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Consumer Profile

The Bahraini population is young (average age is 30), urban (up to 90%), has a high level of income (real GDP/capita is around USD 22,570) and is composed of a large number of expats (more than half of the population). The foreign population in Bahrain is divided within the large number of high-earning Western expats and low-income workers from South Asia. Urban consumers are becoming more sophisticated and spending more, their purchases focusing especially on luxury products such as designer clothing and jewelry.
The Minister of Finance confirmed that Bahrain will be officially implementing VAT starting from October 2018. The 5% VAT will be implemented on many types of goods and services in the Kingdom and might alter consumer habits. However, health sector, education and transportation will be exempted from VAT.

Consumer Behaviour

Bahraini consumers give great importance to the quality of products and are sensitive to brands and luxury products. The presence of many multinational chains in the country, as well as a large expat community, encourages the adoption of Western consumer habits. However, the global economic crisis has brought in many changes - probably temporary - to consumer behavior. Consumers reduced their purchases of luxury goods in favor of basic goods and have been focusing on cheaper products. Online shopping is growing - driven mainly by the younger segment of the population – and the use of social networks influences consumers’ habits. The demand for packaged and practical products has been on the rise following the westernization of dietary habits and the accelerating pace of life. Recently, the boom of the housing market increased consumer demand for household items.
Advertising approaches differ according to the market sector. Extravagant product launches are becoming the norm. After-sales service can directly affect product reputation.

Consumers Associations

Bahrain government information guide to consumer rights

Main Advertising Agencies

Ogilvy
Ad Mark
Al Waraqoon
Media Solutions