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An improved, investor-ready industrial landscape is on the horizon after the Shura Council unanimously approved amendments to the Industrial Zones law to ensure plots are allocated to serious projects that generate jobs and boost productivity.
The changes to Decree-Law No 28 of 1999 were endorsed during the Council’s final session and have been referred to His Majesty King Hamad for ratification, following Parliament’s approval.
The reform focuses on improving how industrial land is managed and utilised, addressing long-standing cases where plots remained idle for years.
Shura financial and economic affairs committee chairman Khalid Al Maskati said the amendments represent a strategic step to maximise the value of Bahrain’s industrial assets without undermining the kingdom’s pro-investment stance.
“This law sends a clear message that industrial land is a productive national resource, not a speculative holding,” he said. “The right to benefit from these plots will now be directly linked to seriousness in execution and operation.”
Under the amendments, the Industry and Commerce Ministry is granted broader administrative tools to ensure compliance with lease and operational commitments. These include the ability to suspend commercial registrations and industrial activities for up to six months, impose administrative fines of up to BD50,000, and, in persistent cases, terminate lease contracts or withdraw unused portions of plots for reallocation.
However, the law also introduces incentives to encourage faster project implementation. Temporary rent exemptions are among the measures aimed at helping investors move quickly from allocation to operation, preventing plots from remaining vacant.
Stricter rules now govern the subleasing and transfer of industrial plots to curb speculation and misuse. Tenants whose leases end or are revoked must immediately vacate the premises and remove all movable assets. If they fail to do so, the ministry may remove the items at the tenant’s expense or dispose of them according to regulations, with the net proceeds returned to the tenant.
“This ensures plots can be quickly reoffered to serious investors without delays,” Mr Al Maskati said.
Present was Industry and Commerce Minister Abdulla bin Adel Fakhro, who deputised a senior official to respond to queries.
* Meanwhile, Shura members unanimously approved key amendment to the GCC Unified Selective Tax Agreement, in a move aimed at modernising excise tax rules and strengthening regional economic integration.
The amendment revises core provisions of the original GCC excise tax framework, including how tax is calculated, defined, and administered across member states.
Present was National Bureau for Revenue chief executive officer Rana Faqih.
* Also unanimously approved were draft laws amending Article 29 of the 1989 medical practice law and Article 23 of the 1987 allied health professions law. Under the new framework, offenders face up to five years’ imprisonment and fines reaching BD5,000, or either penalty. Courts will also be empowered to order closure of illegal facilities and confiscation of equipment, while regulators can impose immediate suspension pending trial. A key reform is the unification of penalties across both medical and allied health laws, addressing inconsistencies in sentencing and enforcement.
Present was Health Minister Dr Jalila Al Sayyed with feedback given from Shura Council services committee chairwoman Dr Jameela Al Salman.
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