Gulf Insider, 19 January 2025: Bahrain has introduced a comprehensive new law to regulate timeshare activities, marking a significant advancement in consumer protection and industry transparency.

Ratified by the King, the 36-article legislation targets overselling and misleading advertising, imposing stringent penalties for violations, including fines up to BD 50,000 and potential licence suspensions.

This move positions Bahrain as a leader in setting high standards for the timeshare sector.

Under the new law, all timeshare projects must appoint a licensed manager to oversee daily operations, with the project owner remaining accountable for compliance.

The Bahrain Tourism and Exhibitions Authority, or a designated body, will oversee licensing and ensure compliance to the law.

The authority is empowered to address breaches, with the ability to impose severe penalties based on the violation’s severity and impact.

Violators are notified in writing and given a chance to respond before any action is taken.

Public disclosure of breaches is permitted post-appeal or court ruling, and any criminal evidence found is forwarded to the Public Prosecution.

The licensing process for businesses is clearly defined, with a grievance process available for rejected applications.

Advertising is tightly regulated, allowing only licensed projects to market timeshare products, and banning misleading promotions and investment claims.

These rules extend to foreign projects advertised in Bahrain.

Consumer protection is a cornerstone of the law, offering a ten-day contract cancellation period with a full refund.

Escrow accounts are mandated to safeguard consumer payments, and overselling is prohibited to ensure consumers’ access to their timeshare slots. Beneficiaries can transfer or mortgage their rights, with automatic transfer to heirs upon death.

The Bahrain Tourism and Exhibitions Authority is tasked with enforcing these regulations, with inspectors granted judicial authority to ensure compliance.

Violators face severe penalties, including imprisonment and substantial fines.

Transparency is enhanced by requiring all contracts and transactions to be recorded in a timeshare registry, providing legal clarity and protecting consumers from disputes.

Licensed projects have six months to comply with the new regulations.

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