BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Fatema Sarhan, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
Al Tamimi & Company Bahrain Financial Harbour, West Tower, 13th Floor Suite 1304, Office 13B, Building 1459, Block 346 PO Box 60380, Manama, Bahrain
Tel: +973 17108919 Fax: +973 17104776 Email: info@tamimi.com Web: www.tamimi.com
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods The main methods for resolving commercial disputes in Bahrain are litigation, arbitration, and mediation. Litigation Litigation takes place through the civil court system, where parties present their cases before a judge who issues a binding decision. Bahrain has a tiered court system for civil and commercial matters. Arbitration Arbitration is a private process in which an independ- ent arbitrator or panel makes a binding decision out- side the court system. The Arbitration Law (Law No 9 of 2015) governs arbitration and is closely aligned with the UNCITRAL Model Law as amended in 2006. Mediation Mediation is a voluntary process governed by the Mediation Law (Legislative Decree No 22 of 2019), in which a neutral third party assists the disputing parties in reaching a mutually acceptable resolution without imposing a binding decision. Mediation settlement agreements are enforceable, with the court review- ing form and compliance with public order rather than substance. Each method offers distinct advantages depending on the nature, complexity, and value of the dispute, as well as the parties’ priorities regarding confidentiality, speed and cost.
1.2 Choice of Dispute Resolution Method Arbitration Arbitration is increasingly popular, particularly in com- mercial and construction contracts, due to its efficien- cy, confidentiality, and the international enforceability of awards under the New York Convention. Bahrain’s pro-arbitration stance is demonstrated by streamlined enforcement processes, including the option to pro- ceed in English before the English-speaking section of the Bahrain Chamber for Dispute Resolution (BCDR) for awards exceeding USD1.3 million. Mediation Mediation is preferred where preserving business or personal relationships is important. The Mediation Law allows parties to appoint their own mediator or apply for a certified mediator registered with the Min- istry of Justice. Litigation Litigation remains the default option where no arbitra- tion agreement exists and is frequently used for claims requiring formal judicial enforcement or involving mat- Construction and international commercial disputes frequently use arbitration, often administered by the BCDR. Disputes involving state-owned or state-gov- erned entities typically require referral to the BCDR under the arbitration agreement. Family and personal status matters are heard by the Sharia courts, where conciliation is mandatory before proceedings may continue. ters of public interest. Sector-Specific Trends
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