the court may order the business premises to be closed for 15 days to 6 months and 
order the verdict to be published in a daily newspaper at the expense of the offender.38 
3.98.  In the case of patents and utility mode ls. Article 12 of Law No. 1/2004 implements Article 
34 of TRIPS with respect to the reversal of the bu rden of proof in judicial proceedings, where the 
subject matter of a patent is a process for obtaining a product. It also provides for the reversal of the burden of proof (TRIPS Article 37.2), i.e. the burden of proof will be on the alleged infringer 
only if there is a substantial likelihood that the identical product (the subject of the claim) was 
made by the patented process and provided th at the patent owner has been unable through 
reasonable effort to determine the process actually used. 
3.99.  During the last few years, Bahrain has made significant progress in reducing copyright 
piracy. Nevertheless, software piracy, which has shifted from retail to end-user violations, has 
been reported as problematic.
39 The Government's enforcement campaign is mainly based on 
inspections, closures, and improved public awareness. Since then, continuous monitoring by the 
CPO, both in Bahrain and, in cooperation with Customs, at the border, has ensured a decline in 
rates of piracy. The CPO has been granted significant power, including joint power with the police to arrest alleged infringers and confiscate good s suspected of violating copyright laws. According 
to the authorities, the CPO may also act in an ex-officio capacity against alleged infringers. 
3.100.  According to the authorities, most cases of copyright infringement in Bahrain relate to 
music and movies from Asia. Since 2007, 323 complaints have been made on imitation claims, the majority relating to trade mark protection. 
3.4.4  Role of state-owned enterprises and privatization 
3.101.  The public sector in Bahrain continues to  be one of the largest employers and still has a 
direct and strong influence on the economy. It includes the Central Government; the General 
Organisation for Social Insurance (GOSI), a pension fund for private sector employees and a 
workers' compensation fund for expatriates in the public sector; five municipalities; and several state-owned enterprises (SOEs). 
3.102.  The contribution of SOEs to the economy remains significant. Oil-related SOEs like Bahrain 
Petroleum Company (BAPCO) and Bahrain National Gas Company (BANAGAS) fall under the ambit of NogaHolding, a holding company under the National Oil and Gas Authority (NOGA) (section 4.3). However, strategic non-oil and gas-related assets are (partially) owned and 
managed by the state-owned Bahrain Mumtalakat Holding Company (BMHC). Companies under 
Mumtalakat include Aluminium Bahrain (ALBA) and Bahrain Telecommunications Company (BATELCO) (Table 3.12). 
3.103.  As part of its economic diversification strategy, the Government has been seeking to foster 
greater private sector participation in the ec onomy. In 2008, the Privatization Committee was 
established by the Prime Minister to promote the privatization process of public enterprises and 
                                               
37 Article 41 of Law No.1 of 2004. 
38 WTO document IP/Q/BHR/1, 6 December 2001. 
39 U.S. Department of State (2011). WT/TPR/S/294 • Kingdom of Bahrain 
 
- 43 - 
  coordinate among the different stakeholders. The committee is chaired by the Minister of Finance 
with members from the Economic Development Board (EDB) and the Civil Service Bureau. The 
committee meets at least once a month. However, since Bahrain 's last TPR, the privatization programme has been slow. While some privatization has taken place, in particular in tourism and 
real estate, companies such as Gulf Air, Bahrain 's national carrier is now fully state-owned under 
the BMHC. 
Table 3.12 Selected state-owned enterprises, 2013  
SOE  Field of activity   State ownership 
(%) 
I. Under Bahrain Mumtalakat Holding Company:     
Aluminium Bahrain (ALBA)   Aluminium   69.4 
Bahrain Airport Company Aviation  100 
Bahrain Telecommunications Company (BATELCO)   Telecommunications   36.6 
Bahrain International Circuit Company   Tourism (F1 racetrack)   100 
Bahrain Flour Mills Company   Food  65.7 
Bahrain Livestock Company   Food  25 
Bahrain Real Estate Co (EDAMAH)   Real estate   100 
General Poultry Company   Food  100 
Gulf Aluminium Rolling Mill Company (GARMCO)   Aluminium   37.2 
Durrat Khaleej Al Bahrain   Real estate   50 
Southern Area Development Company   Real estate   28.1 
Hawar Holding Company   Telecommunications   33.3 
Arab Shipbuilding and Repair Yard Company (ASRY)   Manufacturing   18.8 
National Bank of Bahrain   Financial services   49 
Gulf Air   Aviation   100 
McLaren Group Limited   Manufacturing    50 
McLaren Automotive  Limited Manufacturing 41 
Gulf Investment Corporation   Financial services   16.7 
II. Under NogaHolding:      
Bahrain Petroleum Company (BAPCO)   Oil and gas   100 
Bahrain National Gas Company (BANAGAS)   Gas  75 
Gulf Petrochemical Industries Company (GPIC)   Petrochemicals   33.3 
Bahrain Aviation Fuel ling Company (BAFCO)   Fuels  60 
Tatweer Lubricants   Crude oil   51 
Source: Information provided by the authorities. 
3.4.5  Competition policy and regulatory issues 
3.104.  Bahrain does not have any competition legislation or a single regulatory authority for 
competition. However, anti-competitive practices in, e.g. telecommunications and financial services, are regulated by the Telecommunications Regulatory Authority (TRA) (section 4.5.3) and 
the Central Bank of Bahrain (CBB) (section 4.5.2), respectively. 
3.105.  Under a new law on consumer protection, Law No. 35 of 2012, no harmful commercial or 
anti-competitive practices should take place.
40 The Consumer Protection Directorate, under the 
Ministry of Industry and Commerce (MOIC), continues to regulate unfair trade practices. 
3.106.  Price controls are regulated by Law 18  of 1975, as amended by Law 11 of 1977. Certain 
products, such as gas, flour, meat, local bread, poultry, petroleum, electricity, and water, as well as some services (e.g. air transport, postal, and tourism) are subject to consumer subsidies/price 
controls. In general, the prices set for these goods and services by the relevant companies are 
subject to approval by th e Council of Ministers. 
 
                                               
40 Chapter 4 of Law 35 of 2012. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Introduction 4.1.  The Bahraini economy continues to be domi nated by the oil sector and connected industries, 
although Bahrain's oil and natural gas reserves are limited. As part of its Economic Vision 2030, 
attempts are under way to diversify the economy particularly into financial services and 
manufacturing. The petroleum sector accounted for 24.6% of GDP in 2012 and 75% of government income. 
4.2.  Agriculture represents a meagre share of Bahr ain 's economy. Due to lack of arable land and 
scarce water supply, Bahrain remains a net food importer. Agricultural production is supported through subsidies and preferential loans to farm ers. The simple average applied MFN tariff for 
agricultural products is 3%. 
4.3.  The manufacturing sector continued to grow  during the review period and constituted the 
third largest contributor to Bahrain's economy after hydrocarbons and financial services.  As part of its diversification process, Bahrain has fo cused on high-value-added and energy-intensive 
industries such as aluminium, petrochemicals, metal products, and steel. These industries are 
primarily managed by large state-owned companie s, most notably Aluminium Bahrain (ALBA) and 
Gulf Petrochemicals Industries Company (GPIC). Bahrain can authorize up to 100% of foreign 
investment in companies in the industrial sector. The simple average applied MFN tariff for 
manufacturing products is 5.2%. 
4.4.  Bahrain's services sector has continued to  grow which represented around 58% of GDP in 
2012. However, the sector as a whole was largely affe cted by the recent financial crisis as well as 
by the domestic tension in 2011. The financial sector, the cornerstone of Bahrain's diversification 
strategy, is well regulated by the Central Bank of Bahrain (CBB). In recent years, Bahrain has been focusing on developing its Islamic banking and its insurance subsector in an attempt to 
create a niche in a highly competitive market in the Gulf region. However, the size of the banking 
sector remains a key structural vulnerability; assets for retail banks and wholesale banks accounted for 248% and 390% of GDP, respectively, in August 2013. 
4.5.  The telecommunications market has been lib eralized since 2003. Since the last Review of 
Bahrain, a mobile operator, Viva Bahrain has en tered the market (2009), making it the third 
telecom provider after the partially state-owned BATELCO and Zain Bahrain. As the regulator of the market, the Telecommunications Regulatory Authority (TRA) undertakes periodic market 
reviews to ensure that operators do not hold significant market power or dominance. 
4.6.  Bahrain's transportation sector has been st reamlined by the Ministry of Transportation (MOT) 
which has become responsible for the development of Bahrain's transportation infrastructure 
systems, including air, port and maritime, and land transportation. Important legislation has 
entered into force related to civil aviation and maritime transport which helps align air and maritime transport with international practices. After making large losses, in 2007, Gulf Air, the 
principal flag carrier of Bahrain was fully bought by the state holding company, Mumtalakat. 
4.7.  The tourism sector draws on Bahrain's cultural  and historical heritage but also on its sports 
and business tourism potential. The sector was badly affected due to the domestic tension of 2011 with tourist arrivals plummeting  by 32.7% but rebounded in 2012. In 2010, the Tourism Sector 
under the Ministry of Culture became responsible for Bahrain's tourism activities. Up to 100% 
foreign investment is allowed in the sector. 
4.2  Agriculture 
4.8.  Agriculture (including fishing) is a small se ctor in Bahrain's economy, contributing 0.3% of 
real GDP in 2012 and 1.2% of total employment. Bahrain's arable agricultural land (around 6,200 hectare in 2010), suffers from limited water resources, poor and declining soil, and unfavourable 
climate. 
4.9.  Bahrain remains heavily dependent on imports to meet its domestic demand for most 
agricultural products: almost all cereals, vegetables, and livestock products are imported; Bahrain WT/TPR/S/294 • Kingdom of Bahrain 
 
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  is a net importer of agricultural products. Agriculture under greenhouse is used as a means to 
achieve higher self-sufficiency in various agricultural products, particularly high quality fresh vegetable crops. The main greenhouse crops produced are tomatoes, cucumbers, peppers, squash, eggplant, lettuce, strawberries, beans, and cut flowers. 
4.10.  The simple average applied MFN tariff for agricultural products
1 is 3% (down from 3.3% in 
2007). Imports of some agricultural raw materials and basic food products are duty free. Alcoholic beverages are subject to the highest tariff rate (125%), while alternate tariffs apply to tobacco 
products (100% or specific duties, whichever is higher) (section 3.2.4.1). 
4.2.1  Policy objectives 4.11.  The Ministry of Municipalities Affairs an d Urban Planning (MAUP) is in charge of policy 
formulation for crops and livestock. It is also responsible for enforcing sanitary and phytosanitary 
measures and providing technical assistance to farmers. The Plant Health Directorate, under the 
MAUP, is in charge of research in plant produc tion, date palm and ornamentals, permanent fruit 
crops, soil and water, animals and fodder, te chnology transfer, and agricultural services 
(production of seeds and seedlings, soil, water, food, and feed analysis). 
4.12.  Bahrain's agricultural policy reflects overall economic policy, which emphasizes 
diversification of the production base. Development efforts in agriculture have included the 
promotion of intensified farming, increasing food self-sufficiency and conservation, and further 
development of existing agricultural resources. A two-phase plan covering 2004-15 is being implemented by the MAUP, in cooperation with th e FAO, for sustainable agriculture development; 
it stresses the need to improve production and raise productivity in the sector. 
4.13.  Agricultural production in Bahrain is supported through, inter alia , the provision of 
subsidies: 84% of the cost of machinery services  (for land preparation); 40% of the price of 
modern irrigation material, and 50% of the price of pesticides; 40% of the price of plastic sheet; 
50% of the price of veterinary drugs and animal vaccines; and 5% of the price of local poultry 
meat (slaughtered by Delmon Poultry Company). Preferential loans are also provided to farmers intending to launch programmes to protect date palms, and other farming activities. 
4.14.  The Government currently provides food support (flour and meat) to all persons in Bahrain, 
through the sale of these products at below-market prices, although, non-subsidized meat products, priced substantially higher, are also available to consumers. Domestic agricultural production is also subsidized; the Government provides most inputs to farmers, such as material 
for irrigation, pesticides, and poultry feed, at below-market prices.  
4.15.  In 2013, certain export restrictions were put in place on local fish to maintain domestic fish 
prices. 
4.3  Energy 
4.3.1  Features 4.16.  As part of its Economic Vision 2030, Bahrain aims to gradually shift from its economy's 
reliance on the hydrocarbon sector. The industry continues to be a significant contributor to the 
economy, accounting for 24.6% of GDP in 2012 and 75% of government revenue. 
4.17.  Although Bahrain aims to diversify th e economy away from oil, the Government has 
attracted foreign direct investment of around US$15 billion in the oil and gas industry over the 
coming 30 years by Occidental of the U.S. and Mubadala of the UAE, according to the Economic 
Development Board (EDB). 
4.18.  The National Oil and Gas Authority (NOGA) is responsible for the supervision, organization, 
and development of the hydrocarbon sector and it s related industries. NOGA is chaired by the 
Minister of Finance, who is also the minister in  charge of oil and gas affairs. In 2007, based on 
Royal Decree No.77, NOGA's subsidiary, NogaHolding was established as the investment and 
                                               
1 Major Division 1 of International Standard  Industrial Classification (Revision 2). WT/TPR/S/294 • Kingdom of Bahrain 
 
- 46 - 
 
  development arm. In addition to taking part in all new investment projects, NogaHolding is in 
charge of administering the Government's shares in eight companies (Table 4.1).2 
4.19.  Bahrain does not have specific legislation governing the granting of rights for exploration 
and development of concession. Bidding for explor ation activities is regulated by the Bahrain 
Tender board. 
Table 4.1 Ownership structure of  NogaHolding subsidiaries, 2013 
Company Noga-
Holding 
Owner-
ship Other shareholders Main activities 
Bahrain Petroleum 
Company (BAPCO) 100% - Oil and gas exploration and prospecting 
for oil; production, refining, distribution of petroleum products and natural gas; sales and exports of crude oil and refined products 
Bahrain National Gas 
Company (Banagas) 75% 12.5% Chevron 
Bahrain, and 12.5% 
Boubyan 
Petrochemical 
Company Processes associated gas into 
marketable products of propane, butane 
and naphtha, which are exported 
worldwide; and supplies residue gas for 
local industrial use 
Gulf Petrochemicals Industries Company (GPIC) 33.3% 33.3% Saudi Basic 
Industries Cooperation (SABIC), and 33.3% Kuwait’s Petrochemical Industries Company (PIC) Manufactures fertilizers and 
petrochemicals, using Bahraini natural gas as a feedstock; manufactures methanol, ammonia, and urea products, which are distributed to customers worldwide 
Bahrain Aviati on Fuelling 
Company (BAFCO) 60% 27% Chevron 
Bahrain, and 13% BP 
Middle East Plane fuelling servic es at the Bahrain 
International Airport 
Bahrain National Gas 
Expansion Company 
(BNGEC) 100% Operated by Banagas Processes associated gas into 
marketable products of propane, butane, 
and naphtha, which are exported worldwide; and supplies residue gas for local industrial use 
Bahrain Lube Base Oil 
Company (BLBOC) 55% 45% Nestle Oil 
Company of Finland  Produces a lube base oil and exports it 
to international markets. 
Tatweer Petroleum (Tatweer) 51% Occidental Petroleum 
of the U.S., and Mubadala of the UAE Development and growth of Bahrain 
field and gradual increase of the field production of oil and gas  
Skaugen Gulf Petchem 
Carriers (SGPC) 35% 35% of Norwegian 
company Skaugen 
holding, and 30% 
Capital Management 
House Transportation of petrochemical gases 
Source: Nogaholding Company. 
4.3.2  Petroleum 
4.20.  Oil was first discovered in Bahrain in 1932 and the country became the first in the Gulf 
region to successfully drill and commercialize production. Bahrain's oil reserves are limited, in 
comparison to its neighbours. According to the U.S. Energy Information Administration (EIA), Bahrain's oil reserves were estimated at 125 million barrels in 2012, lasting for about 10-15 
years.
3 Bahrain is an observer of the Organization of Petroleum exporting countries (OPEC) and is 
a member of the Organization of Arab Petroleum Exporting Countries (OAPEC). 
                                               
2 For more information on Nogaholding subsidiaries, see WTO (2007). 
3 U.S. Energy Information Administration (EIA) online  information. Viewed at: 
http://www.eia.gov/countries/country-data.cfm?fips=BA    WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.21.  Bahrain's crude oil is produced from two fields, the Bahrain Field, also referred to as Awali 
Field, in the southern part of the island, and the offshore Abu Sa’afa Field which is shared with the Kingdom of Saudi Arabia on a 50-50 basis. In 2012, Bahrain produced more than 63,000 barrels per day (bpd) of crude oil; about 74% of which from the Abu Sa'afa Field. 
4.22.  Although production from Bahrain Field amounted to 75,000 bpd in the 1970s, this figure 
had plummeted to 16,576 bpd by 2012. The Bahrain Field was considered to have been near the end of its productive life. However, to address decreasing output, Bahrain launched the Bahrain 
Field Development Project in 2008. The newly established Tatweer Petroleum drilled new oil wells 
and used the latest recovery techniques to extrac t heavy oil. According to the authorities, about 
60-70% of Bahrain's reserves are recoverable; a significantly higher percentage than before. 
4.23.  Bahrain is a significant importer of crude petroleum, which, along with locally produced 
crude oil from the Awali field, is destined mainly for its refinery; crude oil from the Abu Saafa field 
is exported.
4 In 2012, Bahrain's refining capacity was based on crude oil imported from the region, 
especially from the Kingdom of Saudi Arabia, by undersea pipeline (only one-sixth was obtained 
from wells in Bahrain).5 Major upgrades to the production capacity and infrastructure have been 
completed in Bahrain Petroleum Company (BAPCO )'s refinery. The major refined products are 
diesel, gas oil, fuel oil, kerosene, naphta, and gasoline. 
4.24.  In 2012, around 86 million barrels of petroleum products were exported; diesel accounted 
for over 30% (Table 4.2), two thirds of which were destined to Africa; gasoline and fuel oil were exported mainly to GCC countries. Domestic consumption of petroleum products has increased to 9.4 million barrels during the last few years; due mainly to major road construction, land 
reclamation activities, and the higher number of vehicles arriving from neighbouring countries. In 
2012, gasoline (mumtaz) and diesel consumption in Bahrain reached 3.5  million and 2.6 million 
barrels, respectively. 
Table 4.2 Production, consumption, and expo rts of oil, gas, and refined products, 2006-
12 
 2006 2007  2008  2009  2010 2011 2012  
Production        
Crude oil  ('000 barrels)  66,908 67,262 66,865 66,510 66,376 69,452 63,302 
Abu Saafa field 53,823 54,710 54,838 54,760 54,741 53,936 46,726 
Bahrain field 13,085 12,552 12,027 11,750 11,635 15,616 16,576 
Natural and associated gas (million cubic feet) 
Associated gas 106,206 99,916 102,343 102,785 105,291 105,351 142,877 
Khuff gas 381,726 407,755 435,890 440,640 451,351 446,766 448,807 
Refined products Bahrain 
field .. .. .. .. 9,486 8,787 9,442 
Crude run 94,429  94,815 94,224 97,472 94,531 97,464 
Sales local 
consumption 
('000 U.S. barrels) 7,559 8,250 8,981 9,011 9,111 8,603 9,427 
Asphalt 254 354 355 420 397 331 337 
Diesel 2,375 2,722 3,107 2,851 2,655 2,405 2,606 
Jayed 2,058 2,062 2,035 2,040 2,118 1,967 2,117 
Kerosene 173 173 211 204 189 195 193 
LPG 460 488 518 551 557 569 605 
Mumtaz 2,239 2,451 2,755 2,945 3,195 3,136 3,569 
Exports  ('000 U.S. barrels)        
Petroleum products 88,045 91,500 81,594 81,344 85,602 82,456 85,984 
Asphalt 1,953 2,982 3,012 2,596 2,393 1,978 1,600 
                                               
4 Abu Saafa petroleum has a higher sulphur co ntent than output from the Awali oilfield.  
5 The A-B pipeline extends 27 km over land and a fu rther 27 km under the sea to reach the north-west 
of Bahrain. WT/TPR/S/294 • Kingdom of Bahrain 
 
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   2006 2007  2008  2009  2010 2011 2012  
Butane 179 249 454 339 528 543 440 
Diesel 32,048 33,402 29,437 29,551 29,501 26,314 27,517 
Feed stock .. 314 .. .. .. .. 1,693 
Fuel oil 18,8340 15,692 14,627 15,619 15,437 17,559 17,888 
Gasoline 3,308 2,253 2,988 1,822 1,724 758 .. 
Jet fuel 18,949 21,747 15,425 16,414 19,370 19,693 19,520 
Kerosene 703 849 744 209 139 .. .. 
Naphta 11,649 13,668 14,332 14,132 15,409 14,798 16,618 
Propane 189 146 236 229 357 342 266 
Sulphur 233 198 339 433 744 471 442 
Petrochemicala 1,482 1,373 1,545 1,534 1,476 1,575 .. 
Liquid gas 3,704 3,503 3,568 3,589 3,771 3,933 .. 
.. Not available. 
 a Million tonnes.  Source:  BAPCO (2012), Annual Review 2012 , NOGA (2012) , Oil and Gas- Facts and Figures;  and information 
provided by the authorities 
4.25.  Government policy in the petroleum sector has focused on consolidating the oil industry, 
including the further developing of petroleum re sources, expanding seismographic surveys, and 
enhancing developmental drilling. 
4.26.  Foreign investment in petroleum extraction is permitted through exploration and 
production-sharing agreements with the Government  of Bahrain. In this regard, the Government 
has signed exploration and production-sharing agreements for oil and gas with several foreign petroleum companies. However the involvement of international companies is limited to minority 
ownership (Table 4.1). 
4.3.3  Natural gas 4.27.  Natural gas reserves in Bahrain are limited. Bahrain's estimates of proven natural gas 
reserves were around 3.2 trillion cubic feet in 2011. The majority of natural gas is non-associated.
6 
The main source of natural gas and energy in Bahrain is the Khuff gas reservoir near the Bahrain (Awali) Field. 
4.28.  Bahrain’s entire natural gas production is consumed domestically. According to NOGA, in 
2011, the Electricity and Water Authority (EWA) consumed the largest share (36%) for domestic 
electricity generation and water desalination; followed by Aluminium Alba with a share of 22%. 
4.29.  In 2012, natural gas production (natural and associated gas) was 591,684 million cubic 
feet; an increase of 17.5%  from 2006. Associated petroleum gas is processed by BANAGAS and 
BNGEC into marketable liquid gas products. 
4.30.  Subsidies for natural gas have declined in recent years. As domestic reserves of natural gas 
start to decrease, the Government has announced  plans to build a liquefied natural gas (LNG) 
import terminal to meet some of its demand.  
4.3.4  Electricity and water 4.31.  The Electricity and Water Authority (EWA) is the sole agency responsible for electricity 
generation, transmission, and distribution in Bahrain. The EWA's policy objectives include, inter 
alia, to provide a reliable, cost effective, and quality supply of electricity and water; to maintain, 
develop, and improve the transmission and distri bution network to ensure highest standards of 
                                               
6 Non-associated gas is not produced from crude oil. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  efficiency and minimum energy loss; and to meet Bahrain's increasing demands for electricity and 
water consumption. 
4.32.  Independent water and power projects (IWPPs) owned and operated by private sector 
providers generate 79.03% of power and 68% of  water requirements; their total output is 
connected to the national grid under purchase agreements between the EWA and IWPPs. 
Aluminium Bahrain (ALBA) generates electricity for its own energy needs, and meets 13% of Bahrain's energy requirements; the excess energy is offered to the EWA under a contingency 
supply agreement. Bahrain is connected to the GCC interconnection to meet any further 
contingency, and to trade or exchange power as agreed with other GCC member states.  
4.33.  Since 2011, Bahrain's electricity production has started to surpass consumption. In 2012, 
14,104 GWH were generated, while consumption was 12,644 GWH.
7 Bahrain generates electricity 
from seven major plants (Table 4.3). 
Table 4.3 Electricity generation plants, 2013 
 Plant Operator GWH % 
1. Hidd Power Station Hidd Power Co. 3679.46 28.46 
2. Al Ezzel Power Station Al Ezzel Power Co. 2816.88 21.79 
3. Ad Dur Power Station Ad Dur Power Co. 3638.00 28.14 
4. Riffa Power Station EWA 1944.96 15.04 
5. Sitra Power Station EWA 831.51 6.43 
6. Alba Power Station ALBA 6.57 0.05 
7. GCC Interconnection GCCIA 10.90 0.08 
Source: Bahrain Electricity and Water Authority. 
4.34.  Domestic users consume around half of total electricity, followed by commercial users 
(about 30%) and industrial users. There are four consumer tariff categories, with a subsidized 
tariff in place for the industrial sector (since August 1990) and private hospitals (since November 2002) on the basis of an MOIC regulation. Electric ity prices are set by the Cabinet, based on an 
EWA proposal. According to NOGA, the Electricity and Water Authority (EWA) consumed around 
37% of Bahrain's natural gas, the largest user in 2011. Prices of electricity and water services are 
regulated by Law No. 1 of 2007. 
4.35.  Bahrain's water resources are scarce. Water production capacity is around 200 million 
gallons per day, of which 90% comes from desalinated water and the rest from natural resources 
such as ground water abstraction. The supply of electricity and water are highly subsidized in Bahrain. 
4.36.  In recent years, Bahrain has recognized the importance of renewable energy sources as an 
alternative source of power. Two renewable ener gy projects are being implemented: the 5 MW 
solar plant in Awali, with roof panels and connection through a smart grid, is a joint-venture between BAPCO, NOGA and two U.S.-based firms, Caspian Energy Holdings and Petra Solar; and 
the second project is a combined solar/wind plant in the south with a capacity of 3 MW and 2MW 
for solar and wind, respectively. 
4.4  Manufacturing 
4.4.1  Features 
4.37.  As part of its diversification strategy away from oil, Bahrain has been expanding its 
manufacturing sector in recent years. In 2012, the manufacturing sector constituted the third largest sector of the economy after hydrocarbons and the financial sector, accounting for 15.2% of 
real GDP and 13% of total employment. In 2012, non-oil manufactured goods comprised 20% of 
total goods exports. 
                                               
7 Bahrain Central Informatics Orga nization online information, Energy : 
http://www.cio.gov.bh/cio_ara/English/Public ations/Statistical%20Abstract/ABS2012/Ch14/1.pdf . WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.38.  Bahrain's main industries are energy-intensive such as aluminium, petrochemicals, metal 
products, and steel. Other industries include cement, food processing, and shipbuilding. The majority of leading companies in the manufacturing sector are large, partially state-owned enterprises. 
4.39.  As a result of the global financial crisis, manufacturing output declined. However, due to the 
large size of Bahrain's manufacturing corporations and the relatively inelastic demand for their products (mainly aluminium and petrochemicals),  the industry managed to rebound quickly. 
4.40.  The Ministry of Industry and Commerce (MOI C) is the main regulator of the sector, and is 
responsible for registration, licensing, and industrial standards (section 3.2.1). The EDB is responsible for investment promotion. 
4.41.  In 2013, the simple average MFN tariff on manufacturing was 5.2% (5.4% in 2007). 
4.4.2  Policy objectives 
4.42.  Bahrain's development strategy, Vision 2030, highlights the importance of the 
manufacturing sector as a key driver for the Bahraini economy and diversification process. The 
strategy sees Bahrain as a centre for high-val ued added manufacturing, leveraging geographical 
and regulatory advantages, as well as its low cost-base compared with other countries in the region. 
4.43.  Based on the Commercial Companies Law (No. 21 for 2001) (section 2.7), up to 100% of 
foreign investment is permitted in companies in the industrial sector depending on the activity to be undertaken. Bahrain offers various investment incentives to national and foreign investors in the manufacturing sector (sections 2.6 and 3.4.1). 
4.4.3  Aluminium 
4.44.  The aluminium industry is Bahrain's main manufacturing subsector. The aluminium 
company, Aluminium Bahrain Company (ALBA), is one of the largest in the world. With over 3,000 
employees, ALBA employs 90% Bahraini nationals. It is a joint-venture between the Saudi Arabian 
Basic Industries Corporation (SABIC), which ho lds around 20.62% and Mumtalakat, with 69.38% 
of the company's shares. The remaining 10% are floated on Bahrain Bourse. 
4.45.  The Invest Aluminium Bahrain Programme was set up to attract foreign investment into the 
industry. The programme was created by the Minist ry of Finance, the Ministry of Industry and 
Commerce (MOIC), and the EDB, with the cooperation of UNIDO, with the aim to: capitalize on the global potential for Bahrain by developing alum inium downstream industries; create more job 
opportunities for Bahrainis; enhance export earnings; and achieve greater value added. 
4.46.  ALBA’s average annual production grew at  nearly 890,217 tonnes in 2012. Around 46% of 
ALBA's output is directed toward Bahrain's downstream aluminium industry, while the rest is 
exported to the Middle East, Europe, Asia, Africa, and North America. 
4.47.  ALBA’s high-grade output has created significant opportunities in downstream aluminium 
manufacturing, especially for the automotive sector. The highly developed, midstream sector 
includes firms such as Gulf Aluminium Rolling Mill Company (GARMCO), Bahrain Aluminium 
Extrusion Company (BALEXCO), Midal Cables, and Bahrain Alloys Manufacturing Company (BAMCO). Exports include aluminium rods, cold rolled coil, alloys, and extrusion products used in doors and window frames, as well as passenger cars and truck wheels. 
4.4.4  Petrochemicals 
4.48.  The petrochemical industry is the second-l argest manufacturing subsector in Bahrain after 
aluminium; the Gulf Petrochemicals Industries Corporation (GPIC) is the main player. GPIC is a 
joint venture between Nogaholding, Saudi Basic Industries Cooperation (SABIC), and Kuwait’s 
Petrochemical Industries Company (PIC), with each owning an equal share of 33.3%. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.49.  Using Bahraini natural gas as a feedstock,  GPIC manufactures fertilizers and petrochemicals 
such as methanol, ammonia, and urea products. In 2011, GPIC's petrochemical exports included 
666,634 tons of urea, 435,286 tons of methanol and 71,536 tons of ammonia. The main export 
market for urea products was the United States, accounting for 53% of total exports, followed by 
Australia and Pakistan (13% each), India (11%), and Thailand, South Africa and Viet Nam (3% 
each). The main export markets for ammonia were  the Republic of Korea (53%) and India (47%). 
4.5  Services 
4.50.  Services accounted for around 58% of Bahrain's GDP in 2012, and employed over 14,000 
people. Financial services accounts for the largest share (15.8% of total GDP), followed by government services (11.4%), transport and co mmunication (6.4%), construction (6%), real 
estate (5.1%), insurance (5%) and trade (4.5%). Most services sectors were strongly affected by 
the global financial crisis of 2008-09 and the domestic tension of 2011; in particular the financial 
sector. 
4.51.  In its GATS Schedule of specific commit ments, Bahrain bound only one sector, financial 
services. For banking and other financial services, Bahrain bound the existing legal framework, 
while in insurance services; the applied policy appears to be more liberal than its commitments. In addition, some sectors, such as tourism and transport, while not included in Bahrain's GATS 
commitments, are significantly liberalized. 
4.52.  Under Bahrain's horizontal commitments, commercial presence is permitted only in the form 
of a joint-stock company, and acquisition of land or property is not allowed. Bahrain has no MFN exemptions under Article II of the GATS. 
4.5.1  Banking, finance, and insurance 
4.5.1.1  Overview 4.53.  During the review period, Bahrain's financial sector proved its ability to withstand the global 
financial crisis and the 2011 domestic unrest. Neither the Government of Bahrain nor the CBB 
n e e d e d  t o  s t e p  i n  t o  h e l p  r e t a i l  b a n k s ,  w h i c h continued to perform well. The CBB pursued the 
strategy of advising banks to merge, with the aim of creating strong financial entities, able to 
absorb all types of shock to the financial system.  
4.54.  Bahrain's financial system is well-regarded in the region, with a strong and predictable 
regulatory environment. It has a number of advantages such as its reputation for being well-regulated with a strong legal framework; its innovation in developing all forms of Islamic finance 
and establishing institutions to promote the deepening of Islamic financial markets; the availability 
of a well-qualified workforce of nationals and expatriates; and reasonable operating costs. The level of observance of financial policy standards is  generally high. According to the authorities, the 
provisions of the Basel III capital accord will be introduced in stages. However, more sophisticated 
onshore financial regulation in neighbouring countries, such as the Kingdom of Saudi Arabia and UAE (Dubai), may require Bahrain to increasingly play the role of a financial "back office" for the 
GCC region, providing legal or accounting services, as well as niche financial services, including 
sharia-compliant. 
4.55.  As at November 2013, the financial services landscape in Bahrain had 402 financial 
institutions grouped into five categories: 99 banks (28 retail, 71 wholesale); 158 insurance and 
insurance-related firms; 49 investment business firms; 28 capital market licensees; and 79 
specialized licensees. In 2013, the subsector contributed 17.1% of Bahrain's real GDP, making it the largest non-oil contributor to the economy. 
4.56.  The Central Bank of Bahrain and Financial Institution Law No. 64 of 2006 is the legal 
framework regulating all financial services in Bahrain; and the Central Bank of Bahrain (CBB) is the single regulator for all financial services. 
4.57.  Since early 2013, the CBB has been focu sed on the new Basel III standards, corporate 
governance, and monitoring fees, charges and inte rest rates on behalf of retail consumers. The WT/TPR/S/294 • Kingdom of Bahrain 
 
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  CBB is expected to introduce regulation to boost corporate governance by adding transparency and 
accountability in executive compensation.  
4.5.1.2  Banking 4.58.  As of August 2013, Bahrain had 75 conven tional banks in operation, (22 retail and 53 
wholesale) and 24 Islamic banks (6 retail and 18 wholesale). Retail banks cover all commercial 
banks while wholesale banks cover offshore banking units (OBUs) and investment banks (IBs). Wholesale banks are allowed to undertake individu al onshore transactions above US$18.5 million 
in deposits and the provision of credit, and above US$250,000 for investment business 
transactions, including the sale of investment products. 
4.59.  The size of the financial sector remains a key structural vulnerability of the banking sector 
due to the large share of total assets of banks as a percentage of GDP (Table 4.4). Total assets of 
wholesale banks declined from US$164 billion in 2006 to US$118 billion at the end of August 2013, 
due to the impact of the global financial crisis. 
Table 4.4 Structure of the banking system, August 2013 
(US$ million)  
 Number of 
institutions Total assets Asset shares 
in group Assets as % of 
GDPa 
Retail banks 28 75,150 100 248 
Local 13 50,930 68 168 
Branch 15 24,220 32 80 
  of which Islamic 6 15,270 20 50 
  Local 6 15,270 20 50 
  Branch 0 0 0 0 
Wholesale banks 71 118,332 100 390 
Local 30 49,637 42 164 
Branch 41 68,695 58 226 
  of which Islamic 3 10,947 10 36 
  Local 17 9,721 9 32 
  Branch 1 1,226 1 4 
a 2012 GDP. 
Source:  Central Bank of Bahrain. 
4.60.  In August 2009, the CBB imposed new regulations to limit real estate lending to 30% of 
banks' total loan portfolio. These measures were introduced to diversify risk after the previous 
high real estate exposure. Several mergers of fi nancial institutions took place in 2013. Mergers 
among Bahraini lenders were encouraged by the CBB, especially among smaller Islamic banks, 
which were hit hard by the domestic real estate crisis. The CBB aims to transform banks into 
strong financial institutions that can compete on a regional and global level. 
4.61.  Licensing procedures for establishing a bank are the same for Bahraini and foreign-owned 
banks. The CBB does not impose any restrictions on applications received from foreign-owned 
banks or financial institutions; foreign ownership of locally incorporated banks may be up to 100%. 
Applicants must apply to the CBB for a licence to undertake regulated activities in or from Bahrain. The CBB may attach terms and conditions it judges appropriate for the granting of a licence. The 
licensing criteria and procedures are under regular review by the CBB and may be updated 
periodically after consulting with the industry . A licence is granted through a recommendation 
made by the Licensing Committee to the Governor of the CBB; the latter approves and grants the 
licence. As of January 2013, the CBB had granted 17 licences during the review period. 
4.62.  Banks may be universal or specialized; they must not operate insurance companies or 
branches of insurance, although they may engage in stockbroking through subsidiaries. There is 
no requirement for domestic companies to employ specified banking companies for certain 
services. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.63.  According to the IMF, Bahrain has the high est foreign ownership of foreign-owned banks by 
total assets, at 57%.8 Foreign ownership of locally incorporated retail and wholesale banks is 
allowed up to 100%. There are no national management requirements, including for board members and senior executives, but an ongoing "fit and proper test" is applied. The "fit and proper 
test", according to the authorities, refers to th e experience, integrity, and suitability of persons 
holding senior positions in a bank; factors considered include qualifications and the financial history of the person concerned. There are no explicit limitations to employment of foreign 
nationals; though emphasis is on the employment of Bahraini nationals wherever appropriate 
(section 1.2.2). Foreign-based retail banks may raise funds from or grant loans to residents, and may own and operate branches in Bahrain; there are no restrictions on the level of foreign equity 
ownership in branches. They also have access to credit and deposit insurance in the local market 
and are free to install any equipment they require for their activities. 
4.64.  Banks are required to maintain a 5% deposit in unremunerated reserves at the CBB 
(including unrestricted investment accounts in Islamic banks); reserve balances must be 
maintained continuously throughout the subsequent month. State-owned banks, like the Housing 
Bank and the BDB, grant preferential loans (s ection 3.3.6). Rules and regulations governing 
preferential lending are set by the Ministry of Finance. The housing sector, small businesses, and 
project finance receive preferential lending. 
4.65.  The variety and popularity of Islamic instruments have surged since Bahrain’s last TPR. As 
of January 2013, Bahrain had 6 retail banks and 18 wholesale banks with Islamic licences. Consolidated assets of Islamic banks grew from US$12.2 billion at end 2006 to US$23.1 billion at 
end 2013. This trend is likely to continue over the coming years.
9 Regulated services consist of 
three main activities: acceptance of Sharia money placement/deposits; management of Sharia profit-sharing investment accounts; and offering of Sharia financing contracts. Various 
supplementary activities may also be undertaken.  Islamic bank licences are divided into two 
categories: conventional retail banks and conventional wholesale banks. 
4.66.  Bahrain hosts the Accounting and Auditing Organization for Islamic Financial Institutions 
(AAOIFI). An international autonomous non-profit corporate body, AAOIFI prepares accounting, 
auditing, governance, ethics, and Sharia standards for Islamic financial institutions. It was created in 1991 and has 26 members.
10 The CBB requires the adoption of AAOIFI recommendations on the 
computation of capital adequacy, which recognizes the risk undertaken by investment holders. 
4.67.  In order to ensure effective compliance wi th relevant standards and to preserve Bahrain's 
strong reputation as a well-regulated financial centre, the CBB maintains a Compliance Directorate 
tasked with leading the CBB's anti-money laundering efforts. The Compliance Directorate also 
handles complaints from the public relating to CBB licensees, and receives information on financial 
crimes, such as fraud attempts. An Anti-Money Laundering Unit (AMLU), within the General Directorate of Criminal Investigation at the Ministry of the Interior, is responsible for anti-money-
laundering activities. 
4.5.1.3  Securities 4.68.  Bahrain Bourse (BHB) was established as a shareholding company according to Law No. 57 
of 2009 and Law No. 60 of 2010 to replace the Bahrain Stock Exchange (BSE). The CBB regulates 
and supervises all of the bourse's activities. 
4.69.  The BHB remains a low-volume market compared to regional and global equity markets. It 
accounted for less than 1% of the aggregate GCC market capitalizations as of December 2012. As 
of November 2012, there were 47 companies listed on the BHB. Initial public offering activity has 
been extremely limited since the early 2000s. 
                                               
8 IMF (2010). 
9 Central Bank of Bahrain online information. Viewed at: http://www.cbb.gov.bh /assets/MSB/MSB-Dec-
2012.pdf . 
10 The members are: Algeria, Australi a, Bahrain, Bangladesh, Brunei, Cayman Islands, Egypt, Indonesia, 
Iran, Jordan, Kenya, Kuwait, Lebanon, Malaysia, Pakistan, Palestine, Qatar, Russian Federation, the Kingdom 
of Saudi Arabia, South Africa, Sri La nka, Sudan, Republic of Yemen, Tunisia, Turkey, and the UAE (AAOIFI 
online information. Viewed at: http://www.aaoifi.com/main/main.html [20 September 2006]). WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.70.  Three main indexes are used to track the performance of the Bahraini stock market – 
Bahrain All-Share, Esterad, and Dow Jones Bahrain. Bahrain Bourse market activity was relatively high during the review period, with a peak in 2008 in the lead up to the global financial crisis, followed by a considerable slow-down with an av erage of 16.2% overall market turnover during 
the period January 2009 to end of first quarte r 2013; the three indexes plummeted by around 
41.9% in January 2009. 
4.71.  Bahrain's total market capitalization fell from US$27,536 million  in 2007 to US$17,462 
million at the end of August 2013 (Table 4.5). 
Table 4.5 Market capitalization, August 2013 
(US$ million)  
Sector 2007 2008  2009  2010  2011  2012 August 
2013  
Commercial banks 9,309 6,714 5,407 6,811 6,348 6,174 7,867 
Investment 13,219 8,957 6,755 5,944 4,455 4,290 4,012 
Services 4,090 3,297 3,127 2,828 2,312 2,501 2,503 
Industrial 44 39 47 3,453 2,530 1,669 2,171 
Hotels and tourism 329 405 467 570 508 493 480 
Insurance 544 535 460 453 436 405 430 
TOTAL 27,536 19,947 16,263 20 ,060 16,590 15,532 17,462 
Source: Bahrain Bourse BHB. 
4.72.  The BHB, located in the Bahrain Financial Harbour is responsible for overseeing the 
organization and regulation of securities trading in Bahrain, replacing the Bahrain Stock Exchange 
(BSE).11 Its main duties are to ensure that dealings  in securities are proper and sound, and that 
the Clearing, Settlement, Depository, and Regist ry System (CSDR) operator complies with any 
relevant requirement. 
4.73.  Companies listed on the BHB must: (i) comply with Law No. 21/2001 (Commercial 
Companies Law); (ii) issue annual audited financial statements and hold annual general meetings 
within three months following the end of their financial year; (iii) have no less than 100 registered 
shareholders; (iv) have net worth (assets) at least 20% in excess of paid-up capital; and (v) have total annual sales (turnover) of not less than BD 500,000.
12 
4.74.  The CDSR covers settlement risks through the Guarantee Contribution Fund (GCF) for non-
government securities.13 The BHB uses GCF assets as collateral for the credit facilities provided by 
the Settlement Bank14, to settle obligations arising from securities transactions concluded on the 
BHB for individuals who fail to pay, or if the liquidity reserve funds are insufficient to fulfil 
obligations pertaining to the concluded transaction on the BHB.15 
4.75.  The GCF is managed by a three-member sp ecial committee, appointed by the Chairman of 
the BHB's Board of Directors, for a period of three years. The committee is constituted by: the 
Chairman representing the BHB; a representative of the brokerage companies (to be nominated by 
the BSE); and a representative of the Settlement Bank. The BSE charges a management fee of 0.25% of the amount of the Guarantee Fund per year. Upon admission to the CSDR Class (A) 
                                               
11 Law No. 6/2010. 
12 For more information on the regu latory framework of the BHB, see 
http://www.bahrainbourse.net/bhb/regul ations.asp?page=regulations&sec=Fees# . 
13 Resolution No. 4/2000 on the establishment of a Guarantee Contribution Fund at the BSE, 
28 November 2000. 
14 The regulated bank that provides the BHB and its pa rticipants with the necess ary facilities to effect 
payments relating to the settlement of securities transactions. 
15 If the Fund has been reduced by  more than 50% of its original value, the BHB may terminate its 
trading, clearing, and settlement services to all participants.  WT/TPR/S/294 • Kingdom of Bahrain 
 
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  brokers, pay a fixed minimum of BD 50,000 and other brokers pay BD 25,000 (US$132,980 and 
US$66,490, respectively).16 
4.76.  Based on Decree Law No. 21/2002, BHB is administered by a Board, chaired by the 
Governor of the Central Bank of Bahrain. The CBB also issues guidelines and rules on the capital 
market; renews the licences of all stockbrokers' members of the BHB; inspects all the BHB's 
brokers; approves prospectuses for IPO's and the offer documents for other issues; gives approval 
for any off-market transactions; and approves all amendments to the internal regulations or rules 
of the BHB.  
4.77.  The activities of Financial Trusts are regulated by Law No. 23 of 11 July 2006. New 
mandatory disclosure standards entered into force on 1 January 2004, for all listed companies quoted on the BHB. The fees or charges impose d by the BHB or CSDR in its capacity as an 
exchange or clearing house must be approved by the CBB. Capital markets licensees are subject to 
Ministerial Order No. 7/2001 and Resolution No. 1/2004. 
4.78.  In 2011, in a bid to stimulate development of the Bahraini equity market, the Bourse, 
undertook initial measures to encourage the listing of more companies through amendments to its 
listing rules. These had proved challenging for companies to comply with during the difficult post-crisis market conditions. One such revision cancels an article stipulating that a company must have 
realized profits during the two years prior to its application, or at least for three of the past five 
years. The MOIC, in collaboration with the CBB and the National Corporate Governance Committee, introduced a new Corporate Governance Code in 2010, combining nine core principles reflecting the highest international governance st andards. Enforced under a "comply or explain" 
framework, the Code forms part of the longer term initiative to deepen the Bahrain Bourse market 
and instil confidence in Bahrain’s capital markets among investors and companies looking to raise capital through a listing. 
4.79.  Since its establishment, BHB has joined se veral regional and international organizations, 
such as the Union of Arab Stock Exchanges, Fe deration of Euro-Asian Stock Exchanges (FEAS), 
World Federation of Exchanges (WFE), Africa & Mi ddle East Depositories Association (AMEDA), and 
Association of National Numbering Agencies (ANNA ). Joining these organizations keeps the bourse 
updated on legislative, technical, and administra tive developments in the capital markets sector. 
4.5.1.4  Insurance 4.80.  The insurance industry has grown steadily in recent years, with total gross premiums of 
US$634.09 million in 2012 (2011: US$579.99 m illion). In 2012, the insurance subsector 
represented about 5% of GDP in gross premiums per year, higher than in most GCC countries. Moreover, gross contributions of takaful  firms increased by around 22% to US$142.36 million in 
2012, up from US$116.47 million in 2011. Motor insurance was the single largest segment of the 
insurance market in 2012 (Table 4.6). 
4.81.  At the end of 2012, Bahrain’s domestic in surance market, including conventional insurance 
and takaful , comprised 26 locally incorporated firms an d 11 overseas insurance firms (branches of 
foreign companies) carrying out insurance, reinsurance, takaful , retakaful , and captives business. 
In 2012, there were 7 takaful firms and 2 retakaful  firms, both locally incorporated, in addition to 
one captive insurance company (Chart 4.1). 
4.82.  All insurance licensees are regulated by the Central Bank of Bahrain and Financial 
Institutions Law 64 of 2006 (CBB Law)
, which was promulgated on 6 September 2006 with the 
issuance of Decree No. (64) of 2006.17 
4.83.  The Insurance Rulebook  (Volume 3), issued in April 2005, covers insurance licensees, i.e. 
CBB licensees that solely undertake regulated insurance services. It includes prudential 
requirements (such as rules on minimum capital and risk management); and conduct of business 
                                               
16 BSE Board Resolution No. 2/1995. Brokers class (A) are licensed to trade in securities of local, GCC, 
and international issuers registered at the BHB, on beha lf of clients and for their own account. They are also 
allowed to act as custodians and offer advisory and research services (WTO, 2000).  
17 Decree No. 64 enacted the CBB Law and repealed the BMA Law of 1973 as well as the Insurance Law 
of 1987.  WT/TPR/S/294 • Kingdom of Bahrain 
 
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  requirements (such as rules on providing insuranc e services and the treatm ent of policyholders). 
Collectively, these requirements are aimed at en suring the safety and soundness of the licensees, 
and providing an appropriate level of protection for policyholders. 
Table 4.6 Insurance premiums and claims, 2011-12 
(US$ million and %) 
Class Gross premiums Gross claims 
2012  2011  Change  2012  2011 Change  
Long-term 159.57 139.50 14% 58.07 53.53 8% 
Fire, property and liability 110.74 102.51 8% 27.15 33.86 -20% 
Miscellaneous financial loss 11.84 10.72 10% 4.51 3.16 43% 
Marine and aviation 18.60 18.74 -1% 2.26 1.90 19% 
Motor 164.44 147.55 11% 144.32 111.02 30% 
Engineering 40.29 43.65 -8% 9.20 9.32 -1% 
Medical 98.58 92.42 7% 77.77 65.35 19% 
Other 30.03 24.90 21% 8.61 5.19 66% 
Total 634.09  579.99  9% 331.89  283.33 17%  
Source: Central Bank of Bahrain. 
4.84.  An insurance firm must satisfy the CBB's re quirements for each type and class of insurance 
business for which it is seeking authorization. With the exception of captive insurance and pure reinsurance, an insurance firm may not undertake both general and long-term insurance activities. 
Insurance firms (including captive insurers), must operate on either conventional insurance 
principles or on takaful  principles; they may not combine the two. There is no limitation with 
respect to foreign ownership in the insurance licensees.  
4.85.  Bahraini insurance firms must maintain sufficient capital to meet at all times their insurance 
and other obligations: the minimum Tier 1 Capita l requirement is BD 5 million, except for firms 
whose business is limited to reinsurance; reinsurance firms must have minimum Tier 1 Capital requirement of BD 10 million. Overseas insurance firms and captive insurers are not subject to 
minimum Tier 1 Capital but must comply with th e required solvency margin and minimum fund 
requirements, as defined in Chapter CA-2 of the Insurance Rulebook  (Volume 3).  
Chart 4.1 Insurance companies and organizations authorized in Bahrain, 2012 
Bahraini insurance  
firms
26Overseas insurance  
firms (foreign 
branches)
11Insurance  licences 
limited to operation  
outside Bahrain
33Insurance  brokers
31
Actuaries
30
Other
30(Number)
Total : 161
 
Source: Central Bank of Bahrain. 
4.86.  For overseas insurance firms, the audited net assets (excluding any unrealized fair value 
gains and the surplus assets of long-term funds) amount is determined in accordance with accounting standards that would be applicable if they were a joint-stock company incorporated in 
Bahrain. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.87.  In addition, all insurance firms must at all times maintain available capital in excess of the 
greater of the required solvency margin and the minimum fund. The minimum paid-up capital 
requirement for insurance brokers is BD 50,000. The authorities retain the right to require higher 
capitalization. 
4.88.  According to the authorities, insurance companies are required to set aside 10% of their 
annual net profits in a statutory reserve until the amount reaches 50% of the capital. Insurance firms must maintain a cash deposit with a retail bank licensed to do business in Bahrain, to the 
amount of BD 50,000 for life insurance,  BD 75,000 for any non-life insurance, and BD 150,000 for 
reinsurance. 
4.5.2  Telecommunications 4.89.  Bahrain's telecommunications sector grew substantially during the review period. In 2012, 
annual gross turnover reached over US$1 billion, re presenting around 4% of GDP. A total of 3,141 
people work in the sector, a 50% increase since the launch of the liberalization policies in 2003. The number of Bahraini employees in this sector is  also amongst the highest in Bahrain, at 80% in 
2012. This is mainly due to the sector’s high prod uctivity and reliance on skilled employment. The 
sector also boasts a high female ratio of 29% compared with a workforce average of 21%. 
4.90.  Pursuant to its National Economic Strategy, Bahrain was one of the first GCC countries to 
liberalize its telecommunications market. While Bahrain has the smallest market in the Middle East 
by population, its telecommunications market is now one of the most competitive. Bahrain has been leading regulatory trends in the telecommunications sector among the GCC countries. In 2009 and 2011 Telecommunications Regulation Authority (TRA) was awarded, the Most 
Progressive Regulator of the Year award by the South Asia, Middle East, and North Africa 
(SAMENA) Telecommunications Council. 
4.91.  Important changes have been introduced with respect to market competition. In 2007, two 
national fixed wireless licences were issued, to Zain and to Menatelecom, to operate as WiMax-
based networks. In 2009, a mobile licence was granted to Viva Bahrain, making it the third telecommunications provider, along with the partially state-owned operator Bahrain 
Telecommunications Company (BATELCO) and Zain Bahrain. Mobile penetration rates grew from 
107% in 2007 to 172% by the end of 2012, increasing  the numbers of subscribers to 2.1 million, 
of whom around 80% are prepaid subscribers. Th is growth has been largely attributed to the 
competition among the three mobile operators. In September 2013, TRA granted new frequency 
licences to the three mobile operators, enabling them to launch 4G services. Information regarding 
market share of the three operators was not made av ailable by the authorities, who stated that it 
is confidential and has not been made public by TRA. 
Table 4.7 Selected telecommunication indicators, 2007-12 
 2007 2008  2009  2010  2011 2012  
Telephone subscriptions 
('000) 205.0 221.8 240.2 232.4 248.5 260.0 
Telephone subscriptions 
per 100 inhabitants 19.6 19.9 20.2 18.4 20.8 21.1 
Cellular mobile 
subscriptions ('000) 1,115.9 1,440.8 1,401.9 1,567.7 1,693.6 2,123.9 
Cellular subscriptions per 
100 inhabitants 107.4 130.2 119.0 127.0 141.7 172.0 
Broadband subscriptionsa 
('000) 68.2 110.0 158.3 306.2 567.9 1,254.8 
Broadband subscriptions 
per 100 inhabitants 7.00 10.00 13.44 24.80 47.52 102.0 
Internet users per 100 
inhabitants 32.91 51.95 53.0 55.0 77.0 88.0 
a The new number of broadband subscriptions for 2010-12 has been revised to ensure better 
alignment with the ITU definition of active mobi le broadband subscribers. Comprehensive pay-per-
use mobile broadband figures are not available for 2011 and earlier. 
Source: The Telecommunications Regulatory Authority. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.92.  The Telecommunication Regulatory Authority is the main regulator for the sector and is 
regulated by Telecommunications Law No. 48 of 2002. The TRA's main duties are to: protect the interests of subscribers and users in respect of the tariffs charged for services, the availability, provision, and quality of services, and protection of personal particulars and privacy of services; 
promote effective and fair competition among new and existing licensed operators; and ensure 
that applicants are able to provide public telecommunications services when assessing applications. 
4.93.  Under the Telecommunications Law, the requirements to grant a licence are: that the 
applicant is a juristic entity incorporated in Bahrain, or a branch of a foreign company licensed to operate in Bahrain in accordance with the Commercial Company Law (No. 21 of 2001); and that substantially all the infrastructure and personnel associated with the provision of 
telecommunications services are located in the Kingdom of Bahrain. Licences are granted for 15 
years. Chapter 8 of the Law provides for the grad ual liberalization of the subsector. As of end 
2012, 20 active licensed operators were supplying telecommunications services in the Kingdom of 
Bahrain. In 2012, revenue from licence fees collected by the TRA amounted to BD 3.17 million, an 
increase of 13% over 2007. 
4.94.  Every three years, the Ministry of Transp ortation prepares a National Telecommunication 
Plan (NTP), stipulating the strategy and the gene ral policy for the subsector. The NTP has to be 
approved by the Council of Ministers. The Thir d NTP was issued in July 2012, setting out the 
Government’s vision that the telecommunications sector should play an enhanced role in stimulating and enabling the economic and social de velopment of Bahrain. The Third NTP identifies 
some key challenges and government policies for the sector, including the creation of a national 
broadband network (NBN) and the deployment of long-term evolution (LTE)-based mobile 
services. 
4.95.  Batelco, the incumbent operator, is partially owned (36.7%) by Mumtalakat Holding 
Company, the state-owned enterprise (section 3.4.4). The TRA imposes a series of measures such as wholesale, retail access, and price regulation on operators that are found to hold significant 
market power (SMP) and/or dominance. In 2012, Batelco was subject to a number of SMP and 
dominance determinations, while in 2010 Zain was found to be dominant in the supply of termination services on its mobile network. A si milar determination was made in 2013 in relation 
to Viva’s mobile termination service. The TRA unde rtakes periodic market reviews to ensure that 
the regulatory framework remains appropriate. 
4.96.  Some of the most recent developments in Bahrain's telecommunications market include 
greater infrastructure access
18; number portability19; continued economic regulation; and 
enhanced consumer protection. In January 2012, the TRA issued Consumer Protection Guidelines 
to address consumer rights, choice, and communications. 
4.5.3  Postal services 
4.97.  Postal services are under the supervisory au thority of the Ministry of Transportation (MOT). 
Bahraini Laws No. 4 of 1975, 24 of 1982, and 12  of 2011 provide for Bahraini membership of the 
Universal Postal Union (UPU), the acceptance of International, Arab, and GCC Postal Agreements 
(1982), and the ratification of the Seventh Addition al Protocol to the Constitution of the Universal 
Postal Union. Postal services are considered important, inter alia , to prepare a suitable 
environment for investment; promote Bahraini g oods and services all over the world; provide 
employment to nationals; and contribute in de veloping various other industries. A number of 
operators are already working in the domestic and international markets, with 15 major 
companies. 
                                               
18 In mid-2011, the TRA mandated local loop unbundling (LLU) in Bahrain with the objective of 
stimulating greater broadband competit ion via competitive ADSL deployment. Other licensed operators (OLOs) 
may now access Batelco’s copper access network at re gulated prices on a non- discriminatory basis. 
19 The Kingdom of Bahrain was the first country in th e Middle East and North Africa to implement fixed 
number portability (October 2011), and one of the first in the Middle East to implement mobile number 
portability (July 2011). Number portability is intended to increase competition by reducing impediments to customer move between different licensees.  WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.98.  There are 18 post offices in Bahrain. Mail is delivered to private post office boxes and 
directly to physical addresses; the latter was not the case before the last Review. The annual fee for this service is BD 50  for enterprises and BD 15 for individuals. 
4.99.  In 2005, to increase the efficiency and prod uctivity of postal services, the GCC agreed to 
establish a regional service standard, requiring them to deliver 85% of the mail circulating 
between them within four days by 2006, 85% wi thin three days by 2007, and 90% within two 
days by 2008.
 In 2009, Bahrain Post was accredited with ISO9001, and has improved its business 
processes and become more efficient in providing quality in the workplace. The main improvement 
was in delivery times of major international destinations to J+2 and domestic to J+1. 
4.100.  Bahrain post has implemented the radio frequency identification system (RFID), which 
provides contactless identification, tracking, and tracing of incoming/outgoing mail and packages 
in a timely manner. Bahrain launched Gulf Express to promote postal services in the GCC region. 
4.5.4  Transport 4.101.  During the review period, the Ministry of  Transportation (MOT) assumed responsibility for 
the development of Bahrain's transportation in frastructure and systems, with overarching 
responsibilities that include the regulation and streamlining of Civil Aviation Affairs, Ports and Maritime Affairs, and Land Transportation. 
4.102.  In line with the Economic Vision 2030, the MOT is tasked with streamlining the 
development of Bahrain’s transportation systems, in an integrated manner to facilitate a safer, faster, and more efficient and convenient transportation system, with the objective of boosting productivity and enhancing the qualit y of land, sea, and air transport. 
4.5.4.1  Maritime transport 
4.103.  Bahrain has a small merchant fleet compared with its GCC neighbours,. Maritime shipping 
showed strong growth in 2012 as Bahrain's to tal merchant fleet grew by 20% since 2008. 
(Table 4.8). 
Table 4.8 Shipping and maritime transport services, 2008-12 
(DWT) 
 2008  2009  2010  2011 2012  
Total merchant fleet (dwt)a 1,016,154 1,057,559 1,107,749 1,139,782 1,219,429 
Bulk carriers 142,123 142,123 152,145 155,176 161,589 
Container ships 286,123 288,953 301,258 301,258 336,584 
General cargo 256,896 256,896 278,965 278,965 301,235 
Oil tankers 74,125 74,125 74,125 74,125 74,125 
Other 256,887 295,462 301,256 330,258 345,896 
 
a Deadweight tonnes.  Source: Information provided by the authorities. 
4.104.  In 2012, the newly established Ports and Maritime Affairs (PMA) Directorate under MOT 
replaced the General Organization of Sea Ports (GOP) as the regulator for maritime transport and services. 
4.105.  Mina Khalifa bin Salman Port (MKSP), Bahrain’s newest port, was opened in 2009. KBSP 
has a 900 m
2 container terminal, as well as general cargo, and passenger facilities. Located in 
Salman Industrial City, it is only 13 km from Bahrain international Airport and is linked to Mina 
Salman, the old port, by a 5 km causeway. Access to the Kingdom of Saudi Arabia is a 30 km WT/TPR/S/294 • Kingdom of Bahrain 
 
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  drive. A private company runs KBSP and the Ports & Maritime Affairs supervises and regulates the 
port’s functions in line with the concession agreement.20 
4.106.  The maritime subsector is regulated by the Bahrain Maritime Code (Law No. 23 of 1982), 
Law No. 20 of 1979 on Small Vessel Registration  and Safety Requirements, and the Ministerial 
Resolution No. 6 of 2001 regulating merchant shipping (manning, training, certification and related 
seafarer's matters). In addition, a regulatory framework for seaports has been in place among 
GCC countries since 2006. 
4.107.  The PMA is currently finalizing a new Maritime Code, which covers issues related to 
international maritime conventions and protocols and the operation of port facilities, as well as defining the responsibilities and functions of the PMA.  It will also establish jurisdiction with respect 
to international conventions and bring Bahrain up to date with developments in international 
maritime law. 
4.108.  As the regulator for the maritime industry , the PMA oversees licensing and registration for 
ships, port, and private jetty users and operators.
21 Maritime transport services may be provided 
by the private sector (foreign and Bahraini).  Companies wishing to provide shipping and 
passengers transport services require PMA approval. 
4.109.  A small number of shipping companies operate in Bahrain. The United Arab Shipping 
Company, a semi-private company with 5% of shares owned by the Government, deals with cargo 
services. A few others deal with the shipping of construction materials. Freight and passenger transport charges are not regulated under Bahraini legislation. There is no obligation for government cargo to be carried by state-owned shipping companies; however, the Government 
appears to favour the United Arab Shipping Comp any for government cargo. Shipments to Bahrain 
must be by ships that are permitted entry into Bahraini waters (based on, inter alia , 
flag/ownership and age of vessel). 
4.110.  According to the authorities, there are no incentives for flying the Bahraini flag; and 
however, the only conditions associated with flying the Bahraini flag are registration and certification. Any ship may acquire Bahraini nationality if it is registered at any port in Bahrain, and 
if the owner or owners are Bahraini nationals; in the case of a corporation, it must have Bahraini 
nationality. The Minister of Transportation may, wi th the consent of the Council of Ministers, award 
Bahraini nationality to ships owned by foreigne rs. Cabotage is not regulated. However, under 
Article 4 of the Maritime Code, coastal navigation, fishing, towing, and pilotage in territorial 
waters, as well as navigation between Bahraini port s, are permitted exclusively by ships flying the 
Bahraini flag. International and national safety measures must be maintained. Multimodal transport is encouraged and regulated through national laws. 
4.111.  There are no restrictions on nationality of crew and key personnel employed on ships or by 
shipping companies in Bahrain. Key personnel, maritime engineers, and the number of crew members employed on ships, and their required qualifications are defined by the applicable laws, 
regulations, and international conventions. No special government funding is available to the 
maritime subsector although the Minister of Transportation holds a general reserve for use in case of an emergency. 
4.112.  Prices of freight, towage, and other tran sport services (excluding passengers) are set by 
the operators, subject to PMA approval. 
4.113.  In the context of the GCC and based on the common rules and regulations for seaports, 
which were approved in 2006, GCC countries have approved inter alia, to: (i) bring port 
infrastructure, equipment, systems, and services into line with best international practices, 
standards, and norms; (ii) contribute to the national social and economic objectives and to promote ports' competitive strengths and the GCC states' trade objectives in the global market; 
(iii) encourage the harmonization of standards, co des, and benchmarks in the performance of port 
services, and assure that the dispatch of ships matches users' needs; (iv) pursue the GCC 
                                               
20 Ministry of Transportation, Ports and Ma ritime online information. Viewed at: 
http://mot.gov.bh/en/ports-and-maritime/khalifa-bin-salman-port . 
21 Ministry of Transportation online information. Viewed at: http://mot.gov.bh/en/ports-and-
maritime/licensing-and-administration . WT/TPR/S/294 • Kingdom of Bahrain 
 
- 61 - 
  commitment to promote the relevant UN organizations (IMO and ILO); (v) encourage private 
sector participation in the provision of port services with a view to ensuring efficient use of resources and enhancing fair competition; and (vi) promote national employment, education, and life-long learning for the ports' human resources. 
4.5.4.2  Air transport 
4.114.  The Civil Aviation Affairs (CAA) under the MOT acts as Bahrain's aviation and supervisory 
authority responsible for all civil aviation regulatory matters, the provision and management of air 
traffic services, meteorology, and the management of  all air-transport-related services at Bahrain's 
International Airport (BIA). The CAA also assumes responsibility for the issuing of licences/permits 
and certification for various activities including aircraft registration, personnel licences, aircraft operations, and airline schedules.  
4.115.  In June 2013, a new Civil Aviation Law entered into force (Law No.14/2013). The CAA was 
keen for this new law to be enacted, in order to enhance the implementation of the standards 
adopted by the International Civil Aviation Organisation (ICAO).
22 Other regulations for the 
subsector include: the Air Navigation Technica l Regulations, under Resolution No. 2/1997; 
Ministerial Decree No. 1/1999 on sales and market ing of air transport products and services; and 
Ministerial Decree No. 1 of 2002 on the organization and licensing of air cargo agencies.  
4.116.  During the period under review, overall passenger numbers grew to around 9 million in 
2009 but declined in 2010 and, due to the domestic unrest, reached their lowest level in 2011. In 2012, passenger numbers increased by 8.8% to around 8.4 million (Table 4.9). Cargo services have been declining steadily. 
4.117.  Gulf Air is Bahrain's principal flag ca rrier. Until 2002, Gulf Air was jointly owned by 
Bahrain, Qatar, the UAE, and Oman. However, these shareholders withdrew one by one to set up their own airlines and develop their own hub capacity, the last being Oman in 2007.
23 Gulf Air has 
continued to make losses, and the number of routes was cut from 120 to 40 during the review 
period. In 2007, the carrier was bought by Bahrain Mumtalakat Holding, which owns 100% of the airline. In an effort to cut its losses, Gulf Air began a three-year recovery plan at the end of 2012. 
The carrier plans to shift from a long-haul and transit focus to concentrate on short-haul flights 
within the MENA region, to the Indian subcontinent, and key airports in Europe.  
Table 4.9 Air transport services, 2008-12 
 2008  2009  2010  2011 2012  
Passengers 8,758,068 9,053,631 8,898,272 7,793,527 8,479,266 
  Arrivals 4,231,222 4,380,711 4,292,361 3,789,750 4,161,061 
  Departures 4,180,220 4,356,263 4,305,534 3,778,450 4,105,954 
  Transit 346,626 316,657 300,377 225,327 212,251 
Cargo services (tonnes) 332,798 311,024 298,135 273,835 256,826 
Aircraft movement 101,203 103,727 106,356 103,419 105,931 
Source: Information provided by the authorities. 
4.118.  Bahrain Air, a privately owned low-cost, point-to-point-model airline, established in 2008, 
announced its voluntary liquidation in early-2013. In general, private airlines in the Gulf region face financial difficulties as they compete with state-owned carriers.  
4.119.  Airlines operating in Bahrain require approv al from the CAA under th e provisions of an air 
transport services agreement or through a te mporary operating permit. Key parameters in 
bilateral air transport agreements are reciprocity of capacity and frequency. Airlines are free to set prices. Approvals for cargo operations, including prices, do not, in general, appear to be restricted; 
prices must be submitted to the authorities for information purposes. According to the authorities, 
there are, in principle, no objections to allowing new entrants into the market. 
                                               
22 Gulf Daily News , "Civil aviation sector facing downgrade", 26 March 2013. Viewed at: 
http://www.gulf-daily-news.com/ NewsDetails.aspx?storyid=350116. 
23 The Qatari Government dropped its shareholding in May 2002 to develop its own national airline 
(Qatar Airways). The Abu Dhabi Government dropped its shareholdings in 2005 to develop Etihad Airways. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.120.  According to the authorities, Bahrain adopts a multiple designation approach in its bilateral 
negotiations; this allows more than one carrier from a State to operate the permitted services. Benefits, including special rebates, discounts, and incentives on landing, take-off, and parking charges, are provided to airlines on a case-by-case basis. Some classes of aircraft are exempt by 
law from payment of these charges; these include aircraft belonging to/used by Bahrain, head of 
state, the United Nations and its agencies, the Le ague of Arab States and its agencies, aircraft 
used without remuneration, and any other aircraft that may be exempted by the CAA.
24 
4.121.  There is no specific slot-allocation system in operation at Bahrain International Airport. 
Airlines submit their tentative schedules on a se asonal basis for approval by the CAA following 
discussions with the relevant authorities, including Gulf Air, in an Airport Scheduling Committee. There is no difference in slot allocation between peak and off-peak hours; however "grandfather" 
rights are respected. Schedule clashes at peak periods are resolved by mutual agreement between 
the airline concerned and the CAA. 
4.122.  According to the authorities, the CAA grants some incentives to promote Bahrain's airport 
as a regional hub, i.e. exemption from landing and parking fees for two years for new airline 
entrants and the exemption from air navigation fees for two years.  
4.123.  Since 2010, Bahrain International Airport (BIA) has been managed and operated by 
Bahrain Airport Company (BAC), a state-owned co mpany established in 2008 as a public limited 
company in which Bahrain Mumtalakat Holding is the sole shareholder. The handling services were previously managed by Bahrain Airport Services , which operated under a 25-year sole-right 
franchise agreement from 1996. BAC carries out gr ound, cargo, and mail handling and in-flight 
catering, and operates catering facilities in the terminal. Airlines may handle some or all of these 
services themselves. Other facilities include fuel services, which are provided by the Bahrain Airport Fuelling Company, on behalf of its thr ee shareholders, BAPCO, Caltex, and Air BP; and 
duty-free facilities, which are provided by th e Bahrain Duty Free company under a franchise 
agreement. BIA has an operational capacity of over 9 million passengers and over 1,000 weekly 
departures from the airport. 
4.124.  As of October 2013, Bahrain had 87 bilateral air transport agreements and temporary 
operating permits are in force. 
4.5.4.3  Road and railway transport 4.125.  Bahrain's road network is regulated by the Roads Affairs Sector Directorate, under the 
Ministry of Works (MOW), which is responsible for, inter alia , urban development, construction of 
highways, bridges, and underpasses, as well as road maintenance. The main policy goal is to continue to expand the road infrastructure. Some major road projects are under way to ease 
traffic congestion in Bahrain. 
4.126.  Due to Bahrain's small land size, no large highways are operated on a concession basis. 
The 25-km King Fahd Causeway, which links Bahrai n to the Kingdom of Saudi Arabia, is operated 
jointly by the two governments. Moreover, Bahrain and Qatar are planning to construct the 
Bahrain-Qatar Friendship Causeway, a 40-km bridge that will connect the two countries (at a cost of US$4 billion). In addition, the project will include a railway system. The whole project is 
expected to be completed by 2022. 
4.127.  With Bahrain's rising population, the au thorities are looking to develop a bigger public 
transport system. In 2010, MOW outlined a 20-year pl an to develop a BD 3 billion public transport 
network consisting of trams, buses, and a light ra ilway network. Eventually, this network will link 
the airport with the city centres of Muharaqq, Manama, Isa Town, and Riffa, and to Qatar and 
Dammam in the Kingdom of Saudi Arabia. 
4.128.  Bahrain has plans to link to the GCC railway. The pan-GCC rail network, due to be 
completed by 2018, w ill stretch over 2,000 km an d enable the transport of goods from Kuwait to 
Salalah in Oman and from Jeddah in the Kingdom of Saudi Arabia to the Fujarah Port in the UAE. The total estimated investment for the GCC network is estimated at US$30 billion. 
                                               
24 Ministry of Transportation, Civil Aviation Affairs, Civil Aviation Law, (Article 119). WT/TPR/S/294 • Kingdom of Bahrain 
 
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  4.5.5  Tourism 
4.129.  Tourism remains a cornerstone of Bahrain's plan for a diversified economy. While the 
tourism sector was hardest hit in 2011, with tourist arrivals plummeting by 32.7% due to the domestic unrest, it rebounded in 2012. Tourism contributed around 5% of GDP in 2012 
BD 538.3 million. 
4.130.  Bahrain draws on its cultural and historical  heritage but also on its sports and business 
tourism potential. It offers a developed infrastructure of hotels, resorts, shopping malls, and 
restaurants. At the end of 2012, Bahrain had 114 hotels, with more than 10,000 rooms, with the 
majority in the 3, 4, and 5-star categories.
25 Hotels are classified by the Ministry of Culture.26 
Bahrain tends to attract "weekend" tourists, most notably from the Kingdom of Saudi Arabia and other GCC countries due to its limited range of tourist attractions compared with its neighbours, 
Dubai and Qatar. 
4.131.  In 2012, Manama, was selected as the Arab Capital of Culture under a UNESCO 
programme, and the Capital of Arab Tourism 2013. Cultural and historical heritage tourism relies 
on several museums and archaeological sites. The Ba hrain National Museum is one of the oldest in 
the Gulf region, with some of the region's oldest documents and artefacts. Bahrain’s Oil Museum commemorates both the Bahrain prominence as the first Arab country to discover oil and the 
significance of oil in the development of the Middle East. In addition, Bahrain has a number of 
forts, most notably the Bahrain Fort, which played a prominent role in Bahrain’s past under Portuguese rule and in the Islamic era. It was officially listed as a UNESCO World Heritage site in 2005. 
4.132.  Business tourism remains an important market segment for Bahrain and one that the 
Government aims to expand. A main objective part of Bahrain's Vision 2030 strategy for diversification, is raising Bahrain's profile internationally as a business centre rather than a tourist 
destination. In this respect, the Bahrain Exhibition and Conference Authority (BECA), which is 
chaired by the Minister of Indu stry and Commerce (MOIC) plans to open a new exhibition and 
conference centre, expo@bahrain or Expo City, which will increase capacity to over 5,000 
delegates and up to 30,000 visitors a day. 
4.133.  Sports tourism is another important market segment, although seasonal. The Grand Prix 
Formula One race has been an annual event since 2004. Operated by Bahrain International Circuit 
(BIC), a subsidiary of the state-owned Mumtalakat , the Grand Prix has had a total direct economic 
impact of around US$1.3 billion since its inception. 
4.134.  Since the last Review of Bahrain, the regulatory authority for the tourism sector has 
changed. In 2010, the Tourism Sector, under the Mi nistry of Culture replaced Tourism Affairs in 
the Ministry of Information as the responsible authority for promoting Bahrain as a tourist 
destination, and for regulating the industry. In addition to setting the sector strategy, the Tourism Sector is responsible for granting licences, hotel inspection, and regulating tour guides. 
4.135.  Foreign investment in the tourism sector is permitted up to 100% of total equity, subject 
to the Companies Law (No. 21 of 2001). Activities reserved for Bahrainis and GCC nationals are travel and tourist offices; and activities reserved for Bahrainis only are those related to tourist land transport and facilitating domestic sea cruises. More than 90% of investment in the industry has 
been by the private sector. In general, the Govern ment restricts its activities to the provision of 
infrastructure rather than investment in projects that may compete with the private sector, although it may partner with the private sector when requested. 
4.136.  In general, there are no taxes on tourism activities. However, a 5% government levy is 
added to all hotel bills, with two percentage po ints used to promote tourism in Bahrain and to 
develop supporting infrastructure. 
                                               
25 Bahrain Central Informatics Orga nization online information, Tourism . Viewed at: 
http://www.cio.gov.bh/cio_ara/English/Public ations/Statistical%20Abstract/ABS2012/Ch10/1.pdf . 
26 Decree No. 2 of 2005. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  REFERENCES 
Bahrain Development Bank (BDB) (2013). Viewed at: http://www.bdb-bh.com . 
 
BAPCO (2012), Annual Review 2012. Manama, Bahrain. 
 
Central Bank of Bahrain online information (2013), Banking Statistics . Viewed at: 
http://www.cbb.gov.bh/ass ets/MSB/MSB-Dec-2012.pdf .  
 
Economic Intelligence Unit (2013), Country Report: Bahrain . London. 
 EDB (2008), Our Vision: The Economic Vision 2030 for Bahrain.  Manama, Bahrain. 
 
EDB (2013a), Quarterly Report , February. Manama, Bahrain.  
 
EDB (2013b), Economic Yearbook 2013. Manama, Bahrain. 
 IMF (2010) "Impact of the Global Financial Crisis on the Gulf Cooperation Council Countries and 
Challenges Ahead"  prepared by the Middle East and Central Asia Department. Washington, D.C. 
IMF (2011). Regional Economic Outlook: Middle East and Central Asia.  October, Washington, D.C. 
 Oxford Business Group (2013), Bahrain . Oxford.  
 
Ministry of Transportation (2013), Ports and Maritime . Viewed at: http://mot.gov.bh/en/ports-and-
maritime/licensing-and-administration .  
 
NOGA (2012), Oil and Gas- Facts and Figures 2012 . Manama, Bahrain. 
 
Tender Board (TB) (2013). Viewed at: http://www.tender board.gov.bh .  
 
Telecommunications Regulatory Authority (2012), Annual Report 2012.  Manama.  
 
Transparency International (2013), Bahrain: Country profile , Viewed at:  
http://www.transparency.org/country#BHR . 
 
UNDP (2012), Human Development Report, 2013 . New York.  
 UNCTAD (2013), World Investment Report: Bahrain . Viewed at: 
http://unctad.org/en/PublicationsLibrary/wir2013_en.pdf . 
 
U.S. Department of Agriculture (2013), GAIN Report - Bahrain . April 24. Washington, D.C. 
 
U.S. Department of State (2011), Doing Business in Bahrain: A Country Commercial Guide for U.S. 
Companies . Washington, D.C. 
 
U.S. Energy Information Administration (2013) Viewed at:  
http://www.eia.gov/countries/c ountry-data.cfm?fips=BA   
 
World Bank (2013), Doing Business Report . Washington D.C. 
 WIPO (2013) online information. Bahrain,  Viewed at:  
http://www.wipo.int/wipolex /en/profile.jsp?code=BH   
 
WTO (2000), Trade Policy Review: Bahrain . Geneva. 
 
WTO (2007), Trade Policy Review: Bahrain . Geneva. 
 WTO (2013), Statistics Database, Trade Profiles: Country profile: Bahrain . Viewed at:  
http://stat.wto.org/CountryProfiles/BH_e.htm . 
 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  5  APPENDIX TABLES 
Table A1.1 Selected macroeconomic indicators, 2006-12 
  2006  2007  2008  2009  2010 2011 2012  
Miscellaneous         
Current GDP at purchasers’ prices (Bahraini 
dinar billion)a 7.0 8.2 9.7 8.6 9.7 11.0 11.4 
Current GDP at purchasers’ prices (US$ 
billion)a 18.5 21.7 25.7 22.9 25.7 29.2 30.4 
Real GDP growth at 2010 pricesa .. 8.3 6.2 2.5 4.3 1.9 3.4 
GDP per capita (US$) 19,268 20,908 23,236 19,465 20,930 24,399 ..  
National Accountsb (%age change based on constant figures, unless otherwise 
indicated) 
Consumption .. 6.0 20.6 11.7 11.4 4.7 .. 
  Government .. 9.0 8.9 13.8 3.4 8.3 .. 
  Private .. 4.8 25.2 11.0 14.2 3.6 .. 
Gross Fixed Capital Formation .. 37.7 18.6 -29.7 14.7 -27.0 .. 
  Government .. 15.5 0.7 -16.0 54.8 -38.4 .. 
  Privatec .. 46.0 23.9 -33.0 2.6 -21.8 .. 
Change in stocksd .. -94.4 119.4 47.0 425.5 -45.6 .. 
Net exports of goods & services  .. -5.8 -28.8 38.9 -23.6 37.1 .. 
Public financeb (% of GDP) 
Revenues  26.4 24.9 27.7 19.8 22.5 25.7 .. 
  of which: oil & gas 20.4 20.0 23.6 16.4 19.2 22.6 .. 
Expenditure  22.4 22.3 21.3 24.1 27.3 26.0 .. 
Strategic projects  0.0 0.0 0.7 0.8 0.0 0.0 .. 
Surplus/deficit before rollover  4.0 2.7 5.7 -5.2 -4.8 -0.3 .. 
Net surplus/deficit after rollover  2.0 0.5 3.8 -8.4 -8.0 -2.8 .. 
Government external debt .. .. .. .. .. .. .. 
Government domestic debt .. .. .. ..  .. .. .. 
Prices and exchange rate         
Inflation (CPI, %age change) 2.0 3.3 3.5 2.8 2.0 -0.4 .. 
BD/$ (annual average) 0.4 0.4 0.4 0.4 0.4 0.4 0.4 
Real effective exchange rate (2005=100)e 102.2 95.6 87.8 91.7 89.5 83.2 84.5 
Nominal exchange rate (2005=100)e 99.6 95.5 92.5 95.5 94.1 91.0 93.4 
  (% of current GDP) 
GDP by economic activitya        
Agriculture & fishing 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Mining & quarrying  22.7 21.4 25.0 19.9 21.7 27.5 25.2 
   of which: crude petroleum & natural gas 22.3 20.9 24.4 19.3 21.1 27.0 24.6 
Manufacturing  13.3 14.5 15.1 14.0 14.5 15.3 15.2 
Services 62.9 62.9 58.6 64.9 62.4 56.1 58.3 
  Government services  10.6 10.1 9.1 11.3 10.5 10.8 11.4 
  Offshore financial institutions  10.6 10.1 9.0 8.9 7.9 6.7 6.5 
  Construction  8.4 8.8 9.2 7.9 7.4 6.1 6.0 
  Transport and communication  5.5 5.2 5.2 6.4 6.7 6.0 6.4 
  Real estate & business activities 7.3 7.2 6.5 6.4 6.2 5.1 5.1 
  Insurance 3.1 3.6 3.2 4.7 5.0 4.6 4.8 
  Social & personal services  3.5 3.4 3.4 4.5 4.6 4.6 5.1 
 Financial institutions  4.6 5.3 4.6 5.1 4.7 4.4 4.5 
  Trade  5.2 4.7 4.4 4.8 4.7 4.1 4.1 
  Other 4.1 4.4 4.0 4.9 4.8 3.9 4.5 
Import duties 1.0 1.0 1.0 1.0 1.0 0.8 1.0 
GDP by economic activitya (% of GDP based on constant figures) 
Agriculture & fishing 0.4 0.3 0.3 0.3 0.3 0.3 0.3 
Mining & quarrying 26.1 24.5 23.2 22.6 21.7 22.1 19.6 
    of which: crude petroleum & natural gas 25.8 24.0 22.7 22.0 21.1 21.5 19.0 WT/TPR/S/294 • Kingdom of Bahrain 
 
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    2006  2007  2008  2009  2010 2011 2012  
Manufacturing  14.6 14.2 14.3 14.6 14.5 14.7 15.5 
Services 57.7 59.7 61.0 61.4 62.5 62.0 63.6 
  Government services 9.4 9.4 9.5 10.4 10.5 11.7 12.1 
  Offshore financial institutions 10.1 9.6 9.3 8.3 7.9 7.3 7.1 
  Transport and communication 5.4 5.7 6.0 6.7 6.7 6.8 7.0 
  Construction 7.0 8.0 8.4 7.6 7.4 6.8 6.8 
  Real estate & business activities 6.6 6.6 6.6 6.2 6.2 5.7 5.7 
  Social & personal services 3.4 3.6 3.7 4.2 4.6 5.0 5.4 
  Insurance 3.3 3.3 3.5 4.2 5.0 5.0 5.2 
  Financial institutions 4.1 4.7 4.9 4.6 4.7 4.8 4.8 
  Trade 4.9 4.8 5.1 4.8 4.7 4.5 4.5 
  Other 3.5 4.2 4.2 4.5 4.8 4.4 4.9 
Import duties 1.2 1.3 1.2 1.1 1.0 1.0 1.1 
External sector (% of current GDP, unless otherwise indicated) 
Current accountf 11.8 13.4 8.8 2.4 3.0 11.1 7.3 
General merchandise (net)f 12.1 12.5 11.9 9.9 9.6 25.9 21.5 
   Exports (fob)f 65.9 62.7 67.3 51.8 53.1 67.4 65.1 
    Oilf 49.8 49.7 53.6 38.9 39.6 53.1 50.1 
    Non-Oilf 16.1 13.1 13.7 12.9 13.5 14.3 15.1 
   Imports (fob)f -53.8 -50.3 -55.4 -41.9 -43.5 -41.5 -43.6 
     Oi lf -26.5 -27.0 -28.0 -19.0 -21.0 -25.6 -29.4 
     Non-Oilf -27.3 -23.3 -27.4 -22.9 -22.5 -15.9 -14.2 
Services (net)f 9.3 8.4 6.7 8.3 8.3 4.3 4.4 
   Exportsf 18.0 16.2 14.5 15.9 15.7 10.4 9.3 
   Importsf -8.7 -7.8 -7.9 -7.6 -7.4 -6.1 -4.9 
Total reserves, includes gold ($ billion) 2.1 2.9 4.3 4.1 4.0 5.3 4.8 
Total reserves in months of imports 1.6 1.8 2.2 2.0 3.1 3.8 2.3 
 
.. Not available. 
 a Provisional data 2012. b Provisional data 2011. c Including government  investment in production activities. 
d Including net errors and omissions. e A rise in the index indicates an appreciation. f Based on provisional data.  Source:  Central Bank of Bahrain, Financial Stability Directorate Economic Indicators , March 2012 (No. 35) 
and June 2012 (No. 36); 
 Central Informatics and Telecommunication Organization, Annual Report 2011 , and Bulletin of 
Quarterly National Accounts , fourth quarter 2012; 
 IMF International Financial Statistics (IFS). Viewed at: http://elibrary-data.imf.org/ [6 June 2013]. 
World Bank's World Development Indicators. Viewed at: 
http://databank.worldbank.org/data/views/variable selection/selectvariables.aspx?source=world-
development-indicators  [6 June 2013]. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table A1.2 Merchandise exports,  including re-exports, 2006-11 
(US$ million and %) 
HS 
Section HS Chapter/Code 2006  2007  2008  2009 2010 2011  
Total (US$ million) 11,662 13,665 13,083 8,384 16,059 22,562 
  (% of total) 
01 Live animals and products 0.2 0.2 1.1 2.0 0.9 0.9 
02 Vegetable products 0.1 0.0 0.1 0.1 0.0 0.0 
03 Fats and oils 0.0 0.0 0.0 0.0 0.0 0.0 
04 Prepared food, beverages and tobacco 0.3 0.2 1.0 1.3 1.0 1.0 
05 Mineral products 80.3 80.5 71.3 67.8 79.2 80.7 
     26 Ores, slag and ash 1.2 1.4 4.8 3.1 7.4 11.6 
     27 Fuels 79.1 79.1 66.4 64.7 71.8 69.1 
        Light oil and preparations (HS 271011) 79.0 79.0 66.0 64.1 71.6 68.7 
06 Chemicals and products thereof 2.4 4.3 4.1 3.2 0.4 0.5 
07 Plastics and rubber 0.4 0.4 0.9 1.1 0.6 0.5 
08 Raw hides and skins; leather 0.0 0.0 0.0 0.0 0.0 0.0 
09 Wood, cork, straw 0.0 0.0 0.0 0.1 0.1 0.1 
10 Pulp of wood; paper and paperboard 0.3 0.2 0.5 0.3 0.2 0.4 
11 Textiles and textile articles 0.7 0.9 1.0 1.2 1.1 0.7 
12 Footwear, headgear, etc. 0.0 0.0 0.0 0.0 0.0 0.0 
13 Articles of stone, plaster, cement 0.1 0.1 0.1 0.2 0.2 0.2 
14 Precious stones and metals, pearls 0.0 0.0 0.1 0.2 0.1 0.0 
15 Base metals and articles thereof 13.3 10.7 15.2 15.4 12.4 11.3 
     72 Iron and steel 0.2 0.2 0.5 0.7 0.8 1.3 
     76 Aluminium and articles 12.5 9.9 13.6 13.7 11.0 9.5 
16 Machinery, electrical machines 0.6 0.9 2.3 3.7 1.8 1.9 
17 Transport equipment 1.0 1.1 1.8 2.5 1.6 1.6 
     87 Vehicles  0.8 1.0 1.7 2.3 1.4 1.4 
18 Precision equipment 0.1 0.1 0.1 0.1 0.1 0.0 
19 Arms & ammunition 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles 0.2 0.3 0.4 0.5 0.3 0.2 
21 Works of art, etc. 0.0 0.0 0.0 0.0 0.0 0.0 
Not classified 0.0 0.0 0.0 0.0 0.1 0.0 
 
Note: Figures for 2012 were not available. 
 Source: UNSD Comtrade database, HS classifications. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table A1.3 Merchandise imports, 2006-11 
(US$ million and %) 
HS 
Section HS Chapter/Code 2006  2007  2008  2009 2010 2011  
Total (US$ million) 8,957 11,515 18,415 11,993 16,002 17,643 
 (% of total) 
01 Live animals and products 1.6 1.4 2.2 2.8 2.7 3.0 
02 Vegetable products 1.2 1.2 1.5 1.9 1.8 1.7 
03 Fats and oils 0.2 0.2 0.2 0.3 0.2 0.3 
04 Prepared food, beverages and tobacco 2.7 2.5 2.4 3.2 3.0 3.4 
05 Mineral products 57.6 53.0 47.4 48.1 50.1 52.4 
    26 Ores, slag and ash 1.3 0.5 2.3 1.8 11.3 7.8 
    27 Fuels 55.6 52.0 44.3 44.7 38.0 43.9 
       Crude oil (HS 270900) 54.7 50.9 42.6 42.9 36.6 42.3 
06 Chemicals and products thereof 6.1 8.7 6.6 7.3 6.2 5.1 
07 Plastics and rubber 1.4 1.8 1.7 1.8 1.5 1.9 
08 Raw hides and skins; leather 0.1 0.1 0.2 0.2 0.2 0.2 
09 Wood, cork, straw 0.5 0.7 0.6 0.8 0.6 0.5 
10 Pulp of wood; paper and paperboard 0.8 0.8 0.8 0.9 0.9 0.9 
11 Textiles and textile articles 1.6 1.5 1.9 1.6 1.7 1.8 
12 Footwear, headgear, etc. 0.1 0.2 0.2 0.2 0.1 0.2 
13 Articles of stone, plaster, cement 1.3 1.3 1.2 1.5 1.1 1.1 
14 Precious stones and metals, pearls 0.4 0.4 0.5 0.3 0.4 0.5 
15 Base metals and articles thereof 5.8 6.1 8.0 5.1 4.7 5.6 
    72 Iron and steel 2.1 2.2 4.2 1.3 1.7 2.1 
    73 Articles of iron or steel 2.5 2.5 2.2 2.1 1.5 1.9 
16 Machinery, electrical machines 9.2 9.9 13.1 13.3 14.8 12.6 
     84 & 85 Machinery and mechanical 
appliances and electrical machinery 9.2 9.9 13.1 13.3 14.8 12.6 
17 Transport equipment 7.6 8.6 9.1 8.8 7.7 6.6 
     87 Vehicles  7.0 7.9 8.0 7.9 7.3 6.4 
18 Precision equipment 0.5 0.6 0.8 0.7 0.9 1.2 
19 Arms & ammunition 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles 1.1 1.0 1.5 1.4 1.3 1.1 
21 Works of art, etc. 0.0 0.0 0.0 0.0 0.0 0.0 
Not classified 0.0 0.0 0.0 0.0 0.0 0.0 
 
Note: Figures for 2012 were not available. 
 Source: UNSD, Comtrade database, HS classifications. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table A1.4 Merchandise exports by dest ination, including re-exports, 2006-11 
(US$ million and %) 
  2006  2007  2008  2009 2010 2011  
Total (US$ million) 11,662 13,665 13,083 8,384 16,059 22,562 
 (%) 
  America 2.0 2.8 2.4 2.6 1.5 1.9 
    United States 1.9 2.7 2.4 2.5 1.5 1.3 
    Other America 0.1 0.0 0.0 0.1 0.1 0.6 
      Peru 0.0 0.0 0.0 0.1 0.0 0.5 
  Europe 2.3 2.7 3.3 2.6 2.6 2.5 
    EU(27) 2.1 2.4 2.8 2.3 2.3 2.2 
      Italy 0.3 0.5 0.6 0.5 0.6 0.7 
      The Netherlands 0.7 0.9 0.8 0.5 0.5 0.6 
    EFTA 0.1 0.1 0.2 0.2 0.2 0.1 
    Other Europe 0.1 0.2 0.2 0.1 0.2 0.2 
  Commonwealth of Independent States (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 
  Africa 0.7 1.0 1.7 1.9 2.2 1.7 
      Morocco 0.2 0.4 0.4 0.4 0.4 0.4 
      Egypt 0.3 0.3 0.7 0.8 0.9 0.4 
      Algeria 0.1 0.1 0.2 0.3 0.3 0.3 
  Middle East 8.8 9.8 20.4 22.7 16.2 18.4 
      Kingdom of Saudi Arabia 4.7 5.3 11.0 11.6 7.2 7.3 
      Qatar 0.9 0.9 2.2 2.7 3.9 3.4 
      Oman 0.2 0.3 0.7 1.0 1.0 3.4 
      United Arab Emirates 1.3 1.5 3.2 4.0 2.3 2.7 
      Kuwait 0.7 0.7 1.2 1.1 0.7 0.7 
      Syrian Arab Republic 0.2 0.4 0.5 0.6 0.4 0.3 
      Jordan 0.2 0.3 0.9 0.8 0.2 0.3 
  Asia 7.0 4.5 6.1 5.9 5.7 6.6 
    China 0.2 0.3 0.9 1.0 1.1 1.8 
    Japan 0.7 0.2 0.4 0.2 0.2 0.1 
    Six East Asian Traders 3.7 1.9 1.6 0.8 0.9 1.1 
      Chinese Taipei 0.6 0.2 0.0 0.1 0.0 0.4 
      Malaysia 0.2 0.3 0.4 0.1 0.3 0.4 
    Other Asia 2.3 2.2 3.2 3.8 3.5 3.7 
      India 1.4 1.0 1.2 2.6 2.5 2.2 
      Australia 0.4 0.9 1.3 0.6 0.5 0.5 
      Indonesia 0.1 0.1 0.2 0.1 0.2 0.4 
      Pakistan 0.3 0.1 0.2 0.3 0.1 0.3 
  Other 79.2 79.1 66.1 64.2 71.7 68.8 
      Areas n.e.s 79.0 79.0 66.0 64.1 71.6 68.8 
 
Note: Figures for 2012 were not available. 
 Source: UNSD, Comtrade database. 
 WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table A1.5 Merchandise imports by origin, 2006-11 
(US$ million and %) 
  2006  2007  2008  2009 2010 2011  
Total (US$ million) 8,957 11,515 18,415 11,993 16,002 17,643 
 (%) 
  America 4.8 4.4 7.1 6.9 16.8 13.0 
    United States 3.2 3.3 4.1 3.9 4.5 4.7 
    Other America 1.6 1.1 3.0 3.0 12.3 8.3 
      Brazil 1.3 0.7 2.4 2.4 11.4 7.1 
      Canada 0.2 0.2 0.4 0.4 0.5 0.6 
  Europe 12.0 12.7 16.3 14.2 14.6 13.4 
    EU(27) 11.0 11.4 12.9 11.7 12.2 11.6 
      Germany 2.9 2.8 3.3 3.0 3.4 2.8 
      Italy 1.5 1.7 2.1 1.6 1.5 1.8 
      United Kingdom 2.1 2.1 2.1 2.2 2.4 1.7 
      France 1.1 1.5 1.4 1.7 1.7 1.4 
      Spain 0.6 0.6 0.7 0.6 0.6 1.0 
      The Netherlands 0.7 0.8 1.0 0.8 0.9 0.7 
    EFTA 0.7 0.9 1.4 1.8 1.1 1.0 
      Switzerland 0.6 0.9 1.1 1.3 1.0 0.9 
    Other Europe 0.4 0.4 2.1 0.8 1.3 0.8 
      Turkey 0.4 0.3 2.0 0.8 1.3 0.8 
  Commonwealth of Independent States (CIS) 0.1 0.2 0.1 0.0 0.1 0.8 
      Russian Federation 0.1 0.0 0.0 0.0 0.0 0.8 
  Africa 0.5 0.6 0.7 0.7 0.7 0.9 
  Middle East 9.3 9.2 9.2 10.3 7.0 50.6 
      Kingdom of Saudi Arabia 5.3 4.8 4.2 5.0 3.0 45.9 
      United Arab Emirates 2.5 2.8 2.7 3.1 2.3 3.3 
      Kuwait 0.3 0.5 1.0 1.1 0.6 0.5 
  Asia 18.5 21.9 23.8 24.9 24.2 21.2 
    China 3.7 4.2 6.0 6.8 7.4 7.7 
    Japan 5.4 5.2 5.5 4.8 4.7 3.3 
    Six East Asian Traders 3.2 3.3 4.0 4.3 4.4 2.6 
      Thailand 0.7 0.7 0.7 1.0 0.8 1.1 
      Malaysia 0.6 0.7 0.8 0.8 0.7 0.6 
    Other Asia 6.3 9.2 8.3 8.9 7.7 7.5 
      Australia 3.7 6.3 4.6 5.1 3.9 2.4 
      India 1.5 1.7 2.2 2.1 2.2 2.2 
      Korea, Dem. People s Rep. Of 0.0 0.0 0.0 0.0 0.0 1.3 
      Pakistan 0.4 0.4 0.5 0.6 0.5 0.5 
  Other 54.8 51.0 42.7 42.9 36.6 0.1 
 
Note: Figures for 2012 were not available. 
 
Source: UNSD, Comtrade database. WT/TPR/S/294 • Kingdom of Bahrain 
 
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  Table A2.1 Main trade-re lated laws, November 2013 
Laws/Legislation/Customs Issue 
GCC Common External Customs Tariff (Ministerial 
Order 151 of 2012) Tariff 
Law No. 7 of 2002 on Bahrain’s Implementation of 
the GCC Unified Economic Agreement GCC Unified Economic Agreement 
GCC Common Customs Law of 2003 
(Implemented in Bahrain under Legislative Decree 
No. 10 of 2002) Application of GCC Common  Customs Law, customs 
valuation and procedures, import and export 
restrictions; rules of origin 
Law No. 25 of 1996 amended by decree No.59 of 
2011 Establishment of WTO National Committee 
Law No. 43 of 2010 amending articles (8) and 
(18) of the Convention on the establishment of 
the Customs Cooperation Council (World Customs Organization) in 1950 Customs issues 
 
Trade  
Commercial Company Law No. 25 of 1975 as 
amended by Law No. 21 of 2001  Company law and registration of companies  
Commercial Registration Law No. 1 of 1961 as 
amended by Law No. 34 of 1976, and Law No. 12 
of 1978 Establishes and regulates the Commercial Register 
Commercial Agency Law No. 10 of 1992 as 
amended by Law No. 8 of 1998, as amended by 
Law No. 49 of 2002 Regulates commercial agencies in Bahrain 
Commercial Law No. 7 of 1987 Regulates commerce in Bahrain 
Decree Law No. 30 of 2009 Regulates economic and financial investment 
Law No. 56 of 2009  Regulates Treatment of citizens of GCC countries -retail 
and wholesale trade 
Law No. 24 of 2004 as amended by Law No. 26 
and 34 of 2009 and No. 17 of 2010 Regulates Treatment of Citizens of GCC countries - 
economic activity in Bahrain 
Law No. 3 of 2013 Allowing companies of GGC countries to open branches 
in Bahrain 
Law No.35 of 2012 Consumer protection 
Legislative Decree No. 13 of 1991 Foreign investment in limited-liability or joint-stock 
companies 
Amiri Decree No. 16 of 1985, as amended by Law 
No. 13 of 1992 Standards and metrology 
Legislative Decree No. 20 of 1983 on Plant 
Quarantine Phytosanitary regulations  
Law No. 5 of 2003 on Bahrain’s Implementation of 
the GCC Common Law on Plant Quarantine Phytosanitary regulations 
Law No. 4 of 2006 on Bahrain’s Implementation of 
the GCC Common Law on Anti-dumping, 
Countervailing Measures, and Safeguard and 
consolidated by the law  No. 48 of 2011 GCC Common Law on Anti-dumping, Countervailing 
Measures, and Safeguard 
Legislative Decree No. 36/2002 as amended by 
Law No.1 and No.2 of 2007 and law No.29 of 
2010 and Decree No. 37/2002 on General Tenders and Government Procurem ent Regulations, and 
Implementing Regulations  Government procurement and the Tender Board 
 
Law No. 61 of 2006 as amended by Decree-Law 
No. 46 of 2012 Regulates Free Zones and Logistics areas 
Decree No. 41/2002 
Legislative decree No. 15 of 1976 as amended by Law No. 1 of 2013  Policies and guidelines for privatization 
Intellectual property  
Law No. 22/2006 replacing Copyright Law of 1991 
amended by Law No.12 of 2008 Copyright 
Law No. 29 of 2009  Amending the Agreement on Trade-related Aspects of 
Intellectual Property Rights (TRIPS) WT/TPR/S/294 • Kingdom of Bahrain 
 
- 72 - 
 
  Laws/Legislation/Customs Issue 
Law No. 3 of 2011 Trademark and legal protection of copyright and 
neighbouring rights 
Law No. 14/2006 replacing Bahrain Patents, 
Designs and Trade Marks Regulation, of 1955;  
Legislative Decree No. 22 of 1977, Replaced by 
Law No. 1/2004   Patents 
Geographical Indications Law No. 16 of 2004 Protection of Geographical Indications 
Law No. 5 of 2006 and Law No. 6 of 2006 Integrated Circuits an d Industrial designs , 
Trademarks, Trade secrets 
Sector-specific legislation  
CBB Law, issued by Decree No. 64/2006, 
replacing the BMA Law of 1973 and the Insurance 
Law (Legislative Decree No. 17 of 1987) Establishment of the Central Bank of Bahrain and its 
responsibilities  
Law No. 55 of 2009 Convention on Monetary union of GCC and Monetary 
Council of the member states 
Law No. 57 of 2009 Bahrain Stock Exchange 
Law No. 38 of 2009 Regulates the professions and Health services 
Source:  Information provided by the authorities. Viewed at: http://www.legalaffairs.gov.bh . WT/TPR/S/294 • Kingdom of Bahrain 
 
- 73 - 
  Table A2.2 Selected notifications to th e WTO, 1 January 2007-31 December 2013 
WTO 
Agreement Description of requirement Periodicity Most recent 
notification Comment 
Agriculture  
Article 18.2 DS:1 
& DS:2 Domestic support  G/AG/N/BHR/5 
11 February 2011 
 List of DS measures 
in 2007-2010 
Article 18.2 DS:1 
& DS:2 Domestic support  G/AG/N/BHR/6 
31 October 2011 List of DS measures 
in 2011 
General Agreement on Trade in Services  
Article III:3  Notification  S/C/N/579 
4 February 2011 CBB is the 
successor 
organization of the Bahrain Monetary Agency 
 
Article 
XXIV:7(a)p 
Article V:7(a) RTA  WT/REG219/N/1 
S/C/N/37515 
15 September 2006 U.S.-Bahrain Free 
Trade Agreement in 
force on 1 August 
2006 
    
General Agreement on Tariffs and Trade  
Article XXVIII:5 
1994 Invocation of Paragraph 5 of 
Article XXVIII  G/MA/56 
1 April 1997 
G/MA/102 7 February 2000 Exercising rights on 
modification of 
Schedule XCVIII 
Agreement on the Implementation of Article VI  
Article 18.5, 
Article VI  Laws and regulations Once, then 
changes G/ADP/N/1/BHR/2 
G/SCM/N/1/BHR/1 
G/SG/N/1/BHR/2 17 July 2009 GCC common Law 
on anti-dumping, 
countervailing measures and safeguards 
 
Agreement on the Implementation of Article VII  
Implementation 
of Customs Value Agreement  Customs Valuation   C/VAL/N/2/BHR/1 
17 March 2008  Information on 
implementation and administration of CVA  
 
Implementation of Article XVII  
Article XVII:4(a) State Trading Enterprises Annual G/STR/N/7/BHR 
G/STR/N/10/BHR G/STR/N/11/BHR G/STR/N/12/BHR G/STR/N/13/BHR 17 October 2011 State trading 
activities 
Import Licensing    
Article 1.4(a) & 
8.2 (b) Import Licensing Laws and 
regulations Once, then 
changes G/LIC/N/1/BHR/1 
13 June 1997 No legislation on 
import licensing procedures 
 
LIC Article 7.3  Import Licensing Once, then 
changes G/LIC/N/3/BHR/1 
15 September 2000 
 No import licence 
requirements 
ILPA Article 7.3 Import Licensing Once, then 
changes G/LIC/N/3/BHR/2 
23 January 2012 List of prohibited 
imports for 
Kingdom of Bahrain 
Subsidies and Countervailing Measures  
Article 25.1 -  
Article XVI:1 Subsidies Annual G/SCM/N/220/BHR 
24 January 2012 No Subsidies 
granted or maintained in the Bahrain territory WT/TPR/S/294 • Kingdom of Bahrain 
 
- 74 - 
 
  WTO 
Agreement Description of requirement Periodicity Most recent 
notification Comment 
Safeguards    
Article 12.6 Safeguards Once, then 
changes G/ADP/N/1/BHR/2 
G/SCM/N/1/BHR/1; G/SG/N/1/BHR/2 17 July 2009 GCC common Law 
on anti-dumping, countervailing measures and safeguards 
 
Sanitary and Phytosanitary Measures    
 Enquiry Point  G/SPS/NNA/10 
G/SPS/ENQ/20 
6 October 2006 NNA and enquiry 
point is the Directorate of Public Health for food safety; the Directorate of 
Welfare under the 
Ministry of Municipal Affairs and Agriculture for animal and plant health 
 
 Notifications  G/SPS/N/BHR/125 
G/SPS/N/BHR/124 
G/SPS/N/BHR/123 
17 April 2012 
 Requirements on 
some food products 
Article 7 Annex B Sanitary and Phytosanitary 
Measures Ad hoc G/SPS/N/BHR/7 
G/SPS/N/BHR/6 G/SPS/N/BHR/5 
7 November 2005 Emergency 
measures 
Technical Barriers to Trade  
Article 2.9 Notifications  G/TBT/N/BHR/8 
G/TBT/N/BHR/7 G/TBT/N/BHR/6 3 November 2006 
 Notification of 
technical regulations 
Article 5.6 Notifications  G/TBT/N/BHR/5 
2 August 1996 
G/TBT/N/BHR/2 
14 January 2005 
 Notification of 
technical 
regulations 
 Establishment of Enquiry Point  G/TBT/ENQ/28 
27 October 2006 Bahrain Standards 
and Metrology Directorate (BSMD) 
Trade-Related Investments Measures  
Article 6.2 Investment  G/TRIMs/N/2/Rev.1
1/Add.5 14 October 2004 Domestic and 
foreign investment law and regulations 
Trade-Related Aspects of Intellectual Property Rights  
TRIPS Article 
63.2 Copyright and neighbouring 
rights Once, then 
changes IP/N/1/BHR/4 
22 October 2004 Law on Patents & 
Utility Models, on 
Trade Secrets, and on Geographical Indications 
 
Article 69 Contact points Once, then 
changes IP/N/3/Rev.4/Add.4 
25 October 2000 Ministry of 
Commerce – 
Agencies and 
Industrial Property 
Directorate 
Source: WTO documents. WT/TPR/S/294 • Kingdom of Bahrain 
 
- 75 - 
  Table A3.1 Applied MFN tariff aver ages by HS 2-diigit level, 2013  
HS Description No. of 
lines Average 
(%) Range  
(%) Share of 
duty-free 
lines (%) 
 Total/Average 7,303 5.1 0-125 11.1 
01. Live animals 52 0.0 0 94.2 
02. Meat and edible meat offal 85 4.2 0-5 16.5 
03. Fish and crustaceans, molluscs and other aquatic 
invertebrates 224 3.3 0-5 34.8 
04. Dairy produce; birds' eggs; natural honey; edible 
products of animal origin, not elsewhere specified 
or included 48 4.8 0-5 4.2 
05. Products of animal origin, not elsewhere specified 
or included 29 5.0 5 0.0 
06. Live trees and other plan ts; bulbs, roots and the 
like; cut flowers and ornamental foliage 20 3.3 0-5 35.0 
07. Edible vegetables and certain roots and tubers 83 2.5 0-5 49.4 
08 Edible fruit and nuts; peel of citrus fruit or 
melons 83 2.4 0-5 51.8 
09. Coffee, tea, maté and spices 44 3.6 0-5 27.3 
10 Cereals 32 0.6 0-5 87.5 
11. Products of the milling industry; malt; starches; 
inulin; wheat gluten 85 3.8 0-5 24.7 
12. Oil seeds and oleaginous fruits; misc grains, 
seeds and fruit; industrial or medicinal plants; straw and fodder 76 2.8 0-5 39.5 
13. Lac; gums, resins and other vegetable saps and 
extracts 28 5.0 5 0.0 
14 Vegetable plaiting materi als; vegetable products 
not elsewhere specified or included 9 5.0 5 0.0 
15. Animal or vegetable fa ts and oils  and their 
cleavage products; prepar ed edible fats; animal 
or vegetable waxes 63 5.0 5 0.0 
16. Preparations of meat, of fish or of crustaceans, 
molluscs or other aquatic invertebrates 52 5.0 5 0.0 
17. Sugars and sugar confectionery 40 6.4 0-125 32.5 
18. Cocoa and cocoa preparations 20 17.0 5-125 0.0 
19. Preparations of cereals, flour, starch or milk; 
pastry cooks' products 53 4.7 0-5 5.7 
20. Preparations of vegetables , fruit, nuts or other 
parts of plants 117 5.0 5 0.0 
21. Miscellaneous edible preparations 41 4.9 0-5 2.4 
22. Beverages, spirits and vinegar 40 52.9 0-125 2.5 
23. Residues and waste from the food industries; 
prepared animal fodder 30 8.8 0-125 3.3 
24. Tobacco and manufacture d tobacco substitutes 20 100.0 100 0.0 
25. Salt; sulphur; earths and stone; plastering 
materials, lime and cement 97 5.0 5 0.0 
26. Ores, slag and ash 37 5.0 5 0.0 
27. Mineral fuels, mineral oils and products of their 
distillation; bituminous substances; mineral 
waxes 77 5.0 5 0.0 
28. Inorganic chemicals;  organic or inorganic 
compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes 269 5.1 0-20 0.7 
29. Organic chemicals 481 4.2 0-5 15.4 
30. Pharmaceutical products 40 0.0 0 100.0 
31. Fertilizers 29 5.0 5 0.0 WT/TPR/S/294 • Kingdom of Bahrain 
 
- 76 - 
 
  HS Description No. of 
lines Average 
(%) Range  
(%) Share of 
duty-free 
lines (%) 
32. Tanning or dyeing extracts; tannins and their 
derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 76 5.0 5 0.0 
33. Essential oils and resino ids; perfumery, cosmetic 
or toilet preparations 63 5.0 5 0.0 
34. Soap, organic surface-active agents, washing 
preparations, lubricating preparations, artificial 
waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, 
modelling pastes, dental waxes and dental preparations with a basis 48 5.0 5 0.0 
35. Albuminoidal substances ; modified starches;  
glues;  enzymes 32 5.0 5 0.0 
36. Explosives; pyrotechnic products; matches; 
pyrophoric alloys; certain combustible preparations 11 5.0 5 0.0 
37. Photographic or cinematographic goods 38 5.0 5 0.0 
38. Miscellaneous chemical products 112 4.9 0-5 2.7 
39. Plastics and articles thereof 157 5.5 5-20 0.0 
40. Rubber and articles thereof 116 5.0 5 0.0 
41. Raw hides and skins (other than furskins) and 
leather 37 5.0 5 0.0 
42. Articles of animal gut (other than silk-worm gut) 34 5.0 5 0.0 
43. Furskins and artificial fur; manufactures thereof 15 5.0 5 0.0 
44. Wood and articles of wood; wood charcoal 152 4.9 0-5 2.0 
45. Cork and articles of cork 18 5.0 5 0.0 
46. Manufactures of straw, of  esparto or of other 
plaiting materials; bask etware and wickerwork 20 5.0 5 0.0 
47. Pulp of wood or of other fibrous cellulosic 
material;  recovered (waste and scrap) paper and 
paperboard 22 5.0 5 0.0 
48. Paper and paperboard; articles of paper pulp, of 
paper or of paperboard 122 5.3 0-20 0.8 
49. Printed books, newspapers, pictures and other 
products of the printing industry; manuscripts, 
typescripts and plans 52 1.4 0-5 71.2 
50. Silk 9 5.0 5 0.0 
51. Wool, fine or coarse animal hair;  horsehair yarn 
and woven fabric 50 5.0 5 0.0 
52. Cotton 124 5.0 5 0.0 
53. Other vegetable textile fibres;  paper yarn and 
woven fabrics of paper yarn 23 5.0 5 0.0 
54. Man-made filaments 73 5.0 5 0.0 
55. Man-made staple fibres 109 5.0 5 0.0 
56. Wadding, felt and non-woven; special yarns; 
twine, cordage, ropes an d cables and articles 
thereof 43 5.4 5-20 0.0 
57. Carpets and other textile floor coverings 49 5.0 5 0.0 
58. Special woven fabrics;  tufted textile fabrics; 
lace;  tapestries; trimmings; embroidery 41 5.0 5 0.0 
59. Impregnated, coated, covered or laminated 
textile fabrics; textile articles of a kind suitable 
for industrial use 36 5.0 5 0.0 
60. Knitted or crocheted fabrics 43 5.0 5 0.0 WT/TPR/S/294 • Kingdom of Bahrain 
 
- 77 - 
  HS Description No. of 
lines Average 
(%) Range  
(%) Share of 
duty-free 
lines (%) 
61. Articles of apparel and clothing accessories, 
knitted or crocheted 106 5.0 5 0.0 
62. Articles of apparel and cl othing accessories, not 
knitted or crocheted 148 5.0 5 0.0 
63 Other made up textile articles; sets; worn 
clothing and worn textile articles; rags 91 5.0 5 0.0 
64. Footwear, gaiters and the like; parts of such 
articles 33 5.0 5 0.0 
65. Headgear and parts thereof 22 5.0 5 0.0 
66. Umbrellas, sun umbrellas, walking-sticks, seat-
sticks, whips, riding-crops and parts thereof 8 5.0 5 0.0 
67. Prepared feathers and down  and articles made of 
feathers or of down;  artifi cial flowers;  articles of 
human hair 11 5.0 5 0.0 
68. Articles of stone, plaste r, cement, asbestos, mica 
or similar materials 95 5.0 5 0.0 
69. Ceramic products 45 5.0 5 0.0 
70. Glass and glassware 89 4.8 0-5 3.4 
71. Natural or cultured pearls, precious or semi-
precious stones, precious metals, metals clad 
with precious metal, and articles thereof; 
imitation jewellery;  coin 65 3.1 0-5 35.4 
72. Iron and steel 183 5.0 5 0.0 
73. Articles of iron or steel 182 5.0 5 0.0 
74. Copper and articles thereof 60 5.0 5 0.0 
75. Nickel and articles thereof 23 5.0 5 0.0 
76. Aluminium and articles thereof 62 6.5 5-20 0.0 
78. Lead and articles thereof 8 5.0 5 0.0 
79. Zinc and articles thereof 23 5.0 5 0.0 
80. Tin and articles thereof 9 5.0 5 0.0 
81. Other base metals; cermets; articles thereof 52 5.0 5 0.0 
82. Tools, implements, cutler y, spoons and forks, of 
base metal;  parts thereof of base metal 73 5.0 5 0.0 
83. Miscellaneous articles of base metal 62 5.0 5 0.0 
84. Nuclear reactors, boilers, machinery and 
mechanical applianc es; parts thereof 614 4.2 0-5 16.3 
85. Electrical machinery and equipment and parts 
thereof;  sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 333 3.3 0-5 34.5 
86. Railway or tramway locomotives, rolling-stock 
and parts thereof; railway or tramway track 
fixtures and fittings and parts thereof;  
mechanical (including el ectro-mechanical) traffic 
signalling equipm ent of all kinds 23 5.0 5 0.0 
87. Vehicles other than railw ay or tramway rolling-
stock, and parts and accessories thereof 183 4.9 0-5 1.6 
88. Aircraft, spacecraft , and parts thereof 15 2.7 0-5 46.7 
89. Ships, boats and floating structures 24 1.5 0-5 70.8 
90. Optical, photographic, cinematographic, 
measuring, checking, precision, medical or 
surgical instruments and apparatus;  parts and 
accessories thereof 207 4.2 0-20 18.4 
91. Clocks and watches and parts thereof 53 5.0 5 0.0 
92. Musical instruments; parts and accessories of 
such articles 26 5.0 5 0.0 WT/TPR/S/294 • Kingdom of Bahrain 
 
- 78 - 
 
  HS Description No. of 
lines Average 
(%) Range  
(%) Share of 
duty-free 
lines (%) 
93. Arms and ammunition; parts and accessories 
thereof 23 5.0 5 0.0 
94. Furniture; bedding, mattresses, mattress 
supports, cushions and similar stuffed 
furnishings; lamps and lighting fittings, not 
elsewhere specified or included; illuminated 
signs, illuminated name-plates 102 5.3 5-20 0.0 
95. Toys, games and sports requisites; parts and 
accessories thereof 37 5.0 5 0.0 
96. Miscellaneous manufactured articles 73 5.4 5-20 0.0 
97. Works of art, collectors ' pieces and antiques 11 5.0 5 0.0 
 
Note: Calculations of averages are based on national tariff line level (HS 8-digit). 
 
Source: WTO Secretariat estimates, based on data provided by the authorities. 
 
__________