Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Last Published: 2/12/2019

Many governments finance public works projects through borrowing from multilateral development banks.  Please refer to “Project Financing” Section in “Trade and Project Financing” for more information.

In October 2002, Bahrain implemented a government procurement law to establish the basic framework for a transparent, rules-based government procurement system.  The law requires certain procurements to be conducted as international public tenders open to foreign suppliers.  The law established a tender board to oversee all government tenders and purchases.

All major civilian projects and government acquisitions valued at BD 10,000 ($26,667) or more are posted on the website of Bahrain’s Tender Board, www.tenderboard.gov.bh.  The Tender Board determines the terms of bidding, invitations for bids and selection of firms for awards.  The Tender Board advertises its tender openings and decisions on its website, and in local media.  Tender opportunities are published in English and Arabic.  Contracts are generally, but not necessarily, awarded to the lowest bidder.

Government procurement contracts are subject to the requirements of the U.S.-Bahrain Free Trade Agreement (FTA).  The FTA, however, does not govern military procurement and other procurements deemed a matter of Bahrain’s national security.  For government sales, except where an agent is not permitted (e.g., sales to the Bahrain Defense Force or Ministry of Interior), it is generally advisable to have a local agent serve as a point-of-contact, provide advice on tender preparation, and act as “eyes and ears” on the ground.  Bidders must meet the specifications set out in the tender and offer a competitive price to be successful.  A local agent can provide valuable advice on pricing, timing, and key contacts.

The Government of Bahrain is not a signatory to the OECD Convention on Combating Bribery.

For GCC Development Plan-funded projects, Bahrain must honor financial agreements with the GCC country funding the project.  Although tenders for these programs often are issued by the Bahrain Tender Board, they may be subject to tendering rules of the GCC country funding the project.  U.S. companies should carefully research tenders they pursue to determine whether the project is subject to GCC Development Plan funding requirements.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Bahrain Business to Government Legislation