Bahrain: First Gulf state to offer real estate insurance bonds
Source: Middle East Insurance Review | Sep 2018
The Real Estate Regulatory Authority (RERA) has signed an agreement with the Bahrain Insurance Association (BIA) to develop real estate insurance bonds.
The kingdom is the first country in the Gulf to offer this type of insurance bond that will provide greater protection to buyers of off-plan housing projects, reported Bahrain News Agency.
The BIA will issue the bonds under the supervision of the Central Bank of Bahrain and reinsure them in cooperation with leading world reinsurers that are rated at least ‘AA’ by international rating agencies.
This innovative solution will enable property developers to go ahead with off-plan selling, in compliance with terms set by the RERA – either by depositing funds in the project insurance account or by issuing bonds that protect buyers’ interests. M