Bahrain Rolls Out New Support Measures for Citizens Starting 2026

Bahrain is heading into 2026 with a clear message: support for citizens stays front and center.

During a weekly Cabinet meeting chaired by Crown Prince Salman bin Hamad Al Khalifa, the government confirmed a series of measures aimed at easing costs for citizens while reshaping how the country manages spending and revenue in the coming years.

Here’s the breakdown — minus the policy jargon.

No Change to Basic Electricity and Water Bills

Good news for households:
The Cabinet confirmed that electricity and water tariffs for the first and second consumption bands will remain unchanged for citizens living in their primary homes.

Any changes to support mechanisms for these services have been postponed for further study, meaning no sudden surprises in 2026 for basic utilities.

Financial Moves Rolling Out From 2026

The government approved several financial steps designed to keep support going while strengthening public finances.

Key highlights include:

• 20% cut in administrative expenses across government entities, without affecting service quality

• Higher contributions from government-owned companies to the state budget

• New sewer service fee starting January 2026, set at 20% of water consumption, excluding citizens’ primary residences

New Fees and Taxes — What’s Coming Next

Some measures won’t hit immediately but are already on the roadmap:

• A proposed 10% tax on local company profits above BD 200,000, planned for 2027, pending legislative approval

• Proposed higher excise taxes on soft drinks

• A monthly fee on undeveloped investment land starting January 2027

• Gradual changes to natural gas pricing for factories and companies from January 2026

• A review of labour and health fees for expatriates, rolled out over four years to support Bahraini employment

Bigger Picture: Balancing Support and Growth

The Cabinet also confirmed plans to:

• Keep current utility tariffs for citizens’ main homes

• Revise tariffs for other categories from January 2026

• Streamline government processes to attract foreign investment and boost the private sector

As 2026 approaches, the focus is clear: protect citizens from rising living costs while preparing the economy for long-term sustainability.