Shura Council approves legal framework to strengthen protections for holidaymakers and property investors

TDT | Manama

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Holidaymakers and property investors will gain stronger fraud protections after the Shura Council approved a law regulating timeshare deals yesterday, setting clear rules for contracts and investor safeguards in Bahrain’s tourism sector.

The proposed legislation, tied to Royal Decree No. (33) of 2023, now heads to the Speaker of Parliament for referral to His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, before its final submission to His Majesty King Hamad bin Isa Al Khalifa.

The measure sets out clear legal rules for timeshare deals, ensuring the rights and obligations of all involved while encouraging investment in Bahrain’s tourism and property markets.

According to the Services Committee’s report, the draft law covers six key areas: the duties of the authority responsible for oversight, licensing terms, contract conditions, inspections, legal enforcement, and criminal accountability.

Procedures

Tourism Minister, Her Excellency Fatima Al Sairafi, described the law as a “valuable addition” to Bahrain’s tourism sector, noting that it goes beyond regulating contracts by establishing administrative procedures that protect consumers.

“Article 13 of the draft law deals with contractual matters,” she explained, “but several other articles focus on administrative processes designed to protect beneficiaries.”

Al Sairafi pointed to Article 16, which outlines mechanisms for depositing funds, and Article 17, along with Article 19, which governs the registration of timeshare contracts, as examples of procedural safeguards.

“There are also provisions ensuring additional guarantees through administrative decisions regulating contracts,” she said, adding that Articles 18 through 28 collectively provide a legal safety net for beneficiaries.

Committee rapporteur Dr Fatima Al Kooheji added that the legislation fits with the Government Peogramme (2023-2026), which places tourism at the heart of the country’s economic growth strategy.

“This law supports major tourism projects while reinforcing the legal framework that governs property and tourism investments,” said Dr Al Kooheji.

Consumer protection is at the law’s core.

The responsible authority will have the power to ensure companies play by the rules, issue and renew licences, and coordinate with other agencies involved in overseeing timeshare schemes.

Strict conditions on licences, technical standards, and contract terms have been established to root out dodgy operators and keep buyers safe.

“The legislation is designed to shield consumers from fraud while holding companies accountable through inspections and legal oversight,” Dr Al Kooheji explained.

Concerns

However, earlier discussions in the Shura Council flagged concerns over vague wording in some sections.

A session on 10 November saw just 12 out of 36 articles approved, as some members feared loose terms could leave legal gaps open to exploitation by foreign firms.

Dr Jehad Al Fadhel, Second Deputy Chairman of the Shura Council, backed the law’s goals but warned that unclear provisions could harm Bahrain’s reputation among international investors.

Despite the initial concerns, the Shura Council threw its weight behind the measure after securing revisions and clarifications.

Chairman Ali Al Saleh welcomed the approval, describing the law as a valuable framework that will benefit both citizens and the economy.

“This regulation gives investors a transparent legal framework for timeshare arrangements while safeguarding the public interest,” he said.

Al Sairafi praised the Council’s vote, noting the combined efforts of the Services Committee, Bahrain Tourism and Exhibitions Authority (BTEA), and other officials over the past three months to finalise the bill.