Limit non-Bahraini access to real estate market: MP

A legislator has called for limiting non-Bahraini’s access to local real estate market, saying that they should only be allowed to purchase tourism and investment properties under certain circumstances.

MP Jalal Kadhem claimed that “this would reduce residential real estate prices and eventually benefit the citizens.”

In a request that was submitted recently to the Council of Representatives’ Speaker Ahmed Al Mulla, the MP called for amending an article of the existing Land Registration Law that allows freehold properties for foreigners, resident expatriates and GCC nationals.

However, the MP mentioned in his request that “the rights of GCC nationals shouldn’t be harmed,” and added that “non-Bahrainis should be allowed to own private-built properties and lands only in tourism and investment projects.”

Justifying the amendment, Kadhem explained, “This will reorganise the processes of non-Bahrainis purchasing properties and lands in the Kingdom of Bahrain. It will also contribute in solving the housing crisis in the country. Reducing prices in the real estate markets by limiting non-Bahraini’s purchase of properties and lands in the tourism and investment projects will definitely benefit the citizens.”

Elaborating further, the lawmaker said, “Citizens are facing a sharp rise in real estate prices today. This puts them in real dilemma in regards to finding an appropriate residence. It’s challenging nowadays for Bahrainis from the middle class to acquire lands or properties due to high prices. One of the main causes of the price surge is allowing non-Bahrainis to expand in the local residential real estate market. Passing this amendment will contribute in solving this issue.”

It is noteworthy that Legislative Decree 2 for the Year 2001 and Edict 43 of the year 2003 (as amended by Edict 67 of the year 2006) by His Majesty King Hamad bin Isa Al Khalifa allows freehold properties for foreigners, resident expatriates and GCC nationals pursuant to Ministerial Edict No. 67 of 2006.

This permits the ownership by foreigners of residential units of certain types.

Decree 2 of the year 2001 stipulates that non-Bahrainis (both individuals and companies) may own properties and land in the Kingdom of Bahrain in any manner prescribed by earlier legislation and subject to conditions prescribed from time to time.