عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Trade with Saudi Arabia Accounts for 45% of All Bahrain-GCC Trade

Bahrain inaugurates first electric car charging station (Asharq Al-Awsat)
Bahrain inaugurates first electric car charging station (Asharq Al-Awsat)
    Riyadh, Manama - Fatehalrahman Youssef, Asharq Al-Awsat
TT
20
TT

Trade with Saudi Arabia Accounts for 45% of All Bahrain-GCC Trade

Bahrain inaugurates first electric car charging station (Asharq Al-Awsat)
Bahrain inaugurates first electric car charging station (Asharq Al-Awsat)

Figures released by Bahrain’s e-Government and Information Authority reaffirmed that trade with Saudi Arabia grew in Q1 2021, amounted to $789 million and accounted for almost half of all the kingdom’s trade with Gulf Cooperation Council (GCC) member states.

Flow of trade between Manama and Riyadh depends largely on the King Fahd Causeway, where the adoption of new technology in the field of logistics services accelerated processing for the business of multinational companies based in Bahrain.

“Bahrain is moving forward with strengthening its cooperation with Saudi Arabia,” Executive Director of Bahrain’s Economic Development Board (EDB) Ali Al Mudaifa told Asharq Al-Awsat.

Mudaifa reaffirmed that bilateral trade relations with Saudi Arabia continue to grow stronger and that there are a number of factors which contributed to the increase in the volume of trade, including the low business costs and strong interdependence.

“It is great to see the endeavors of Bahrain and Saudi Arabia in finding innovative solutions to maintain the continuity of business flow between the two countries,” he said, noting that it now takes a mere 40-minute drive to get from one kingdom to another.

Moreover, trade between Bahrain and the rest of the GCC members rose 6% year-on-year to $1.76 billion during the first quarter of 2021, according to the latest official figures.

Trade between the UAE and Bahrain in the first three months of this year saw a 15% boost and amounted to $639 million.

Trade between Oman and Bahrain increased by 27% to $230 million in the same period. Oman was followed by Kuwait, which recorded $98 million in bilateral trade in Q1 2021.

In other news, Bahrain’s Electricity and Water Minister Wael bin Nasser Al Mubarak and Electricity and Water Authority (EWA)’s CEO Shaikh Nawaf bin Ibrahim Al Khalifa inaugurated the first electric cars charging station in the Atrium Mall in Saar, west of the capital, Manama.

It is worth noting that this comes within the framework of achieving Bahrain Economic Vision 2030.

EWA’s CEO said that the electric car charger was installed by “Siemens” one of the specialized companies in this field, and it supports most types of electric cars.

He explained that this station will be the first among a number of additional stations that will be opened in the future in various regions of the Kingdom. A study of data usage and feedback will be conducted so that the development process will be continuous in the new stations.

Most Viewed

 
Business

Saudi VAT Refund Scheme Poised to Boost Tourism and Retail Spending

A passenger completing travel procedures at King Khalid International Airport in Riyadh (Asharq Al-Awsat)
A passenger completing travel procedures at King Khalid International Airport in Riyadh (Asharq Al-Awsat)
TT
20
TT

Saudi VAT Refund Scheme Poised to Boost Tourism and Retail Spending

A passenger completing travel procedures at King Khalid International Airport in Riyadh (Asharq Al-Awsat)
A passenger completing travel procedures at King Khalid International Airport in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s recent decision to allow foreign tourists to reclaim value-added tax (VAT) on eligible purchases is expected to significantly enhance the Kingdom’s appeal as a global tourist destination, while giving a strong boost to retail and non-oil economic sectors.

The policy follows amendments to the executive regulations of the VAT law, approved by the Board of Directors of the Zakat, Tax, and Customs Authority. Effective April 18, international visitors are now eligible to reclaim the 15% VAT on goods purchased in Saudi Arabia, provided the items are for personal use and not consumed within the country. Refunds can be processed at departure points through designated service providers.

The move comes amid Saudi Arabia’s continued efforts to diversify its economy under Vision 2030. The Kingdom recorded more than 30 million foreign visitors in 2024, and international tourist spending reached a record SAR154 billion (USD41 billion), a 14% increase compared to the previous year.

Tax expert Ali Al-Nasser told Asharq Al-Awsat that the VAT refund initiative marks a pivotal step toward positioning Saudi Arabia as a competitive tourism hub. “Lowering the effective cost of shopping by 15% creates a powerful incentive for visitors to spend more. This will not only stimulate retail activity but also encourage businesses to improve services and tailor promotions to tourists,” he said.

Al-Nasser advised tourists to keep tax invoices from participating retailers and ensure purchases are unused before departure. Refunds do not apply to services such as accommodation, food and beverages, tobacco products, or vehicle purchases. He also emphasized that refunds must be requested at the point of exit through officially approved channels.

Experts anticipate that the new system will lead to a 15-20% rise in tourist arrivals in the coming years, driven by the added value and improved visitor experience. Al-Nasser also expects a 10-15% increase in average spending per tourist, especially as awareness of the refund system grows.

Mohammed Al-Abdulkarim, a tourism expert, called the VAT refund scheme a “strategic step” that aligns with Saudi Arabia’s tourism ambitions. “Allowing tax refunds makes Saudi Arabia more competitive with other global destinations, particularly for shopping tourism,” he said. “It enhances visitor satisfaction and encourages both longer stays and repeat visits.”

Al-Abdulkarim urged tourists to retain receipts and provide passport information at the point of sale. He added that refunds can be issued either in cash or via electronic payment at the airport before departure.

Beyond tourism, the VAT refund program is expected to have a broader economic impact. Increased tourist spending will benefit retail outlets, while related sectors such as transport and hospitality are likely to see indirect gains.