LEGISLATIVE DECREE NO. (2) OF 2001
WITH RESPECT TO THE OWNERSHIP BY NON-BAHRAINIS OF
CONSTRUCTED PROPERTIES AND LANDS

We, Hamad Bin Isa Al Khalifa,           the Amir of the State of Bahrain 

• Having examined the Constitution,
• And Amiri Order No. 4 of 1975,
• And Legislative Decree No. 8 of 1970 with respect to the acquisition of lands for public interest, as amended,
• And Land Registration Law promulgated by Legislative Law No. 15 of 1979,
• And Legislative Decree No. 8 of 1987 regulating the ownership of storeys and flats,
• And Legislative Decree No. 11 of 1995 with respect to the Preservation of Antiquities,
• And Legislative Decree No. 28 of 1999 with respect to the establishment and organization of industrial estates,
• And Legislative Decree No. 40 of 1999 with respect to the ownership by the citizens of the Arabian Gulf Co-operation Council of constructed properties and lands in the State of Bahrain,
• And upon the submission of the Minister of Justice and Islamic Affairs,
• And after obtaining the Shura Council's approval,
• And upon the approval of the Council of Ministers,

HEREBY DECREE THE FOLLOWING:

Article 1

Without prejudice to the right of the citizens of the Arabian Gulf Co-operation Council countries to own constructed properties and lands, non-Bahrainis, whether natural persons or corporate bodies, may own constructed properties and lands in the State of Bahrain by using one of the legally prescribed methods of disposal or by way of inheritance.

Article 2

Commercial, industrial and tourist establishments and banking and other financial institutions fully owned by non-Bahrainis and are licensed to carry on business activities in the State of Bahrain, may own constructed properties and lands for the purpose of setting up economic projects in which they are allowed to engage in activities, in accordance with the following conditions:

1. The purpose of setting up the company or corporation in the State of Bahrain shall be to set up a commercial, industrial financial tourist, health, educational or training establishment and use the State of Bahrain as its main centre to invest its funds in the activities related to the distribution of the commodities produced by it or the services it offers and such other economic and investment activities or any other activities which are determined by a resolution of the Council of Ministers.
2. The property shall be allocated in the areas for which an Edict of the Council of Ministers is issued for engaging in the allowed business activities.
3. The area of the property shall be suitable for engaging in the business activities as specified by the competent authority.

Article 3

Each conveyance or disposal issued in contravention of the provisions of this Law shall be null and void, and shall have no legal effects, and may not be registered.

Article 4

The Council of Ministers shall issue the necessary Edicts for the implementation of this Law.

Article 5

The Ministers, each in his respective capacity, shall implement the provisions of this Law, and shall come into effect from the date of its publication in the Official Gazette.

 Hamad Bin Isa Al Khalifa
 The Amir of the State of Bahrain

Issued at Rifa' Palace
On: 21 Shawwal 1421 H
Corresponding to: 16 January 2001