Bahrain Introduces Duty-Free Import Rules for Factories

Move aims to reduce costs and ensure steady supply for local industries

Bahrain has announced new rules allowing factories to import certain raw materials and parts without paying customs duties. The decision, outlined in Decision 63 of 2025, sets four clear conditions under which the exemptions apply.

One key provision, known as the “10 per cent rule,” allows companies to import duty-free if producing the same materials locally would cost more than 10 per cent above the import price. Other conditions include cases where the required input is not produced in Bahrain, is unavailable in the right standards, or cannot be manufactured locally within the needed timeframe.

Officials say the policy is designed to lower production costs, secure supply chains, and give local manufacturers more room to compete.

His Excellency Abdullah bin Adel Fakhro, Minister of Industry and Commerce, described the move as a “strategic step to boost national industries and develop local content.” He added that manufacturing remains a key pillar of Bahrain’s economy, and the government strongly supports its growth.

The minister also noted that the duty exemptions align with the Industrial Sector Strategy (2022–2026) and Bahrain’s Economic Vision 2030. “This initiative will help replace imports with high-quality national products, increase self-sufficiency, and strengthen the industrial sector’s role in sustainable development,” he said.

The new rules are expected to benefit the wider economy by helping factories expand production, create jobs, and maintain the presence of Bahrain-made products in export markets.