Bahrain - New penalties, including fines of up to BD50,000, will be debated in Parliament as part of moves to stop industrial land from lying idle and boost investment.

The financial and economic affairs committee has endorsed a wide-ranging amendment to the 1999 Industrial Zones law aimed at tackling long-standing underutilisation of land and enforcing what legislators call a more disciplined investment environment.

At the top of the reforms is a tougher penalties regime that significantly expands the Industry and Commerce Ministry’s enforcement powers.

Violations could now trigger suspension of commercial registration for up to six months, suspension of industrial facilities for similar periods, administrative fines reaching up to BD50,000, and even termination of lease contracts without the need for a court ruling.

The bill also empowers authorities to withdraw unused or non-compliant portions of industrial plots and reallocate them to new investors, alongside publishing violations publicly after due process.

Committee vice-chairwoman MP Zainab Khalil said the amendments mark a necessary shift in policy to protect public assets and improve economic efficiency.

“Industrial land is a national resource that cannot remain frozen while investment opportunities are lost,” she said. “These amendments ensure that serious investors are protected, while those who hold land without development commitments face clear and enforceable consequences.”

She added that the committee deliberately placed enforcement mechanisms ‘at the forefront of the law’ to ensure compliance rather than relying on procedural warnings alone.

According to the ministry, the reforms will allow the recovery of approximately 700,000 square metres of fully serviced but unused industrial land, which will be reintroduced into the investment cycle.

Officials told the committee the amendments would help improve land productivity, attract new industrial projects, and generate employment opportunities for Bahraini citizens.

The ministry also stressed that the updated framework introduces more flexible tools for reallocating withdrawn plots and managing assets left behind by non-compliant tenants, ensuring faster turnaround for investors.

Beyond penalties, the law revises key regulatory provisions governing lease obligations, construction timelines, and operational requirements.

Investors will be required to commence construction and operations within strict deadlines set out in executive regulations, fully utilise allocated plots, and comply with environmental, safety, and planning standards.

It also strengthens government authority to terminate contracts without court proceedings in cases of serious breaches, including prolonged non-development, misuse of land, or unauthorised subleasing.

Ms Abdulamir confirmed that the panel unanimously approved the draft, noting that it balances investment facilitation with stronger safeguards for state-owned industrial assets.

“The objective is not only regulation, but activation of idle economic potential,” she said in the committee report. “We are aligning legal tools with Bahrain’s broader industrial and investment strategy.”

The committee concluded that the draft law is constitutionally sound and aligns with national development priorities, particularly in improving industrial land efficiency and supporting economic diversification.

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