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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Trade Financing
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Methods of Payment

The most common method of ensuring payment to exporters is via letter of credit (L/C). The L/C should conform to international guidelines established by the International Chamber of Commerce (ICC), as published in the Uniform Customs and Practice for Documentary Credits (UCP). L/Cs offer certain advantages to the seller, namely they make payment dependent on the creditworthiness of the opening (issuing) bank rather than the buyer. For the buyer, an L/C helps ensure all the seller’s documents are correct before payment is made. Other possible methods of international commercial payments include cash, open credit, and documentary credit sales.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

Banking Systems

The banking sector in Bahrain includes both conventional and Islamic lenders and there is some crossover between the two as reflected by recent mergers and equity purchases.

Bahrain is one of the primary financial hubs in the Middle East, though it faces steep competition from Dubai. International financial institutions operate in Bahrain without impediments. The Central Bank of Bahrain regulates the banking and insurance sectors. Legal, regulatory, and accounting systems in the financial sector (onshore and offshore) are transparent and consistent with international norms. Bahrain is also home to Bahrain Fintech Bay (BFB), a dedicated ecosystem builder aimed at scaling FinTech initiatives. BFB partners with governmental bodies, financial institutions, corporates, consultancy firms, universities, associations, venture capital, and FinTech start-ups.

Foreign Exchange Controls

The Bahraini Dinar (BD) is fully convertible and is pegged to the U.S. dollar (BD 1 = USD $2.66). There are no foreign exchange controls or restrictions on the repatriation of capital from Bahrain.

U.S. Banks and Local Correspondent Banks

U.S. banks operating in Bahrain include:

  • American Express, which maintains its Middle East Headquarters in Bahrain:
    AMEX
    Al Moayyed Tower, Floor 14, 15, 16 and 17
    Gate 2504 Road 2832 Al Seef District 428
    P.O. Box 5990 Manama, Kingdom of Bahrain
    Tel: +973-1755-7777, +973-1755-7755

 

  • Citibank, which operates as a full commercial bank, offshore banking unit, representative office, and as an Islamic-banking subsidiary:
    Citibank
    P.O. Box 548 Manama, Kingdom of Bahrain
    Tel: +973-1758-8588, Fax: +973-1758-8595
     

  • J.P. Morgan Chase, which operates as an offshore bank
    J.P. Morgan Chase
    P.O. Box 368 Manama
    Kingdom of Bahrain
    Tel: +973-1753-5388, Fax: +973-1753-5135

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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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