Bahrain - A framework for private-sector development, off-plan sales and beneficiary protection is now in place.

Housing and Urban Planning Minister Amna Al Romaihi has issued a new regulatory edict, published in the latest edition of the Official Gazette, setting out detailed rules for partnering with the private sector in government land development and for selling housing units before their completion.

The decision aims to expand housing options, accelerate project delivery and strengthen financial and legal safeguards for citizens seeking homeownership.

Citizens who receive financing under the off-plan programme will continue to receive the housing allowance for up to two years, or until they receive their unit – whichever comes first – providing financial stability during the construction period.

A central component of the edict is the Government Land Development Rights Programme, which opens the door for developers, investors, consultants and financing banks to competitively bid to design, finance, construct and sell housing units on government-owned land.

The ministry will tender these projects through transparent public procedures, ensuring competition and adherence to the Government Tenders Law.

Developers awarded projects must sign a Real Estate Development Agreement outlining obligations, timelines and financial controls.

To safeguard public assets and beneficiary funds, the ministry or the Eskan Bank will retain ownership of project land until units are sold.

Every project must also operate through a dedicated escrow account, into which all revenues – beneficiary payments, bank financing or developer contributions – are deposited.

Funds may be withdrawn only according to the priorities and timelines set out in the development agreement, ensuring construction progress and preventing misuse.

The ministry will continuously monitor projects and may intervene if developers fail to meet obligations.

Developers or the Eskan Bank may market units only under terms approved by the ministry. Sales to citizens must follow ministry-set conditions, ensuring fairness and consistency across projects.

For eligible citizens, the bank will disburse housing finance or financial support in line with approved housing finance programmes. If the bank itself acts as the financing bank, disbursement must align with its internal policies so long as they do not conflict with the edict.

A major element affecting citizens is the introduction of a regulated Off-Plan Housing Unit Sales Programme, allowing beneficiaries to purchase units before construction is completed.

This is intended to expand supply and provide beneficiaries with access to units earlier, coupled with strong financial protections.

The programme may only be applied to projects approved under the land development framework.

Off-plan sales must follow a specific sequence:

1. Project subdivision must be approved by competent authorities

.2. The ministry issues eligibility certificates enabling beneficiaries to reserve units.

3. Beneficiaries pay a reservation amount, deposited into the project’s escrow account – protecting the ministry’s right to cancel reservations if needed.

4. The bank evaluates financing applications and issues final approval.

5. Financing is released in instalments tied to construction progress and deposited into the escrow account.

6. Upon completion, units are handed over to beneficiaries, and the bank finalises ownership transfer and mortgage procedures.

If a title deed is not immediately available, the ministry must provide a written undertaking to supply required documents once issued, ensuring beneficiaries can complete registration and mortgage processes without delay.

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