The Bahraini king’s decision comes amidst talk to grant “full citizenship rights” to Jewish returnees to Bahrain, whereby any Jews “who were residing in Bahrain and are of Arab or Iraqi roots who migrated from another country” can become full Bahraini citizens.
It is (or would be, if approved) a nice gesture of good faith from the Bahrain government and another step towards establishing a pluralistic democracy there.*
*That being said, it is not parallel to a Palestinian "right of return" -- at least so long as a two-state solution is on the table. The number of Jews who even could return to Bahrain on this plan pose no chance of attaining a majority or ending Bahraini self-rule.