BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
2.2 Changes to National Law Legislative Stability
the other. It may also be established by incorpora - tion by reference to another document containing an arbitration clause. Consent and Scope The arbitration agreement must reflect the parties’ consent to submit defined disputes – whether con - tractual or non-contractual – to arbitration. Effect of a Valid Agreement Where these requirements are satisfied, Bahraini courts will generally uphold the arbitration agreement and refer the parties to arbitration. 3.2 Arbitrability Non-Arbitrable Subject Matters The Arbitration Law does not provide an exhaustive list of non-arbitrable disputes. However, it preserves the application of other Bahraini laws under which certain matters may not be submitted to arbitration or may only be arbitrated under specific conditions. In practice, disputes involving public policy consid - erations are generally not arbitrable. These typically include criminal liability, personal status and family law matters, and certain regulatory or public-order issues. By contrast, commercial and financial disputes are generally considered freely arbitrable. Approach to Arbitrability The general approach in Bahrain is pro-arbitration, with a broad presumption in favour of arbitrability for commercial disputes. Arbitrability is assessed primar - ily through public policy limitations. It also operates as a control mechanism at the enforce - ment stage, as arbitral awards may be set aside, or their recognition and enforcement refused, if the sub - ject matter is not capable of settlement by arbitration under Bahraini law. 3.3 National Courts’ Approach Governing Law of the Arbitration Agreement In line with Article 8 of the UNCITRAL Model Law, Bahraini courts generally determine the law govern - ing the arbitration agreement based on the parties’ express choice. Where no choice is made, the law of the seat of arbitration is typically applied.
The current arbitration framework in Bahrain is gov - erned by the Arbitration Law, which replaced Chapter VII (including Article 253) of the Civil and Commercial Procedures Act of 1971 and the former International Commercial Arbitration Law of 1994. It consolidated Bahrain’s arbitration regime on the UNCITRAL Model Law and entered into force one month after its publi - cation in the Official Gazette. Recent Changes and Pending Reforms There have been no significant amendments to the Arbitration Law in the past year. The Model Law- based framework therefore remains stable, modern, and predictable for users. There is no indication of pending legislation that would materially alter Bahrain’s arbitration framework at present. Broader developments in the dispute reso - lution landscape, such as the establishment of the Bahrain International Commercial Court (BICC), which launched in November 2025, and ongoing efforts by the Ministry of Justice to position Bahrain as an attrac - tive hub for arbitration, reflect continued institutional expansion rather than reform of the arbitration law itself. Ground has also been broken on a state-of- the-art arbitration facility based primarily on the model used by the Singapore International Arbitration Cen - tre, which is set to house a new GCC arbitration hub. An arbitration agreement must be in writing, although this requirement is interpreted broadly under Article 7 of the Arbitration Law. The agreement may take the form of an arbitration clause within a contract or a separate agreement. The writing requirement is interpreted broadly: it is satisfied where the agreement is recorded in any form, including electronic communications, or where it is evidenced through an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by 3. The Arbitration Agreement 3.1 Enforceability Legal Requirements
88 CHAMBERS.COM
Powered by FlippingBook