A Brief Summary Of The New Industrial Tenancies Law

Decision No. 45 of 2014 in relation to Industrial Tenancies was published in issue no. 3159 of the Legal Gazette on 5 June 2014 (Law) and came into force on 6 June 2014. The Law is to be read in conjunction with the existing framework governing industrial zones in Bahrain and in particular Decree No. 28 of 1999 in relation to the Establishment and Organization of Industrial Zones.

The Law affects tenancies in relation to tenancies in industrial zones. It specifically relates to tenants who are seeking permits to commence building and construction work, as well as those who have already acquired such permits.

In order to obtain a permit to commence work on the relevant land which has been leased, tenants are required to submit an application accompanied by the following documents:

The finalized blue prints and plans; The official timeline for the construction and building process from the directorate of industrial zones; A copy of the official issued building license from the Ministry of Municipalities Affairs and Urban Planning; and A copy of the building agreement between the tenant and one of the contractors. The Law intends to regulate the conduct of tenants with building permits in industrial zones. It sets the consequences in relation to tenants' failure to fulfil certain obligations and commitments set out by law.

Where a tenant fails to initiate construction work, or complete the work, the Law sets out certain rules in relation to tenants who have refused to give up their building permits within three months of the relevant date referred to above. In...