BizBahrain April 2016

According to the recently published
InterNations Expat Insider Survey 2015,
Bahrain ranked highest of the Gulf
countries for lifestyle, affordable cost
of living and educational facilities, at
17th globally ahead of the UAE, 19th and
Oman, 24th. With such high ratings to
support, opportunities have abounded in
the compound villa sector with strong
occupancy levels in areas popular
with expatriates, especially those with
good access to the Saudi Causeway
and popular schools. Amwaj Islands,
upholding its reputation as a popular
lifestyle destination is emerging from
a static period with an increase in
construction activity in the residential
sector.
The new Investor Protection Law
in Bahrain, which came into force in
January this year, will prohibit main
and sub-developers from promoting any
off-plan sale of property units without
government approval being obtained.
The law also includes substantive
guarantees to protect investors from
improper planning causing completion
delays, fund mismanagement, and force
majeure.
In the kingdom's hospitality sector,
steady progress is being made towards
the launch of two new developments
in 2016. The Rotana Downtown in
central Manama, along with Wyndham
Grand at Bahrain Bay will add a
further 509 rooms to the five-star hotel
stock. Amongst others, the Marriott
Residence Inn at Water Garden City
is also expected to be completed in
2016. Emaar Hospitality Group will
reportedly build five new hotels in
the kingdom by the end of 2018. The
kingdom's commercial office market
continues to face stiff challenges with
downside risks again appearing on the
horizon. According to Business Monitor
International, Bahrain’s traditional
position as the regional centre for
Islamic finance is now facing increasing
competition from Dubai, Doha and
Riyadh, which could lead to further
suppression in demand for office space.
A major attraction for overseas
investors is the low investment and
transactions costs in Bahrain, that
are lower than the neighbouring
countries. This puts its real estate
market in a privileged position offering
high investment yields and capital
growth. Added to all this is the ease of
doing business in Bahrain for property
investors and the country's relatively
low cost of living for both citizens and
expats. The kingdom is considered
one of the most convenient locations
worldwide for expats due to its low
rental and living prices, and its strategic
location. All these factors contributed in
stimulating the market’s activity.
Over the last few years, Bahrain
has been witnessing a number of new
developments such as the $2.5-billion
Bahrain Bay project which lies in the
north of the Kingdom. The real estate
development at the project is being
carried out by a number of prominent
domestic and regional companies like
Bin Faqeeh, and AlQaed Group, whose
Offices@Wyndham project, amongst
others are on track for completion this
year in Bahrain Bay.
High investment yields, high
rental yields, market stability, and
strict framework, were some of the
vital factors that have drawn foreign
investors and companies to Bahrain.
In light of the ample prospects and
the robust economic performance, the
market is projected to witness even
better growth rates in the coming years
which will qualify it to be a real traction
point for real estate investors despite its
small area.
Many world-class events like the
Bahrain International Airshow and the
Formula One Grand Prix, in a calendar
filled with events and milestones,
strengthen the belief in a business,
tourist and citizen friendly Bahrain.
For an investor Bahrain's position as
a gateway to the Middle East and its
history as the region's key financial
capital, a center for cultural renaissance,
and social development add value as do
business friendly laws and governance,
making this one of the most open
economies in the region.
Private Sector Projects Progress Report:
• Diyar al Muharraq’s USD3bn Marassi al Bahrain development will welcome first residents within two years. The project
is developed by Eagle Hills Diyar, a joint venture between UAE-based Eagle Hills. The first phase of the project is
projected to cost USD1.2bn and will include 480 seafront apartments, a shopping complex, and luxury hotels built by
The Address Hotels and Resorts.
• The second phase of Diyar al Muharraq’s Al Bareh seafront development plots are being offered for sale on a freehold
basis to all nationalities
• USD94mn Avenues-Bahrain project, A Kuwait Finance House and Mabanee Real Estate Company funded shopping
complex, located in Bahrain Bay, is expected to open in the first quarter of 2017
• Gulf Finance House has begun the site preparation work at the USD150mn Harbour Row Development, a mixed-use
landmark project located within the Bahrain Financial Harbour area.
• Bin Faqeeh Real Estate Investment Company starting work on its new Layan mixed-use project.
• Funded through a USD266mn grant from the late King Abdulla bin Abdulaziz Al Saud, the King Abdulla Medical City
is expected to break ground by the end of 2016. The project, located in the south of the island, is designed by SaudConsult
and will be operated by the Arabian Gulf University. Phase 1 will include a 300-bed hospital, staff housing, and
mini shopping mall and is expected to begin in 2017. The hospital is expected to open by 2019
May 2016
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