BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Fatema Sarhan, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
1.3 Key Dispute Resolution Trends Preference for Arbitration
• professional fees (physicians, lawyers, experts) – five years; • unlawful acts (torts) – three years from when the victim knew of the injury and the responsible party, subject to an absolute limit of 15 years from the date of the unlawful act; • periodic payments (rent, salaries, pensions) – five years; • taxes and dues owed to the State – three years; • merchants and manufacturers for goods supplied to non-traders, hotel and restaurant proprietors for accommodation and food costs, and domestic servants – one year; • insurance contracts – three years from the occur- rence of the incident; • unjust enrichment – three years from date of knowledge, or 15 years from when the right arose; and • construction defects – architects and contractors are jointly liable for total or partial collapse of build- ings for five years from completion, and actions on such warranties must be brought within three years of the destruction or discovery of the defect. 2.2 Court Structure Dual Court System Bahrain operates a dual court system comprising civil courts and Sharia courts. Civil courts The civil courts have jurisdiction over commercial, civil, administrative, and criminal matters. The struc- ture includes: • courts of first instance, which handle most civil and commercial disputes at first instance; • the High Civil Court of Appeal, which hears appeals from the courts of first instance; and • the Court of Cassation, the highest court, which reviews questions of law only. Sharia courts The Sharia courts have jurisdiction over personal status matters for Muslims, including family law and inheritance. Conciliation is mandatory before cases may proceed.
There is growing preference for arbitration over tradi- tional litigation, particularly for complex commercial and construction disputes. The BCDR’s continued success has enhanced Bahrain’s reputation as a regional dispute resolution centre. Bahrain International Commercial Court The Bahrain International Commercial Court (BICC) launched in November 2025 under Royal Decree No 9 of 2024, providing a significant forum for cross-border commercial disputes. Its most distinctive feature is an innovative appellate mechanism: unless parties object, BICC judgments are appealed to the Interna- tional Committee of the Singapore International Com- mercial Court, establishing global standards within the region. The BICC conducts proceedings in both Arabic and English and permits non-Bahraini counsel representation. Enforcement Reforms Since 2022, reforms have introduced licensed private enforcement officers and electronic linkages between courts and government agencies, significantly improv- ing enforcement efficiency. The Mazad auction plat- form has streamlined the sale of seized assets, replac- There is increasing emphasis on ADR methods, par- ticularly mediation, supported by the Mediation Law. Remote Hearings Ministerial Decision No 114 of 2025 regulates remote litigation for civil, commercial, and criminal matters, allowing proceedings to be conducted fully or partially using electronic means. ing slower court-run auctions. Alternative Dispute Resolution
2. Litigation 2.1 Limitation Periods
Limitation periods in Bahrain are governed by the Civil Code. The general limitation period for personal obli- gations is 15 years unless otherwise specified by law. Specific limitation periods include those for:
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