The contract was announed on the final day of the recent Bahrain International Airshow.
His Excellency, the Minister of Transportation and Telecommunications and Bahrain Airport Company (BAC) chairman, Kamal bin Ahmed Mohammed, and BDFC managing director, Abdullah Buhindi, signed the 10-year contract.
In attendance were BAC CEO, Mohamed Yousif Al Binfalah, BDFC general manager, Bassam Al Wardi, and other officials from both companies.
BAC, represented by Al Binfalah, and BDFC, represented by Mr Al-Wardi, also signed a 15-year concession agreement.
According to BAC, the agreement for the operation of retail outlets in the duty free area will see leading brands offer a wide selection of products ranging from fashion and accessories to travel bags, eyewear, toys, electronics, and jewellery.
HE Kamal nin Ahmed Mohammed noted: “We are very pleased to partner with BDFC and look forward to working together in the coming months to improve the duty free shopping experience.
"By increasing its investment in BIA’s duty free offerings, BDFC is supporting local businesses and helping to ensure that the aviation sector becomes a key driver for growth in commerce and retail.
"We are confident that passengers travelling through the new terminal will discover a truly transformed shopping experience.”
Buhindi said: "We are delighted to sign these agreements with Bahrain Airport Company, which will enhance the relationship between our companies and improve the duty free offerings at BIA.
"We are especially proud to sign the agreement for the operation of core duty free categories. We believe that our 27 years of expertise in this area will help to ensure travellers at the new Passenger Terminal Building will enjoy a first class duty free experience.”