New Measures to Support Citizens in 2026

His Royal Highness Crown Prince Salman bin Hamad Al Khalifa, the Prime Minister, chaired today’s regular weekly Cabinet meeting at Gudaibiya Palace.

At the start of the meeting, the Cabinet praised the results of the national virtual exercise “Azm Al-Watan 1”, which concluded under the patronage of His Majesty King Hamad bin Isa Al Khalifa, the Supreme Commander of the Bahrain Defence Force.

Following the Crown Prince’s recent visit to the Muharraq Nights Festival, he expressed his sincere thanks and appreciation to the people of Muharraq for their warm hospitality and welcoming of visitors from across Bahrain and abroad.

The Cabinet also commended the activities of the Bahrain Holiday Season, including the Muharraq Nights Festival, Hawa Manama, and the Heritage Village, highlighting the excellent organization and the efforts of all involved.

As the year 2026 approaches, the Cabinet wished that the new year brings continued achievements and prosperity for the Kingdom and its citizens. It also extended best wishes to students of all educational levels for success in the first semester exams of the 2025-2026 academic year.

In cooperation with the legislative authority, the Cabinet decided not to change electricity and water tariffs for the first and second consumption bands for citizens in their primary residences, and to postpone the development of support mechanisms for these services for further study.

The Cabinet also approved several financial initiatives to ensure continued support for citizens, including:

1. Reducing administrative expenses by 20% across government entities while maintaining service quality, with the Finance and National Economy Minister tasked with implementation.

2. Increasing contributions of government-owned companies to the state budget.

3. Proposing a law for a 10% tax on local company profits exceeding BD 200,000 annually, to diversify income sources and apply starting 2027, pending legislative approval.

4. Proposing a law to increase excise tax on soft drinks, with the Finance Minister responsible for execution.

5. Optimizing undeveloped investment lands with full infrastructure through a monthly fee of 100 fils per square meter, effective January 2027.

6. Introducing sewer service fees at 20% of water consumption, excluding citizens’ primary residences, starting January 2026.

7. Reviewing labor and health fees for expatriates to prioritize employment for Bahraini citizens, implemented gradually over four years from January 2026, excluding domestic workers.

8. Adjusting natural gas prices for companies and factories to reflect actual consumption costs, gradually over four years from January 2026.

9. Developing a mechanism for fuel pricing, with the Petroleum and Environment Minister tasked with implementation.

10. Maintaining current electricity and water tariffs for first and second bands in citizens’ primary residences while revising tariffs for other categories starting January 2026.

11. Facilitating government procedures supporting investment to attract foreign investment and enhance the role of the private sector.