BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
framework governing the recognition and enforce - ment of foreign arbitral awards in Bahrain. Application in Bahrain The Convention applies to the recognition and enforcement of foreign arbitral awards in Bahrain. The enforcement regime under Articles 35 and 36 of the Arbitration Law is closely aligned with the Con - vention framework. Additionally, the Arbitration Law has aligned the enforcement procedures for arbitral awards in accordance with the principles of the Con - vention, with further measures ensuring that the pro - cess is cost-effective and efficient. Where the value of the award exceeds USD1.3 million, the enforcement application is transferred to the BCDR, where a party may elect to proceed in either English or Arabic – a notable distinction that affords flexibility to interna - tional users. International treaties in force in Bahrain are express - ly preserved by the Arbitration Law and continue to apply alongside domestic legislation. 12.2 Enforcement Procedure Recognition and Enforcement of Awards An arbitral award, irrespective of the country in which it was made, is recognised as binding and is enforced upon written application to the competent court, sub - ject to the limited grounds for refusal set out in Article 36 of the Arbitration Law. In practice, a party is entitled to apply for the recognition of an arbitral award on notice to the court. If the value of the award exceeds USD1.3 million, the application is immediately trans - ferred to the BCDR, where a party may elect to pro - ceed with recognition in English before the English- speaking section of the BCDR, or in Arabic before the Arabic section. Generally, the arbitral award will either be recognised or refused, with reasons, within seven to ten days of the hearing. The applicant must submit the original award or a certified copy, together with a translation if the award is not in an official language. If the arbitral award is recognised, it can immediately be taken to the enforcement court for execution. If the arbitral award is refused, this decision can be appealed to the High Court of Appeal and thereafter to the Court of Cassa -
tion, which should take approximately two and three months, respectively. Effect of Set-Aside Decisions at the Seat Recognition or enforcement may be refused where the award has been set aside or suspended by a court at the seat of arbitration, in line with Article 36 and the grounds mirroring Article V of the New York Conven - tion. Pending Set-Aside Proceedings Where set-aside or suspension proceedings are ongo - ing at the seat, the Bahraini court may, if it considers it appropriate, adjourn its decision on enforcement and require the party resisting enforcement to provide security. Sovereign Immunity The Arbitration Law does not specifically regulate sov - ereign immunity at the enforcement stage. Accord - ingly, any defence of sovereign immunity is governed by general principles and applicable treaties. In prac - tice, immunity from execution is typically more readily upheld than immunity from jurisdiction. 12.3 Approach of the Courts General Approach to Recognition and Enforcement The Bahraini courts adopt a pro-enforcement approach, treating arbitral awards – whether domestic or foreign – as binding and enforceable, subject only to the limited grounds for refusal set out in Article 36 of the Arbitration Law. Bahrain’s position as a signatory to the New York Convention reinforces this approach, ensuring that arbitral awards are generally enforced by the courts without the awards being specifically interrogated on their merits. Enforcement will generally be refused only in excep - tional circumstances falling within those narrowly defined grounds. Public Policy Standard Enforcement may be refused on public policy grounds only where recognition or enforcement of the award would be contrary to the public policy of Bahrain.
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