FAQ : Financial Centre

Click on links below for answers

• General Questions:
• How big is the Financial Centre?
• How have funds been raised for the Financial Centre?
• To whom was the contract for construction of the Financial Centre awarded?
• When did construction of Phase I of the development commence?
• Legal Questions:
• What are the tax implications at BFH?
• What is a Strata - Title ownership?
• What is the difference between Freehold ownership and Leasehold ownership?
• Are Non-Bahrainis allowed to own properties and lands at BFH?
• Will expatriates get residency visa if they buy a residential space in BFH?

 

Q: How big is the Financial Centre?

• At an imposing 53 storeys, the Harbour Towers are connected to the 9 storey Harbour Mall which takes the concept of a modern shopping mall and applies it to finance and ancillary activities. Directly linked to the Harbour Mall via a suspended bridge is the Harbour House; a 12 storied building which will be located in the centre of the Harbour Row amidst seafront walkways, shopping boulevards, promenades, marina and water pathways with water taxis, coffee shops and dining facilities. The Financial Centre spreads across a total of 240,434 m2 of built up area.

Back to Top

 

Q: How have funds been raised for the Financial Centre?

• The Financial Centre has been funded through a combination of equity raising and syndicated project finance.
• Bahrain-based Liquidity Management Centre B.S.C. (LMC) was engaged for assisting in the financing of the Financial Centre.
• LMC will structure the Islamic finance component of the $270 million, which is to raise the US$170 million through a syndicated loan, while the remaining $100 million is in the form of equity that has already been raised by Gulf Finance House through a Private Equity Placement.

 

Q: To whom was the contract for construction of the Financial Centre awarded?

• After a lengthy tendering process, the construction contract for the Financial Centre was awarded to Al Hamad Construction and Development Company in March 2004. The contract includes the engineering and construction of all three components of the Financial Centre: the Harbour Towers, Harbour Mall, and Harbour House.

Back to Top

 

Q: When did construction of Phase I of the development commence?

• Construction of Phase One of the development began in March 2004 and it is due for completion early 2007.

 

Q: What are the tax implications at BFH?

• Bahrain has a highly favourable tax environment, there is no corporate tax or personal income tax in the Kingdom. All profits, dividends, or any other income is tax-free. There is no withholding tax, capital gains tax, gift tax, or estate duty. Similarly, there is no tax on sales such as the Value Added Tax (VAT).

 

Q: What is a Strata - Title ownership?

• A system of Freehold ownership of space within a building. Titles are issued for each unit & for common property, which is managed by a committee of unit owners.

Back to Top

 

Q: What is the difference between Freehold ownership and Leasehold ownership?

• Freehold ownership means that an individual will enjoy the ownership of the property for an indefinite time.
• Leasehold ownership, an individual would exercise the rights of ownership for a certain period of time (i.e. 99 years). Once the lease period expires, the rights of the property revert back to its original land owner.

 

Q: Are Non-Bahrainis allowed to own properties and lands at BFH?

• Yes, Non-Bahrainis are allowed to own properties and lands at BFH. According to Decree No. (43) for the year 2003 issued by the Cabinet of Ministers, Non-Bahrainis are permitted to own properties and lands in selected areas in the Kingdom of Bahrain.
  

Back to Top

 

Q: Will expatriates get residency visa if they buy a residential space in BFH?

• Yes, according to Decree no. (43) for the year 2003 issued by the Cabinet of Ministers, non-Bahrainis are permitted to own properties in BFH and will be issued a resident visa to live in Bahrain so long as the investor maintains ownership of the property.