BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
1.4 National Courts Designated Supervisory Court
• The complexity of large-scale projects • Multiple contractual relationships • Frequent involvement of international contractors and consultants Financial Services Banking and financial services generate significant arbitration activity in Bahrain, reflecting the Kingdom’s status as a regional financial centre. Bahrain hosts many international financial institutions and is char - acterised by frequent cross-border financial transac - tions, resulting in disputes that often involve substan - tial complexity and international dimensions. Commercial Drivers The growth of foreign investment and regional com - mercial activity has also increased arbitration in:
Bahrain has designated specialised courts to perform supervisory functions under its arbitration framework. Pursuant to Legislative Decree No. 9 of 2015 prom - ulgating the Bahrain Arbitration Law, the High Civil Court is the competent court for purposes of Arti - cle 6 of the UNCITRAL Model Law. It is vested with authority to assist in the appointment and challenge of arbitrators, determine jurisdictional objections, grant interim measures, and hear applications to set aside arbitral awards.
2. Governing Legislation 2.1 Governing Law Governing Law and Basis
• Shareholder disputes • Investment disputes
International arbitration in Bahrain is governed by the Arbitration Law promulgated by Legislative Decree No. 9 of 2015. This law incorporates the UNCITRAL Model Law on International Commercial Arbitration (1985, as amended in 2006) as an annex and integral part of the legislation. It applies to arbitrations seated in Bahrain and, in certain cases, to arbitrations seated abroad where the parties have agreed to its applica - tion. The Arbitration Law has adopted Article 7 of the Model Law (2006) for the definition of an arbitration agreement and its form, requiring a valid arbitration agreement to be in writing and to constitute a clear agreement between the parties to refer disputes to arbitration. Degree of Alignment With the Model Law Bahrain’s Arbitration Law closely follows the Model Law, with minimal divergence. The deviations are largely confined to the promulgating provisions, including the designation of the High Civil Court as the competent court for Article 6 functions, the adop - tion of Option I for the definition and form of the arbi - tration agreement under Article 7, and a requirement that the Arbitration Law be interpreted in light of its international origin and the need to promote uniformity in interpretation.
• Commercial contract disputes 1.3 Arbitration Institutions Main Arbitral Institutions
The principal institution administering arbitration in Bahrain is the BCDR, established under Legislative Decree No. 30 of 2009 (as amended by Legislative Decree No. 64 of 2014). It administers arbitration and mediation in commercial, financial and investment dis - putes, and offers both Arabic and English-language proceedings. Alongside BCDR-administered proceedings, parties frequently choose international institutional rules such as: • International Chamber of Commerce (ICC) • London Court of International Arbitration (LCIA) These are preferred due to their strong international reputation, their well-developed procedural frame - works, and the wide enforceability of awards rendered under their rules. New Institutions in the Last 12 Months No new arbitral institutions have been established in Bahrain in the past 12 months.
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