Bahrain New Rules: Big decision of Bahrain government, electricity and water will be expensive and fees for expatriates will increase.

The Bahrain government has introduced its largest financial and tax package ever to strengthen the country’s economy and reduce debt. The objective of this new plan is to reduce dependence on oil and find new means of earning. These changes will have a direct impact on the pockets of expatriates, companies and common citizens living there.

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Major changes in taxes and fees

The government has introduced several new duties and taxes to increase non-oil revenues. This includes increases in fees related to electricity, water and foreign workers. The table below details all the key changes:

New investment and visa opportunities

To bring the economy back on track, Bahrain has made a recovery plan for 2025-2026. Under this, ‘Bahrain Golden Residency Visa’ has been started to attract foreign investors and skilled professionals. With this, investors will now be able to get permanent residence in Bahrain, which will benefit Indians and other expatriates doing business there.

Metro and airport expansion

Bahrain is spending heavily on infrastructure under its ‘Vision 2030’. The government has completed the expansion of the airport at a cost of $1.1 billion. In addition, a metro network is being built at a cost of $2 billion, with two lines expected to be operational by 2027.

Budget and Social Assistance

In the new budget presented in April 2026, emphasis has been laid on social development. The government has decided to continue dearness allowance for pensioners. Additionally, 800 million dinars have been provisioned for housing projects and 688 million dinars for health services.

Challenges and debt pressure

Despite these reforms, Bahrain faces a major debt challenge. By December 2025, the country’s public debt was expected to reach approximately $50 billion. The International Monetary Fund (IMF) has advised the government that tax reform and subsidy cuts are necessary for financial stability.