Gulf | Bahrain
Call for ceiling on foreign ownership of property in Bahrain
Al Wefaq has increased pressure on the government to amend the liberal property laws and limit foreign real estate ownership.
- By Habib Toumi, Bureau Chief
- Published: 16:37 April 6, 2008
Manama: Al Wefaq has increased pressure on the government to amend the liberal property laws and limit foreign real estate ownership.
"Bahrain has a high population density and with the soaring real estate costs that compound the housing problems, there is now a necessity to have a law that regulates foreign ownership of property in the country," Al Wefaq said as it submitted a motion for a draft law.
The society, with 17 of the 40 seats in the Lower House, said the new law would make Bahraini ownership the rule and foreign ownership the exception in the real estate market. "Such a premise will consecrate the state sovereignty over its lands," Al Wefaq said.
The law would tie foreign ownership with the interests of the country and citizens, according to the nine-article draft law, a copy of which was yesterday sent to Gulf News.
Cap
Building and residential areas that non-Bahrainis could own should not exceed 5,000 square metres and should not be transferred for the first seven years, Al Wefaq said, concurring with a similar cap proposed last December by Al Asala, the second largest bloc in the Council of Representatives.
The law would stipulate that companies where non-Bahrainis have more than 30 per cent of the shares should be treated as foreign entities and would come under the restrictions specified in the new legislation.
"Foreigners should be given six months after the enactment of the law to regularise their situation," the draft law said.
Bahrain, one of the world's freest economies but with a total land area of around 750 square kilometers, in 1999 allowed Gulf nationals to own real estate, and in 2001 the privilege was extended to foreigners who could own land, commercial and residential properties, as well as property for tourism, banking, financial, health and training projects in specific areas. At the same time, pools of foreigners started seeking homes in the country after they were allowed to own property on a freehold basis and granted residency.
Local official figures indicated Saudis topped the list of foreigners who owned property in Bahrain.
Out of the 1,050 properties owned by non-Bahrainis, 483 belonged to Saudis, 314 to Kuwaitis, 63 to Emiratis, 70 to Qataris and 45 to Omanis.
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