The decision by the Bahraini government to allow 100% ownership of companies by foreign investors in various sectors is likely to have a positive long-term impact on the property market, according to real estate consultants Cluttons.
Harry Goodson-Wickes, head of Cluttons Bahrain and Saudi Arabia, said: “The government’s decision to allow 100% foreign ownership is an important development for Bahrain. Economic growth in the country has been subdued ever since oil prices fell from record highs two years ago and the announcement will likely have positive implications for business. The move will also improve investor confidence and make Bahrain an attractive place to work and live in.”
According to the government, the new law will allow 100% ownership in residency, real estate, administrative services, health and social work, information and communications, manufacturing and technical activities, amongst others.
“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,” said Faisal Durrani, head of research at Cluttons. “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.”
“There is unlikely to be an overnight boost to real estate values and rents, but it will certainly help to support long-term activity.”