BAHRAIN Trends and Developments Contributed by: Noor Hassan Radhi, Fatima Al Ali and Saifuddin Mahmood, Hassan Radhi & Associates
Conclusion Bahrain’s M&A landscape reflects a dynamic and investor-friendly business environment, underpinned by forward-looking policies, regu - latory clarity and political stability. The country continues to solidify its position as a regional hub for corporate growth and investment. As laws and regulations evolve, agreements must continuously adapt to remain aligned with the latest legal and market developments. The government’s pro-business policies and long-term economic vision foster an active and expanding M&A market. Building on the founda - tions of Economic Vision 2030, Bahrain has initi - ated the development of Economic Vision 2050, aimed at driving further economic diversification, digital transformation and the integration of arti - ficial intelligence. As an extension and evolution of Vision 2030, Vision 2050 underscores Bah - rain’s commitment to continuous development and adaptation to emerging global trends. This strategic direction is likely to fuel increased acquisition activity, particularly in the technol - ogy sector, as investors seek opportunities in Bahrain’s rapidly evolving digital economy.
such breaches – warranty and indemnity (W&I) insurance remains uncommon in the market. However, it has begun to surface in recent M&A discussions, possibly reflecting a growing appe - tite for its use in managing transaction risks. Tax considerations Following the introduction of value-added tax (VAT) in 2019, Bahrain enacted Decree-Law No. 11 of 2024, requiring multinational enterprises (MNEs) with global revenues exceeding EUR750 million to pay a 15% minimum corporate tax. As a result, MNEs acquiring Bahraini compa - nies must now account for this tax in their deal valuations, ensuring compliance and adjusting financial projections accordingly. Dealing with business counterparties In the context of merger and transfer of busi - ness, particularly within institutions with a large customer base, it is important to note that Bah - rain’s laws do not provide a mechanism for the automatic transfer of agreements with custom - ers and other counterparties to the buyer. There - fore, existing agreements should be reviewed to account for potential future mergers or transfers. One approach is to incorporate clauses that secure customer approval for the transfer of agreements and personal data. However, such provisions may be subject to regulatory restric - tions, which must be carefully considered and observed.
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