New Insurance Bond on escrow accounts for real estate projects
The Real Estate Regulatory Authority (RERA) in collaboration with the Bahrain Insurance Association (BIA) and Swiss RE now provide an Insurance Bond of escrow accounts for real estate projects. The Bond is provided by local Bahrain insurance companies who are regulated by the Central Bank of Bahrain and members of the Bahrain Insurance Association. The Bond is fully supported by an AA rated world’s largest reinsurer - Swiss RE demonstrating a strong vote of confidence not just in the new real estate regulatory environment but also in the broader real estate sector and the Kingdom of Bahrain.
This Insurance Bond brings stronger buyer and investor protection, improved cashflow management for developers, increased availability of finance for developers and investors and greater efficiencies for a range of organisations including RERA and insurance companies.
Developers of Off-Plan Sale projects will have to meet RERA regulatory requirement by either depositing funds in a specified development project escrow account, a Bank Guarantee, or by the Insurance Bond.
Please see list below of Insurance companies participating in the provision of the Insurance Bond on escrow accounts for real estate projects.
Insurance Bond Providers
The following Bahrain Insurance Association members provide the Insurance Bond on Escrow Accounts for Real Estate Projects