Reviving The Skyline: The New Stalled Projects Law And Its Implications

Legislative Decree No.66 of 2014 regarding the Settlement of Stalled Real Estate Projects came into force on 6 December 2014 (New Law). The New Law has been introduced to re-start real estate development projects in Bahrain where units have been sold off-plan, payments have been made, and the projects have either stopped (through a default situation) or have stalled causing a detrimental effect on the economy of Bahrain.

What is a stalled project?

Pursuant to the provisions of Decision No. 1 of 2015, a real estate development project will be considered as ''stalled'' for the purposes of the New Law where one or more of the following criteria apply:

1. If the developer's lack of seriousness to complete the project is proven;