How gold is priced in Bahrain
Bahraini jewellers quote gold in dinars per gram, mainly for 22K and 21K jewellery, with 24K used for bars. The Bahraini dinar is pegged to the US dollar (BHD 0.376), so local prices move with the international price. The figures here are spot converted to dinars, before VAT, making charges and the shop's margin.
VAT on gold in Bahrain
Bahrain's standard VAT rate has been 10% since 1 January 2022. Gold jewellery is standard-rated, so VAT applies to the price including making charges. Investment gold — gold of at least 99% purity that is tradeable on global bullion markets — is zero-rated, but only when its purity is certified by the Ministry of Industry and Commerce's testing and metrology directorate or a licensed body; the National Bureau for Revenue has fined sellers that applied the zero rate without that certificate. Visitors can reclaim VAT on jewellery at Bahrain International Airport's refund desk. Imported jewellery typically pays 5% GCC customs duty.
How prices are set
There is no gold exchange in Bahrain: jewellers in the Manama Gold Souq and Gold City set their daily per-gram rates from the international price, converted at the fixed peg. What differs between shops is the making charge, added per gram or per piece and often open to negotiation, and the buy-back price for old gold.
Hallmarks and purity
The Metals Assay Centre of the Ministry of Industry and Commerce tests and hallmarks precious metals. Legal gold standards are 916 (22K), 875 (21K), 750 (18K) and 585 (14K), and the official gold hallmark is the Kingdom of Bahrain logo with the fineness number. Check the stamp, and ask for the weight, karat and making charge to be shown on the invoice.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.