His Royal Highness
Prince Salman bin Hamad Al Khalifa

HRH the Crown Prince and Prime Minister chairs the weekly Cabinet Meeting

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, today chaired the weekly Cabinet Meeting at Gudaibiya Palace.

The Cabinet commended the outcomes of the national virtual exercise “Azm Al Watan 1”, the conclusion of which was witnessed by His Majesty King Hamad bin Isa Al Khalifa, the Supreme Commander of the Armed Forces.

Reflecting on his recent visit to the Muharraq Nights Festival, His Royal Highness expressed sincere appreciation to the residents of Muharraq, commending their hospitality and warm welcome to visitors from within Bahrain and abroad.

The Cabinet also commended the events included within the Celebrate Bahrain season, which along with the Muharraq Nights Festival, includes Hawa Al Manama and the Heritage Village, highlighting the high standard of organisation and the efforts of the relevant authorities.

On the occasion of the upcoming New Year, the Cabinet extended its best wishes to the Kingdom of Bahrain and its people for their continued progress and prosperity.

The Cabinet also wished all students in Bahrain success in their first semester examinations for the 2025–2026 academic year.

In cooperation with the Legislative Branch, the Cabinet decided to maintain electricity and water tariffs for the first and second consumption tiers for citizens’ primary residences, and to postpone any changes on the mechanisms of electricity and water subsidies for citizens’ primary residences until further study is conducted.

The Cabinet then approved several initiatives to adjust the Kingdom’s financial position in support of its citizens, as follows:

1.⁠ ⁠Reducing administrative expenses by 20% across all government entities while maintaining the quality of services provided to Bahraini citizens. The Cabinet tasked the Minister of Finance and National Economy with taking the necessary measures.

2.⁠ ⁠Increase the contributions of government-owned companies to the Kingdom’s general budget.

3.⁠ ⁠Referring a draft law to the Legislative Branch to impose 10% tax on the profits of local companies whose annual revenues exceed BHD 1 million or net annual profits exceed BHD 200,000, based on agreements with the Legislative Branch. The tax will be applied on any amount following the BHD 200,000 bench mark. The move aims to promote the diversification of income sources, with the objective of implementing the draft law in 2027, and tasking the Minister of Finance and National Economy to take the necessary measures.

4.⁠ ⁠Referring a draft law to the Legislative Branch to increase selective levy on soft drinks, based on coordination with the Legislative Branch. The Cabinet tasked the Minister of Finance and National Economy with taking the necessary measures.

5.⁠ ⁠Measures to enhance the utilisation of undeveloped investment lands with existing infrastructure services, through the introduction of a monthly fee of 100 fils per square metre, with the aim of implementation in January 2027. The Cabinet tasked the Minister of Municipalities Affairs and Agriculture with taking the necessary measures.

6. The introduction of fees for sewage services, excluding citizens’ primary residences, calculated at 20% of water consumption charges, with the aim of implementation in January 2026. The Cabinet tasked the Minister of Works with taking the necessary measures.

7.⁠ A review of worker permit and healthcare fees. The revised fees will be implemented gradually over a four-year period starting in January 2026, with domestic workers exempted. In this regard, the Cabinet tasked the Minister of Labour, the Minister of Legal Affairs, and the Minister of Health with taking the necessary measures.

8.⁠ ⁠The adjustment of natural gas prices for companies and factories to reflect the actual cost of consumption, to be implemented gradually over four years starting in January 2026. The Cabinet tasked the Minister of Oil and Environment with taking the necessary measures in this regard.

9.⁠ ⁠The development of a mechanism for determining fuel prices. The Cabinet tasked the Minister of Oil and Environment with taking the necessary measures in this regard.

10.⁠ ⁠The Cabinet confirmed that electricity and water tariffs for the first and second tariff bands for citizens’ primary residences will remain unchanged, taking into account extended families residing in a single household. The Cabinet also agreed to postpone any changes to the mechanisms of electricity and water subsidies for citizens’ primary residences until further study is conducted, and agreed to amend the electricity and water consumption tariffs for other categories, with implementation scheduled for January 2026. In this regard, the Minister of Electricity and Water Affairs and the Minister of Social Development were tasked with taking the necessary measures.

11.⁠ ⁠Streamlining and enhancing the efficiency of government procedures that support investment, to attract foreign investment and strengthen the role of the private sector.