STC Bahrain Launches its First VAT-Free Shopping Initiative for Tourists, Boosting New Tourism Appeal of Bahrain as a Shopping Destination and Offering Savings on Telecom Products

Published on December 2, 2025

The first VAT-Free shopping initiative has been introduced to Bahrain by STC Bahrain, a leading telecom provider, partnered with the Planet VAT Free program, whereby international tourists can now claim VAT refunds on purchases of their selected telecom devices and accessories at any STC retail store in the kingdom. This new initiative is a strategic move designed to enhance the shopping experience for visitors while contributing to the country’s growing reputation as a tourism and retail hub in the Gulf.

The program is extendable to non-residents in Bahrain, including GCC nationals, because it is an incentive for international tourists to shop for telecom products during their visit. It will contribute to boosting tourism and local retail. The program offers seamless ways for travelers to save on purchases, adding another layer of convenience and value to their Bahrain experience.

A Boost to Bahrain’s Tourism Sector and Economy

This new VAT-free shopping initiative offers travelers significant savings, enhancing Bahrain’s tourism appeal by encouraging more visitors to explore the country’s telecom retail sector. By allowing tourists to claim VAT refunds on cash purchases of BD100 ($263.5) or more, STC Bahrain is making it more attractive for international travelers to spend during their visit.

The program directly supports Bahrain’s broader tourism strategy to increase visitor numbers, enhance the shopping experience, and promote the kingdom as an ideal destination for both business and leisure tourism. With this initiative, Bahrain is aligning itself with global tourism trends that offer value-driven experiences, which is essential in an increasingly competitive regional tourism market.

Encouraging Spending and Supporting Bahrain’s Retail Tourism Growth

By offering tourists savings on purchases and the convenience of a simple VAT refund process, STC Bahrain is contributing to the kingdom’s growing retail tourism sector. Tourism spending is a key driver of the economy, and this initiative makes Bahrain more appealing to visitors looking to shop for high-quality telecom products while on holiday. As international tourism continues to rise, especially from regions like the GCC, Europe, and the US, this program could help drive retail growth, ultimately boosting the hospitality industry and increasing tourist spending across the country.

For Bahrain’s tourism sector, this VAT-free initiative adds a unique value proposition for visitors. It supports not only the telecom retail sector but also enhances the broader tourism infrastructure, making Bahrain a more attractive destination for those looking for savings on high-tech gadgets and accessories during their travels.

Supporting Bahrain’s Position as a Shopper-Friendly Destination

As Bahrain looks to solidify its status as a leading destination for tourists, initiatives like the VAT-Free shopping program align with the kingdom’s long-term goals of improving the visitor experience and promoting local tourism. The program ensures that Bahrain offers competitive advantages over other Gulf destinations in terms of shopping convenience and savings, making it a more attractive option for tourists seeking to make purchases during their stay.

With international visitors frequently seeking cost-effective ways to enjoy their travel, offering VAT refunds becomes a significant incentive to choose Bahrain over other competing destinations. This program enhances Bahrain’s position as a regional tourism leader, complementing the kingdom’s modern retail offerings and iconic cultural experiences, such as the Bahrain International Circuit, the Bahrain Fort, and the island’s vibrant traditional markets.

Encouraging Repeat Visits and Tourism Loyalty

By integrating a VAT refund system, STC Bahrain not only attracts more visitors but also increases the likelihood of repeat visits. Tourists who experience the convenience and savings of this initiative are more likely to return to Bahrain in the future, driving long-term growth for tourism and retail. This can help build a more loyal customer base and promote Bahrain as a destination where visitors can enjoy world-class service and unique shopping experiences.

The Growing Link Between Retail, Tourism, and Economic Growth

STC Bahrain’s VAT-Free shopping initiative further cements Bahrain’s position as one of the leading destinations for tourism and shopping. The new service will add value and convenience for travelers, while directly contributing to the development of the kingdom’s tourism sector and overall economic growth. Therefore, by enhancing the shopping experience and promoting tourism spending, Bahrain is in a position to benefit from this innovative program, attracting more visitors and boosting its status as a tourism-friendly and economically vibrant hub in the Gulf region. As Bahrain continues to diversify its tourism offerings, initiatives like this will be key in attracting global visitors, improving the tourist experience, and strengthening the kingdom’s standing as a premier destination for travelers from around the world.