Global Compliance

Regulations Concerning Construction in Bahrain

Introduction

The Kingdom of Bahrain (Bahrain) is located on the Southern coast of the Gulf region and shares a border on the East coast with the Kingdom of Saudi Arabia (KSA) and the Qatar peninsula.

The primary sources of income in the Kingdom of Bahrain were agriculture and fishing before the discovery of oil. However, both are still practiced to date. After oil, Bahrain’s most significant export is aluminum, though its financial and construction sectors are also central to economic growth. 

The construction sector added 7.15% to Bahrain’s GDP. In 2009, it was 7.6%, and in 2012, it declined to 6.8%. Notwithstanding, in 2013 it expanded to 7% as per the Bahrain EDB ('Why Invest in Bahrain,' 2015). Among the most open financial markets on the planet, Bahrain holds the twelfth-position and has a liberal domain.

The flexible business ownership options to foreigners in Bahrain (like 100% ownership) provide an open business relationship and easy accessibility to the rest of the Gulf region. Private companies and the Gulf market benefit from taxation of zero percent.

Bahrain has a strong government initiative by way of investment in construction projects.

The Construction Regulations
Zoning Regulations for Construction 2009:

It lays down key regulations in determining building guidelines in Bahrain. It is a widespread regulation that covers construction for private residential areas, connected residential areas, industrial space, greenbelt areas, outbuildings, etc. It covers the specification of agricultural areas, industrial area, commercial center area in Seef District, commercial showroom area, apartment block areas, residential housing areas, etc. The general conditions lay down that projects concerning social services and public efficacies will be permitted in their predetermined zones. This is subject to arranging endorsement for the appropriateness of the site for the proposed improvement from the General Directorate of Urban Planning and Zoning Regulations for Construction of each project. If a venture is of Special Nature than an endorsement from Zoning Regulations for Construction is required concerning the idea of each task.

Green Building:

The expense of setting up and running a construction venture in Bahrain is low when contrasted with other GCC nations. Bahrain is a 'free zone,' which permits 100% foreign ownership of business and land; this promotes free development of benefits, capital, and profits for the investors. Bahrain is an incredible financial hub with its banking and construction sector that draws in more remote foreign investors. Bahrain’s new building regulation requires new advancements to be built using international environmental measures. The new construction standard involves the utilization of eco-friendly prescribed procedures in the new projects, which consolidates 50 percent of greenery in their aggregate land space, including the planting of palm trees and indigenous vegetation. Bahrain adopted an energy efficiency code for commercial buildings in 1999 which has prescriptive prerequisites for thermal insulation in the walls, roofs, and window glazing. The use of this code was stretched out to all building regulations in 2013. Bahrain likewise, has set minimum energy execution standards for lighting bulbs, given the European Union Commission Direction 244 of 2009, to eliminate all wasteful lighting. The regulation requires the removing of every incandescent light by 2013, and the utilization of vitality efficient bulbs by 2018. 

Mechanic’s Liens and Direct Rights of Action for Contractors and Sub-contractors:

The Bahrain Civil Code bestows rights in regard to construction concerning the right of direct actions and mechanic liens that are vital for developers, contractor, and workers. Mechanic’s liens and direct rights of action for contractors and sub-contractors are statutory devices to ensure the protection of working on a construction project to the payment of their contracts and wages. While the mechanic’s liens and direct rights of action are distinct, they are consistent in that the lien against the property can only exist for sub-contractors based on the direct action available to the property developer. In Bahrain, a sub-contractor and each one of his workers have an immediate right of action against the business for aggregates due in executing their assertion. This benefit is compelled to the entirety due from the business to the principal authoritative laborer on the date a typical claim is brought. Additionally, any undertaking or security permitted in association with those receivables of the brief rule specialist would be subordinated to the benefits of the sub-contractors/workers. 

Standard specification for construction work 2009:

It describes specifications of construction work that consists of requirements for selecting materials, laborers, and activities corresponding to the progression of the construction process. The essential objective of the project is to survey and update the specifications. The auxiliary target is to audit and prescribe a more suitable arrangement for changing the specifications into a National Standard Specification relevant to all construction projects. Objectives of the specification include the following:

• To check consistency with suitable current global measures and practices.
• To guarantee that appropriate codes and practices of locales with comparable climatic conditions to that of the Kingdom of Bahrain are incorporated.
• To refresh all the referenced benchmarks and codes to mirror the most recent changes.
• Check relevance of all conditions and the consistency between areas.
• Include missing segments and conditions.

Future of Bahrain’s Construction:

The framework aimed at improving the construction industry, housing, network, and the administration of Bahrain has a $32bn venture system to expedite financial enhancement in the Kingdom, giving bounteous chances to the construction sector. 

Glossary

• Zoning Regulations for Construction 2009 concerning guidelines for building procedures.
• Bahrain Civil Code 2001 is the primary legislation in Bahrain.
• Green Building concerns eco-friendly building regulations.
• Mechanic’s Liens are used by sub-contractors and contractors. Liens are a legal claim against property that has been remodeled or improved.
• Standard specification for construction work 2008 concerning the requirement of building provisions.
• European Union Commission direction 244 of 2009