BAHRAIN Law and Practice Contributed by: Noor Al Rayes, 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, Manama, Bahrain Tel: +973 1710 8919 Email: info@tamimi.com Web: tamimi.com
1. General 1.1 Prevalence of Arbitration General Prevalence
Basis of Use in Bahrain International arbitration is most commonly used as a contractual dispute resolution mechanism through arbitration clauses in commercial contracts. Bah - rain is also increasingly chosen as a regional seat of arbitration due to its modern arbitration legislation, supportive judiciary, and strategic location within the GCC. The Kingdom’s accession to the New York Con - vention and the streamlined enforcement procedures before the Bahrain Chamber for Dispute Resolution (BCDR) – which permit enforcement proceedings to be conducted in English or Arabic, with typical rec - ognition decisions issued within seven to ten days of the hearing – further enhance its appeal as a seat for international arbitration. 1.2 Key Industries Key Sectors International arbitration in Bahrain is mainly concen - trated in sectors involving cross-border investment and complex commercial dealings, including: • Construction and infrastructure • Energy and utilities • Banking and financial services • Real estate and property development • Telecommunications and technology • Joint ventures and shareholder disputes Construction and Infrastructure Construction and infrastructure disputes are espe - cially common due to:
International arbitration is a well-established and increasingly favoured method of dispute resolution in Bahrain. The Kingdom has positioned itself as an arbitration-friendly jurisdiction through the adop - tion of a modern legislative framework based on the UNCITRAL Model Law (as amended in 2006) and the development of specialised dispute resolution insti - tutions. The Bahrain Ministry of Justice has actively promoted Bahrain’s arbitration credentials, including through roundtables with the Singapore International Arbitration Centre and professional bodies to advance Bahrain’s position as an attractive hub for arbitration and mediation in the Gulf Cooperation Council (GCC) region. Use by Domestic and Foreign Parties Both domestic and foreign parties regularly choose arbitration for complex commercial disputes, particu - larly where cross-border transactions are involved. Litigation remains common for purely domestic dis - putes and non-arbitrable matters. However, arbitration is frequently preferred where confidentiality, proce - dural flexibility, neutrality, the ability to select spe - cialist arbitrators, and international enforceability are paramount considerations. Importantly, the Arbitration Law permits non-Bahraini lawyers to represent par - ties in international commercial arbitration in Bahrain, affording international entities freedom of choice in the appointment of legal representation.
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