100% Ownership law to boost real estate market

Manama, July 21 (BNA): A leading international company hailed Bahrain’s bold step to grant foreign investors full ownership rights. Cluttons commended the move which, it said, will have a long-term positive impact on real estate market in Bahrain. "The decision endorsing 100% ownership for foreign investors is a positive development in Bahrain", said head of Cluttons Bahrain and Saudi Arabia Harry Goodson-Wickes. He stressed the plummeting oil prices which took a heavy toll on the rate of economic growth. In a statement today, he said that the announcement of the new measure will have a positive effect on the business sector and contributing to strengthening investors’ confidence and consolidating Bahrain’s standing as an attractive destination for work and living. "The move will also improve investor confidence and make Bahrain an attractive place to work and live in," he added. According to the government, the new law will allow 100 per cent ownership in residency, real estate, administrative services, health and social work, information and communications, manufacturing and other technical activities. Faisal Durrani, the head of research at Cluttons, said: "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." "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," stated Durrani. "There is unlikely to be an overnight boost to real estate values and rents, but it will certainly help to support long-term activity and we will need to reassess our medium to long term forecasts as a result of the announcement," he added.