Bahrain: Real-Estate Laws and Regulations in the Kingdom

In 2011, the government issued a tender for a consulting study to evaluate the current legal framework and propose a new set of property laws and regulations. The Bahrain Property Development Association, which was founded in 2010, is also working with the government to address these challenges.

Aaref Hejres, Managing Director of DIYAR AL MUHARRAQ, presents the latest recommendations to start-up  the growth of the real-estate sector in Bahrain.

Hejres, who is also the chairman of The Bahrain Property Development Association (BaPDA), which is an entity that groups the private real-estate developers and cooperate on the policy, told Marcopolis.net: “We’ve been in talks with the government to enhance some laws and we need some new laws as well. The government’s response was very positive. They hired an international consultant to do a study on the market and propose new laws that will help the industry to flourish and regulate the relationship between the master developers / sub-developers / end users. I think that will add great value to the industry.”

Commenting on the laws that hinder development in Bahrain, Hejres pinpoints the relationship between the master developer and their sub-developers as a major problem.

Concerning the PPP, he states: “PPP is a new thing in Bahrain. They have been doing this in America for many years. That is why it took so long to process. Since they signed I think it is still in the final stage because it’s a new experience and they want to study it carefully. Once it’s signed and agreed upon, then future agreements will go much more smoothly.”