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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)

Housing loan installments will be postponed for six months starting in April, Bahrain’ government announced on Monday.

This decision is part of the measures taken by the government to reduce the effects of the coronavirus outbreak on the Kingdom’s economy and citizens.

Crown Prince Salman bin Hamad Al Khalifa, first deputy premier, took part in the cabinet session, which was chaired by Prime Minister Prince Khalifa bin Salman Al Khalifa and was held via videoconference.

In order to help stabilize the economy, the government announced in April a BHD4.3 billion ($11.4 billion) stimulus package to mitigate the economic impact of COVID-19 for both individuals and businesses.

It included key polices, such as paying salaries of all private sector employees for three months from April 2020 from the unemployment fund pursuant to constitutional procedures and Bahrain's Social Insurance Law.

It also pledged to pay the Electricity and Water Authority utility bills for individuals and businesses for three months from April.

The government exempted municipal fees for all individuals and businesses, industrial land rental fees for all businesses and tourism levies for all tourism-related industry for a period of three months from April 2020.

It decided to increases the size of the Liquidity Support Fund two-fold to BHD200 million ($530 million) and the Central Bank of Bahrain's loan facilities to BHD3.7 billion ($9.8 billion) to allow the deferment of debt installments and the extension of additional credit.

The Kingdom redirected all Tamkeen (the government agency responsible for the provisions of loans and assistance to businesses) programs to support adversely affected businesses and the restructuring of debts issued by Tamkeen.

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Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
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Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)

As Saudi Arabia experiences a surge in visitor numbers, there is a growing need to expand tourism infrastructure to keep up with demand.

In this context, the private facilities sector has emerged as a practical solution, contributing positively to increasing the income of local citizens who own these facilities.

This growth is reflected in the significant rise in the number of licenses granted by the Ministry of Tourism, which saw an increase of 333% in 2024 compared to the previous year.

In January, the Ministry of Tourism announced a new mandate requiring booking platforms and apps to exclude or refrain from listing unlicensed private hospitality facilities.

This move aims to ensure the quality of services provided to both local and international tourists across the Kingdom. The Ministry warned that any platforms violating this directive would face penalties.

This initiative is part of a campaign which seeks to enforce compliance with tourism licensing standards and regulations, ensuring facilities meet the criteria outlined in the Kingdom's Tourism Law and its accompanying regulations.

According to preliminary data from the Ministry of Tourism, the number of licenses issued for private hospitality facilities reached 8,357 last year, compared to 1,929 licenses in 2023.

Under the Kingdom’s Tourism Law, a private hospitality facility is defined as “any furnished and independent property unit, owned by an individual, licensed by the Ministry of Tourism, and offering daily accommodation services for a fee.”

Ministry spokesperson Mohammed Al Rasasimah emphasized that the growing number of licenses issued for private hospitality facilities reflects the ministry’s commitment to enabling individual investors in the hospitality sector to obtain the necessary operating licenses.

This initiative aims to enhance the quality of services provided.

He added that these efforts are part of the "Guests Are Our Priority" campaign, which seeks to strengthen compliance with licensing and classification standards and ensure facilities meet the conditions set out in the Tourism Law and its regulations.

Dr. Salem Baajajah, an economic expert and professor at King Abdulaziz University, told Asharq Al-Awsat that the significant growth in hospitality and tourism facilities is a result of the Ministry of Tourism's efforts to attract foreign investors.

He added that this expansion reflects a growing demand from international investors seeking to capitalize on opportunities in Saudi Arabia, aligned with the Kingdom’s Vision 2030 goal of increasing the number of tourists visiting Saudi Arabia.

He further explained that the tourism sector is experiencing notable growth, contributing to higher revenues for local citizens.