Timeshare Clamp In Bahrain

A NEW law regulating the sale of timeshare properties in Bahrain has been proposed by a group of MPs.

The move follows some alleged incidents by Bahrainis who purchased timeshare properties that did not exist.

The MPs say that the sale of apartments, villas, chalets and hotel rooms within and outside of Bahrain should be regulated under clear laws.

"Some nationals have fallen victim to timeshare companies which have not lived up to promises," the parliament said in a statement.

"They have been paying for timeshare property that does not exist."

The MPs want clear rules which would prevent such incidents from occurring in the future and which would clearly regulate all contracts.

Under the proposal, the contracts would have to be filed with a government body and the laws would clearly state the rights of buyers to use and rent property.

The proposal also states that contracts should be drawn in Arabic as well as in the language of the seller and that courts in Bahrain should be able to settle any dispute.

Timeshare properties allow investors to own properties for one or more months a year for a certain period of time.

It can be a cheap way for them to spend their holidays or the properties can be rented out for extra income.

Norwich International Consultants (NIC) chairman and founder member Neil D'Silva welcomed the regulation of the timeshare industry.

However, he said MPs should keep in mind that the industry is regulated inline with international standards and rules.

"The areas which should be regulated locally should involve the granting of commercial registrations and other regulations which prevent dishonest people from scamming the local market."

He said there were timeshare scams happening all over the world in the $9.5 billion timeshare market, which was too huge to ignore, including Bahrain's market.

"The time share concept originated in France in the 1960s and later became popular in the US," said Mr D'Silva.

"By the 1980s it had become a $3bn sales industry with 1.8 million owners.

"As of early last year, it had grown to become a $9.5bn industry and is growing 18 per cent every year."

Mr D'Silva said there were seven million timeshare owners participating in 5,425 resorts around the world. In the Middle East there are only 31,180 and 31 timeshare resorts, over 90pc of which are in Egypt.

"There are no timeshare properties at all in Bahrain so a law regulating it could open up a huge industry," he said.

"Timeshare management companies, owners and developers benefit and jobs are created."

Mr D'Silva said the local real estate market lacks proper supervision and that some kind of strategic real estate committee is needed to monitor it.