Bahrain to lift meat subsidies as low oil prices weigh on budget

Bahrain is planning to lift subsidies on meat products starting from Sept. 1 as the government moves to save money as cheap oil prices pressure its budget.

The kingdom, however, will pay monetary subsidies to its citizens to substitute for the cancelled aid, Zayed bin Rashid Al Zayani, the minister of industry and commerce was quoted as saying in the state news agency. Al Zayani added that the ministry will take necessary procedures to protect free competition.

Like many of the GCC states, Bahrain for years has provided its citizens with subsidized foods, fuel, and services. However, the smallest Gulf country— along with Oman— is currently one of the most vulnerable to the fall in global oil prices, according to a recent report issued by Standard and Poor’s Rating Services.

Bahrain’s move comes just after the United Arab Emirates decided to lift its fuel subsidies, leading to a 24 percent increase in gas prices in August. The UAE also drafted a plan to introduce a value-added tax (VAT) to help the economy cope with fluctuating oil prices.