The new amendment amends the Article 1 of Bahrain Decree-Law No.
2/2001 related to the ownership of land by non-Bahrainis. The main
objective is to limit the inflation in the real estate prices in
exclusive areas by non-Bahraini ownership. Bahraini
Parliamentarians have also approved this amendment which would now
not allow expatriate property investors to own property in those
areas which are not tourism or investment zones.
Formerly the expatriates or foreigners were permitted to
purchase property anywhere of their choice in the Kingdom of
Bahrain. But it was observed there were concerns among Bahrainis
that they were being pushed out of the market. In 2003, the
Government of Kingdom of Bahrain restricted right to purchase
property by foreigners to certain locations viz. Hoora, Al Fateh
District in Juffair, Reef Island, Abu Ghazal in Manama, the
Diplomatic Area, and Seef. Besides those areas, expats could also
purchase the properties at areas which are designated
