Daijiworld Media Network- Manama
Manama, Sep 3: In a major policy shift aimed at strengthening its manufacturing sector, Bahrain has announced that local factories can now import raw materials and production inputs duty-free under specific conditions.
The new rules, issued under Decision No. (63) of 2025, are designed to cut input costs, safeguard supply chains, and give local industries a competitive edge. Effective from September 2, the decision allows exemptions if the required inputs are not produced in Bahrain, are unavailable in the required standards, cannot be manufactured within the necessary timeframe, or if producing them locally exceeds import costs by more than 10 percent.
Industry and Commerce Minister Abdulla bin Adel Fakhro hailed the move as a “strategic step to boost national industries and develop local content.” He said the initiative is closely aligned with Bahrain’s Industrial Sector Strategy (2022–2026) and Economic Vision 2030, with the long-term goal of positioning the kingdom as a regional industrial hub.
“This initiative will help replace imports with high-quality national products, increase self-sufficiency, and strengthen the industrial sector’s role in sustainable development,” the minister stated.
Officials believe the exemptions will encourage factory expansion, create new jobs, and enhance the export footprint of Bahrain-made goods. The policy is also expected to attract fresh investments while supporting sustainable growth.
The new customs framework complements a series of national initiatives such as the Takamul programme, which incentivizes local spending and hiring of Bahraini nationals in government tenders. Other support schemes include the Made in Bahrain trademark to promote local branding, the Green Factory Seal for eco-friendly manufacturers, and the iFactories programme to accelerate digital transformation in the industrial sector.
Authorities emphasised that these combined measures will drive production efficiency, improve in-country value, and reduce dependence on foreign goods, further bolstering Bahrain’s path towards industrial self-reliance.