The parties involved in a dispute over a real estate development project in Bahrain have been urged to seek an out-of-court settlement so as not to harm the personal interests of owners, investors and the master developer.

Deputy Premier Shaikh Khalid bin Abdulla Al Khalifa called on parties to find a cordial solution to disputes so that Bahrain’s real estate and investment reputation is not damaged, said a report in the Gulf Daily News (GDN), our sister publication.

“Failure to deal with this occasional problematic issue adequately could result in detrimental and undesirable results,” he said.

The Deputy Premier, also head of the ministerial committee for construction and infrastructure, urged the two sides involved in the row to find a common ground that will be accepted by everyone.

In a statement yesterday (July 13), he said real estate laws do not authorise or give the executive branch necessary powers to deal with such disputes which may break out between  investors, owners and developers.

He cited particularly the law on real estate development and the law decree on settling stalled real estate development projects.

He said he followed up, closely and with great interest, reports of developments between the parties to the dispute in the local Press and social media websites.

He deplored the dispute between the Reef Island Homeowners Union and the master developer and project owner, saying that such an escalation does not reflect Bahrain’s adopted policy, which encourages the real estate development sector, a key pillar that boosts gross domestic product.

This deplorable escalation, he added, does not reflect Bahrain’s reputation which gained further impetus with the promulgation and enforcement of recent real estate legislation.

“The government has more than once reiterated its firm determination to settle the stalled real estate development projects through adequate legal means,” he said.

He urged the two parties to resort to the courts in case they fail to reach a cordial out-of-court settlement.

“The right place to deal with such disputes is the judiciary, which is mandated to rule in such cases and issue final, binding and enforceable resolutions,” he said.

He deplored the fact that the dispute escalated to the point of questioning and casting doubts on the performance of national companies in charge of managing Bahrain’s assets and overseeing the investment portfolio, paying no heed to potential detrimental repercussions on the country’s vital interests.-TradeArabia News Service