He has already granted land for the building of a new church, and this is where the headquarters the Apostolic Vicariate of Northern Arabia will be located.
The relocation follows an increase in hostility towards non-Muslims in Kuwait.
Bahrain's Government said in a brief statement: "After thoughtful consideration and the completion of a new Roman Catholic church in the kingdom, Bahrain will host [the] vicariate as a testament to the kingdom's religious and cultural openness."
The king, a Sunni, has faced a backlash from Shia and Sunni clerics over the move.