Bahrain Tightens Timeshare Rules with 36-Article Law

TDT | Manama
Email : editor@newsofbahrain.com

Timeshare activities in Bahrain are now governed by strict new rules under a 36-article law ratified Sunday by His Majesty King Hamad bin Isa Al Khalifa. The legislation takes aim at overselling, bans misleading advertising, and introduces tough penalties for breaches, including fines of up to BD 50,000 and licence suspensions. With these changes, Bahrain is setting new standards for fairness and transparency in the timeshare sector. Law No. (1) of 2025, approved by the Shura Council and the Council of Representatives, is a major step forward in protecting consumers and ensuring the proper regulation of the industry.

The law requires all timeshare projects to have a licensed manager responsible for day-to-day operations. While the project owner can take on this role, they can also appoint another licensed individual or company. Either way, the project owner remains legally accountable for meeting all requirements. The Bahrain Tourism and Exhibitions Authority, or another body assigned by decree, is tasked with overseeing licences, ensuring projects meet the required standards, and enforcing compliance.

The legislation grants the Bahrain Tourism and Exhibitions Authority wide powers to handle breaches. If a violation is confirmed, the authority can order the offender to stop the misconduct immediately and address its consequences. Should they fail to comply, the authority can impose harsher measures, including service restrictions, fines of up to BD 50,000, temporary licence suspensions of up to three months, or complete revocation of the licence. Penalties are assessed based on the seriousness of the violation, the benefits gained by the offender, and the harm caused to others.

To ensure fairness, the authority must notify violators in writing before taking any action, giving them a chance to respond. Public disclosure of confirmed breaches is allowed, but only after the appeal period has passed or a court ruling is final. Any evidence of criminal behaviour uncovered during investigations must be handed over to the Public Prosecution.

For businesses, the path to obtaining a licence has also been made clear. Applications must meet set conditions, and any rejection, whether explicit or due to inaction for 30 days, can be challenged through a grievance process with the minister. Applicants unsatisfied with the minister’s response may escalate the matter to the courts.

The law also imposes tight restrictions on advertising. Only licensed projects can market timeshare products, and all promotional materials must comply with guidelines issued by the Bahrain Tourism and Exhibitions Authority. Misleading promotions are banned, and timeshare products cannot be marketed as investment tools. The rules also apply to foreign projects advertised in Bahrain, ensuring consistency across the board.

Consumer protections are central to the law. Beneficiaries are granted a 10-day grace period during which they can cancel contracts and receive a full refund of any upfront payments. The law also mandates the use of escrow accounts to protect consumer payments, ensuring funds are not misused to cover unrelated debts.

Overselling and overbooking timeshare periods are banned, guaranteeing that consumers retain their agreed access to timeshare slots. Beneficiaries can transfer or mortgage their timeshare rights, provided these actions are recorded in a dedicated registry. Upon a beneficiary’s death, their rights automatically transfer to their heirs, who must inform the manager and update the registry.

The Bahrain Tourism and Exhibitions Authority has been empowered to enforce these rules. Inspectors, given judicial authority, can enter licensed projects, review records, and interview staff to ensure compliance. Violators face tough penalties, including imprisonment of up to one year and substantial fines. Companies can also be penalised if violations are committed for their benefit.

Transparency is further reinforced by requiring all contracts and transactions to be recorded in the timeshare registry. This ensures legal clarity and protects consumers from potential disputes. Licensed projects are given six months to comply with the new regulations, including submitting all required documentation.