Bahrain has awarded its first golden licences to five projects with a cumulative investment of more than $1.4 billion as the Arabian Gulf’s smallest oil producer aims to attract more investment into its economy to boost growth.
The licences were granted to projects presented by Citi, Eagle Hills Diyar, Infracorp, Saudi Telecom and the Whampoa Group, the Bahrain Economic Development Board (Bahrain EDB) said.
The greenfield projects and expansions are expected to create more than 1,400 jobs in the next three years to support the kingdom’s economic recovery plan launched in 2021.
“The golden licence is a pivotal step towards successfully achieving the objectives of Bahrain’s Economic Recovery Plan, which aims to attract $2.5 billion in foreign investment by the end of 2023,” said Abdulla Fakhro, Bahrain’s Minister of Industry and Commerce.
“Bahrain possesses an attractive and flexible investment environment, in addition to its advanced legislative system, which contributes to making this country one of the best investment destinations globally.”
Bahrain launched the golden licence initiative in April this year. It aims to enhance the Gulf country’s competitiveness for investment and economic growth, as well as support the digital transformation of its economy.
Companies eligible to obtain the licence must create more than 500 local jobs or make an investment of more than $50 million in the kingdom while contributing to strengthening the kingdom’s overall development.
The initiative offers various benefits, including prioritising the allocation of land for investors, infrastructure services and utilities.
The companies will also have easy access to government services, including business licensing and building permit approval, as well as support from Bahrain’s Labour Fund, Tamkeen and Bahrain Development Bank, Bahrain EDB said.
Other advantages include integrated co-operation with various government departments, a designated account manager from Bahrain EDB and a potential review of existing laws or regulations where necessary and applicable.
“The golden licence is a successful public-private partnership that has created bespoke solutions for investors and start-up companies,” Bahrain EDB chief executive Khalid Humaidan said.
“It has provided them with fast-tracked approvals and several features and facilities that have enabled them to secure a global footprint from Bahrain.”
Bahrain's economy grew by 4.9 per cent last year, the highest rate since 2013, underpinned by a robust performance in the country's non-oil sectors that are the target of its economic reform plan.
The country’s growth was led by a 6.2 per cent jump in non-oil real gross domestic product. It was the highest rate since 2012 and more than the 5 per cent annual target set out by the economic reform plan.
THURSDAY'S FIXTURES
4pm Maratha Arabians v Northern Warriors
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The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
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- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
