Bahrain and Saudi Arabia signed their first tax treaty on 3 December 2025 to prevent double taxation and boost investment.

Bahrain and Saudi Arabia signed a tax treaty on 3 December 2025.

The agreement aims to address double taxation and promote investment.

The treaty is the first of its kind between the two countries and will enter into force upon the exchange of ratification instruments.

Earlier, the Saudi Arabian Council of Ministers approved the signing of an income tax treaty with Bahrain on 22 April 2025.