A new set of Cabinet decisions reflects the government’s firm commitment to strengthening Bahrain’s financial position while ensuring the continuity of support for citizens, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa said yesterday.
Speaking during a high-level Press conference, Shaikh Salman said the approved initiatives form part of a balanced reform agenda aimed at safeguarding economic stability, diversifying income sources and protecting national employment.
“These decisions demonstrate the government’s determination to develop the fiscal framework and secure sustainable public finances, while continuing to prioritise citizens’ welfare,” he said.
Shaikh Salman confirmed that government-owned companies will increase their contributions to the state’s general budget, reinforcing non-oil revenue streams.
The minister revealed that the Cabinet has approved the referral of a draft law to the legislative authority proposing a 10 per cent levy on corporate profits, applicable to local companies whose annual revenues exceed BD1 million or whose net profits surpass BD200,000.
“The levy will apply only to profits above BD200,000, while profits up to that threshold will remain fully exempt,” Shaikh Salman stressed.
He said the measure, targeted for implementation in 2027 subject to parliamentary approval, is designed to enhance revenue diversification without harming national employment.
“In order to avoid any negative impact on Bahraini jobs, key sectors linked to national employment have been taken into account, with incentives introduced to encourage greater hiring of Bahraini workers,” he added.
Shaikh Salman also announced that a draft law to increase excise tax on carbonated drinks will be referred to the legislative authority, in line with agreed frameworks.
“This initiative aims to promote healthier consumption patterns, limit the use of harmful products and improve public health outcomes,” he said.
He noted that the measure is expected to encourage producers to offer healthier alternatives and support the efficient use of healthcare resources by reducing long-term health risks.
Cabinet Affairs Minister Hamad Al Malki reaffirmed the government’s commitment to enhancing Bahrain’s position as a preferred investment destination, highlighting ongoing efforts to simplify and improve government procedures.
He said initiatives include facilitating investment-supporting services, increasing their effectiveness in attracting foreign investment and strengthening the role of the private sector.
“This comes as part of the broader government programme to re-engineer and modernise procedures,” Mr Al Malki said.
He revealed that more than 1,300 government services have been documented, translated and published, while 800 services have been re-engineered and developed to date, with continuous monitoring of service performance for both citizens and investors.
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