Bahrain Real Estate Regulatory Authority (BRERA)

Central Manama Panoramic View

The Kingdom of Bahrain like any other country has witnessed a boom in the real estate industry which started in early 2000 with the announcement of three major projects at that time:

1. Amwaj Islands, in Muharraq area
2. Bahrain Financial Harbour, in Manama area
3. Durrat Al-Bahrain, in the Southern part of Bahrain

These 3 projects have set the pace for more to be announced at a time people were questioning the viability and if these projects were even realistically thought off in terms of demand. well after years passing by more projects come up and demand was always there as the Kingdom of Bahrain does poses a strategic location in the middle of the Arabian Gulf and surrounded by its neighboring GCC countries that is of course in addition to the culture, heritage and history; making it a nice weekend getaway for families in the area.

Having said that, and as this boom was unfortunately not monitored properly by the government; has resulted in many mishaps some were intentional and other were due to circumstances. We also witnessed lots of Commercial Banks deviating from their core business to have a share of the Cake, let alone that every single person wanted to have a bite so all were trying to make a quick buck by being brokers which included high position individuals in Banks and Government!

I am not here to try to preach to all what should or shouldn't be done, but I think the time has come for the Government to step in and try to regulate the real estate industry just like it did with the Telecom when it established the TRA. We need a Real Estate Regulating Authority to be established by the Government for a lot of reasons which I summarize the main in the list below:

• To ensure that the projects complete as they were announced or at least try to ensure that they don't deviate from the original as much as possible.
• To ensure that projects obtain all proper approvals prior to launching.
• To ensure that all "off-plan" sales are done using escrow accounts.
• To try to eliminate any fraud sale reports that in return hypes up the prices for no valid reason.
• To try to ensure that the investors money which was raised using the PPM's "Private Placement Memorandum" are regulated by the CBB "Central Bank of Bahrain" and have the project accounts checked on regular basis.
• To regulate the brokerage companies and monitor their authenticity. 
• To try also to help the projects that are in need by negotiating on their behalf with other governmental bodies to solve any problems.

The last point in the list of my summarized reasons or you can call them tasks of BRERA is one of the most important and needed points these days..

Marina West

Villamar

We see a lot of projects that have been effected by the World Financial Crisis that started in 2008 and ended in late 2010 as majority of buyers started using it as an excuse for not paying their dues which effected some of the projects cash flows. In addition to the buyers, our CBB set a rule for the local Banks not to finance real estate projects up to a certain percentage of the Banks capital; which is off course to protect the banking industry in Bahrain. However, as much as our CBB is trying to protect the banks by making them not finance the needy projects it has to take into consideration that all the projects in Bahrain DO have existing facilities with the Banks, and that rule as much as it was made in the interest of protecting the banks it actually has more damage to them in the long term. Logically, if the projects that are caught with a cashflow problem are not helped by the Banks they WILL collapse and if they collapse they wont be able to pay back the dues to the banks. More over, if the banks try to go legal, they are going to come after the actual buyers who paid in the project!

I know its complicated and it is a domino effect... Simply putting it.. If the Projects fall; a lot of the Banks in Bahrain will follow!!

That's why we in Bahrain are in dire need of a regulating authority to talk on behalf of the projects with the CBB to ensure that they are helped to fulfill their obligations towards their buyers and the banks; let alone the other tasks of regulating an industry which is considered to be the second biggest after the banking industry in Bahrain..

Who I am, or Who am I?!

Since I am going to write my thoughts, I guess a lot will ask who is he to share his thoughts, what has he done, for us to even be bothered to read what he yaps!

Well let's start with "Who I am" I am the Chief Investment Officer of a real-estate project and a holder of an MBA. That's about it!

But "Who am I" well that's a long story, but will share the short version of it, hoping a lot of youngsters would learn from it that life is not how we see it at the moment but rather it is a whole path that we have to go through and struggle to reach where we are at this current moment.

I won't say that during my young age my life was complicated and tough, rather it was completely the opposite it was made so simple by my parents "being the first born has it's advantages" till I became careless and negligent to what was important in life. After my secondary exams and seeing all my friends traveling to study abroad one in the states the other in UK I asked my dad to send me abroad to study "but my real motive was to be with my friends". I was then shocked by my dads decision and his exact words were "Son, You need to learn how tough life is and need to start taking responsibilities" I honestly thought he wanted me to get married!

But pretty soon I was slapped with the reality and found out that he meant I needed to work and start spending on my self. That decision has altered my life, way of thinking and my perspective to the every single thing you could imagine! Don't imagine that I liked that decision as at that moment in time my way of thinking was still not matured enough to understand the real motive of my dads decision, it took long and hard years for me to appreciate it. So, I had no choice but to start looking for a job as I was 19 and had my entertainment that needed money which my dad decided to stop passing!

One day, My father told me that a Bank is looking for employees and told me to try my luck there, which I did, and in my interview I was asked by the branch manager what was my target position in the Bank, I told him I want to become a Dealer "Forex Trader" he laughed his socks off and said to me "Good ambition, but the reality is, the job you are looking at is a cashier!".

I started working, started earning my own cash (BD250/-) and thought I owned the world, till a day I saw one of my school mates "one who I always considered as a nerd" walking in front of the Bank. I said hi and asked him what was he doing in life? He replied, studying medicine! That guy changed my life! I kept the whole day saying to my self after a few years that nerd is going to be a doctor and I will remain as a cashier! So I decided to prove to everyone including my parents that I can manage and be better without anyone's help! So I started studying in the University while I was working in the Bank and it was hell, my social life went down the drain, friends thought I went to study abroad! But was so determined to prove to all, so I cared less!

After serving in the customer service department for a year, the Bank's branch manager "who interviewed me for the job" called me and said to me "Son, I can see you are putting lots of effort in both your job and more important your studies; so I will set you on the track to achieve your dream". I was over the moon, as he transferred me to an opening in the treasury department of that Bank.

5 years passed, I had my bachelor degree in hand and doing what I always wanted to do and being independent from my parents. I decided to take it a step further and do my MBA. My parents were shocked! But not as much as me when I found out that the Bank branch manager "who became a senior manager" was going to be my class mate, in addition to two Managers and one Assistant General Manager; I was still a clerk at that time which I cared less for as my aim was set on finishing my MBA and leaving the treasury as I found out after working there it's not what I wanted to do for the rest of my life!

After a year and a half I finished my MBA and decided to peruse a complete career change and leave the Bank in which I started as a cashier and left it as an employee of the Treasury department to another Bank where I was placed in the Corporate and Project Finance division... After that it was simply moving up the ladder either within the Bank or to another Bank doing the same job.

Till one day, I got a call from my uncle asking for my help to work on a finance for a project.. I heard the amount of financing required for the project "$925 million" and I was so tempted to leave my job in the Banking industry which I served for 13 years to peruse this challenge.. Yes it was risky, but worth every bit of time I have spent on it! Worked on that deal for 2 years and was basically living out of a suitcase because of the amount of travel involved but honestly loved every minute of it! It was concluded and successfully sold to the investors, that's the moment I left it and decided to settle down and got my current job!

I know it was a long story but I had to write it for people to appreciate that people in positions actually put a lot of effort to reach where they reach! And no one is handed his position in a silver spoon.

In addition I have written it as a tribute to the stars of my story or life who I am indebted to them for life as without their input, support and help I wouldn't of reached where I am today..

The stars of my story are:
1) My Parents (Mohd Aqeel Janahi & Amina Janahi); if it wasn't for that decision I would of been a spoiled brat.
2) The Branch Manager (Yousif A. Karim); if it wasn't for your support I wouldn't of achieved my dream to move on to another.
3) The nerd school mate (Khalid Helawa); if it wasn't for me feeling challenged by you that day I wouldn't of reached where I am.
4) My uncle (Ahmed Janahi); for giving me the challenge of my life time "as of yet"



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