Manama: His Majesty King Hamad bin Isa Al Khalifa has ratified and issued Law (1) of 2025, aimed at regulating time-share activities within accommodation units in the Kingdom of Bahrain. This legal framework was formulated following its endorsement by both the Shura Council and the Council of Representatives.
According to Bahrain News Agency, the law introduces comprehensive preliminary provisions, outlining essential definitions and objectives. It aims to regulate time-share activities, promote investment in time-sharing, enhance project performance, and protect consumers and beneficiaries before and after agreement on time-share contracts. The law emphasizes the importance of integrity, transparency, and effectiveness in managing time-share activities.
The competent authority, identified as the Bahrain Tourism and Exhibitions Authority, is tasked with implementing the law. It is responsible for establishing the rules, procedures, and conditions for granting licenses to operate time-share activities. The authority will also coordinate with relevant government entities to streamline licensing procedures, monitor compliance, and ensure the protection of beneficiary rights.
The law mandates that all time-share projects must be licensed by the competent authority. The licensing process involves several steps, including application submission, initial approval, property registration, and final licensing. The competent authority is given 30 days to approve or reject licensing applications, with the provision of reasons in cases of denial.
Moreover, the law outlines specific rights and protections for beneficiaries. These include the right to withdraw from contracts within ten days, mechanisms for handling complaints, and the regulation of advertising and marketing practices for time-share products. Beneficiaries are also allowed to transfer their rights under time-share contracts to heirs or third parties.
In terms of oversight, the law grants the competent authority the power to conduct inspections and administrative investigations to ensure compliance. Violators of the law may face penalties, including fines and imprisonment, depending on the severity of the offense. Legal entities can also be held criminally liable if offenses are committed under their name or for their benefit.
This new legislation takes effect the day following its publication in the Official Gazette, with all relevant entities required to comply within six months. The competent authority will issue additional regulations and a code of conduct to further guide the management of time-share activities in the Kingdom.