Foreign ownership of businesses to boost Bahrain property

Photo: Rorals https://www.flickr.com/photos/rorals/15534324355/sizes/c/

The decision to allow full foreign ownership of businesses in Bahrain is set to boost the property market.

The decision to allow full foreign ownership of businesses in Bahrain is set to boost the property market.

Earlier this month, the government decided to allow foreign investors to own 100 per cent of businesses in various sectors of the Kingdom’s market. The new law will allow 100 percent ownership in residency, real estate, administrative services, health and social work, information and communications, manufacturing and technical activities amongst others.

Cluttons has welcomed the move, forecasting a positive long-term impact upon the real estate market.

Harry Goodson-Wickes, head of Cluttons Bahrain and Saudi Arabia says the decision is an “important development”, following two years of subdued economic growth, due to falling oil prices.

“The announcement will likely have positive implications for business,” he comments. “The move will also improve investor confidence and make Bahrain an attractive place to work and live in.”

Faisal Durrani, head of research at Cluttons, notes that there will not be overnight boost to prices and rents, but that long-term activity is expected to increase.

“We will need to reassess our medium to long term forecasts as a result of the announcement,” says Durrani.

“For the property market, Bahrain already offers a competitive advantage to many other regional locations as residential and commercial rents and values are amongst the most attractive in the region,” he adds. “The decision is likely to attract companies to set up a Middle East foothold in the Kingdom and for the first time puts Bahrain on a competitive footing with some of the region’s mega free zones and business hubs.”

Photo: Rorals

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