The Bahraini government announced its decision to ease ownership restrictions on properties in Bahrain, thus granting rights to 100 percent foreign ownership for businesses, following approval from His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister of the Kingdom of Bahrain.

Giving foreigners the same ownership rights which Bahrainis enjoy is expected to create a positive effect on the property market, especially on its rating on the index of Facility of Starting Business. It will help encourage leading international firms to set up business in Bahrain towards opening gates of opportunities in GCC and the region.

The new regulation will allow 100 per cent ownership in sectors including real estate, residency, information and communications, administrative services, manufacturing, health and social work, and technical activities.

According to Faisal Durrani, head of research at Cluttons: “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 believes that the law may not yet yield immediate results but it will definitely contribute to developments in the long run and lure foreign companies to do business in the region using Bahrain as a base.

Added Harry Goodson-Wickes, Head of Cluttons Bahrain and Saudi Arabia: “The government’s decision to allow 100 per cent foreign ownership is an important development for Bahrain.”

He pointed out that the growth of the local economy had been severely affected since oil prices slumped in the last two years. The new announcement is expected to deliver consequential benefits and stimulate investor confidence in doing business in Bahrain.