WT/TPR/S/294/Rev.1  
 
18 June 2014  
(14-3554) Page: 1/78 
Trade Policy Review Body   
 
 TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
KINGDOM OF BAHRAIN  
Revision  
This report, prepared for the third Trade Policy Review of the Kingdom of Bahrain, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as require d 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 was drafted in English.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
Economic environment  ................................ ................................ ................................ ...... 6 
Institutional framework  ................................ ................................ ................................ ...... 6 
Trade policy instruments  ................................ ................................ ................................ .... 6 
Sectoral policies  ................................ ................................ ................................ ...............  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  9 
1.1   Introduction  ................................ ................................ ................................ ..............  9 
1.2   Recent economic developments  ................................ ................................ ...................  9 
1.2.1   Macroec onomic indicators  ................................ ................................ ........................  9 
1.2.2   Employment  ................................ ................................ ................................ .........  10 
1.2.3   Balance of payments  ................................ ................................ ..............................  11 
1.2.4   Fiscal position  ................................ ................................ ................................ ....... 12 
1.3   Developments in trade ................................ ................................ ..............................  12 
1.3.1   Composition 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:  FRAMEWORK AND OBJECT IVES  ................................ ..........  16 
2.1   Institutional framework  ................................ ................................ .............................  16 
2.2   Trade policy formulation  ................................ ................................ ............................  17 
2.2.1   Main trade laws  ................................ ................................ ................................ ..... 17 
2.3   Economic and trade policy objectives  ................................ ................................ ...........  17 
2.4   Trade agreements and arrangements  ................................ ................................ ..........  18 
2.4.1   WTO ................................ ................................ ................................ ....................  18 
2.4.2   Regional and bilateral agreements  ................................ ................................ ............  18 
2.4.2.1    The Gulf Cooperation Council (GCC)  ................................ ................................ ....... 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 consultations  ................................ ................................ ................  20 
2.5.1   Dispute settlement in the WTO  ................................ ................................ ................  20 
2.5.2   Other  ................................ ................................ ................................ ...................  20 
2.6   Investment regime  ................................ ................................ ................................ ... 20 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  22 
3.1   Introduction  ................................ ................................ ................................ .............  22 
3.2   Measures directly affect ing imports  ................................ ................................ .............  22 
3.2.1   Procedures  ................................ ................................ ................................ ...........  22 WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  3.2.2   Customs valuation  ................................ ................................ ................................ . 23 
3.2.3   Rules of origin  ................................ ................................ ................................ ....... 23 
3.2.4   Tariffs  ................................ ................................ ................................ ..................  24 
3.2.4.1    MFN applied tariffs  ................................ ................................ ..............................  24 
3.2.4.2    Tariff bindings  ................................ ................................ ................................ .... 25 
3.2.4.3    Other duties and taxes  ................................ ................................ .........................  27 
3.2.4.4    Duty and tax concessions and exempti ons ................................ ..............................  27 
3.2.4.5    Tariff preferences  ................................ ................................ ................................  28 
3.2.5   Import prohibitions, restrictions, and licensing  ................................ ...........................  29 
3.2.6   Contingency measures  ................................ ................................ ...........................  30 
3.2.7   Government procurement  ................................ ................................ .......................  30 
3.2.8   Other measures  ................................ ................................ ................................ ..... 32 
3.3   Measures directly affecting 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 subsidie s ................................ ................................ ................................ .... 33 
3.3.5   Export processing zones  ................................ ................................ .........................  33 
3.3.6   Export finance, insurance and guarantees  ................................ ................................ . 33 
3.3.7   Export promotion and marketing assistance  ................................ ...............................  34 
3.4   Measures affecting production and trade  ................................ ................................ ...... 34 
3.4.1   Incentives  ................................ ................................ ................................ ............  34 
3.4.2   Standards and other technical requirements  ................................ ..............................  34 
3.4.2.1    Standards, metrology, testing and certif ication  ................................ ........................  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    Geographical 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 regulatory issues  ................................ ................................ ... 43 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  44 
4.1   Introduction  ................................ ................................ ................................ .............  44 
4.2   Agriculture  ................................ ................................ ................................ ..............  44 WT/TPR /S/294/Rev.1  • 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   Natural gas  ................................ ................................ ................................ ...........  48 
4.3.4   Electricity and water  ................................ ................................ ...............................  48 
4.4   Manufacturing  ................................ ................................ ................................ ..........  49 
4.4.1   Features  ................................ ................................ ................................ ...............  49 
4.4.2   Policy objectives  ................................ ................................ ................................ .... 50 
4.4.3   Aluminium  ................................ ................................ ................................ ............  50 
4.4.4   Petrochemicals  ................................ ................................ ................................ ...... 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    Insurance  ................................ ................................ ................................ ..........  55 
4.5.2   Telecommunications  ................................ ................................ ...............................  57 
4.5.3   Postal services  ................................ ................................ ................................ ...... 58 
4.5.4   Transport  ................................ ................................ ................................ .............  59 
4.5.4.1    Maritime transport  ................................ ................................ ..............................  59 
4.5.4.2    Air transport  ................................ ................................ ................................ ....... 61 
4.5.4.3    Road and railway transport  ................................ ................................ ...................  62 
4.5.5   Tourism  ................................ ................................ ................................ ................  63 
REFERENCES  ................................ ................................ ................................ ..................  64 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 65 
 
CHARTS  
 
Chart 1.1 Share of GDP by economic activity, 2012  ................................ ..............................  10 
Chart 1.2 Merchandise trade, 2011  ................................ ................................ .....................  13 
Chart 1.3 FDI flows and stocks, 2006 -12 ................................ ................................ .............  15 
Chart 3.1 Applied MFN tariff distributi on, 2013  ................................ ................................ ..... 25 
Chart 3.2 Average MFN tariff rates, by WTO product categories, 2013  ................................ ..... 28 
Chart 4.1 Insurance companies and organizatio ns authorized in Bahrain, 2012  .........................  56 
 
TABLES  
 
Table 1.1 Balance of payments, 2006 -12 ................................ ................................ .............  11 
Table 3.1 Structur e of applied MFN tariffs in Bahrain, 2007 and 2013 ................................ ...... 24 
Table 3.2 Bahrain's applied MFN tariff summary, 2013  ................................ ..........................  25 WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  Table 3.3 Applied MFN tariff rates higher 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 standards, 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 enterprises, 2013  ................................ ..............................  43 
Table 4.1 Ownership structure of NogaHolding subsidiaries, 2013  ................................ ...........  46 
Table 4.2 Production, consumption, and exports of oil, gas, and refined products, 2006 -12 ........  47 
Table 4.3 Electricity generation plants, 2013  ................................ ................................ ........  49 
Table 4.4 Structure of the banking system, August 2013  ................................ .......................  52 
Table 4.5 Market capitalization, 2007-August 2013  ................................ ...............................  54 
Table 4.6 Insurance premiums and claims, 2011 -12 ................................ .............................  56 
Table 4.7 Selected telecommunication indicators, 2007 -12 ................................ .....................  58 
Table 4.8 Shipping and maritime transport services, 2008 -12 ................................ .................  59 
Table 4.9 Air transport services, 2008 -12 ................................ ................................ ............  61 
 
APPENDIX TABLES  
 
Table A1.1 Selected macroeconomic indicators, 2006 -12 ................................ .......................  65 
Table A1.2 Merchandise exports, including re -exports, 2006 -11 ................................ ..............  67 
Table A1.3 Merchandise imports, 2006 -11 ................................ ................................ ...........  68 
Table A1.4 Merchandise exports by destination, including re -exports, 2006 -11 .........................  69 
Table A1.5 Merchandise imports by origin, 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 av erages by HS 2 -diigit level, 2013  ................................ ...........  75 
 WT/TPR /S/294/Rev.1  • 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 s ince 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 surp lus increased to US$6,795  million in 2012, up from 
US$2, 865 million in 200 7. The annual average inflation 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 r ents, 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 
divers ification 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) co ntributed 15.2% of real 
GDP. 
Institutional framework  
3. Formulation and implementation of the trade policy 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 wi th 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 WT O 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  requir ements under 
certain WTO Agreements, most notably TRIPS.  
6. Bahrain  is a member of the Gulf Cooperation Council (GCC), and participates in th e 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 bil ateral 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. A s 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 tob acco), 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%, followed by mining and quarrying (4.9%) and 
manufacturing (5.2%) . WT/TPR/S/ 294/Rev.1  • 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 n ever taken 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 201 0, 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 re gulated 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 water 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, Bahra in 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 companies, most notably Aluminium Bahrain (ALBA) and 
Gulf Petrochem icals 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, wh ich 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 o f 
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 en sure 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 for the development of Bahrain 's transpor tation 
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 and WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  maritime transport with international practices. Aft er 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 bus iness 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/Rev.1  • 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 C ooperation 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 diversification strategy and expansion has been rapid across 
much of the non -oil economy.  
1.3.  Bahrain ’s business -friendly environment  has improved notabl y 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 48 th 
(out of 187 countries) o n the UNDP's Human Development Index2; 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 implementi ng 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 inco me, in real terms, by 2030. In order to achieve this long -term vision, a National 
Economic Strategy was developed in 2008 to enhance p rivate -sector growth while the G overnment 
creates an enabling environment by investing in infrastructure projects. The mai n 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 se veral years of 
continued growth , backed by high oil prices and 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 grea tly 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 Bahrain '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 support to the Government on generous terms. 
Bahrain  will use these funds to build new development 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 servi ces sector, led by financial services, 
                                               
1 Bahrain is an Arabic word meaning t wo seas. Bahrain is co nnected 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/default.asp?action=category&id=26 ). 
2 UNDP (2012).  
3 World Bank (2013) and Transparency International (2013). Viewed at: 
http://www.transparency.org/country#BH R. WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  contributed over half of Bahrain 's real GDP in 2012 and employed over 14,000 people.  The 
manufacturing sector , based on Bahrain 's comparative advantages in energy -intensive industries 
(mainly aluminium and petrochemic als), contributed  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
OtherChart 1.[Bahrain]
Share of GDP by economic activity, 2012 
Central Informatics & Telecommunication Organization: annual report 2011 and bulletin of quarterly 
national quarterly national accounts, fourth quarter 2012. a.           Provisional data.
Source:Per cent 
 
a Provisional data.  
 
Source:  Central Informatics and T elecommunica tion Organizatio n, 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 nati onal 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 relativel y low, estimated at 3.9% in December 2012. Out of a 
total of 716,473  people employed in 2013 in both the private and public sectors5, nationals 
account for only 26.3% of the total, with private sector participation of about 17%. This relatively 
low partici pation 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 i n 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 econom y, 
contributin g nearly 30% of nominal GDP and providing 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 es tablish better 
working conditions and increase salaries, the new law, inter alia, aligns private sector labour 
practi ces with the Government sector; expedites the process for labour disputes; extends legal 
protection for domestic staff; and increases emplo yee benefits.  
                                               
4 Housing and food carry the largest weights in the CPI, at 24% and 21% respectively.  
5 Based on preliminary statistics from the Central Informatics Organization of Bahrain.  WT/TPR/S/ 294/Rev.1  • 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 a t 11.1% and 7.3% respectively. This 
better -than-expected performance in Bahrain 's external current account is due to a decline in 
capital outflows. Bahrain 's trade surplus increased  almost three -fold between  2006 and 2012. 
1.13.  Balance -of-payments d ata indicate that Bahrain  is, increasingly, a net exporter of services, 
with a surplus averaging US$ 1,701  million per year during 20 06-11 (up from US$417.2 million 
during the last review period) , and peaking at US$ 2,142  million in 20 10. The balance of trav el 
services suffered from the global crisis and decreased from US$592 million in 20 06 to 
US$322 million in 20 11; t ransportation 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/Rev.1  • 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 investment 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  
     Liabili ties 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 outflows/increases in external assets.  
 
Note:  Based on provi sional 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 challenged compar ed 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 R eview, 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 b y deficits (increasin g 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, diversify ing 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 Bank of Bahrain (CBB). Bahrain  has been financing 
its publi c debt through a combination of treasury bills, development bonds , and various Islamic 
financing instruments.  
1.3  Developments in Trade7 
1.3.1   Composition of trade  
1.16.  Bahrain 's economy is highly d ependent on international trade; the ratio of trade to GDP was 
128% on  average over the period 2009 -11. In 20 12, Bahrain  ranked 51st among world 
merchandise exporters (considering the EC member states as one and excluding intra -EC trade) 
and 6 2nd among importers. I n 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 per iod 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 7 2% 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 f or the year 2012 . 
8 WTO ( 2013). WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  Chart 1.2 Merchandise trade, 2011  
(%) 
Chart I.1
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
4.8%
Prepared food, 
bevarages &  
tobacco (IV)
3.4Light oil and 
preparations      
68.7Crude oil 
42.3
Source :  UNSD Comtrade database.Base 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  
Note:     Exports including re -exports.a
a.           Based on HS section and major HS chapters.
Data in brackets refer to the HS Section number.
 
a Based on HS section and major HS chapters.  
 Data in brackets refer to the HS s ection 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 help s 
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/Rev.1  • Kingdom of Bahrain  
 
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  1.19.  Bahrain 's imports continued to grow , on average , during the review period , reflectin g the 
country's economic growth. Imports peak ed at US$18 .4 billion in 2008 (from US$8.9  billion in 
2006), fell to US$11.9 billion in 2009, and rebound ed to US$17.6 billion in 2011 (Table A1.3). 
While the share of fuels in to tal 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 import er. 
1.3.2   Direction of trade  
1.20.  Bahrain 's export des tinations are relatively diversified  (Table A1.4).10 In 2011, the Middle 
East accounted for 18.4% of Bahrain 's total exports , 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 St ates ( 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 annual 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$891 million respectively  (Chart  1.3). In addition , as a 
percentage o f GDP, the stock of inward FDI decreased from 70.6% in 200 6 to 59.6% in 20 11. On 
the basis of UNCTAD's Inward FDI Performance Index, Bahrain  ranked 121st out of 141  economies 
in 2010 (30th in 2008).11 Bahrain 's annual FDI outflows averaged US$ 617.6  million over 200 6-11 
and fluctuated over the review period. They were  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 source s of FDI inflow s 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 20 06 to 
23rd in 200 9.13 Nevertheless, Bahrain  needs to attract more investors in th e 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, policy -makers are focusing on enhancing FDI to 
support technology diffusion, increasing high -value 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 m ajor 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  the extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receive 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 (20 13). 
13 UNCTAD's Inward FDI Potential Index measures the extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receive relative to their potential. It is calculated on the 
basis of structural variables, such as cou ntry risk, and trade -related measures.  
14 EDB (2013b).  WT/TPR/S/ 294/Rev.1  • 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 2012
Inward stocks Outward stocks Inflows OutflowsChart 1. FDI flows and stocks, 2006 -12
Flows(US $ billion)
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 th e 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/Rev.1  • Kingdom of Bahrain  
 
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  2  TRADE POLICY REGIME:  FRAMEWORK AND OBJECT IVES  
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 Sharia (Islamic Law) is the basis of national 
legislation, and Islam is the state religion.  
2.2.  The system of Government is based on a separation of the legislative, executive , and judicial 
authorities.1 Legislat ive authority is vested in the King and the National Assembly, while e xecutive 
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 g overnment 
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 has the righ t to propose amendments to the 
Constitution2, propose laws, and is the ratification and promulgation authority.  
2.3.  The Council of Ministers is  headed by the Prime Minister. Entrusted with overseeing  state 
interests, the Council of Ministers implements governm ent policy, and s upervises government 
business. Cabinet resolutions may only be passed when a majority of members are present and 
with the approval of a majority of those present. The Cabinet also submits recommendations to 
the King on economic, political,  social, environmental, 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" C ouncil, a 40 -seat upper house. Members of the Counci l 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 Repres entatives, the Chairman of the Shura Council and the President of the 
Constitutional Court before he can dissolve the Council of Representatives by a de cree 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 whet her 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 separate body. The highest judicial authority is the 
Constitutional Court, which is chaired by the King, who als o 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 b y 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 ministries, and presented successively to the Council of 
Ministers , the Council of Representatives, and the Consultative Council, and  then for approv al 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 member s. 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 -Presidents for each convening 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 Disput e Resolution. Viewed at: http://www.bcdr -aaa.org . WT/TPR/S/ 294/Rev.1  • 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 unless approved by both Chambers and ratified by 
the King. In the event of the Consultat ive 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 recommendation s 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), Minis try 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 Minister 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 condu cted collectively by the GCC as a group, the only exception s 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 inv estment. Since its inception in 2001, t he 
EDB's aim has been to increase economic competitiveness, raise productivity levels , and focus on 
creating a skilled workforce that contributes to the development of Bahrain . The EDB is chaired by 
the Crown Prince a nd its Board of Directors , which include s 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 GCC Common External Customs Tariff (2 012) and GCC 
Common Customs Law (2012); Law of Commerce (1987); Commercial Compan ies Law No. 2 1 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 V ision 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 pl ay crucial complementary rol es. 
2.14.  To meet some of these economic objectives, the Ministry of Industry and Commerce (MOIC) 
is focusing to: (i) foster a fair and transparent regulatory environment; (ii) increase the level of 
competition; (iii) facilitate entrepreneurship for small and me dium-size enterprises (SMEs); 
(iv) strengthen the manufacturing sector; (v) maximize benefits from fo reign trade relations ; and 
(vi) improve 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 t reaties 
and agreements which Bahrain has concluded with states and international organisations" . WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  2.4  Trade agreements and arrangements  
2.4.1   WTO  
2.15.  Bahrain is an original M ember 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 notification s 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 s ystem  and is a member of the Arab Group. Its main 
interests in the Doha Developme nt 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 Cooperation 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 cit izens (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 subsequently 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 unde r Article XXIV:7(a) of the GATT 1994.10 
2.20.  Since January 2003, the GCC states have applied  a common external tariff (CET) of 0% and 
5% for most products ( section 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. A s at November  2013, the GCC  had 
common legislation on contingency measures, veterinary quarantine and plant quarantine. Under 
the GCC Agr eement, 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 member s are 
maintained for security and other reasons (e.g. statistics, and to avoid piracy and commercial 
cheating). Prohibited goods may not circulate between members' territories; restricted products 
may transit the territory of members who restrict their imp ort, 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 initi ative 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 GDP; adequacy levels for foreign exchange reserves; 
and convergence criteria on inflation; and on interest rates. In December 2009, Bahrain , Kuwait, 
Qatar, and the Kingdom of Saudi Arabia ratified an agreement to establish a monetary union. 
Oman and the United Arab Emirates opted not to join for the time bei ng. In 2013, the common 
                                               
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/Rev.1  • Kingdom of Bahrain  
 
- 19 - 
  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 2 010. 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 ( section 2.4.2.3.), the GCC considers the latter an exception and has decided that all 
future agreements w ill be negotiated collectively. As a group, the GCC has concluded free -trade 
agreement negotiation s with the European Free Trade Association (EFTA) states, and Singapore. 
Negotiatio ns with other countries were on going as at November 2013 ( section  2.4.2.5.).  
2.4.2.2   PAFTA  
2.26.  Under the Pan Arab Free -Trade Area ( PAFTA) Treaty11, 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 are 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 members are implementing the agreement .12 The principal 
entity responsible for implementing the programme is the Economic and Social Counci l 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 -agricultu ral goods over a maximum of ten years, although a 
large share of products were granted d uty-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 ser vices sectors 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 and the member states of the GCC entered into 
force in September 2013. The ag reement covers trade in goods and services, investment, rules of 
origin, standards, customs procedures, government procurement, e -commerce, intellectual 
property , movement of natural persons , and economic cooperation. The agreement has not yet 
been notifie d to the WTO.  
2.30.  With the agreement's entry into force, approximately 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 
commitments. Singapore citizens, permanent residents, and companies incorporated in Singapore 
                                               
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 in to force in 2009.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 20 - 
 
  benefit from preferential access in professional services i.e. legal, accounting, and engineering 
services; and bus iness services , i.e. construction, 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 of ficial ratification procedures.  
2.32.  As at January 2014, the GCC countrie s 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 Global System of Trad e 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 dispu te 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 o ut 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 governing individual establishments. An individual 
establishment is a non -incorporated en tity owned by one individual who must be a citizen of 
Bahrain  or another GCC countr y. Under the Commercial Companies Law, depending on the activity 
to be undertaken, up to 100% foreign equity ownership in companies is permitted in: general 
partnership comp anies; 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 branches 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 guarantee 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 licen ce or approval is required by one or more 
government authorit ies. In addition, commercial registration (CR) may also be required , depending 
on the type of business.  Commercial registration applications m ay be made at the Bahra in 
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 annual renewal fee of  BD 50 are also required. The 
payment of a licen ce fee may be requested from other ministries depending on the type of activity. 
In 2012, 8,689 new commercial li cences were issued.  
                                               
16 Ministry of Finance online information. Viewed at: 
http://www.mof.gov.bh/CategoryList.asp?ctype=agree , 12 January 2014.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  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 settin g up a business in Bahrain  and the 
requirement that partners must o wn at least 10% of the company.  
2.40.  As part of its investment strategy, Bahrain  promotes several key sectors for investment. 
These include financial services, professional and industrial servic es, 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 throu gh exploration and production -sharing agreements with the 
Government of Bahrain ; private investment in refining activities is permitted.  
2.41.  Bahrain  permits 100% foreign ownership of businesses in most types of economic activities 
with the exception of busines s 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 clini cs and 
centres, licensing is confined to Bahraini and GCC citizens (resident in Bahrain ) with medical 
qualifications (not applied to hospitals). A t least 50% of each pharmac y must be owned by a 
Bahraini pharmacist.  
2.42.  Economic activities reserved exclusively for Bahraini national s 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 house s 
(daily, non -daily, and specialized newspapers and magazines); printing press; oil supply in gas 
stations; gas bottling and distribution; c ooker re -filling 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 c ompanies  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 domes tic and foreign investors in : gambling ; 
alcoholic drinks manufacturing; narcotics manufacturing; weapons manufacturing; import of all 
types of waste and treatment; storage and dumping of radioactive materia ls 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; c igarette 
manufacturing; import of automatic cigarette vending machine s; 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 dividends. 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 wit h 31 countries17 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 ; United States; Yemen ; Sudan ; Germany ; Italy; Bulgaria ; Czech Republic ; 
Netherlands ; Uzbekistan ; Brunei Darussalam ; Turkmenistan ; Singapore ; Turkey ; Belgium -Luxemb ourg; Spain ; 
and Mexico.  
18 Jordan ; Algeria ; Syria; Lebanon ; Egypt ; Morocco ; Yemen ; Sudan ; Ireland ; Belgium ; Bulgaria ; 
Belarus ; Turkey ; Czech Republic ; Estonia ; Isle of Man ; Georgia ; France ; Luxembourg ; Malta ; Austria ; 
Netherlands ; U.K.; Uzbekistan ; Iran; Pakista n; Brunei ; Thailand ; Turkmenistan ; Singapore ; China ; Philippin es; 
Malaysia ; South  Korea ; Sri Lanka ; Bermuda ; Mexico ; Seychelles ; and Barbados.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Introduction  
3.1.  As a member of the Gulf Cooperation Council (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 
restrict ed and prohibit ed goods.  
3.2.  The documentation for all imported products 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 i n 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 GC C 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 d own in recent years.  
3.4.  Since its last TPR in 200 7, 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 Indust ry 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 goo ds may be exported to 
Bahrain . Consular fees are waived for U.S. traders.  In the event that the documents are not 
authenticated, the goods may still be cleared after inspection by Customs and duties paid in the 
form of a deposit, which is forfeited if the authenticated 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 meat and poultry products . Import per mits must 
accompany certain products, i ncluding special breed horses (Arabian horses ), armaments, 
insecticides , and fungicides  (section 3.2.5).  
3.7.  All importers and exporters must be listed in the commercial registry maintained by the 
Ministry of Industry and  Commerce (M OIC), 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. Bahrai n 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 ref unded 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/Rev.1  • 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 -to-ship), the goods are cleared on a transhipment 
bill. 
3.9.  Customs dut ies are suspended for goods stored in governm ent bonded warehouses, until 
re-export, whereupon they are cancelled. If the goods are not  re-exported  and a re sold in Bahrain , 
the appropriate dut ies are levied. Customs may inspect all goods stored in bonded ware houses.  
Bahrain  has seven customs offices.  
3.10.  In 2007, Bahrain  implemented the Customs Automation System (eCAS) , a computeri zed 
bilingual (Arabic/English) system, aimed at automat ing and manag ing all local customs activities 
relating to the movement of goods from and to Bahrain . 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 integrate d, seamless , electronic trad e 
operations between Bahrain ’s customs and regulatory authorities and the trade and logistics 
operators. It is a single window platform for submissions and enquiries, with particular emphasis 
on reducing the cost and time of tra nsactions whilst ensuring compliance through intelligent risk 
management . The  system allows traders to expedite 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 wri ting at the 
time of submitting the c ustoms 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 preferential rules of origin. Under the non -preferen tial 
scheme, products are generally considered as originating from the country where they are wholly 
obtained or where they underwent substantial transformation, with at least 40% of local value -
added. A certificate of origin produced by the original expor ter 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 are also generally based on a value -added content 
criterion, as in the  case of the GCC customs union. However, for products imported from PAFTA, 
                                               
2 WTO docume nt G/VAL/N/2/BHR/1, 17 March 2008.  
3 Rules of implementation of the GCC Common 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/Rev.1  • Kingdom of Bahrain  
 
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  local value  added of at least 40% is required in order to qualify for preferential treatment. Under 
the bilateral trade agreement with Singapore and with the United States, local va lue 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 rate s 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) a nd 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 , 2007 and 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 peaks (% 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 al l 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 exceeding three times the overall sim ple 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 consisting 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 calcu lations , 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 ta riff line level.  
6 The specific components of the alternate tariffs for 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); 
BD 10 per thousand cigarettes (24 02.2000 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/Rev.1  • Kingdom of Bahrain  
 
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  3.20.  Bahrain 's overall average MFN applied tariff is 5.1% (d own from 5.3 in 2007). The 
coefficient of variation , at 1.6, reflect s the zero rate and 100-125% tariffs applica ble 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 p roducts. Using ISIC (Revision  2), manufacturing is the 
highest protected sector at 5.2%, f ollowed by mining and quarrying, then agriculture . 
Chart 3.1 Applied MFN tariff distribution, 2013  
(Share of total tari ff 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%)Chart 3.
Bahrain's applied MFN tariff distribution, 2013
WTO Secretariat calculations, based on tariff information provied by the authorities. Source:(Share of total tariff lines) 
 
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 -metalli c 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 c eiling 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 appl ied tariff is 5.1% 
(Table 3.2  and Chart 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 see ds, 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/Rev.1  • Kingdom of Bahrain  
 
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   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 -agricult ural 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 photographic 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 pr oducts, 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 processed products  4,199  5.5 0-125 1.9 10.2 
 
a CV refers to coefficient of variation.  
b International Standard Industrial Clas sification (Rev.2). Electricity, gas and water  are excluded 
 (1 tariff line).  
 
Note:  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 data provided by the authorities.  
Table 3.3 Applied MFN tariff rates higher than bound rates in Bahrain , 2013  
Tariff 
level  Product desc ription  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 
BD 10 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 minim um 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/Rev.1  • Kingdom of Bahrain  
 
- 27 - 
  Tariff 
level  Product desc ription  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 min imum 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  Other  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 munici pality 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 value -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 Industries Laws  (Law No. 1 of 2006).  In addition, 
duty and tax concessions are grante d 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 con cessions are granted under the import for re -export , temporary adm ission , 
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 , which is refunded/released upon proof of re -export. 
Goods remaining in Bahrain  after 180 days are liable 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 o r maintenance, must be 
re-exported wi thin a maximum of three years. Importers do not need to hold a trading licence if 
they are engaged in re -export, te mporary 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 or iginal 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 condition 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 cha rge of 
0.5% of the c.i.f. value of the goods if the customs duty did not exceed 20%; and 1% of the c.i.f. 
value of the goods with customs duty above 20%.  
                                               
7 Section VIII of the Common Customs Law of GCC States specifies the agenc ies and goods exempt 
from duty . 
8 Custom s Handbook, Resolution No. 2 (1986) Regarding Drawback of Import Duty paid on foreign 
goods, on re -export.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 28 - 
 
  3.29.  Tariff concessions and exemptions are specific to each GCC member and may therefore 
differ from one St ate 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 8 910 11 12 13 14 15 16 17 18 19 20 21 22 23 24
WTO Secretariat calculations, based on data provided by the authorities and WTO CTS database.(%)Chart 3.2  Average MFN tariff rates, by WTO product categories, 2013
Source:1 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and 
plants
5 Coffee and tea
6 Cereals and preparations
7 Oils seeds, fats, oil and 
their products8 Sugars and confectionary
9 Beverages, spirits and 
tobacco
10 Cotton
11 Other agricultural 
products
12 WTO Non -agriculture
13 Fish and fishery 
products
14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper and 
furniture
17 Textiles
18 Clothing19 Leather, rubber, 
footwear and travel goods
20 Non -electric machinery
21 Electric machinery
22 Transport equipment
23 Non -agricultural 
products
24 PetroleumApplied rates
Bound rates
Average applied rate
(5.2%)Average bound rate
(34.5%)
 
Source:  WTO Secretariat calculations, based on data prov ided 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, which are excluded from Bahrain 's preferential 
arrangements, i mports originating from the other members of PAFTA enter Bahrain  duty free, 
provided that the goods meet the respective origin criteria (section 3.2.3).  Products from 
Singapore and the United States benefit from preferential treatment (Table 3.4).  
Table 3.4 Bahrain 's applied MFN, USA 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 consisting of 7,303 tariff lines (a t 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/Rev.1  • Kingdom of Bahrain  
 
- 29 - 
  3.2.5   Import prohibitions, restrictions , and licensing  
3.31.  Under the G CC Common Customs Law, each GCC state determines its own list of prohibited 
or restricted products. According to the authorities, they do not foresee developing a common list. 
Imports that are prohib ited in some GCC member s tates and permitted in others mu st 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 con siderations (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  Ministry of Industry and 
Commerce  
.. Drugs  Drugs and narcotics 
reasons  Ministry of Interior  
.. Indian betel nut  Health reasons  Ministry 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  Ministry 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 t hat are restricted for health reasons, must be accompanied 
by sanitary and phytosanitary health certificates from the exporting co untry. Imports of food 
products must be accompanied by a certificate declaring them to be free of radiation and dioxin 
(sectio n 3.4.2.2 ). 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 mu st be the 
Kingdom of Saudi Arabia . 
                                               
9 WTO document G/LIC/N/3/BHR/ 2, 23 January 2012.  WT/TPR /S/294/Rev.1  • 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 certifica te 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-objectio n 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  Ministr y 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 Safeguard s 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 -dump ing, counte rvailing 
or safeguard measures. However, on the GCC level, two safeguard investigations were initiated in 
2009 on imports of iron but were terminated without measure s being taken  in 2010. In 2011, 
Bahrain  adopted the new GCC Common Law on Anti -dumping, Countervailing Measures and 
Safeguards  (Law N o. 48 of 2011) . 
3.2.7   Government procurement  
3.36.  Bahrain's Tender Board (TB) oversee s and supervise s all tendering, purchasing, and 
awarding processes related to the public sector and government -owned organi zations. 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 once11; all are appointed by Royal  Decree.  
                                               
10 WTO documents G/ADP/N/1/BHR/2 , G/SCM/N/1/BHR/1 ; and G/SG/N/1/BHR/2 , 17 July 2009.  
11 Article 9 of L egislative Decree No. 36/2002 allows for one third of the TB members to be reappointed 
for a further two -year term.  WT/TPR/S/ 294/Rev.1  • 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 pur chases 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 pu blic 
procedures , and when goods canno t 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 characte ristics 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 bidder 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 further 10 days). The amount of the performance bond 
is determined by the TB on the b asis 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 we ekly list 
of tenders that have been opened, those that will be opened during the year , and the dates of 
each tender.  
3.39.  In 2010, Bahrain  amende d its government procurement regime through Law No. 29 of 2010 
amending the Legislat ive Decree No. 36 of 2002 with r espect 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 min istries. In addition, 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, upon 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 substantia ted 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 their credit cards to purchase and download the 
tender documents from the system. The rest of the tender process takes place outsi de the e -
tendering system as per the current procedure. The second phase of this online system is intend ed 
to cover the whole tendering process and become operational in 2014.  
3.41.  Complaints may b e submitted in the first  instance, for reconsideration  by the pr ocuring 
entity and/or the TB , prior to the contract 's entry  into effect. A de cision is to be taken within 
                                               
12 The criteria for choosing between local and international tenders are based upon the nature of the 
goods, construction  or services to be p urchased; volume; complexity; and standards required. The TB is 
empowered to select an international tender based on such criteria. L ocal tender s are limited to companies and 
organizations registered in Bahrain (GCC companies are considered as local), and are advertised in one or two 
local newspapers, or as deemed appropriate by the TB, while international tenders are advertised in Bahrain 
and abroad in both Arabic and English. In all cases, the TB may advertise in other media of wider circulation. 
Public p rocurement, through tendering, for BD 1 million or more must be  advertise d in the Official Gazette . 
13 Requests for submissions of proposals may be made directly to a number of suppliers if: the services 
are unavailable except with a limited number of suppl iers; the costs of the evaluation exceed the value of the 
required services; and confidentiality o r national interests so require  (Article 51 of Legislative Decree 
No. 36/2002 ). 
14 The TB estimates in monetary terms, where possible, all the criteria of comp arison between tenders, 
such as maintenance costs and quality.  
15 If the winning bidder fails to submit the performance 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 w hen a supplier or a contractor  fulfils the terms of contract.  
16 TB online information. Viewed at : http://www.tenderboard.gov.bh.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 32 - 
 
  30 days after the complaint is made.17 Judicial review is available for contractors or suppliers to 
challenge the decisions taken by the procuring enti ty or the TB before the competent law courts 
within 60 days after the decision is made.  The Tender Board received a total of 1 02 requests for  
review and complaints during 201 3. Most of the grievances were related to the procedures 
followed by purchasing au thorities 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 specified margins of the value of their imported 
equivalents (10% for goods produced in Bahrain  and 5% for goods produced in the GCC).  In the 
context of Bahrain 's regional and bilateral free -trade agreements, suppliers from the United States 
and Singapore will benefit from the same price preferences of 10%.  
3.43.  The Tender Bo ard 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 apart 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 services 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 carried out by companies or individuals who are 
registered with the commercial registry at the Ministry of Industry and Commerce (M OIC) and are 
members of the Bahrain Chamber of Commerce and Industry (BCCI). Documents required for 
exports include the commercial invoice and a certificate 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 cert ain foodstuffs and fuels 
(Table  3.7). Export restrictions apply to, inter alia , live hors es, 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 tenders. 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 eliminated export fees on ready -made 
clothes in 2005.  
19 Article 6.3 of Law No. 18 of 1975.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 33 - 
  Table 3.7 Prohibited exports, 2014  
HS Code  Product description  Authority  
0106.3920  "Bul-bul" bird  Crown Prince Co urt 
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 Restricted 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 doe s 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 indire ctly 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), owned by the Government, is the primary financial 
development institution. It was established in 1992 to encourage and develop investment, meet 
the financ ing 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 fo r 
goods manufactured in Bahrain , and project loans at market interest rates, as  well as flexib le 
grace periods ( up to 3 years) and repayment terms.  The BDB has plans to offer export credit 
guarantee program mes 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/Rev.1  • Kingdom of Bahrain  
 
- 34 - 
 
  3.3.7   Export promotion and marketing assistance  
3.54.  Export promotion activities are carried out by the Economic Development Bo ard (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 and Indus try 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 n ational 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 governmen t industrial areas22; low energy 
tariffs for production; and flexible regulations 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 oppor tunities 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 includ ing 100% foreign ownership; 0% corporate 
tax (with a 10 -year guarantee); exemption from import 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 n o 
minimum capital requirements.  
3.59.  Investors in industrial or industry -related zones are required to launch a project within on e 
year from the date of receiving the land, and development must conform to the specifications, 
terms , and drawings submitted with the application. Changes are not permitted without approval 
from the Ministry of Industry and Commerce (MOIC).  The Government  provides  electricity, water , 
and sewerage serv ices at below -market costs.  Support for infant industries was phase d out in 
2005.  
3.4.2   Standards and other technical requirements  
3.4.2.1   Standards, metrology, 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, metrology, conformity , and quality assurance. The BSMD  
prepares, rev ises, 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 impact 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 m inistries, 
the Bahrain Chamber of Commerce and Industry ( BCCI), and inde pendent 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 M OIC oversees long -term land leases. Gov ernment 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 o f 1985 . WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 35 - 
  NCSM is responsib le for: (i) drawing up the policy of standards and metrology in Bahrain ; 
(ii) forming Technical Committees that participat e in the preparation of s tandards ; (iii) approv ing 
national technical regulations and standards prior to their publication in the Official Gazette ; 
(iv) propos ing 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 
Standardizati on 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 technica l regulations and standards must be 
adopted by the NCSM ; all proposed standards or technical regulations related to food , vehicles and 
tyres, and oil and gas are examined by one of the seven NCSM technical committees , which ha ve 
seven to ten months to appr ove it.  
3.63.  Bahrain  had 6,693 national standards in place as of March 2013, of which 3,433 (50%) 
were adopt ed from international standards and 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 national 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 no rmally 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. Regulated products are g ranted  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 harmoniz e its technical regulations and standards . 
GCC-wide standards may be proposed/initiated by a body in a member country, a nd 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 states for adoption. I n 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 standardization organiz ation of GSO member states . 
3.66.  The BSMD , together with GSO and the other national standardization bodies of the GCC, 
established a Regional Conformity Assessment Scheme (RCAS) in 2007, with the support of the 
Joint Accreditation System of Australia and New Ze aland. The RCAS is intended  to develop a 
harmonized unif ied 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 p rovided in the 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 unifi ed Gulf technical regulation for the regional 
scheme , which is then approved by the GSO Board of directors and adopted by Me mber states. As 
of 1 January 2011, the Gulf Toys Technical Regulation was uniformly enforced in all GCC member 
states as the first p roduct regulated under the regional regulatory system . In addition to toys, 
Bahrain adopted the Gulf horizontal technical regulations for GCC Conformity  Marking by 
Ministerial Order N o. 88 of 2011 and General Product Safety by Ministerial Order No. 88 of 2 011. 
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 20 07, two other Bahraini -specific standards  on safety and warehouses for food stuff, and general 
safety requirements for the products and their suitability for use  have been converted to GCC standards.   WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  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 stat ing compliance with the 
required standards;  customs release 
docum ent; 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 c ompliance 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; and customs release 
document conformity certificate from the 
manufacture r complying with the technical 
regulati on 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 m aterials  Pre-approval compliance with the physical, 
chemical and mechanical requirements from 
the Ministry of Works.  
Cigarettes - general  Food an d 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 infor mation must be 
available: trade mark, number of cigarettes 
(max. 20 cigarettes per packet), name of 
producer or importer, packaging date (mont h 
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 
letter s 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 
technic al regulation for toys' safety N o.: 
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/Rev.1  • Kingdom of Bahrain  
 
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  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 Indu strial Develop ment 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 International, Egypt, Iran, Jordan, Syria, Morocco,  and 
Yemen.  
3.4.2.2   Sanitary and phytosanitary measures  
3.70.  The Directorate of Public Health under the Ministry 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 authorit y 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 standards 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 cert ificates 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 organolepti caly27 by the Ministry of Health to ensure that 
they are free from physical or visible contaminants. 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 s amples 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 agai nst GCC and 
Codex Alimentarius standards to ensure that imported food items are safe for human consumption. 
Unfit foodstuffs are rejected at the port of entry; they are either destroyed or returned to the 
country of origin (the decision is left to the impo rter).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 represent atives 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 production 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 plan ts.  
                                               
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; and G/SPS/N/BHR/131 -134, 6 February 2014.  
27 Organolepticaly refers to the physical properties of food, such as colour, smell, taste, and texture.  
28 Any complaint is e xamined by a Committee of experts, and a decision is made to accept or reject the 
consignment.  
29 WTO (200 7), Trade Policy Review of Bahrain.  WT/TPR /S/294/Rev.1  • 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 Codex Alimentarius. Bahrain  has also adopted the 
International Codex Standards regarding food additives, 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 guidelines 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 guideline s. 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  approv ed 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 
requiremen ts 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 produ cts 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 weig ht 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 ha lal procedures, if so required.  
Products containing pork should be labe lled accordingly . Packaged fresh or frozen meat and 
poultry must also c arry 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 accompanied by production and expiry dates as 
well as the net weight of the product.   
3.4.3   Intellectual property rights  
3.4.3.1   Overv iew 
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 harmo nization 
efforts within the GCC  and in accordance with its commitments u nder 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 L aw 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 o verdue.  
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 Informati on Affairs Authority ; the Directorate General of 
Customs within the Ministry of Finance , responsible for matte rs related to border measures ; and 
courts of l aw, responsible for enforcement issues . At the GCC level, the GCC Patent Office  is 
responsible for p atent protection  (based in Riyadh).  
                                               
30 USDA (2013).  
31 GCC Technical Regulation No. 9 of 1995.  
32 The proposed Plant Variety Bill grants breeders protecti on on new plant varieties. It is based on the 
UPOV Model law.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 39 - 
  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 years  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 
indicati ons 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 d ate 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 pro perty treaties and conventions.  It acceded to the 
WIPO Convention in June 1995; t he Paris Convention on the Pro tection of Industrial Property in 
October 1997; and the Berne Convention on Literary and Artistic Works in March 1997. In 
December 2005, Bahrain  acceded to five additional treaties: the Patent Law Treaty (PLT); the 
Madrid Prot ocol (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 Classification of the Figurative Elements of Marks; the 
Budapest Treaty on the International Recogni tion 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 international treaty of the Protection of New Plant 
Varieties) . 
3.4.3.2   Patents  
3.84.  Under L aw 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/Rev.1  • Kingdom of Bahrain  
 
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  pharmaceutics, biotechnology , and mechanics are patentable 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 grant a patent or utility model is published in  the 
Official Gazette . Once granted, a third party m ay 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 Applicatio ns for trademarks, industrial 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 depo sited 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, engraving, 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 sou nd recordings, and broadcasting 
organizations.  
3.89.  Bahrain 's Law No. 22/2006 on Copyright and Neighbouring Rights34 increased the term of 
protection (the author’s lifetime plus 70 years), introduced protection of neighbouring rights, and 
provided retroactive pr otection.  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 Article 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 the 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/Rev.1  • 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 regulate d 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 deci sion 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 trade marks, 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 trade marks 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 period 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 layout -designs of integrated circui ts 
3.93.  Law No. 5/2006 and Law No. 6/2006 on integrated circuits  and industrial designs , 
respectively , specify requirements for registration, 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 industrial designs p rovided 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 regis tration 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 registration 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 prote ction of g eographica l indications  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 protection 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 cease s 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/Rev.1  • 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 fi ve years for new pharmaceutical products and ten years for new 
agricultural -chemical products , from the dat e market approval was granted. It also incorporates 
the provisions of Article 39 of the TRIPS Agreement on protection 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 considered part of Bahrain 's national law.  
3.4.3.8   Enforcement  
3.97.  Criminal sanctions are the same for infringement of al l categories of IPRs. The penalty is a 
fine of BD 500 to BD 2,000 (US$1 ,320 to US$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 models. Article 12 of Law No.  1/2004 implements 
Article  34 of TR IPS with respect to the reversal of the burden 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 pr oof 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 that 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 G overnment '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 CP O has been granted significant power, including joint power with the police 
to arrest alleged infringers and confiscate goods suspected of violating copyright laws. According 
to the authorities, the CPO may also act in an ex -officio capacity against allege d 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 i ncludes 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, s trategic 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 diversificatio n strategy, the Government has been seeking to foster 
greater private sector participation in the economy. 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 (20 11). WT/TPR/S/ 294/Rev.1  • 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 pri vatization 
programme has been slow. While some privatization has t aken 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 C ompany (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 (AS RY)  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 NogaHoldin g:   
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 Fuelling 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 practi ces in, e.g. telecommunications and  financial 
services , are regulated by the Telecommunications Regulatory Authority (TRA) (section 4.5. 2) and 
the Central Bank of Bahrain (CBB) (section 4.5. 1), respectively.  
3.105.   Under a  new law on consumer protection , Law No. 35 of 2012, no harmful commercial o r 
anti-competitive practi ces 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 t hese goods and services by the relevant companies are  
subject to approv al by the Council of Ministers.  
 
                                               
40 Chapter 4 of Law 35 of 2012.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Introduction  
4.1.  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 sector accounted for 24.6% of GDP in 2012 and 75% of 
governmen t income.  
4.2.  Agriculture represents a mea gre share of Bahrain '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 farmers. The sim ple 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 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 companies, most notably Aluminium B ahrain (ALBA) and 
Gulf Petrochemicals Industries Company (GPIC) . Bahrain  can authori ze 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 sect or has continued to grow which represented around 58% of GDP in 
2012. However, the sector as a whole was largely affected by the recent financial crisis as well as 
by the domestic tension in 2011. The financial sector, the cornerstone of Bahrain 's diversif ication 
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 re gion. 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 liberalized since 200 3. Since the last Review  of 
Bahrain , a mobile operator, Viva Bahrain has entered 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 Regula tory 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 streamlined by the Ministry of Transportation (MOT) 
which has  become  responsible fo r 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 
maritim e 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 arriv als plummeting by 32.7% but rebounded in 2012. In 2010, the Tourism Sector 
under the Ministry of Culture became respo nsible fo r Bahrain 's tourism acti vities . Up to 100% 
foreign investment is allowed in the sector.  
4.2  Agriculture  
4.8.  Agriculture ( including  fishing) is a small sector 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 f or most 
agricultural products: almost all cereals, vegetables, and live stock products are imported; Bahrain  WT/TPR/S/ 294/Rev.1  • 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 agricultu ral products, particularly high quality fresh 
vegetable crops. The main greenhouse crops produced are tomato es, cucumber s, pepper s, squash, 
eggplant, lettuce, strawberr ies, bean s, and cut flowers.  
4.10.  The simple average applied MFN tariff for agricultural products1 is 3% (down from 3.3% in 
2007). Imports of some agricultural raw materials and basi c 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 and 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 ass istance to farmers. The Plant Health Directorate, under the 
MAUP, is in charge of research in plant production, date palm and ornamentals, permanent fruit 
crops, soil and water, animals and fodder, technology 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 inten sified 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 the FAO, for sustainable agriculture deve lopment; 
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 l oans 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 o f these products a t 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 irrigatio n, pestici des, 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 e conomy'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 the ec onomy away from oil, the Governm ent has 
attracted foreign direct invest ment of  around US$15 billion in the oil and gas industry over the 
coming 30  years  by Occidental of the U.S. and Mubad ala of the UAE , according to the Ec onomic 
Development Board (EDB).  
4.18.  The National Oil and Gas Authorit y (NOGA) is responsible for the supervision, organi zation, 
and development of the hydrocarbon sector and its 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, Noga Holding was established as the investment and 
                                               
1 Major Division 1  of International Standard Industrial Classification (Rev ision 2). WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 46 - 
 
  development arm.  In addition to taking part in all new investment projects, Noga Holding is in 
charge of administ ering the G overnment'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 exploration 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, b utane 
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 
Petroch emical 
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 Aviation Fuelling 
Company (BAFCO)  60% 27% Chevron  
Bahrain,  and 13% BP 
Middle East  Plane fuelling services 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 export ed 
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 export s it 
to international markets.  
Tatweer Petroleum 
(Tatweer)  51% Occidental Petr oleum 
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 commerciali ze production. Bahrain 's oil reserves ar e 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 P etroleum exporting countries (OPEC) and 
is a member of the Organization of Arab Petroleum Exporting Countries (OAPEC).  
                                               
2 For more information on Nogaholding subsidiaries, se e 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/Rev.1  • Kingdom of Bahrain  
 
- 47 - 
  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’a fa 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 Bahra in Field amounted to 75,000 bpd in  the 1970s, this figure 
had plummeted to 16,576  bpd by 20 12. 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 Deve lopment Project  in 2008. The newly established Tatweer Petroleum  drilled new oil wells 
and us ed the latest recovery techniques to extract heavy oil . According to the authorities, about 
60-70% of Bahrain 's reserves are recoverable; a significantly higher pe rcentage 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 20 12, 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 
complet ed in Bahrain Petroleum Company ( BAPCO )'s refinery. The major refined products are 
diesel, gas oil, fuel oil, kerosene, naphta, and gasoline.  
4.24.  In 20 12, 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 ha s increased to 
9.4 million barrels during the last few years ; due mainly to major road construction, lan d 
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, r espectively.  
Table 4.2 Production, consumption, and exports 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  435,8 90 440,640  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 su lphur content than output from the Awali oilfield.  
5 The A -B pipeline extends 27 km over land and a further 27 km und er the sea to reach the north -west 
of Bahrain.  WT/TPR /S/294/Rev.1  • 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 resources, e xpanding seismographic surveys, and 
enhancing developmental drilling.  
4.26.  Foreign investment in petroleum extraction is permitted through exploration and 
production -sharing agreements w ith the Government of Bahrain . In this regard, the Government 
has signed ex ploration 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 (3 6%) for domestic 
electricity generation and water desalination ; followed by Aluminium Alba with a share of 2 2%. 
4.29.  In 2012, natural gas production (nat ural 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 a nd Water Authority (EWA) is the sole agency respons ible for electricity 
generation, transmission, and distribution in Bahrain . The EWA's policy objectives include, inter 
alia, to p rovide a reliable, cost effective , and quality supply of electricity and wat er; to maintain, 
develop , and improve the transmission and distribution network to ensure highest standards of 
                                               
6 Non-associated gas is not produced from crude oil.  WT/TPR/S/ 294/Rev.1  • 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 require ments ; their total output is 
connected to the national grid under purchase agreements between the EWA and IWPPs. 
Aluminium Bahrain ( ALBA) genera tes 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 seve n 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 P ower Station  Al Ezzel Power Co.  2816.88  21.79  
3. Ad Dur P ower Station  Ad Dur Power Co.  3638.00  28.14  
4. Riffa Power Station  EWA 1944.96  15.04  
5. Sitra P ower 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 A uthority.  
4.34.  Domestic users consume a round 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 a n MOIC regulation.  Electricity prices are set by the Cabinet, 
based on a n EWA p roposal . 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 res t 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 renew able energy 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 projec t is a co mbined solar/wind plant in the s outh 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 year s. In 2012, the manufacturing sector constituted the third 
largest sector of the economy after hydrocarbons and the financial sector, accountin g for 15.2% of 
real GDP and 13% of total employment. In 2012, non -oil manufactured goods comprised 20% of 
total g oods exports.  
                                               
7 Bahrain Central Informatics Organizat ion online information, Energy . Viewed at:  
http://www.cio.gov.bh/cio_ara/English/Publications/Statistical%20Abstract/ABS2012/Ch14/1.pdf . WT/TPR /S/294/Rev.1  • 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 alum inium and petrochemicals), the industry  managed to rebound  quickly . 
4.40.  The Ministry of Industry and Commerce (MOIC) is the main regulator of the sector, and is 
responsible for registration, licensing , and industrial standards (section 3.2.1). The EDB is 
respo nsible 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 B ahraini economy and diversification process. The 
strategy sees Bahrain  as a centre for high -valued 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 unde rtaken . 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), i s one of the largest in the world. With over 
3,000  employ ees, ALBA employs 90% Bahraini nationals. It is a joint -venture between the Saudi 
Arabian Basic Industries Corporation (SABIC), which holds around 20.62% and Mumtalakat, with 
69.38% of the company's shares. The remain ing 10% are floated on Bahrain  Bourse.  
4.45.  The Invest Aluminium Bahrain Programme  was set up to attract foreign investment in to the 
industry . The programme was created by the Ministry 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 aluminium 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 Bahrai n Alloy s 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 -largest manufacturing subsector in Bahrain  after 
aluminium ; the Gulf Petrochemicals Industries Corporation (GPIC) is the main player . GPIC is  a 
joint venture between N ogaholding, Saudi Basic Industries Cooperation (SABIC) , and Kuwait’s 
Petrochemical Industri es Company (PIC) , with each owning an equal share of 33.3% . WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 51 - 
  4.49.  Using  Bahraini natural gas as a feedstock , GPIC manufacture s fertilizers and petrochemicals 
such as  methanol, ammonia , and urea products . In 2011, GPIC's petrochemical exports included 
666,634 ton nes of urea, 435,286 ton nes of metha nol and 71,536 ton nes of ammonia.  The main 
export market for urea products was the U nited States, accounting for 53% of total exports, 
followed by Australia and Pakistan (13% each), India (11%) , and Thailand, South Afric a 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 larges t share (15.8% of total GDP), followed by 
government services (11.4%), transport and communication (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 o f 2008 -09 and the domestic tension of 2011; in particular the financial 
sector.  
4.51.  In its GATS Schedule of specific commitments, Bahrain  bound only one sector, financial 
services. For banking and other financial services, Bahrain  bound the existing legal fram ework, 
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 liberali zed. 
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 financi al sector  prove d its ability to withstand  the global 
financial crisis and the 2011 domestic  unrest. Neither the Government of Bahrain  nor the CBB 
needed to step in to help retail banks , which 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 pred ictable 
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 cos ts. The 
level of observance of financial polic y standards is generally high. According to the authorities, the 
provisions o f 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 fin ancial "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, t he financial services landscape in Bahrain  had 402 financial 
institutions grouped into f ive categories: 99 banks (2 8 retail, 71 wh olesale ); 158 insurance and 
insurance -related firms; 49  investment business firms ; 28 capital market licensees; and 
79 specialized licensees. In 201 3, 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 N o. 64 of 2006 is the legal 
framework regulating all financial services in Bahrain ; and the Central Bank of Bahrain (CBB) is the 
single regulator fo r all financial services.  
4.57.  Since early 2013, the CBB has  been focused on the new Basel III standards, corporate 
governance, and monitoring fees, charges and interest rates on behalf of retail consumers. The WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 52 - 
 
  CBB is expected to introduce regulation to boost c orporate governance by adding transparency and 
accountability in executive compensation.  
4.5.1.2   Banking  
4.58.  As of August 2013, Bahrain  had 75 conventional 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 individual onshore transactions above US$18.5 million 
in deposit s and the provision of credit, and ab ove 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). T otal 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 merger s of financial institutions took place  in 2013 . Merger s 
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 in to 
strong financial institutions that can compete on a regional and globa l level.  
4.61.  Licensing procedures for establish ing a bank are the same for Bah raini 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 inco rporated banks may be up to 100%. 
Applicants must apply to the CBB for a lice nce 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 p rocedures are un der regular review by the CBB and may be updated 
periodic ally after consulting with the industry. A l icence 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 licen ces 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 su bsidiaries. There is 
no requirement for domestic companies to employ specified banking companies for certain 
services.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 53 - 
  4.63.  According to the IMF, Bahrain  has the highest foreign ownership of foreign -owned banks by 
total assets , at 57% .8 Foreign ownership of locally incorpo rated retail and wholesale banks is 
allowed up to 100% . There are no national management requirements, including for board 
members and senior executives, but a n ongoing  "fit and proper test" i s applied. The "fit and proper 
test", according to the authoriti es, refers to the experience, integrity, and suitability of person s 
holding s enior position s 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 unremune rated 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 (section 3.3. 6). Rules and regulations governing 
preferential lending are s et by the Ministry of Finance. The housing sector, small businesses, and 
project financ e receive preferential lending.  
4.65.  The variety and popularity of Islamic instruments have su rged since Bahrain ’s last TPR. As 
of January 2013, Bahrain  had 6 retail ban ks 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 ove r 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 c ontracts. Various 
supplementary act ivities m ay also be undertaken.  Islamic bank licences are divided into two 
categories: conventional retail banks and conventional wholesale banks.  
4.66.  Bahrain  hosts t he Accounting and Auditing Organization for Islamic Financial Institutions 
(AAOIFI) . An international a utonomous 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 t he 
computation of capital adequacy, which recognizes the risk undertaken by investment holders.  
4.67.  In order to ensure effective compliance with relevant standards and to preserve Bahrain 's 
strong reputation as a well -regulated financial centre, the CBB mainta ins a Compliance Directorate 
tasked with leading the CBB's  anti-money laundering  effort s. The Compliance Directorate  also 
handl es compl aints from the public relating to CBB licensees, and receiv es 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 acc ording 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 
account ed 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 (201 0). 
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 ; Australia ; Bahrain ; Bangladesh ; Brunei ; Cayman Isl ands; Egypt ; 
Indonesia ; Iran; Jordan ; Kenya ; Kuwait ; Lebanon ; Malaysia ; Pakistan ; Palestine ; Qatar ; Russian Federation ; 
the Kingdom of Saudi Arabia ; South Africa ; Sri Lanka ; 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/Rev.1  • Kingdom of Bahrain  
 
- 54 - 
 
  4.70.  Three main inde xes are u sed 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 considerabl e slow-down with an average of 16.2% overall market turnover during 
the period January 2009 to end of first quarter 2013; the three indexes plummet ed by around 
41.9% in January 2009.  
4.71.  Bahrain 's total market capitalization fell from  US$27,536 million  in 2007 to 
US$17,462  million at the end of August 2013  (Table 4.5).  
Table 4.5 Market capitalization, 2007 -August 2013  
(US$ 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 t ourism  329 405 467 570 508 493 480 
Insura nce 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, Deposit ory, and Registry 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 fi nancial statements and hold annual general meeting s 
within three months following the end of their financial year; (iii) have no less t han 100  registered 
shareholders ; (iv) have net worth (assets) at least 20% in excess of paid-up capital; and (v) h ave 
total annual sales (turnover) o f 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 li quidity 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 special 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 represen tative of the Settlement Bank. The BSE charges a management fee of 
0.25% of the amount of the Gua rantee Fund  per year. Upon admission to the CSDR Class (A) 
                                               
11 Law No. 6/2010. 
12 For more information on the regulatory framework of the BHB, see 
http://ww w.bahrainbourse.net/bhb/regulations.asp?page=regulations&sec=Fees# . 
13 Resolution No. 4/2000 on the establishment of a Guarantee C ontribution Fund at the BSE, 
28 November 2000.  
14 The regulated bank provides the BHB and its participants with the necessary f acilities 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 B HB may terminate its 
trading, clearing , and settlement services to all participants.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 55 - 
  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 o f 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 tr ansactions; 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 liste d companies 
quoted on the BHB. The fees or charges imposed 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 
Minister ial 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 thr ee 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, combi ning nine core principles 
reflect ing the highest inter national governance standards . 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 list ing. 
4.79.  Since its establishment, BHB has joined several regional and international organizations , 
such as the Union of Arab Stock Exchanges, Federation  of Euro -Asian Stock Exchanges ( FEAS), 
World Federation of Exchanges ( WFE), Africa & Middle  East Depositorie s Association ( AMEDA ), and 
Association of National Numbering Agencies ( ANNA ). Joining these  organizations keeps the bourse 
updated on legislative, technical, and administrative developments in the capital markets sector.  
4.5.1.4   Insurance  
4.80.  The insurance industry ha s grown steadily in recent years, with total gross premiums of 
US$634.09 million in 201 2 (2011: US$579.99  million).  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 insurance market, including c onventional insurance 
and takaful , comprise d 26 locally incorporated firms and 11 overseas insurance firms (branches of 
foreign companies) carrying out insurance, reinsurance, takaful , retakaful , and c aptives business. 
In 2012, ther e 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 Boar d Resolution No. 2/1995. Brokers class (A) are licensed to trade in securities of local, GCC, 
and international issuers registered at the BHB, on behalf 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/Rev.1  • Kingdom of Bahrain  
 
- 56 - 
 
  requirements (such as rules on providing insurance services and the treatment of policyholders). 
Collectively, these requirements are aimed at ensuring th e 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 clai ms 
2011  2012  Change  2011  2012  Change  
Long-term 139.50  159.57  14% 53.53  58.07  8% 
Fire, property and 
liability  102.51  110.74  8% 33.86  27.15  -20% 
Miscellaneous 
financial loss  10.72  11.84  10% 3.16 4.51 43% 
Marine and aviation  18.74  18.60  -1% 1.90 2.26 19% 
Motor  147.55  164.44  11% 111.02  144.32  30% 
Engineering  43.65  40.29  -8% 9.32 9.20 -1% 
Medical  92.42  98.58  7% 65.35  77.77  19% 
Other  24.90  30.03  21% 5.19 8.61 66% 
Total  579.99  634.09  9% 283.33  331.89  17%  
Source:  Central Bank of Bahrain.  
4.84.  An insurance fi rm must satisfy the CBB 's requirements f or 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 insuran ce 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 licensee s.  
4.85.  Bahrain i insurance firms must maintain sufficient capital to meet at all times their insurance 
and other obligations : the minimum Tier 1 Capital 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 the 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
30Chart 4.[Insurance]
Insurance companies and organizations autorised in Bahrain, 2012
Central Bank of Bahrain. Source: (Number)
Total : 161
 
 
Source:  Central Bank of Bahrain.  
4.86.  For overseas insurance firms, the audited net assets (excluding any unreali zed fair value 
gains and the surplus assets of long -term funds) amount is determined in accordance with WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 57 - 
  accounting standards that would  be applicable if they were a joint -stock company incorporated in 
Bahrain . 
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 capi tal 
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 gr ew substantially during  the review period. In 2012, 
annual gross turnover reached over US$1 billion , representing around 4% of GDP. A total of 
3,141  people work in the sector,  a 50% increase since th e launch of the liberali zation 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 productivity and reliance on skilled 
employment. The sector als o boasts a high female ratio of 2 9% 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 M iddle 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 wirel ess licences were issued , to Zain and to Menatelecom , to operate as 
WiMax -based networks. In 2009, a mobile licen ce was granted to Viva Bahrain, making it the third 
telecommunications provider , along with t he partially state -owned operator Bahrain 
Telecomm unications Company (BATELCO) and Zain Bahrain. Mobile penetration rates grew from 
107% in 200 7 to 172% by the end of 2012, increasing the numbers of subscribers  to 2.1 million , 
of whom aroun d 80% are prepaid subscribers. This growth has been largely attrib uted 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 avail able by the authorities , who stated that it 
is confidential and has not been made public by TRA.  
4.92.  The Telecommunication Regulatory Authority is the main regulator for the sector and is 
regulated by Telecommunication s Law No.  48 of 2002. The TRA's main dutie s 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 compet ition among new and existing licensed operators; and ensure 
that applicants are able to provide public telecommunications services when assessing 
applications . 
4.93.  Under the Telecommunication s 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 prov ision of 
telecommunications se rvices are located in the Kingdom of Bahrain.  Licences are granted for 
15 years. Chapter 8 of the Law provides for the gradual liberalization of the subsector. As of end 
2012, 20 active licensed operators were supplying teleco mmunications 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.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 58 - 
 
  Table 4.7 Selected telecommunication indicato rs, 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 ha s been revised to ensure better 
alignment with the ITU definition of active mobile broadb and subscribers. Comprehensive p ay-per-
use mobile broadband figures are not available for 2011 and earlier.  
Source:  The Telecommunica tions Regulatory Authority . 
4.94.  Every three years, the Ministry of Transportation  prepares a Nationa l Telecommunication 
Plan (NTP) , stipulating the strategy and the gen eral poli cy for the subsector. The NTP has to be 
approve d by the Council of Ministers. The Third NTP was issued in July 2012, setting out the 
Government’s vision that the telecommunications sector sh ould play an enhanced role in 
stimulati ng and enabling the economi c and social development of Bahrain . The Third NTP iden tifies 
some key challenges and g overnment 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 similar determina tion was made in 2013 in relation 
to Viva’s mobile termination service. The TRA undertakes periodic market reviews to ensure that 
the regulatory framework remains appropriate.  
4.96.  Some of the most recent developments in Bahrain 's telecommunications market incl ude 
greater infrastructure access18; 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 authority 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 Additional Protocol to the Constitution of the Universal 
Postal Union.  Postal services are considered important, inter alia , to prepare a suitable 
environment for investment; promote B ahraini goods and services all over the world; provide 
employment to nationals; and contribute in developing various other industries. A number of 
                                               
18 In mid -2011, the TRA mandated local loop unbundling (LLU) in Bahrain with the objective of 
stimulating greater bro adband competition vi a competitive ADSL deployment. Other licensed operators (OLOs) 
may now access Batelco’s copper access network at regulated prices on a non -discriminatory basis.  
19 The Kingdom of Bahrain wa s the first country in the Middle East and Nort h Africa to imple ment 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 betwe en different licensees.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  operators are already working in the domestic and international mar kets, with 15 major 
companies.  
4.98.  There are 1 8 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, t o increase the efficiency and productivity 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% within three days by 2007, and 90% with in two 
days by 2008.  In 2009, Bahrain Post was accredited with ISO9001, and has improved its business 
processes and bec ome 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 identific ation system  (RFID), which 
provides contactless identification, tracking , and tracing of incoming/outgoing mail and packages 
in a timely manner.  Bahrain  launched Gulf Exp ress to promote postal services in the GCC region . 
4.5.4   Transport  
4.101.   During the r eview  period , the Ministry of Transportation (MOT) assumed responsibility  for 
the development of Bahrain 's transportation infrastructure 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 quality of  land, sea, and air transport.  
4.5.4.1   Maritime transport  
4.103.   Bahrain  has a small merc hant fleet  compared with its GCC neighbours, . Maritime shipping 
showed strong growth in 2012 as Bahrain 's total merchant fleet grew by 20% since 2008. 
(Table  4.8). 
Table 4.8 Shipping and maritime transport ser vices, 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 A ffairs (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  m2 container termin al, 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 cau seway. Access to the Kingdom of Saudi Arabia is a  30 km WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
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  drive. A private company runs KBSP and the Ports and 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 N o. 6 of 2001 regulating merchant shipping (manning, training, certification and related 
seafarer's matters). In addition, a regulatory framework for seaports has be en in place among 
GCC countries since 2006.  
4.107.   The PMA is currently finaliz ing 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 an d 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 Company for governme nt 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 onl y conditions associated with flying the Bahraini flag are r egistration 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, with the consent of the Council of Ministers, award 
Bahraini nationality to ships owned by foreigners.  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 ports, are permitted exclusively by ships flying the 
Bahraini flag. International and national safe ty 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 ship s, and the ir 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 us e in case 
of an emergency.  
4.112.   Prices of freight, towage, and other transport services (excluding passengers) are set by 
the ope rators , subject to PMA approval.  
4.113.   In the context of the GCC  and based on the common rules and regulations for seaports , 
which were ap proved in 2006, GCC countries have approved inter alia , to: (i) bring port 
infrastructure, equipment, systems , and services in to line with best international practices, 
standards , and norms; (ii) contribute to the national social and economic objectives an d to 
promote ports' competitive strengths and the GCC states' trade objecti ves in the global market; 
(iii) encourage the harmonization of standards, codes, and benchmarks in the performance of port 
services, and assure that the dispatch of ships matches us ers' needs; (iv) pursue the GCC 
                                               
20 Ministry of Transportation, Ports and Maritime 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/Rev.1  • Kingdom of Bahrain  
 
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  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 competitio n; 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 f or the issuing of licenc es/permit s 
and certification for various activities including aircraf t registration, personnel licenc es, 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 Technical Regulations, under Resolution No. 2/1997; 
Minister ial Decree No. 1/1999 on sales and marketing 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 m illion in 
2009 but declined in 2010 and , due to the domestic unrest, reached t heir 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 carrier. Until 2002, Gulf Air was jointly owned by 
Bahrain , Qatar , the UAE, and Oman. H owever, 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 reco very 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 approval from the CAA under the provisions of an air 
transport services agreement or through a temporary operating permit. Key parameters in 
bilateral air transport agreements are reciprocity of capacity and frequency. Airlines are free to s et 
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 nati onal airline 
(Qatar A irways). The Abu Dhabi Government dropped its shareholdings in 2005  to develop Etihad Airways.  WT/TPR /S/294/Rev.1  • 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 o n 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 League 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  Interna tional Airport. 
Airlines submit their tentative schedules on a seasonal 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 bet ween 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 f rom 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 company established in 2008 as a public limited 
company in which Bahrain Mumtalakat Holding is the sole shareholder. The handling services were 
previously managed by Bahr ain Airport Services, which operated under a 25 -year sole -right 
franchise agreement from 1996. BAC carries out ground, cargo, and mail handling and in -flight 
catering, and operates catering facilities in the terminal. Airlines may handle some or all of these 
services themselves. Other facilit ies include fuel services, which are provided by the Bahrain 
Airport Fuelling Company, on behalf of its three shareholders, BAPCO, Caltex, and Air BP; and 
duty-free facilities, which are provided by the 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 m ain policy goal is to 
continue to e xpand 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 Caus eway, which links Bahrain  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 countri es (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 authorities are looking to develop  a bigger public 
transport system.  In 2010, MOW outlin ed a 20 -year plan to develop a BD  3 billion public transport 
network consisting of trams, buse s, and a light railway network. Eventually, this network will link 
the airport with the city centr es of Muharaqq, Manama, Isa Town , and Riffa, and  to Qat ar 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 , will stretch over 2 ,000 km and enable the transport of goods from Kuwait to 
Salalah in Oman and from Jeddah in the Kin gdom of Saudi Arabia to the Fujarah Port in the UAE.  
The total estimated investment for the GCC network is est imated at US$30 billion.  
                                               
24 Ministry of Transportation, Civil Aviation Affairs, Civil Aviation Law (Article 119).  WT/TPR/S/ 294/Rev.1  • 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 h it in 2011 , with tourist arrivals plummeting by 3 2.7% 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 classif ied 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 compar ed with its neighbours, 
Dubai and Qatar.  
4.131.   In 2012, Mana ma, 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 Bahrain National Museum is one of the oldest in  
the Gulf region, with some of the region's oldest documents and arte facts. 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 additi on, 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 im portant 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, t he Bahrain Exhibition and Conference Authority (BECA) , which is 
chaired by the Minister of Industry 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 t he 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 Ministry 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 licen ces, 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 nat ionals are 
travel and tourist offices ; and a ctivities 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  Government 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 a ctivities. However, a 5% government levy is 
added to all hotel bills, with two percentage points used to promote tourism in Bahrain  and to 
develop supporting infrastructure.  
                                               
25 Bahrain Central Informatics Organization online information, Tourism . Viewed at: 
http://www.cio.gov.bh/cio_ara/English/Publications/Statistical%20Abstract/ABS2012/Ch10/1.pdf . 
26 Decree No. 2 of 2005.  WT/TPR /S/294/Rev.1  • 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/assets/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 (201 3b), 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.tend erboard.gov.bh .  
 
Telecommunications Regulatory Authority (2012), Annual Report 2012 , Manama.  
 
Transparency International (2013), Bahrain: Country profile . Viewed at:  
http://www.transparency.or g/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 Administrat ion (2013) . Viewed at:  
http://www.eia.gov/countries/country -data.cfm?fips=BA .  
 
World Bank (2013), Doing Business Report , Washington D.C.  
 
WIPO (2013) online information , Bahrain.  Viewe d 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 Dat abase, Trade Profiles: Country profile: Bahrain . Viewed at:  
http://stat.wto.org/CountryProfiles/BH_e.htm .WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
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  5  APPENDIX TABLES  
Table A1. 1 Selected macroeconomic indicator s, 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$)  19,268  20,908  23,236  19,465  20,930  24,399  .. 
National Accountsb (%age change based on constant figures, unless otherwise 
indicated)  
Consumption  .. 6.0 20.6 11.7 11.4 4.7 .. 
  Gover nment  .. 9.0 8.9 13.8 3.4 8.3 .. 
  Private  .. 4.8 25.2 11.0 14.2 3.6 .. 
Gross Fixed Capital Formation  .. 37.7 18.6 -29.7 14.7 -27.0 .. 
  Government  .. 15.5 0.7 -16.0 54.8 -38.4 .. 
  Privatec .. 46.0 23.9 -33.0 2.6 -21.8 .. 
Change in stocksd .. -94.4 119.4 47.0 425.5  -45.6 .. 
Net exports of go ods & services  .. -5.8 -28.8 38.9 -23.6 37.1 .. 
Public financeb (% of GDP)  
Revenues  26.4 24.9 27.7 19.8 22.5 25.7 .. 
  of which: oil & gas 20.4 20.0 23.6 16.4 19.2 22.6 .. 
Expenditure  22.4 22.3 21.3 24.1 27.3 26.0 .. 
Strategic projects  0.0 0.0 0.7 0.8 0.0 0.0 .. 
Surplus/ deficit before rollover  4.0 2.7 5.7 -5.2 -4.8 -0.3 .. 
Net surplus/ deficit after rollover  2.0 0.5 3.8 -8.4 -8.0 -2.8 .. 
Government external debt  .. .. .. .. .. .. .. 
Government domesti c debt  .. .. .. .. .. .. .. 
Prices and exchange rate          
Inflation (CPI, %age change)  2.0 3.3 3.5 2.8 2.0 -0.4 .. 
BD/$ (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 
Nomina l 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 fi gures)  
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/Rev.1  • 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 
     Oilf -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 Includi ng 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/variableselection/selectvariables.aspx?source=world -
development -indicators  [6 June 2013] . WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 67 - 
  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 produc ts 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 artic les 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 201 2 were not avai lable.  
 
Source:  UNSD Comtrade database, HS classifications.  WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 68 - 
 
  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 tobacc o 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 produ cts 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 Te xtiles 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 artic les 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 an d 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 ma nufactured 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 201 2 were n ot available.  
 
Source:  UNSD , Comtrade database, HS classifications.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 69 - 
  Table A1. 4 Merchandise exports by destination, 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 T raders  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 201 2 were n ot available.  
 
Source:  UNSD , Comtrade database.  
 WT/TPR /S/294/Rev.1  • Kingdom of Bahrain  
 
- 70 - 
 
  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 201 2 were n ot available.  
 
Source:  UNSD , Comtrade database.  WT/TPR/S/ 294/Rev.1  • Kingdom of Bahrain  
 
- 71 - 
  Table A2. 1 Main trade -related 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 Unifi ed 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 1 996 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 Comme rcial 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 count ries - 
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 
compani es 
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 Quarant ine 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 Procurement Regulations, and 
Implementing Regulations  Government procurement and the Te nder 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/Rev.1  • 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 and Industrial designs , 
Trademarks, Trade secrets  
Sector -specific legislation   
CBB Law, issued by Decree No. 64/2006, 
replacing the BMA Law of 1973 and the Insuranc e 
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/Rev.1  • Kingdom of Bahrain  
 
- 73 - 
  Table A2. 2 Selected no tifications to the 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 200 7-2010 
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 Mone tary 
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 Licen sing   
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/Rev.1  • 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 A ffairs 
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/TRIM s/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 Pate nts & 
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/Rev.1  • Kingdom of Bahrain  
 
- 75 - 
  Table A3. 1 Applied MFN tariff averages 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 m eat 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. Product s of animal origin, not elsewhere specified 
or included  29 5.0 5 0.0 
06. Live trees and other plants; 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 materials; vegetable products 
not elsewhere s pecified or included  9 5.0 5 0.0 
15. Animal or vegetable fats and oils and their 
cleavage products; prepared 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 o r 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 man ufactured 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 sub stances; 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 produ cts 40 0.0 0 100.0  
31. Fertilizers  29 5.0 5 0.0 WT/TPR /S/294/Rev.1  • 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 resinoids;  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 furski ns) 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 cor k 18 5.0 5 0.0 
46. Manufactures of straw, of esparto or of other 
plaiting materials; basketware 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, fi ne 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 and 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; 
tapest ries; 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/Rev.1  • Kingdom of Bahrain  
 
- 77 - 
  HS Description  No. of 
lines  Average 
(%) Range  
(%) Share of 
duty-free 
lines (%)  
61. Articles of apparel and clothin g accessories, 
knitted or crocheted  106 5.0 5 0.0 
62. Articles of apparel and clothing 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 article s made of 
feathers or of down; artificial flowers; articles of 
human hair  11 5.0 5 0.0 
68. Articles of stone, plaster, 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 the reof 9 5.0 5 0.0 
81. Other base metals; cermets; articles thereof  52 5.0 5 0.0 
82. Tools, implements, cutlery, 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 r eactors, boilers, machinery and 
mechanical appliances; 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 accessorie s 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 electro -mechanical) traffic 
signalling equipment of all kinds  23 5.0 5 0.0 
87. Vehicles other than railway 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, p hotographic, 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 accessor ies of 
such articles  26 5.0 5 0.0 WT/TPR /S/294/Rev.1  • 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 a nd 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 ant iques  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 . 
 
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