Private investments worth BD1.6bn given green light
PRIVATE investments worth a total of BD1.67 billion were given the go ahead in Bahrain last year, it has emerged.
The 843 developments, which cover a combined area of six million square metres, were sanctioned by authorities.
Details were revealed yesterday by Municipal One Stop Shop head Salem Alqooti, as he attended the Capital Trustees Board’s weekly majlis (open meeting) at its headquarters in Bilad Al Qadeem.
That compares with 970 investments worth BD1.55bn, covering 5.63m square metres, in 2016 and 773 investments worth BD917m, covering 3.33m square metres, in 2015.
In addition, Mr Alqooti said 400 permits for real estate projects were issued last year.
They included 96 in Hidd, 56 in Janabiya, 44 in Ras Zuwaid, 38 in Luzi, 37 in Juffair’s Al Fateh District, 33 in Tubli, 25 in Seef District, 24 in Alwajeha Albahriya, 24 in East Hidd and 23 in Al Hajyat.
“Investments don’t follow a pattern so it could be two months without anything and then in one month comes everything,” said Mr Alqooti.
“It is dependent on numerous global factors, the movement of the market, smoothness or complications related to the project, the availability of financing and ability to conduct work immediately.
“Compared to available space each year for projects, ranging from industrial, commercial, tourist or services and even real estate, we believe the BD1.67bn worth of projects last year is way ahead of our target.
“The value is high in comparison to others in the region and this year we are targeting much higher alongside our government partners.”
Board members proposed a special committee is formed to fast-track investment requests and remove obstacles.
“We are already working on a payable express pass through the Works, Municipalities Affairs and Urban Planning Ministry on request from the Cabinet to help investors complete the lengthy process faster, but the committee would also help since all those concerned would be debating an individual project all at once,” said Mr Alqooti.
“We are faster than many other neighbouring countries in issuing permits and international indicators have us top in the region, but that doesn’t mean we are satisfied and we have to review how to further improve.”
Board members also brought up an infrastructure levy introduced last July that requires developers of any new project to pay BD12 per square metre for each sellable or rentable space, with the cash directed to nearby infrastructure work such as roads, sewage, electricity and water.
“There are no complaints from major investors about the levy,” said Mr Alqooti.
“On the contrary they believe it is good, since it would help push ahead their projects faster than wait for the government to do infrastructure work for them.
“The complaints have come from small investors.
“Bigger investors already have an emergency budget they use whenever the cost of the project goes up or they have to make additions, corrections or changes.
Infrastructure
“So that’s already in mind for them and the numbers of investments we have had over the past three years indicates clearly there is no problem.”
Meanwhile, board chairman Mohammed Al Khozaie said the country had an edge over its neighbours in attracting investment.
“We are a very open country that is hospitable and has easy investment procedures, with the infrastructure levy being by far less than that taken by other GCC countries,” he said.
“We have everything that makes us appealing to investors, but again we need extensive work to promote us properly.”
Source: http://www.gdnonline.com/Details/345972/BD16bn-projects-given-green-light
