Block 338, often referred to as Adliya but more accurately located in Qudaibiya, has long been viewed as one of Bahrain's most popular districts. The area, situated in the north-east of the island, is home to an abundance of bars and restaurants, and its combination of pedestrianised streets, al fresco dining spots and vibrant atmosphere can be viewed as an antidote to the high-rise hotels found elsewhere in the country.
Yet, while the area once hosted a range of artistic hangouts, street festivals and small local joints, these have increasingly been replaced by expensive, upmarket restaurants and branches of big-name chains that some of the area's stalwart business-owners believe threaten the district's future.
With rising rents and the financial impact of the pandemic to deal with, how are businesses adapting to changing times, and what's next for a destination many see as Bahrain's cultural heart?
The National talks to some of the area's key players to find out about Block 338's past, present and future.
A history of Block 338: from sleepy town to buzzing district
Formerly a sleepy residential area, Block 338 has seen astonishing growth since the 1990s. Abdulkarim Fashoori, owner of La Ventana, one of the area's most distinctive cafes, remembers the early days well.
"We opened back in 1996. The original La Ventana was one of the few restaurants in Block 338 at the time," he recalls. "People told me that opening a restaurant in the area was foolish. They said, 'Who will come here?' But look at it now."
Ahmed Almoayyed, co-owner of Japanese restaurant Mirai and chairman of a new steering committee for Adliya, was also around during the area's growth period. "From 2000 onwards, things started to move quite quickly and many other restaurants and cafes opened," he says. "The area also started to diversify later with the opening of Al Riwaq Art Space, which positioned it as a cultural and artistic hub."
Al Riwaq was a multipurpose creative hub that once flourished in the centre of the district, providing gallery and exhibition areas for local and regional artists, as well as curating the popular Nest street festival. But it was forced to close its doors in 2017 because of steeply rising rents.
Hasan Hujairi, a former assistant curator of the gallery, remembers its heyday. “We started Riwaq in 1998,” he says. “The area was residential then. It was poorer and the roads were unpaved. It was just a small villa at the time, but later this was replaced by the white cube building you see today.”
The area continued to grow throughout the early 2000s, with the arrival of large, new-build restaurants such as The Meat Co and Calexico.
Its relaxed licensing laws attracted a wide range of patrons, while its proximity to street level – in contrast to the high rises of nearby Juffair – gave the area a buzzing, neighbourhood feel that was unique in Bahrain.
The effects of the Covid-19 pandemic
When the pandemic hit in March last year, business-owners who had previously seen their restaurants booming found customer numbers dwindling.
Bahrain's hospitality sector faced a raft of shifting restrictions designed to keep the public safe from Covid-19. Indoor dining was prohibited, a two-metre social-distancing rule between tables was enforced, temperature checks were introduced and restaurant staff have to wear masks and visors.
Although necessary, these restrictions have affected the industry.
The government in Bahrain has been incredibly proactive with support for the sector. Like most businesses during this pandemic, the issue is more about survival than profitability
Many venues suddenly became totally reliant on takeaway, something Fashoori is critical of. "The delivery apps charge a lot and sometimes payment is delayed. I don't want to work for them, so we refused to join them.
"Covid has affected the area a lot, especially those without outside areas," he says. "Staff have been laid off everywhere. We take a lot of precautions, but people are still hesitant. It'll take time before they come back again, perhaps another year before it gets back to how it was before. We're not earning as much and rent is costly. Water is costly. Municipality fees are costly."
Almoayyed sees the Bahraini government’s intervention during the pandemic as crucial to the survival of Adliya’s businesses. “The government in Bahrain has been incredibly proactive with support for the sector through Tamkeen [a semi-autonomous government agency] schemes that offer financial support,” he says.
“Like most businesses during this pandemic, the issue is more about survival than profitability. Most restaurants have had to terminate staff and/or reduce salaries in order to keep afloat. Rents have been renegotiated. It has undoubtedly been a hugely difficult time, but the businesses that have survived until now have mostly learnt invaluable lessons that will put them in good stead.”
Restrictions are set to further ease after Eid Al Fitr, when only those who have been vaccinated or have recovered from Covid-19 will once again be allowed to dine indoors.
Gentrification and congestion
For many, Covid-19 has only exacerbated existing problems in the district. Compounding the financial devastation of the pandemic is the fact that rents have skyrocketed over the past decade, and many small businesses and artistic hangouts have been forced to vacate the area because of its increasing gentrification.
“You could say that Riwaq helped start the gentrification of the area, but was also a victim of it,” says Hujairi. “When the lease renewal came up the rent was raised to about five times the original rate. There was no choice but to move.”
Steve Enderby, former general manager of Calexico, who plans to return to the industry soon, has also noticed a difference in the neighbourhood over the past few years. “Some businesses have gone; some are limping along. The rents continue to increase, but the ability to generate profit doesn’t.
“Restaurants end up fighting over the same set of customers and, because competition is so fierce, few financial backers are willing to take risks. The more the stakes are raised in terms of required investment, the less people will take a chance on something different. The area starts to lose its personality.”
Almoayyed agrees with some of these criticisms, but notes the reasoning behind these changes. “Historically, the rents in Adliya were very low due to the law which governed them in the Manama and Muharraq areas in Bahrain. This ended around 2018, when the new law became effective and landlords could start to charge much more.
"Many landlords chose to demolish the existing houses on their land to build bigger structures to rent out. With this, some of the old character and charm started to be eroded.”
Another problem frequently cited by the area’s business-owners is access. Heavy traffic is a common sight, and limited parking means people often have to circle the area until space becomes available.
“Lots of my clients and friends want to come here but it takes one-and-a-half hours to reach, so they go somewhere else,” says Fashoori.
“There isn’t enough access for cars. Sometimes on the weekend the traffic queues reach around the block and aren’t moving."
Potential solutions for the future
The area’s stakeholders have different viewpoints about potential solutions for these problems. Fashoori believes all the pedestrian areas should be opened up to road traffic, easing congestion in the area, while Enderby believes removing vehicles from the area altogether is the answer.
“It could be a grand experiment in pedestrianisation,” he says. “Make the whole main drag off-limits to cars. There should be street markets giving the whole area a lively atmosphere.”
The new Adliya 338 steering committee, spearheaded by the Bahrain Tourism and Exhibitions Authority, was first announced in March and consists of 12 local stakeholders, with Almoayyed as chairman. Together, they aim to deal with the issues faced in the district, as well as develop the area and build on its successes.
“One of the goals of the new committee is to ensure the area maintains and builds on its historic character by setting up and enforcing guidelines to govern the area,” he explains.
“There will be a concerted effort to ensure the area develops a healthy mix of different types of businesses, not just restaurants. So, art galleries, boutique retail shops and start-up businesses will be given the opportunity and encouraged to set up in the area.”
While at the moment details on how exactly this will be done are sparse, budget proposals are scheduled to be submitted soon for consideration by the BTEA.
Almoayyed says: "The future looks very bright for 338 and I'm sure we will see many positive changes on the ground in the coming months."
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
KLOPP%20AT%20LIVERPOOL
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Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
11 cabbie-recommended restaurants and dishes to try in Abu Dhabi
Iqbal Restaurant behind Wendy’s on Hamdan Street for the chicken karahi (Dh14)
Pathemari in Navy Gate for prawn biryani (from Dh12 to Dh35)
Abu Al Nasar near Abu Dhabi Mall, for biryani (from Dh12 to Dh20)
Bonna Annee at Navy Gate for Ethiopian food (the Bonna Annee special costs Dh42 and comes with a mix of six house stews – key wet, minchet abesh, kekel, meser be sega, tibs fir fir and shiro).
Al Habasha in Tanker Mai for Ethiopian food (tibs, a hearty stew with meat, is a popular dish; here it costs Dh36.75 for lamb and beef versions)
Himalayan Restaurant in Mussaffa for Nepalese (the momos and chowmein noodles are best-selling items, and go for between Dh14 and Dh20)
Makalu in Mussaffa for Nepalese (get the chicken curry or chicken fry for Dh11)
Al Shaheen Cafeteria near Guardian Towers for a quick morning bite, especially the egg sandwich in paratha (Dh3.50)
Pinky Food Restaurant in Tanker Mai for tilapia
Tasty Zone for Nepalese-style noodles (Dh15)
Ibrahimi for Pakistani food (a quarter chicken tikka with roti costs Dh16)
The%20specs
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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
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
BMW%20M4%20Competition
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.0%20twin-turbo%20inline%20six-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20eight-speed%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E503hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20600Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20from%20Dh617%2C600%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%0D%3C%2Fp%3E%0A
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
MATCH INFO
Liverpool 4 (Salah (pen 4, 33', & pen 88', Van Dijk (20')
Leeds United 3 (Harrison 12', Bamford 30', Klich 66')
Man of the match Mohamed Salah (Liverpool)
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
RESULTS
5pm: Maiden (PA) Dh80,000 1,600m
Winner: Raghida, Szczepan Mazur (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Maiden (PA) Dh80,000 1,600m
Winner: AF Alareeq, Connor Beasley, Ahmed Al Mehairbi
6pm: Arabian Triple Crown Round-2 Group 3 (PA) Dh300,000 2,200m
Winner: Basmah, Fabrice Veron, Eric Lemartinel
6.30pm: Liwa Oasis Group 2 (PA) Dh300,000 1,400m
Winner: AF Alwajel, Tadhg O’Shea, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m
Winner: SS Jalmod, Richard Mullen, Satish Seemar
7.30pm: Handicap (TB) Dh100,000 1,600m
Winner: Trolius, Ryan Powell, Simon Crisford
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
MATCH INFO
Rajasthan Royals 158-8 (20 ovs)
Kings XI Punjab 143/7 (20 ovs)
Rajasthan Royals won by 15 runs
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
ASIAN%20RUGBY%20CHAMPIONSHIP%202024
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Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am