Bahrain - The government has introduced a new resolution that exempts industrial inputs from customs duties under specific conditions.

The measure, announced by Industry and Commerce Minister Abdulla bin Adel Fakhro, is a strategic step aimed at boosting national industries and developing local content.

In a statement, Mr Fakhro highlighted the government’s strong support for the manufacturing sector, calling it a pillar of the national economy.

He emphasised the importance of localising industries and replacing imports with high-quality domestic products to enhance competitiveness, achieve self-sufficiency, and drive sustainable development.

The resolution, Decision No. (63) of 2025, sets specific criteria for industrial firms to qualify for the customs exemption.

An exemption will be granted if the inputs are not produced or available in Bahrain, or if local products do not meet the industrial company’s required standards.

The exemption also applies if local inputs cannot be supplied in a timely manner or if their cost is more than 10 per cent higher than imported alternatives.

Mr Fakhro said the new measures are designed to increase the competitiveness of the industrial sector, boost in-country value, and ensure the sustainability of supply chains.

He noted that the policy aligns with the Industrial Sector Strategy (2022-2026) and supports Bahrain’s Economic Vision 2030, by helping Bahraini manufacturers improve production efficiency and strengthen the country’s position as a regional and international industrial hub.

The GDN has reported in the past about a range of initiatives aimed at bolstering the manufacturing sector and reducing reliance on foreign goods.

A key measure is the Takamul programme, which gives preference in government tenders to companies that increase their local spending and employment of Bahraini nationals.

Additionally, the ‘Made in Bahrain’ trademark promotes products with at least 35 per cent local content, while other programmes like the ‘Green Factory Seal’ and ‘iFactories’ encourage sustainability and technological advancement within the manufacturing sector.

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