Bahrain Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bahrain, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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eCommerce
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Assessment of Current Buyer Behavior in Market

E-commerce is rapidly expanding in Bahrain. Bahrain’s large youth demographics and extensive internet penetration rate have led to a sizable amount of online shopping. Widespread smart phone and tablet usage has made social media applications such as WhatsApp, YouTube, Facebook, and Instagram popular platforms for advertising retail, delivery, and other commercial services.

Local eCommerce Sales Rules & Regulations

Bahrain’s National e-Government Strategy 2020 focuses on advancing the living standards of Bahraini nationals and reducing public sector expenditures by expanding online government services. The Bahraini government has moved rapidly toward a digital economy and has recently passed regulations to boost e-commerce. The Electronic Communications and Transactions Law and the Personal Data Protection Law, both enacted in 2018, updated Bahrain’s legal framework to protect personal data and electronic records and govern their use for completing transactions in a digital marketplace. Under these laws, electronic signatures are generally considered valid and binding, but Bahraini authorities have yet to register any accredited certification service providers. Therefore, documents signed electronically will not automatically benefit from the presumption of authenticity and cannot be considered legally equivalent to handwritten signatures unless contractual parties to a transaction expressly consent to use and acce

Bahrain’s Information and eGovernment Authority (IGA) enhances the services provided by the government to citizens, foreigners, and investors and the government’s digital strategy focuses on eight pillars: increased participation and engagement; increased partnerships and private sector ICT readiness; improved national e-literacy and government IT skills; heightened protection of information and user rights; a higher-performing, collaborative, integrated, and efficient government; comprehensive and effectively managed quality service; enhanced e-government channels and user experience with increased service uptake; and greater innovation and entrepreneurship.

In 2021, the Bahraini government enacted new legislation to regulate the e-commerce sector by requiring businesses with an online sales presence to apply for and receive an approved commercial registration. MOIC permits 100 percent foreign ownership of businesses that conduct online sales activities in Bahrain.

Local eCommerce Business Service Provider Ecosystem

The ICT sector constitutes a major pillar of Bahrain’s economy. This sector is integral to the Economic Development Board’s efforts to attract FDI and expand local employment opportunities. Recent years have seen a significant expansion in the ICT landscape as well as a push toward cutting-edge technologies utilizing FinTech.

Groceries and other homemade food items are increasingly purchased online, and shoppers commonly purchase physical products via the Internet as well, particularly apparel, beauty products, jewelry, electronics, computers, and home appliances. Online food delivery services are also growing in popularity and present promising market opportunities. Amazon and eBay are among the most popular shopping destinations for online consumers in Bahrain and across the GCC.

The Bahraini government has launched several initiatives to grow Bahrain’s e-commerce domain. Start Up Bahrain (www.startupbahrain.com) provides an electronic ecosystem to nurture innovative digital startups while www.mall.bh allowed small and medium sized enterprises to transition their sales position from traditional brick and mortar locations to an online portal during the coronavirus pandemic. In a push to use these technological openings, MOIC operates an electronic governance program and a directorate for electronic commerce to promote e-commerce services. Local banks offer electronic banking, and many utility companies now accept electronic transactions for bill payments.

The BENEFIT Company (Bahrain’s Electronic Network for Financial Transactions) is the national gateway which handles payments or electronic money transfers in Bahrain and is the backbone of the country’s financial services industry. It is licensed by the Central Bank of Bahrain as a provider of ancillary services to the financial sector. Services include managing the national ATM switch system and switching local debit card transactions at the point of sale, as well as operating Bahrain’s credit reference bureau, internet banking shared platform, direct debit, payments gateway, check clearinghouse, and dispute management systems.

By the mid-2000s and due to the increased demand for online payment facilities in Bahrain, the BENEFIT Company and ACI Worldwide created a national payments gateway that enabled members to process online transactions made with all locally issued debit cards, as well as VISA, MasterCard, Amex, and JCB credit cards.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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