BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Mohamed Al Sari and Raghad Al Matrook, Al Tamimi & Company
4.3 Categories of Arbitral Awards Not Enforced While the Kingdom of Bahrain maintains a highly pro- arbitration jurisdiction under the 1958 New York Con - vention and its 2015 Arbitration Law, the High Court will strictly refuse to enforce certain categories of arbitral awards. The first major category consists of awards dealing with non-arbitrable subject matters, which under Bahraini law are reserved exclusively for national courts. This includes criminal matters, public administrative disputes, and personal status or family law cases (such as divorce, child custody and inherit - ance) that fall under the mandatory jurisdiction of the Sharia courts. Closely tied to this is the category of awards that violate Bahraini public policy or the core tenets of Islamic Sharia. In addition, Bahraini courts will reject any arbitral awards compromised by jurisdictional, procedural or due process failures. Under this umbrella, courts will block the execution of awards where: • the underlying arbitration agreement is proven invalid; • a signatory lacked the capacity to bind their com - pany; or • a party was denied a fair hearing due to defective notice of the proceedings. Enforcement is also barred for ultra vires awards (where the tribunal exceeded its mandate by ruling on issues outside the scope of the parties’ submission) and awards that lack finality, meaning they have not yet become binding, or have already been formally set aside or suspended by a court in the country where the arbitration was legally seated. 4.4 Process of Enforcing Arbitral Awards Phase 1: Judicial Recognition (Obtaining the Exequatur) To enforce an arbitral award in Bahrain, a creditor must first secure formal court recognition, which is initiated by filing an ex parte petition with the High Civil Court. The application requires the submission of the original or legally certified copies of both the arbitral award and the underlying arbitration agreement, alongside certified Arabic translations. In line with the 1958 New York Convention and the 2015 Arbitration Law, the
court’s review is purely procedural. The judge will not re-examine the merits of the dispute and will issue a final, non-appealable enforcement order unless the debtor successfully proves a narrow statutory ground for refusal, such as a lack of proper notice, invalidity of the arbitration agreement, or a direct conflict with Bahraini public policy and Sharia. Phase 2: Asset Execution and Debt Recovery Once the enforcement order is granted, the award is treated as a domestic judgment and transferred to the specialised Court of Execution. The court issues a formal demand to the debtor, granting a brief grace period in which to settle the debt. If the debtor fails to comply, the creditor can utilise the services of licensed Private Enforcement Officers (PEOs) to actively track and seize assets. Thanks to electronic links between the courts and key public registries, execution judges can instantly freeze bank accounts through the Cen - tral Bank, attach real estate or company shares, and co-ordinate with the “Mazad” digital auction platform to liquidate seized assets. If the debtor attempts to evade payment, the judge can also deploy coercive measures, such as placing annotations on the debt - or’s credit report or imposing travel bans of up to three years. 4.5 Costs and Time Taken to Enforce Arbitral Awards Typical Costs Involved Enforcing an arbitral award in Bahrain requires budg - eting for court-related fees, professional translation services and legal representation. • Court filing fees – approximately 2% of the judg - ment amount (calculated on the value of the claim and subject to statutory caps). • Translation and legalisation costs depend on the volume of the documents. • Cost recovery – court fees are usually recovered from the debtor. Length of Time (Indicative Timelines) The timeline for enforcement depends heavily on whether the award is contested and where the debtor is located.
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