STC Bahrain Introduces First VAT-Free Shopping Program for Tourists, Strengthening the Kingdom’s Retail Tourism Appeal

STC Bahrain has launched the country’s first VAT-free shopping initiative for international visitors, allowing tourists to claim VAT refunds on select telecom devices and accessories purchased at any STC retail outlet. The program, developed in partnership with the Planet VAT Free network, is designed to elevate Bahrain’s position as a competitive shopping and tourism destination in the Gulf.

The initiative applies to non-residents—including GCC nationals—and enables visitors to receive VAT refunds on cash purchases of BD100 (US$263.50) or more. By simplifying the refund process and offering tangible savings, the program aims to enhance the travel experience and encourage greater spending across Bahrain’s telecom retail sector.

This move aligns with Bahrain’s broader tourism strategy to boost visitor numbers, expand shopping-driven tourism, and reinforce the kingdom’s reputation as a dynamic hub for leisure and business travel. With tourism spending playing an increasingly vital role in economic growth, the VAT-free program helps position Bahrain competitively against regional destinations offering value-centric travel incentives.

The initiative is expected to support retail tourism growth by appealing to visitors seeking high-quality telecom products at reduced costs. As travel from the GCC, Europe, and the United States continues to rise, such programs can stimulate additional demand, benefiting hospitality, retail and related sectors throughout the country.

Beyond immediate savings, the VAT refund system enhances Bahrain’s long-term appeal by encouraging repeat visits and fostering tourism loyalty. Visitors who enjoy a smooth, value-driven shopping experience are more likely to return—strengthening Bahrain’s standing as a shopper-friendly, service-oriented destination.

By integrating VAT-free shopping into its tourism ecosystem, Bahrain is further positioning itself as a modern, welcoming and economically vibrant hub. Complementing attractions such as the Bahrain International Circuit, the historic Bahrain Fort, and the country’s traditional souqs, this initiative reinforces the kingdom’s status as a compelling destination offering both cultural richness and retail value.