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Negative prospects for Bahraini real estate after the new insurance decree

Bahrain - January 11, 2015
Bahrain Health Minister

The honorary chairman of Bahrain real estate association, Eissa Abd El Raheem, said that the latest decree issued by the health minister about real estate’s workers insurance will leave a lot of damages on the Bahraini contracting sector once applied.

Eissa added that the small and average projects are expected to suffer a lot of losses especially in the wake of the current oil crisis.

Bahrain has around 440 thousand workers, 40% involved in properties market, which is equivalent to 200 thousand workers, which will result in expensive expenses on the whole sector.

The new decree will affect the whole Bahraini trade market according to Eissa as the new fees imposed on the contracting companies will increase the projects’ costs and expenses. This could lead to workers lay off, decreasing their wages, or closing whole projects.

The Bahraini Health Minister issued a decree compelling all real estate developers to afford total health insurance for their workers through submitting them in the ministry’s health care system. The projects owners are obliged to cover the insurance costs by paying 72 Dinars annually on each foreign worker, and 22.5 Dinars for each Bahraini worker.

 

 

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