BAHRAIN Trends and Developments Contributed by: Noor Al Rayes, Bradley Price, Mohamed Al Sari and Raghad Al Matrook, Al Tamimi & Company
Navigating the New Era of Antitrust Litigation in Bahrain: Trends, Developments and Strategic Considerations Executive summary and the socio-economic context The commercial landscape of the Kingdom of Bahrain continues to evolve under Economic Vision 2030. As the nation shifts away from oil dependency toward a diversified, knowledge-based economy, transpar - ent market competition is an increasingly important consideration. Unfair commercial practices and mar - ket dominance can undermine the Kingdom’s goal of attracting high-quality foreign direct investment. Con - sequently, competition law is steadily gaining greater attention as a relevant consideration for corporate boardrooms. For international entities and local businesses, navi - gating Bahrain’s developing antitrust framework requires an understanding of both regulatory enforce - ment and civil litigation. While the framework remains at an early stage in practice, commercial entities are increasingly attentive to the dual prospect of gov - ernment oversight and private lawsuits brought by aggrieved competitors. This article offers a review of the current legal trends, procedural mechanics, and strategic considerations relevant to antitrust litigation in Bahrain. We explore how recent legislative and judicial developments may, over time, influence commercial risk profiles. Further - more, we consider how businesses can align their cor - porate strategies with the Kingdom’s evolving legal expectations. Proactive risk management remains a sensible approach as this area of law continues to develop. The evolving statutory and regulatory architecture The primary legislative foundation governing competi - tion within the Kingdom is Law No 31 of 2018 on the Promotion and Protection of Competition. This statute introduced definitions of anti-competitive agreements, market dominance, and merger control broadly aligned with international standards. Prior to its passage, competition rules were fragmented across general commercial codes and sector-specific regulations. The 2018 law represented a step towards consolidat - ing these principles into a more coherent framework
applicable across economic sectors, though its prac - tical impact to date has been comparatively limited. While the statute formally mandates the creation of an independent Competition Authority, its regula - tory duties are currently executed by the Consumer Protection Directorate. Operating under the Ministry of Industry and Commerce, the Directorate moni - tors market practices, investigates complaints, and reviews merger notifications. This administrative arrangement has provided a measure of continuity while the specialised authority is being operational - ised. Market participants may expect enforcement to develop further once the stand-alone authority assumes its full statutory powers. The statutory framework establishes administrative penalties for anti-competitive conduct, including financial fines and formal cease-and-desist orders. Regulatory fines represent one phase of a company’s potential legal exposure. The law also establishes the right of private parties to seek civil remedies for financial injuries caused by statutory violations. This interplay between public regulatory enforcement and private civil litigation is a notable, developing feature of the antitrust landscape in Bahrain. The mechanics of follow-on private antitrust litigation Private antitrust claims in Bahrain operate largely through a “follow-on” litigation structure grounded in general tort principles. Under Article 52 of the Com - petition Law, civil liability claims are governed by the provisions of the Bahrain Civil Code. Specifically, Arti - cle 158 of the Civil Code establishes that any fault causing injury to another obligates the party at fault to make full reparation. Consequently, an aggrieved party can bring a civil suit seeking monetary compen - sation once a statutory breach is established. In practice, civil courts heavily rely on prior adminis - trative resolutions issued by the Consumer Protection Directorate to satisfy the legal requirement of fault. A formal regulatory decision establishing an anti-com - petitive agreement or an abuse of dominance serves as persuasive evidence of an unlawful act. Without a prior administrative ruling, initiating a standalone civil antitrust lawsuit presents significant evidentiary hur -
35 A NTITRUST LI T IGATI O N 2026
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