Saudi Arabia vs Bahrain: construction business compared

The biggest differences: Employer — national 11.75% in Saudi Arabia vs 18% in Bahrain; Performance bond 5% in Saudi Arabia vs 10% in Bahrain; VAT 15% in Saudi Arabia vs 10% in Bahrain.

Side by side

Item	Saudi Arabia	Bahrain
Tax for Contractors
VAT	15%	10%
Corporate income tax	20%	—
Withholding on contractor payments	15%	0%
Zakat on companies	Yes	No
Tax authority	Zakat, Tax and Customs Authority (ZATCA)	National Bureau for Revenue (NBR)
Payroll & Social Insurance
Employer — national	11.75%	18%
Employee — national	9.75%	8%
Employer — non-national	2%	3%
Employee — non-national	0%	1%
Wage protection	WPS	Wage Protection System (LMRA)
Government Tenders
E-procurement platform	Etimad	Tender Board e-Tendering
Bid bond	1% – 2%	1%
Performance bond	5%	10%
Retention	10%	10%
Registering a Contracting Company
Commercial registry	Ministry of Commerce — Commercial Register	Ministry of Industry and Commerce — Commercial Registration
Online registration portal	Ministry of Commerce e-services	Sijilat
Chamber membership required	—	—
Contractor Classification
Required for government work	Yes	—
Classification authority	Contractor Classification Agency — Ministry of Municipalities and Housing (via Balady)	Ministry of Works
Currency & Exchange Rate
Official currency	SAR	BHD
Alternative currencies in use	None	None

— no documented figure in the sources, or set by each tender or contract. Withholding falls on payments to non-residents in most countries and on every contractor payment in a few — see each country’s tax page.