Bahrain Duty Free embraces AI, authenticity and responsible retail
Inside the new US$1.1 billion terminal at Bahrain International Airport, which expanded annual capacity to 14 million passengers
Four years after the opening of Bahrain International Airport’s state-of-the-art passenger terminal, Bahrain Duty Free is doubling down on its retail reinvention.
Since the terminal’s opening in January 2021, the company has nearly tripled its retail footprint, expanding from 1,600 to 4,700 square meters. Despite reporting a 27% year-on-year drop in net profit this May, from US$6.2 million to US$4.48 million in Q1 2025, Bahrain Duty Free remains optimistic, with strength across the ARI Middle East portfolio helping soften the impact.
From terminal to transformation
The US$1.1 billion terminal, which increased Bahrain International Airport’s annual capacity to 14 million passengers, has welcomed both domestic and international travelers, including Bahraini nationals, Gulf nationals, a sizable Asian demographic and more. Combined, these traveler profiles are shaping Bahrain Duty Free’s push toward omnichannel engagement and experience-led offerings. Millennials and Gen Z travelers, in particular, are steering the evolution with their demand for authenticity, convenience and ethical sourcing.
Charlotte Tilbury’s entry into Bahrain Duty Free reflects the retailer’s focus on next-gen travelers, part of a broader strategy to engage Gen Z and millennials
“As travel demand stabilizes, we’ve embraced the momentum to introduce a refreshed brand portfolio that aligns with the evolving preferences of today’s travelers, particularly those seeking premium, exclusive and experience-driven products,” says Bassam Al Wardi, Chief Executive Officer & Board Director at Bahrain Duty Free. “This renewed focus has enabled us to enhance our in-store environment with more immersive displays, personalized service touchpoints, and improved navigation, making the shopping experience more intuitive and engaging.”
Bahrain Duty Free is accelerating its transformation by adopting artificial intelligence, machine learning and other digital tools to deliver a frictionless shopping journey, from pre-departure browsing to post-arrival purchases. “From smart product recommendations to dynamic promotional strategies, our use of technology is redefining the retail touchpoints and creating meaningful interactions with customers at every stage of their journey,” says Al Wardi.
Bahrain Duty Free’s refreshed brand lineup designed for today’s traveler, focused on premium labels and immersive displays
Where luxury and commodity both shine
Catering to both luxury travelers and value-driven shoppers, Bahrain Duty Free continues to diversify its retail experience across both premium and core touchpoints.
Bahrain Duty Free’s new luxury boutique inside the award-winning Pearl Lounge offers curated indulgence tailored for business-class travelers
In April, the company opened a luxury boutique inside the Pearl Lounge, a space reserved for business-class travelers and already distinguished by the APEX World Class by YATES+ award. The boutique showcases high-end fragrances by Byredo, L’Artisan Parfumeur, Carolina Herrera, and Creed, along with fine cigars and premium beverages, curated selections aimed at the privacy-seeking, luxury-loving flier.
Meanwhile, its main retail spaces continue to blend value and prestige. Shoppers can find limited-edition perfumes, designer collaborations and seasonal gift sets alongside bundle offers, loyalty rewards and competitive pricing designed to boost conversion and satisfaction.
Bahrain Duty Free’s main retail spaces strike a balance between value and prestige
Winning over the next generation
A key part of Bahrain Duty Free’s strategy centers on younger consumers, namely Gen Z and Millennials. With this audience in mind, the retailer is expanding its product mix and adopting more sustainable, immersive retail models. “Our roadmap is firmly focused on the future traveler, especially the new generation that values convenience, digital integration, sustainability and unique, lifestyle-oriented experiences,” explains Al Wardi.
To reach this demographic, Bahrain Duty Free has invested heavily in influencer marketing and content collaborations across the GCC region. “These collaborations have particularly thrived on platforms like Instagram and Snapchat, where visual storytelling and real-time engagement resonate strongly with our target audience,” says Al Wardi. “By working with well-known influencers who align with our brand values, we’ve amplified campaign reach, enhanced product visibility and driven meaningful customer interactions.”
Human centered, digitally driven
With technology rapidly advancing, Bahrain Duty Free continues to invest in its workforce through strategic training that ensures teams can leverage AI, machine learning and data-driven systems effectively. “This includes building internal capabilities that enhance customer interaction, streamline backend processes and support data-driven decision-making across the organization,” says Al Wardi.
The company also runs an internal recognition program, InstaStars, sponsored by Gulf Beverages. Now in its second year, the initiative celebrates employees who consistently go above and beyond. “By recognizing and rewarding top performers, InstaStars reinforces our belief that our people are our most valuable brand ambassadors,” Al Wardi explains.
From spotlighting staff through its InstaStars program to supporting communities, Bahrain Duty Free proves that purpose and people remain central to its mission
Giving back
Social responsibility remains embedded in Bahrain Duty Free’s culture. Each Ramadan, Bahrain Duty Free supports underprivileged families across the Kingdom of Bahrain through aid donations. And year-round, the company partners with local schools, orphanages, and non-profits to promote education, well-being, and social inclusion.
Most recently, the retailer launched new initiatives such as donating gently used books to schools and providing clothing to families in need. These projects reflect a commitment to reuse, resourcefulness, and long-term value for the community.
“As Bahrain Duty Free continues to grow, so too does our commitment to building a more compassionate, inclusive and empowered society,” concludes Al Wardi.
