BAHRAIN Trends and Developments Contributed by: Sayed Mohsin Al Alawi, Mohamed Ali Shaban, Amna Al Janahi and Yasmeen Jawahery, Hassan Radhi & Associates
pursuant to Law No (23) of 2025, which are aimed at regulating the partial payment of cheques and the procedure for recording dishonoured cheques within an electronic credit reporting system in a streamlined manner as opposed to treating cheque disputes as isolated legal matters, as was the case in the past. These CBB draft resolutions are viewed as being the stepping stones to an accelerated bespoke opera - tional framework that offers a structured treatment of dishonoured cheques across the banking sector, in a clear shift away from mere legislative reform. Such practical focus will improve and strengthen consist - ency and uniformity in enforcement practices, saving considerable time and effort previously lost to lengthy litigation procedures, and integrating cheque enforce - ment within Bahrain’s broader digital financial ecosys - tem, which has positioned itself as a regional leader in financial technology. Such proposed draft resolutions offer enhanced accu - racy of credit information to financial institutions while ensuring compliance with payment obligations pursu - ant to Law No (23) of 2025. This technology-enabled approach will ensure automation in cheque enforce - ment, which in turn will facilitate the reduction of the administrative burden on banks, creditors and courts alike.
Looking ahead, such new reforms and draft resolu - tions demonstrate a clear commitment to preserving the commercial utility of cheques by ensuring that their enforcement mechanism is efficient and highly compatible with Bahrain’s underlying digital financial
landscape. Conclusion
Bahrain’s enforcement reforms have reshaped the debt recovery landscape. A dishonoured cheque that once demanded lengthy litigation may now, where the statutory requirements are met, be enforced directly as an executive deed after a short notice period – supported by Private Execution Officers, electronic filing, automatic seizure, and digital links with public authorities. The lesson for creditors, banks and commercial par - ties is clear: enforcement now turns on document classification and procedural readiness, not protract - ed proceedings. Treated as execution-ready from the outset, cheques regain their full force as immedi - ate instruments of payment, and confidence in their enforceability within Bahrain’s commercial system has never been stronger.
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