Construction & Real Estate
From The Report: Bahrain 2016
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Bahrain’s construction sector is booming, with the country using billions of dollars of Gulf Development Programme donations to remodel its airport and highway system, as well as provide tens of thousands of affordable new homes for its citizens. In 2014 year-on-year sector growth was 7.3%, and was only surpassed by the hotel and restaurant sector, and personal and social services. In the first quarter of 2015 growth was 7.5%. Meanwhile the real estate sector is continuing to recover, with retail and hospitality capitalising on growing visitor numbers in recent years. Indeed, with the hotels and restaurants sector reporting growth of 9.9% in 2014, hospitality is a sector slated for significant future growth, as many new hotel builds aim at the luxury end of the market. In terms of the retanl market, a new tenancy law is expected to remove the confusion that has surrounded rental agreements, bringing clarity for both tenants and landlords alike.

This chapter contains an interview with Faisal Faqeeh, Chairman, Bin Faqeeh Real Estate Investment; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.

Articles from this Chapter

Overview

A stable outlook: A varied range of projects is in progress as the sector reaps the benefits of GCC investment
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Business is booming for the construction industry in Bahrain, but this is no repeat of the heady days of the 2008 property bubble. The island is building for the future, using billions of dollars of Gulf Development Programme donations to remodel its airport and highway system, as well as to provide tens of thousands of affordable homes for its citizens. The largely state-owned Aluminium Bahrain, also known as Alba, is spending $3.5bn on Line 6, which will be the biggest expansion of the aluminium…

Interview

Support and invest: OBG talks to Faisal Faqeeh, Chairman, Bin Faqeeh Real Estate Investment Company
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Interview:Faisal Faqeeh What affect will the new real estate development laws have, and how can regulation be improved? FAISAL FAQEEH: The new laws are focused on protecting the interests of buyers, and do not have developers in mind. For this reason the laws should be re-examined, and the experience of players familiar with the market’s characteristics and current condition should be sought. Allowing for a bank guarantee instead of requiring the opening of an escrow account is one option.…

Analysis

Moving on: A judicial committee will review developments that have ground to a halt
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As GCC money pours into infrastructure and housing projects in Bahrain, there are places where the skyline is still dominated by abandoned building sites that serve as reminders of the 2008 global economic downturn and property crash. Now, the government is taking legal action to confront the issue. Royal Decree Introduced in December 2014, Legislative Decree No. 66 created a judicial committee to consider stalled projects, particularly those where investors have been left out of pocket after purchasing…

Analysis

Working together: Public-private partnerships are helping to address a nationwide shortage of social housing
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Faced with a backlog of more than 50,000 social housing requests, Bahrain’s Ministry of Housing (MoH) has turned to the private sector for help, and in 2016 the first citizens began to receive the keys to brand new properties built under a pioneering public-private partnership (PPP). Private Partner The developer Naseej signed a BD208m ($548) contract to build 2800 affordable and social housing units. This includes around 2500 villas provided as social housing, which will be bought directly by…

Overview

Signs of progress: The sector is recovering, with retail and hospitality capitalising on visitors, and housing benefitting from GCC funds
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In the space of a generation Bahrain has been transformed beyond recognition. A bustling ferry jetty that was once the only way to reach Saudi Arabia has been transformed into a financial harbour, while the five-star Gulf Hotel, built to overlook the beach in 1969, now markets itself as a downtown destination. Land reclamation offers opportunities for development stretching from the man-made islands of the $6bn Durrat Al Bahrain community in the south of the island to the $90m biscuit factory being…

Interview

Improving the offering: OBG talks to Mohammed Khalil Alsayed, CEO, Ithmaar Development Company
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Interview:Mohammed Khalil Alsayed To what extent has progress been made in providing more social housing in Bahrain? MOHAMMED KHALIL ALSAYED: The Affordable Housing Public-Private Partnership (PPP) project, being undertaken by Naseej, is the first in the Gulf region to provide social housing on such a scale via the PPP model. Approximately 50,000 people are on the waiting list for social housing in Bahrain, and this landmark initiative aims to significantly reduce that list. Initially, the…

Analysis

Rights and responsibilities: A new tenancy law will bring increased clarity for landlords and tenants
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As part of a raft of legislation designed to restore confidence to the property sector and to protect the rights of those involved in property transactions, a new law to ensure the rights of both landlords and tenants of rented property has been passed. Although the new piece of legislation, Law No. 27, is yet to be implemented, it is designed to remove the confusion that has surrounded rental agreements. There is a formal tenancy registration process, which is designed to offer better protection…