Manama : His Majesty King Hamad bin Isa Al Khalifa ratified and issued Law (1) of 2025 to regulate time-share activities in accommodation units, following its approval by the Shura Council and the Council of Representatives.
Chapter (1)
Preliminary Provisions:
Article (1)
Definitions:
In the application of the provisions of this law, the following words and expressions shall have the meanings indicated next to each of them, unless the context of the text requires otherwise:
The Kingdom: The Kingdom of Bahrain.
The Minister: The minister responsible for the tourism sector or any minister appointed by a royal decree.
The Competent Authority: The Bahrain Tourism and Exhibitions Authority or any entity designated by royal decree.
Time-Share: Activities related to time shares in accommodation units, their disposal, or exchange, including activities related to vacation exchange systems, points systems, and other systems as determined by a decision from the competent authority.
Time share: A periodic time period designated for the use of an accommodation unit.
Accommodation Unit: A unit within hotel or tourism projects offering short-term stays, allocated for use under time-share arrangements.
Licensed Project: A project authorised to operate time-share activities under the provisions of this law.
Beneficiary: An individual granted rights to an accommodation unit through a time-share contract.
Time-Share Activity Manager: Any legal person authorised under Article (10) of this law to oversee and manage the operations of time-share activities.
Article (2)
Objectives of the law:
The following objectives of the law shall be taken into account when applying or interpreting the provisions of this law:
The regulation of time-share activities, taking into account the best practices in use.
The encouragement of investment in time-share activities and investment in time-sharing activities and enabling projects to utilise their full value through the provision of time-sharing products.
The enhancement of the performance of time-share projects to achieve high standards.
The protection of customers and beneficiaries imeshare products before and after concluding timeshare contracts.
Handling all requests and licences related to time-sharing activities with integrity, transparency, effectiveness, and in a fair manner characterised by flexibility, speed, and organisation.
Article (3)
Duties and Powers of the Competent Authority:
The competent authority shall directly undertake all necessary tasks and powers to implement the provisions of this law, and for this purpose, it shall particularly carry out the following:
Establish rules, procedures and conditions for granting and renewing licenses stipulated in this law, their duration of validity and all matters related thereto, including licensing projects operating in time-share activities and licensing the management of time-share activities.
Set rules, procedures, and conditions for licensing the handling of time-share products in off-plan projects, in coordination with the competent authority overseeing the real estate sector.
Determine the duties and obligations of licensed project owners and time-share activity managers.
Establish conditions, requirements, and technical standards that must be met in projects to operate in timeshare activities, in accordance with best practices in this field.
Issue and renew licences stipulated in this law.
Issue time-share documents and maintain a registry of time-share contracts, as specified in Articles (24) and (25) of this law.
Propose any policies or programmes that would enhance time-share activities.
Collect and analyse data, information, and statistics on time-share activities in the Kingdom, and establish a publicly accessible database.
Monitor compliance with the provisions of this law and decisions issued for its implementation, and take appropriate measures against violators.
Coordinate with all government entities concerning time-share activities and work with relevant government entities to streamline the licensing procedures for projects intended to be used for timeshare activities.
Organise training and educational programmes to raise awareness of the provisions of this law, promote time-share awareness and culture, provide guidance to consumers and those working in marketing and operating timeshare systems, conduct and support research and studies in this field, and work to benefit from their results.
Provide opinions on draft laws, regulations, and decisions related to time-share activities issued by other government entities.
Study existing relevant laws and regulations to determine if they contain any provisions that hinder the advancement of timeshare activities and propose amendments.
Receive, examine, and assess complaints or reports of violations of this law, and take appropriate action.
Perform other duties and exercise powers as stipulated by this law.When the competent authority plans to issue decisions or take measures significantly impacting time-share activities, it must consult stakeholders and relevant entities to gather their opinions beforehand.
The competent authority may, with the minister’s approval, delegate specific tasks to other entities with the necessary expertise and resources.
Chapter (2)
Licensing of Time-Share Activities
Article (4)
Licensing of Time-Share Projects:
The offering or sale of any time-share products to the public is prohibited unless the project is licensed by the competent authority in accordance with the provisions of this law.
Article (5)
Application for Project Licensing:
The project owner must submit a licensing application to the competent authority using the prescribed form, including all required information, documents, and data. If additional details are needed, the authority must notify the applicant within seven working days of submission.
Once the application fee is paid, and all requirements are fulfilled, the authority shall register the application and provide the applicant with confirmation of receipt.
Article (6)
Decision on Initial Approval of Licensing Applications:
The competent authority shall review and decide on licensing applications within 30 days of submission, provided all required information and documents are complete.
The applicant will be notified of the initial approval, which remains valid for one year and may be extended. Initial approval allows applicants to complete required permits and approvals from other entities.
The competent authority may issue the final licence to the applicant directly, pursuant to Article (9) of this law, provided that all required data, information, and documents are submitted, and the necessary approvals and permits from the relevant authorities are obtained at the time of submitting the licence application.
If the application is denied, the decision must include justification. Failure to decide within 30 days is considered implicit rejection.
Article (7)
Real Estate Registration:
Before obtaining final licensing, applicants must provide proof that the property is registered in the real estate register for time-share activities for the specified duration. Alternatively, no duration limit can be set for the registration.
For off-plan projects, property owners must provide proof of property registration for time-share use before final licensing is granted.
Under no circumstances shall the Survey and Land Registration Authority record an entry in the real estate registry, as stipulated in this article, if any third party holds real rights that may compromise the obligations of the project licence applicant toward the beneficiaries. Such an entry may only be permitted if the holders of these real rights provide a written waiver explicitly relinquishing their right to assert those rights against the beneficiaries when the property is designated for time-share activities.
Changes to the property’s time-share registration may only be made with the competent authority’s approval or by judicial order.
Article (8)
Beneficiaries’ Rights against Third Parties:
Registering a property in the real estate registry as designated for time-share activities ensures that the property is exempt from seizure. Hence it entails, the property is excluded from the general guarantee afforded to creditors of the licensed project owner or, where applicable, the landowner in cases where the project owner does not own the land on which the project is established. This exclusion applies in the event of a declaration of bankruptcy or insolvency, except where enforcement is required to fulfil obligations arising from the rights of beneficiaries under time-share contracts.
Article (9)
Final Licensing:
The competent authority must issue the final project licence within 30 days of fulfilling all conditions, approvals, and permits. The licence must be published using methods determined by the minister to ensure public accessibility.
Article (10)
Management of Time-Share Activities:
Each licensed project must appoint a time-share activity manager. The competent authority shall establish the rules, conditions, and procedures for licensing such managers.
The project owner may act as the manager or appoint a licensed individual or entity. If a manager is appointed, the project owner remains jointly liable for all legal obligations alongside the manager.
Article (11)
Appeals against Licensing Rejections:
Applicants whose licensing requests are denied may appeal to the minister within 30 days of receiving the rejection notice or the lapse of the implicit rejection period.
The minister must decide on the appeal and notify the applicant within 30 days. Failure to decide within this period constitutes implicit rejection.
Applicants may appeal the minister’s decision or the implicit rejection to the competent court within 30 days.
Article (12)
Advertising and Marketing of Time-Share Products:
Advertising or marketing time-share products in any form or medium is prohibited unless the project is licensed or authorised by the competent authority.
The competent authority will issue decisions outlining the rules, conditions, and data requirements for advertising and marketing time-share products.
For foreign time-share projects marketed in the Kingdom, the competent authority shall establish a licensing system with specific terms and conditions.
Marketing time-share products as investment tools for buyers is strictly prohibited.
Chapter (3)
Time-Share Contracts
Article (13)
Regulation of Time-Share Contracts:
The competent authority may issue decisions to regulate the terms, conditions, and required information for time-share contracts. Such decisions must include:
Provisions governing the process for concluding time-share contracts.
Terms, information, and obligations to be included in the contracts, including mutual rights and responsibilities of the parties.
Terms and obligations prohibited from inclusion in the contracts.
Rules governing the beneficiary’s rights to dispose of their entitlements.
The competent authority may also issue standardised contract templates for specific time-share activities.
Provisions and terms in time-share contracts, regardless of their title, are invalid if they conflict with the provisions of paragraph (a) of this article or the standardised templates mentioned in paragraph (b).
Article (14)
Information for Prospective Contract Signatories:
Time-share activity managers must provide accurate, complete, and free-of-charge information about time-share contracts to prospective signatories. This includes the nature of accommodation units, related services, their value, and clear details of their rights and obligations to enable informed decision-making.
Article (15)
Right of Withdrawal:
Beneficiaries have the right to withdraw from a time-share contract within 10 days of its conclusion unless a longer period is mutually agreed upon. In such cases, beneficiaries are entitled to a full refund of any advance payment.
Article (16)
Deposit Mechanisms for Beneficiary Funds:
The competent authority, in coordination with the Central Bank of Bahrain, shall regulate the mechanisms for beneficiaries to fulfil their financial obligations, including establishing escrow accounts. These funds are excluded from the general guarantees for creditors of the licensed project owner or the time-share activity manager in cases of bankruptcy or insolvency, except to fulfil obligations related to beneficiaries’ rights under time-share contracts.
Article (17)
Overbooking of Time-Share Units:
Licensed project owners or time-share activity managers are prohibited from overselling time-share products or overbooking time slots in a manner that impairs beneficiaries’ ability to utilise the accommodation units.
The competent authority shall establish procedures and safeguards to prevent such practices.
Article (18)
Protection of Beneficiary Rights:
Any agreement that requires beneficiaries to waive, wholly or partially, their rights granted under this law or its implementing decisions shall be deemed null and void.
Article (19)
Registration of Time-Share Contracts:
All time-share contracts, regardless of their designation, and any transactions affecting them, must be recorded in the register specified in Article (25) of this law.
Article (20)
Allowing Third-Party Use of Time Slots:
Beneficiaries may allow third parties to use their allocated time slots in accommodation units, either for free or for a fee, provided the beneficiaries have met their financial obligations.
Article (21)
Disposition of Rights under Time-Share Contracts:
Beneficiaries may dispose of their rights under time-share contracts, including selling or mortgaging them, provided such transactions are recorded in the register specified in Article (25).
Article (22)
Transfer of Rights to Heirs:
Upon the beneficiary’s death, rights under time-share contracts transfer to their heirs in accordance with inheritance laws. Heirs must notify the time-share activity manager and register the transfer of rights in the register specified in Article (25).
Article (23)
Handling Beneficiary Complaints:
Time-share activity managers must establish mechanisms to address beneficiary complaints efficiently, fairly, and promptly. The competent authority may set binding standards for managers to follow in designing these mechanisms.
Article (24)
Time-Share Documents:
The minister, in coordination with relevant entities, shall issue decisions regulating the issuance of time-share documents, including the required information and measures to safeguard against forgery.
Article (25)
Time-Share Contract Registry:
The minister, in coordination with relevant entities, shall issue decisions regulating the time-share contract registry, detailing conditions and procedures for registration, amendments, rejections, or cancellations, as well as accepted languages for registration.
Time-share activity managers must record contracts in the registry within five working days of the withdrawal period’s expiration, along with any subsequent rights or amendments. If the manager fails to do so, the beneficiary may request the registration.
Chapter (4)
Inspection, Judicial Control, and Investigation
Article (26)
Inspections and Judicial Control:
The competent authority is responsible for monitoring, inspecting, and ensuring compliance with the provisions of this law and its implementing decisions.
Inspectors appointed by the minister, whether from the competent authority’s staff or otherwise, shall have the authority to:
Enter licensed projects and related premises for inspection purposes.
Request access to files, records, documents, and information held by licensed projects and obtain copies as needed.
Question any individuals associated with the licensed project’s operations to investigate potential violations.
Licensed project owners and timeshare activity managers must cooperate with inspectors, providing them with the necessary documents and information within a reasonable timeframe.
Inspectors authorised by the minister, in agreement with the Minister of Justice, shall have judicial enforcement powers to address violations of this law within their jurisdiction.
Article (27)
Administrative Investigations:
The competent authority may initiate investigations on its own initiative or based on received reports or serious complaints to verify any violations of this law or its implementing decisions. Investigations may also be conducted if substantial evidence suggests an imminent violation.
The competent authority may request the violator to provide all necessary data, explanations, and documents. It may also delegate judicial officers to perform specific tasks within their remit.
c- The minister, based on the competent authority’s recommendation, shall issue decisions governing investigation procedures, timelines, and rules for notifying violators of alleged breaches. These decisions must ensure a fair opportunity for all concerned parties to defend their interests, present their views, and provide evidence.
Article (28)
Measures for Confirmed Violations:
a- Without prejudice to civil or criminal liability, if a violation is confirmed, the competent authority shall order the violator to cease the violation and address its causes or effects immediately or within a specified period. If the violator fails to comply within the set period, the competent authority may issue a reasoned decision imposing one of the following measures:
1. Impose restrictions or conditions on the services provided by the violator or on their license to protect the tourism sector.
2. Impose an administrative fine not exceeding BD 50,000
3. Temporarily suspend the license for a period not exceeding three months.
4. Revoke the license.
b- When determining the fine mentioned in clause (2) above, the competent authority must consider the severity of the violation, the degree of intent demonstrated by the violator, the benefits derived from the violation, and the harm caused to others.
c- Before taking any of the measures mentioned in paragraph (a), the competent authority must notify the violator in writing of its intention to take such action.
d- The competent authority may publish details of confirmed violations in a manner and through a medium determined by decision, proportional to the severity of the violation. Such publication must not occur until the expiration of the appeal period or the issuance of a final judicial decision affirming the violation.
e- If the competent authority determines that the investigation reveals evidence of a criminal offence, the case shall be referred to the Public Prosecution.
Article (29)
Appeals against Measures Taken:
Violators may appeal to the minister against measures imposed under Article (28) of this law within thirty days of being notified of the decision. The appeal must be resolved within twenty days of submission, with the decision communicated to the appellant in writing. If the appeal is rejected, the decision must include reasons for the rejection. Failure to resolve the appeal within the specified timeframe shall be considered an implicit rejection.
Those whose appeals are explicitly or implicitly rejected may challenge the decision before the competent court within thirty days of being notified of the decision or from the date the appeal is deemed rejected.
Chapter (5)
Criminal Liability
Article (30)
Penalties:
A penalty of imprisonment not exceeding one year, a fine between BD 1,000 and BD 50,000, or both shall be imposed on any party who:
Offers or sells time-share products without the project being licensed by the competent authority.
Manages time-share activities without obtaining the necessary licence from the competent authority.
Advertises or markets time-share products within the Kingdom without the required licence or approval from the competent authority.
Advertises or markets time-share products for projects located outside the Kingdom without a licence or in violation of licensing terms and conditions.
Submits false, misleading, or inaccurate data, records, or documents to the competent authority.
Obtains a licence from the competent authority through fraudulent means.
Deliberately fails to register time-share contracts, related rights, or amendments in the register stipulated in Article (25) of this law.
Obstructs or disrupts the work of inspectors of the competent authority or any ongoing investigation conducted by the authority.
Destroys any documents with knowledge of their relevance to an investigation being conducted by the competent authority.
Article (31)
Corporate Liability:
Without prejudice to the criminal liability of a natural person, a legal entity shall bear criminal liability if any of the offences stipulated in this law are committed in its name, on its behalf, or for its benefit by its executives, representatives, or employees. The legal entity shall be penalised with a fine not exceeding twice the maximum fine prescribed for the offence.
Chapter (6)
Miscellaneous Provisions:
Article (32)
Fees:
The minister, upon the recommendation of the competent authority and the approval of the Cabinet, shall issue a decision specifying the categories of fees applicable to services, applications, and licences issued in accordance with the provisions of this law.
Article (33)
Code of Conduct for Time-Share Activity Management:
The competent authority may issue a decision to regulate a code of conduct for managers of time-share activities.
Article (34)
Compliance with the Law:
All entities subject to the provisions of this law must comply with its requirements within six months from the date of its entry into force.
Article (35)
Implementing Regulations:
The competent authority shall issue the necessary regulations to implement the provisions of this law.
Article (36)
Enforcement:
The Prime Minister and the ministers, each within their capacity, shall implement the provisions of this law, which shall take effect the day following its publication in the Official Gazette.