Central Bank of Bahrain Governor Rasheed Mohammed Al Maraj recently issued a decree on property development management, appointing a secretary of real estate development in compliance with a 2014 law for more effective oversight.
The resolution pertains to the administration of real estate development escrow accounts and financial agencies involved in backing future property development projects.
Private companies are obliged to create a separate bank account in the name of each project licensed by the kingdom’s retail banks. The resolution requires the secretary not to subject any project account to reassignment or transformation; not to allow access to restricted data except in the case of a judicial order or at the request of the public prosecutor; and to provide payroll and revenue information as needed.
It also creates guidelines for project cancellation terms, certificates of completion and other payment regulations, as well as establishing transparency for various parties involved in the projects such as engineers, financiers, etc.
Article V of the resolution states in part that the project account secretary must "provide management with the relevant licensing … payroll quarterly revenues and payments project account, and any information or data requested by found to need ... and provide a statement of account to the master developer in the event of termination of the agreement or close the project account before the completion of the implementation."