The Kingdom of Bahrain has announced the complete removal of import duties on electric vehicles, establishing itself as one of the most attractive and cost-effective markets for EV buyers in the entire Gulf region. The policy, which takes effect immediately and applies to all battery electric vehicles regardless of origin or manufacturer, is expected to reduce showroom prices by up to 15 percent, making electric cars more accessible to a broader segment of the population.

The import duty exemption applies to fully electric vehicles only, with hybrid and plug-in hybrid vehicles receiving a reduced duty rate of 2.5 percent, down from the standard 5 percent applied to conventional vehicles. This tiered approach is designed to incentivise the adoption of zero-emission vehicles while still providing some benefit to buyers choosing partial electrification as a transitional step.

The financial impact for consumers is significant. On a typical electric vehicle with a pre-duty price of 15,000 BHD, the removal of the standard 5 percent import duty represents a saving of 750 BHD. When combined with existing benefits including free vehicle registration worth 100 BHD, reduced annual inspection fees, and a 50 percent discount on electricity tariffs for approved home charging installations, total first-year savings for new EV buyers can exceed 1,500 BHD.

Bahrain aims to significantly accelerate its transition to sustainable transportation across the island nation through this comprehensive incentive package. The small geographic size of Bahrain, with no point on the island more than 30 kilometres from the centre, makes it particularly well-suited for electric vehicles even with current battery technology. The government has set a target of 5,000 registered electric vehicles by 2028, up from approximately 800 today, and is simultaneously investing in public charging infrastructure at key locations throughout the country.