The National e-Government Portal contains multiple services such as requesting appointments, submitting requests or inquiries and completing government procedures such as applying for building permits, paying customs fees and taxes and many other services. (Add in Arabic version)

To use the portal, the user must create their own account and receive an “electronic key” or “eKey” that allows a single-entry process for various e-Government services. Please note that many government services have been moved online, and this process is necessary to follow up with many of the applications and licenses discussed later in this guide.

Bahraini citizens and residents can create their own eKey through a short and easy process using their CPR number on www.ekey.bh

The Standard eKey offers a good level of security, requiring the user to enter only the personal number and password to access a limited number of eServices.

Registering for the Advanced eKey ensures the highest level of security and allows access to all eServices including highly confidential eServices requiring the verification of the user's smart card and biometrics. To upgrade your eKey account level from the basic to the advanced level, you can visit any of the following offices:

1) Information and eGovernment Authority in Isa Town

2) Bahrain Investors Center​ in the Bahrain Financial Harbor

3) Social Insurance Organization in the Diplomatic Area

Note: GCC citizens who wish to register for the electronic key must contact the National Contact Center on +973 80008001, as the process differs slightly.

Sijilat is the online Commercial Registration Portal run by the Ministry of Industry and Commerce. Here, users can make all electronic transactions related to their Commercial Registration (CR), for example:

• Transfer of ownership
• Addition of branches
• Addition of activities
• Renewal of the Commercial Registration
• Search for a Commercial Registration
• Search for a Commercial Agency
• Search for commercial activities
• The commercial registry electronic publication
• Obtain commercial records and licenses
• Membership registration and renewal for the Bahrain Chamber of Commerce and Industry

The site is accessible through a user’s e-key, and there are some online-only features, which are discussed in more detail later in this guide.

For more information, visit www.sijilat.bh

You can review the following websites for more information on potential investment opportunities in the agricultural sector in Bahrain and to get a better understanding of the current landscape:

• Sijilat (Commercial Registration Portal) - to obtain information of all the authorized agricultural activities sijilat.bh
• The Economic Development Board – to identify the investment opportunities in Kingdom of Bahrain bahrainedb.com
• The Agricultural Database website – to gather essential information and data on the agricultural sector in the Kingdom of Bahrain agro.bh 
• The Government Land Investment Platform website – to view government lands and real estate properties designated for the purpose of investment. investmentland.gov.bh

This would depend on the type and nature of the activity, however, the main departments involved in granting approvals and initial licensing would generally be:

- Ministry of Municipalities Affairs and Agriculture – Municipal Affairs Department

- The Supreme Council for Environment – Environmental Licensing Department

- Ministry of Industry and Commerce – Industrial Development Department

For more information, please visit www.sijilat.bh.

Article (2a) of the Commercial Companies Law (Law No 21 of 2001) and its amendments, identify the types of corporate structures as follows:

1. General Partnership company
2. Limited Partnership company
3. Association in Participation
4. Joint Stock Company
5. Limited Partnership by Shares
6. Limited Liability Company
7. Single Person Company
8. Holding Company

For more detailed information on the types of corporate structures and to determine which is most suitable for you, click here.

Practicing the commercial activities in the agricultural sector is permitted for certain legal types of companies as follows:

1. Bahrain Shareholding Company (Public) 
2. With Limited Liability Company 
3. Branch of a Foreign Company 
4. Bahrain Shareholding Company 
5. Partnership Company 
6. Limited Partnership Company
7. Limited Partnership by Shares
8. Non-Profit Company 

To find out the legal liability limits of each of these companies, you can review the Legal Requirements Relating to Companies.

There are three types of commercial registration certificates:

1. Commercial Registration Certificate without a license, which is issued before obtaining approvals/licenses for business activities.
   This is the first step in legally registering your company in the Kingdom of Bahrain, allowing investors and entrepreneurs to begin applications for other services and gives them a legal identity. At this stage, you would not be allowed to conduct commercial (profit generating) activities.
2. Commercial Registration Certificate with license, which is issued after obtaining approvals/licenses to practice commercial activities.This is the ‘complete’ CR that allows you to begin commercial activity in full and without restriction.
3. Virtual Commercial Registration (Sijili), which gives micro to small individual enterprises and entrepreneurs the legal status to perform specified business activities and to simplify the procedures for the establishment of some businesses.
   For most prospective agricultural investors, Sijili will not be suitable. Its scope of activity is limited, and it is intended to grant home or very small businesses a legal identity and the right to conduct commercial activity.

As an agricultural investor or entrepreneur, you will be required to obtain a Commercial Registration Certificate with a license for your business activities. For more information, visit www.sijilat.bh.

Yes, CR applications can be completed online, unless there is a specific request or summons from the Ministry of Industry & Commerce (MoIC) to visit or appear in person.

Yes, it is possible to conduct some commercial activities through a virtual store without the need of having a physical office space, however this option is only available to Bahraini citizens.

Currently, 42 activities are authorized to be practiced through the virtual registration, several of which may relate to the agricultural sector (including food packaging, packaging cosmetics or herbs, landscape care and maintenance service activities). To obtain a Virtual CR, you must meet the following conditions:

• Applicant must be a Bahraini national.
• Applicant must not be an owner of a different individual establishment or commercial WLL company owned by single shareholder.
• Applicant cannot be a director or representative in the management of any other commercial company (a shareholder in a company is allowed, provided they are not a director or a board member in it, nor authorized signatory).
• Committed to conduct the business only under the form of an individual establishment.
• Provide a permanent correspondence address.

Noting that:

• The Sijili Virtual Commercial Registration owner must obtain approvals from all relevant licensing authorities (the list of concerned licensing authorities will depend on the requirements of the selected commercial activity).
• The Sijili Virtual Commercial Registration does not permit the owner to obtain work permits to hire expat workers.

For more information, you can visit www.moic.gov.bh/en or download this document to view the detailed information and permissible activity types. Please keep in mind that this information may be updated from time to time.

Small and Medium Enterprises can register through the SMEs Registration System. It is an electronic system that allows SMEs to apply for “Small and Medium Enterprises Classification Certificate” issued by the Ministry of Industry and Commerce (MoIC) designating the establishment size. Doing so will enable the owner to access certain privileges made available to Small and Medium Enterprises.

For more information, please visit the SMEs section of the MoIC website

There are no registration fees for the Small and Medium Enterprises Registration System, unless any fees are enforced in the future by the concerned authority.

The terms and conditions for obtaining a CR for work in the agricultural sector are the same as any other business activity and are subject to the rules and regulations of the Ministry of Industry and Commerce. Generally, it is required that:

•  The applicant must be 18 years or above.
• The applicant must meet the specific requirements outlined in the Commercial Companies Law in accordance with the company type registration requirements and intended commercial activities, as mentioned in www.sijilat.bh.

It is possible for non-Bahrainis to establish a CR for the purposes of agricultural investment. For more information see Section 6 of this guide.

Yes, it is allowed to register for a sole proprietor to work and invest in the agricultural sector, under the regulations and conditions authorized by the Ministry of Industry and Commerce and after obtaining the required license and approvals from all concerned parties.

Note: The “Individual Establishment” commercial business type can be owned only by Bahrainis, GCC citizen and American citizen.

NIAD can support potential investors in the following ways:

• Introducing project owners to related parties by connecting investors to a wide range of service providers, and clarifying the procedures and services offered in the Kingdom of Bahrain.
• Providing consultation to initiate agricultural projects.
• Exchanging experiences to facilitate local and international commercial deals.

Yes, but you must have a valid license to conduct a virtual business from your home from the relevant authorities, which may be subject to periodic change. For more information, you can visit website www.sijilat.bh and select “Search Activities” in the Public Service section. Run a search for “Landscape Care and Maintenance Service Activities”  (international coding 813) for more information. Landscape Care and Maintenance Service Activities the only permissible activity that can be performed from home in the Agricultural Sector.

Note: According to GCC Law No. (34) of 2012 regarding the Approval of Seeds and Seedlings Law (Regulation), if a plant nursery is established without a legal license, the violator will be fined up to 500 Bahraini Dinars.

Yes, according to Resolution No. 39 of 2010 regarding organizing home-based business, the Khatwa program provides free legal cover for productive families. The main features of the Khatwa program available to participants are as follows:

• Joining the program is free of charge.
• Obtaining a special identification card as a home-based business, which is renewed annually and without any fees.
• Providing free of charge beginner and advanced vocational training programs for all applicable registered activities.
• Providing marketing services for free.
• Supporting the participation of families in domestic and international exhibitions and competitions and providing all the requirements for participation.
• Supporting product quality development and the creation of new products required by the market through the design and innovation center.
• Developing administrative and marketing skills through the Center for Home-Based Businesses.
• The possibility of obtaining project financing through the Family Microfinance House.
• Benefiting from the voluntary social insurance in the Social Insurance Organization (SIO) which helps secure Khatwa program beneficiaries’ pensions.
• Productive families in possession of a home-based business permit are exempted from issuing the origin certificate of the imported goods, provided that the value of the goods does not exceed 500 Bahraini Dinars. These imports are treated as personal goods for import purposes.

For more information you can visit the Ministry of Labor and Social Affairs website www.mlsd.gov.bh.

There is no mechanism for granting subsidized agricultural inputs such as greenhouse covers and irrigation pipes to non-farmers who are not in the Ministry of Municipality Affairs & Agriculture’s approved list of farmers. Company owners who do not hold a farmer ID are not allowed to benefit from the subsidized agricultural inputs. However, individuals may benefit from subsidized pesticides only if they are utilized for personal use in gardens and private farms and not for commercial purposes.

There are several financing entities that grant concessional loans at low rates to Bahraini citizens to support small, medium and microfinance projects and productive families, which include:  

• Family Microfinance House

It is a development organization specializing in microfinance as one of the support methods for low-income individuals, seeking to empower individuals, unleash their potential, and raise their living standards through. Entrepreneurs may apply for financing from the bank even if they have a foreign partner, as long as they submit the minutes of the Board of Directors meeting indicating the board's approval to apply for financing from the bank, and on the condition that financing will be granted under the name of the Bahraini partner, not the name of the project. Owners of commercial registration, Sijili or participants in the (Khatwa) program can apply for loans.

To view the support of small and micro project programs, you can visit the website www.fmh.bh.

• Ebdaa Microfinance Company

Ebdaa Microfinance Company provides assistance to low-income individuals with an emphasis on women and youth-led projects, in an effort to increase the income of low-income Bahraini citizens and improve their standard of living by transforming their talents and skills into successful projects through the provision of microcredit loans. In the case of a foreign partner, project owners may also request for financing from the bank, provided there is a Bahraini co-guarantor.

For additional information, please visit the website http://www.ebdaabahrain.com/.

• Bahrain Development Bank (BDB)

There are several agricultural financing opportunities. Individual agricultural financing (granted to a person without a CR) is only available to Bahraini citizens and is subject to BDB’s project evaluation processes. If the applicant for agricultural finance is a company owned by a Bahraini and a foreigner, the bank will consider the application according to their internal financing terms and conditions, which will include a credit check and profitability assessment by BDB. Please note that the terms and conditions for all agricultural loans, whether individual or commercial entity, are subject to change at any time.

For more information, you can visit the website: www.bdb-bh.com.

Bahrain Development Bank Agricultural Financing Program: Bahrain Development Bank has an agricultural financing program at a 0% profit rate of aiming to support agriculture production in Bahrain, available for amounts up to BHD 15,000. Among other requirements, this fund is only available to Bahraini citizens, in owned or leased possession of agricultural land, and is for the sole purpose of carrying out agricultural activity.

For more information about this financing program, visit the Agricultural Loans section on the BDB website.

• Labor Fund (Tamkeen)

The Labor Fund (Tamkeen) provides financial support for the development of agricultural projects through establishment and individual specific programs. 

Tamkeen has two types of support for the Agriculture Sector:

1. Direct support to individuals, companies, events, etc., through TamkeenSpecial Projects and Tamkeen Strategic Partnership
2. Enterprise Programs (e.g. Financing and Enterprise Support) and Human Capital Programs (e.g. Training and Wage Support) - these programs are open for all sectors including the agriculture sector.

For more information about these programs and for eligibility criteria, you can visit the website www.tamkeen.bh.  

For information on funding available to Foreign Investors, please see Section F10 of this document.

Municipal approval is required to initiate agricultural projects and establish a commercial registration on a farm or any other address. In the case of agricultural projects, the property must have an agricultural zoning, and be in a ‘green belt’ classed area. Along with the appropriate municipal and other authorities' approvals, a farm or plant nursery must already be located on the land, and the commercial registration for the prospective company must include Ministry of Industry & Commerce activity (ISIC4 Code 011) “Crop Production and Plant Propagation”.

Issuance of expat work permits and identification of the number of permitted employees are subject to the Labor Market Regulatory Authority (LMRA) Law and executive regulations, and the Labor Law for the Private Sector. If the employer feels the number of employees is insufficient, they may request the LMRA to increase their allotted staff number, subject to approval.

There is no set amount for administrative fees, as each government agency has special provisions regarding its collection of fees and expenses either by law or according to the regulation decision. These fees are determined according to the submitted application type, fees may be subject to change or update by legislation.

No. According to Article 2 of the Labor Law in the Private Sector (Law No. 36 of 2012) and Article 2 of the Social Insurance Law (Law No. 21 of 2022), the owner’s children or any family members registered as company employees are not covered by the provisions of the Labor Law, and therefore not able to be registered at the Social Insurance Organization.

Yes, this is permitted by law and falls under the Limited Liability Company form of incorporation. Its provisions and regulations are regulated by the Commercial Companies Law and the Law's executive regulations. For more information, visit www.sijilat.bh.

Click here for additional laws and amendments

There is no maximum number of partners. For more information, visit www.sijilat.bh.

There is no minimum share price, and it can be of any capital value. For more information on the Ministry of Industry, Commerce and Tourism regulations regarding the establishment of limited liability companies, visit www.sijilat.bh.

If there is just one owner, a declaration of incorporation from the Ministry of Industry and Commerce is sufficient, but if there are several owners, the Memorandum of Association must be provided.

The type of the agricultural crops that are authorized to be cultivated in the Kingdom of Bahrain is subject to the law that concerns the types of crops that are permitted to be cultivated in the Kingdom of Bahrain. The cultivation of Khat or Marijuana is prohibited, and the law punishes anyone who violates this. Cultivation of alfalfa with high water needs is prohibited according to Resolution No. (2) of 2000 with an amendment regarding the prohibition of alfalfa cultivation.

Other forage crops that consume less water may be grown according to what is recommended by the competent authority from the Agriculture Affairs department within the Ministry of Municipalities Affairs and Agriculture, and what does not violate the stipulations under Law No. (15) of 2007 concerning Narcotics and Psychotropic Substances, especially Article (4) thereof and Resolution No. (39) of 2016 with an amending of Narcotics and Psychotropic Substances schedules attached to Law No. (15) of 2007 concerning Narcotic and Psychotropic Substances and its modifications.

The Department of Quarantine and Plant Protection under the Plant Wealth Directorate issues all mandatory pesticide standards and usage regulations. The application of pesticides must meet the required specifications and be approved by the Department of Quarantine and Plant Protection on the following criteria:

1. A pesticide analysis certificate from a specialized laboratory in the Kingdom of Bahrain, another GCC country, or a specialized international laboratory.
2. Approval on proposed pesticide storage from the Department of Civilian Defense.

For more information on the Pesticide Law, please click here.

If the purpose of testing plant samples in the protective laboratory is to diagnose disease, then the examination will be conducted free of charge. If a person wishes to conduct analysis of soil samples for any non-diagnostic purpose in the Agriculture and Marine Resources Agency’s Fertilizer and Soil Laboratory, a fee of 10 Bahraini Dinars (BD) will be applicable.

The Plant Wealth Directorate, in accordance with the GCC Unified Agricultural Quarantine Law, undertakes analysis of imported agricultural consignments (including vegetables and fruits) at customs ports to ensure that they are free of plant pests. In cases where symptoms of pest infection are noted, samples will be taken from the infected agricultural consignments at the port location to diagnose the infection and identify the pest. The shipment will not be released to maintain overall safety and non-contamination.

The Public Health Laboratories at the Ministry of Health conduct a variety of microbial and chemical tests to check the quality and safety of consignments of local and imported vegetables and fruits to ensure its safety and security for human consumption, in accordance with local, GCC, and international safety standards.

The National Centre for Farm Laboratories provides soil and water analyses that are necessary for the safety of the agricultural sector and the evaluation of sample quality, including electrical conductivity, pH tests, and estimation of calcium carbonate in soil, total dissolved salts, and pH in water.
This service is offered at a maximum of 10 Bahraini Dinars (BD). In the future, the laboratory intends to increase its list of available analyses.

There are numerous industries in the agricultural sector, including but not limited to:

• Food production from agricultural produce.
• Perfumes and medicines industries from aromatic and medicinal herbs.
• Fertilizers and plants nutrient solutions industries.
• Pesticides and other agricultural chemical products industries.

- The applicant must be 18 years or above.

- The ownership percentage by nationality is as follows:

Bahraini    : allowed up to 100% ownership.
GCC           : allowed up to 100% ownership.
American : allowed up to 100% ownership.
Singaporean, Swiss, Icelandic, Norwegian and Liechtenstein nationals: allowed up to 100% ownership.

More information available on www.sijilat.bh.

To check the activities:

• Click on “Public services”.
• Search in business activities.
• Keyword search: Agriculture
• Search for commercial activities by selecting your option.

Development projects in the Kingdom of Bahrain are subject to environmental impact assessment procedures in accordance with the categories outlined in Ministerial Resolution (No. 1) of 1998 concerning the environmental assessment of the project. Two categories of agricultural projects have been designated as requiring an Environmental Impact Assessment prior to obtaining a license. The two categories are:

Category (22): Projects and operations that may lead to a significant impact on the soil, such as pollution resulted from the leakage of some harmful elements or compounds from the waste into the soil or the resulting pollution from the excessive use of fertilizers and pesticides.

Category (23): Projects and operations that may lead to significant soil degradation or erosion (by water) or being dragged (by air) as the main projects of agriculture and the main engineering projects that may lead to a modification of the natural water flow.

Environmental Licensing procedures for agricultural projects involve:

• Filling an initial environmental impact assessment form for projects (EA-2).
• Registration of the application in the Environmental Licensing Section at the Supreme Council for Environment by e-mail to: licensing@sce.gov.bh, with a letter from the applicant (the project owner).

Export Bahrain is the official export platform of the Kingdom of Bahrain. It aims to give better solutions and services to export enterprises to meet their goals, stay up with global market demand, and prepare exporters to compete and succeed in the most challenging markets. For more information, contact:
Export Bahrain
Bahrain Financial Harbor, Harbor Gate, Fifth Floor, Manama - Kingdom of Bahrain
Phone: +973 1738 3999
Email: info@export.bh 
Website: www.export.bh

Yes, agricultural goods can be exported on the condition of having a valid commercial registration, an export license, and permission from the importing country that specifies the necessary certifications and licenses. The relevant Bahraini certifications and permits are issued by the Plant Wealth Directorate under the Agency for Agriculture and Marine Resources and the Food Control Department at the Ministry of Health and Customs Affairs Department.

An Agricultural Certificate must be obtained as part of the agricultural quarantine process for agricultural exports or re-exports from the Kingdom of Bahrain. It is issued after an examination of the consignment prior to export and is subject to the following costs:

The Customs Affairs Department in the Ministry of Interior is responsible for regulating imports and exports in the Kingdom of Bahrain.

For more information on import regulations, contact the Customs Affairs Department on the contact information shown in this guide (Chapter 3), or visit the website www.bahraincustoms.gov.bh.

Bahrain follows the Unified Customs Regulation Law for the Gulf Cooperation Council Countries and subsequent executive provisions. For more information on specific matters, contact the Customs Affairs Department or visit the website www.bahraincustoms.gov.bh.

The facility of “Import” and “Export” is already included within the approved activities for Commercial Registrations that contain “Sale or Trade” as their activity. In case the activity does not contain the “Sale or Trade” facility, the investor can submit an online application to add a separate activity to the existing Commercial Registration.

Documents required to complete import clearance procedures:

• Purchase invoice.
• Bill of lading (except for imports via land ports).

For more detailed information on documentary requirements for the import of agricultural goods, please review the Unified Customs Regulations of the Gulf Cooperation Council Countries and the executive provisions, available on the Custom Affairs Directorate websitewww.bahraincustoms.gov.bh.

Clearance Procedures:

 The authorized person must prepare the import customs declaration at the relevant ports and paying the prescribed customs duties.

Note:

• The Customs Affairs Directorate offers a complimentary service for Air Cargo shipments by preparing the customs declaration in the presence of the importer.
• It may sometimes be necessary to inspect and audit the goods to detect anomalies according to risk standards.

Additional actions:

After submitting the customs declaration using the eCAS system, the customs clearance procedures will be as follows:

• Pay customs duties at the cashier's office at the customs clearance point
• Submit all documents related to the imported goods to the customs officer at the port.
• Pay the relevant cargo handling fees and identify a delivery date for the goods at the operator’s office.
• The port operator will arrange container transport to the identified checkpoint.
• Customs will assess the goods risk and inspection can be carried out accordingly.
• Upon completion of these procedures, the goods will be cleared and allowed to leave the customs point.

The Standard International Trade Classification (SITC) is used to classify imported and exported goods. For additional information on import regulations, please read the Unified Customs Regulations for the Countries of the Gulf Cooperation Council and the executive provisions on the Customs Affairs website www.bahraincustoms.gov.bh.

Yes, the Kingdom of Bahrain benefits from many free trade agreements (FTAs). They are international bilateral agreements that eliminate trade barriers between nations, allowing foreign firms to be treated similarly to domestic firms and benefit from certain privileges.

With the expansion of its free trade agreements, the Kingdom of Bahrain has dramatically expanded its import and export rates, as its imports increased by 48.76% between 2013 and 2018.

• The Greater Arab Free Trade Agreement signatories include Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.
• GCC Free Trade Agreement grants national treatment to all GCC firms and citizens in any other GCC country.
• The European Free Trade Agreement with Bahrain includes all 27 EU member states as well as Iceland, Liechtenstein, Norway and Switzerland.
• The GCC-Singapore Federal Trade Agreement (GSFTA) allows GCC goods duty-free access to the Singaporean market. 
• Bahrain was the first Gulf Cooperation Council (GCC) member and third Arab country to enter into an FTA with the United States.

For more details about FTAs, you can visit the Bahrain Economic Development Board website: www.bahrainedb.com. 

The National Bureau for Revenue (established by Royal Decree No 45 in 2018) is responsible for supervising, controlling, and registering individuals and companies subject to the value added tax.

2018 also witnessed the launch of Law No 48 regarding Value-Added Tax (VAT) and its executive regulations that detail provisions applicable to individuals and businesses engaging in any economic activity. Different rules apply depending on whether the individual or company is resident or non-resident in the Kingdom of Bahrain. For more information, see Section 3.1 and 3.2 of the General Guide of the Added Value

It is recommended to obtain an import permit prior to contracting the shipment purchase. The aim of this is to clarify the conditions of entry for agricultural shipments for both importers and exporters in the country of origin, avoiding any delays or refusals of entry to the consignment upon arrival in the Kingdom of Bahrain in case of non-compliance with customs requirements.

If an import shipment is not preceded by the issuance of a valid permit, the importer will be required to sign an undertaking to complete the necessary procedures before the shipment is released at the port.

Currently, import permits are part of the electronic services available to importers.

Pesticide analysis certificates issued by the Agriculture and Marine Resources Agency are valid for one year, effective from the date of issuance. Within this period, shipments will be exempt from re-testing requirements if they originate from the same company and country of manufacture.

The agricultural quarantine unit analyzes agricultural consignments upon receipt of an analysis request from customs and upon the importer’s submission of all required documents to the agricultural quarantine inspector at the customs port.

Yes, the analyzing fee during the official working hours is  5 Bahraini Dinars and the out-of-hours analysis  fee is 15 Bahraini Dinars.

Note: The fees contained in this document are a guide, and actual amounts may be subject to variation by the administrative authority.  

Shipments are analyzed at the Agriculture Affairs headquarters in Budaiya or any other location that may be specified by the Ministry of Municipalities Affairs and Agriculture.

When importing or exporting any products, crops, or materials regulated by any of the below government agencies, it is necessary to seek relevant approvals from whichever agency has jurisdiction, namely:

• Ministry of Interior.
• Ministry of Municipal Affairs and Agriculture.
• Ministry of Health.
• The Supreme Council for Environment.

Yes, a foreign investor can invest in the agricultural sector in the Kingdom of Bahrain. The investor can benefit from 100% foreign ownership in most sectors, without the need for a local partner.
See section 2.3 for more details on company formation.

There are several investment opportunities, including activities relating to the production, import, or export of the following:

• Agricultural crops
• Agricultural inputs
• Agricultural equipment and machinery
• Meat, dairy and cheese

Innovation outside of these example areas is also welcomed, as long as it does not contradict any laws or provisions of the Kingdom of Bahrain.

Foreign investors are able to benefit from business opportunities in Bahrain that may not be available in the local markets in their countries, helping to diversify their investment portfolio abroad, and opening future international trade potential through Bahrain’s wide logistics and FTA networks.

The Kingdom of Bahrain has the most diversified economy in the Arabian Gulf region, where in 2018, the contribution of the non-oil sectors constituted more than 80% of its total GDP with continued year-on-year increases since 2018.

Bahrain also offers many facilities, easements, and support for trading business, in addition to a strategic geographic position and strong logistics relationships with other countries in the Middle East and the world.

The agricultural sector in the Kingdom of Bahrain is particularly diverse and strong with a lot of potential for development and innovation, making it an attractive investment opportunity for any prospective investor.

The National Initiative for Agricultural Development (NIAD) focuses on the conservation, enhancement, and development of the agricultural sector, to contribute to the Kingdom of Bahrain's social, environmental, and economic development. NIAD can assist in relevant matchmaking with appropriate contacts in the local agricultural market.

There is no minimum investment other than what the Ministry of Industry and Commerce may require, such as determining the capital upon business formation based on the business type and activities.

Bahrain does not have corporation tax, capital gains tax, income tax or other taxes commonly found in other countries. Value-Added Tax (VAT) was introduced on January 1, 2019 by Law No 48 of 2018, and applies to the domestic consumption, import and export of goods and services in the Kingdom of Bahrain.

The base rate of VAT in Bahrain is 10% (as amended by Law No 33 of 2021), although some exemptions on goods, services, and particular business activities that reduce the applicable VAT rate to either 5% or 0%.  Additionally, there are some other non-tax fees and levies applied by specialist agencies which a foreign investor may encounter during business activity in Bahrain. 

For more information, visit the National Bureau for Revenue website www.nbr.gov.bh.

Yes, a variety of private insurance services are available with licensed local, regional, and global insurance companies operating in the Kingdom of Bahrain. Foreign investors can contact insurance companies directly to acquire more information about the types of insurance offered and packages available depending on their needs.

An investor can seek out potential business partners and enter into any agreement or arrangement with them in any way that suits the parties and their business needs, under the provisions of law. Additionally, The National Initiative for Agricultural Development can help match parties and help the investor  find the right contacts in the local agricultural markets.

There are two ways to identify the lands that are allocated are for agricultural use:

1. The Government Land Investment Platform displays available plots of government owned lands and existing structures with zoning details clearly displayed to help potential investors make the right decision for their business idea. The properties are let through a public auction process facilitated by the Bahrain Tender Board.

For more information, visit the Government Land Investment Platform on www.investmentland.gov.bh.

2. In case you have the property or deed number of a certain land and want to check if it has been allocated are for agricultural use, the Urban Planning and Development Authority offers a land classification inquiry service that allows visitors to inquire about the classification of any property in the Kingdom of Bahrain by entering the property or deed number. Once the required information is entered, the land classification information is displayed on a map showing the location of the property using a geographical information systems (GIS) program.

Through this service, the following information can be found:

• Land Classification
• Block Number
• Area
• Governorate
• Permissible Built-Up Percentage
• Permitted Floors
• Front Setback
• Rear Setback
• Side Setback

For more information, visit the Urban Planning and Development Authority website www.upda.gov.bh

Yes, the government and official agencies do provide assistance towards the development of the agricultural sector. The sort of support is determined by their authority and competencies. The application submission is subject to the conditions of these parties.

• Family Microfinance House

Entrepreneurs may apply for financing from the bank even if they have a foreign partner, as long as they submit the minutes of the Board of Directors meeting indicating the board's approval to apply for financing from the bank, and the financing will be under the name of the Bahraini partner, not the name of the project.

• Ebdaa Bank

In the case of a foreign partner, project owners are entitled to request for financing from the bank, provided that a third Bahraini co-guarantor exists. For additional information, please visit the website www.ebdaabrain.com.

• Bahrain Development Bank

There are several agricultural financing opportunities. Individual agricultural financing (granted to a person without a CR) is only available to Bahraini citizens and is subject to BDB’s project evaluation processes. If the applicant for agricultural finance is a company owned by a Bahraini and a foreigner, the bank will consider the application according to their internal financing terms and conditions, which will include a credit check and profitability assessment by the Bahrain Development Bank.

Note: The terms and conditions for all agricultural loans, whether individual or commercial entity, are subject to change at any time.

For more information, you can visit the website: www.bdb-bh.com.

• Labor Fund (Tamkeen)

The Labor Fund (Tamkeen) provides financial support for the development of Bahraini agricultural projects through establishment and individual specific programs.

While Tamkeen supports Bahraini individuals only, Bahrain-based enterprises holding an active CR and who are licensed by authorized entities like Ministry of Industry and Commerce, Information & eGovernment Authority, and National Health Regulatory Authority may also benefit from the support provided by Tamkeen. 

For more information about Tamkeen's programs and support, please visit the website www.tamkeen.bh. You can also view additional information related to the agricultural sector through our sector profile report on Agriculture – Tamkeen.

All legislations in the Kingdom of Bahrain are available on the Legislation and Legal Opinion Commission’s official website www.lloc.gov.bh and selected, investment related legislations are available on the Economic Development Board www.bahrainedb.com. Some, but not all, of those legislations are available in English.

Note: see Chapter Two of this guide for a list of the most important legislation related to the agricultural sector in Bahrain.

These disputes are subject to the provisions of the Articles of Association and what is applicable in the Kingdom of Bahrain. In the event of a dispute arising in Bahrain, the jurisdiction is the courts and judicial system of the Kingdom of Bahrain unless otherwise specified by contract or other constitutional documents.

The general origin is the validity and application of the national legislation in force in the Kingdom of Bahrain on the civil and commercial disputes that may arise in the territory of the Kingdom of Bahrain under the centers and legal relations between the disputing parties and are to be considered before the Bahraini judiciary in accordance with the stipulations under the Civil and Commercial Pleading Law No. (12) of 1971 and its amendments, especially  Article (5), (22) of the law, unless there are reasons and support for the application of a specific foreign law or the selection of international trade law and its customs depending on the nature of the contract and contracting. It is also required that there is no impediment to the application of foreign law stipulated under Bahraini law in a manner that does not conflict with public order and on condition that the disputed parties must provide the applicable foreign law provisions or the judge is permitted, when not providing them, to consider Bahraini law as the applicable foreign law and he shall be judged accordingly, and this is what is stipulated in Law No. (6) of 2015 regarding conflict of laws in civil and commercial matters of a foreign person, and here it is the applicable national law.