General Prevalence

International arbitration is a well-established and increasingly favoured method of dispute resolution in Bahrain. The Kingdom has positioned itself as an arbitration-friendly jurisdiction through the adoption of a modern legislative framework based on the UNCITRAL Model Law (as amended in 2006) and the development of specialised dispute resolution institutions. The Bahrain Ministry of Justice has actively promoted Bahrain’s arbitration credentials, including through roundtables with the Singapore International Arbitration Centre and professional bodies to advance Bahrain’s position as an attractive hub for arbitration and mediation in the Gulf Cooperation Council (GCC) region.

Use by Domestic and Foreign Parties

Both domestic and foreign parties regularly choose arbitration for complex commercial disputes, particularly where cross-border transactions are involved. Litigation remains common for purely domestic disputes and non-arbitrable matters. However, arbitration is frequently preferred where confidentiality, procedural flexibility, neutrality, the ability to select specialist arbitrators, and international enforceability are paramount considerations. Importantly, the Arbitration Law permits non-Bahraini lawyers to represent parties in international commercial arbitration in Bahrain, affording international entities freedom of choice in the appointment of legal representation.

Basis of Use in Bahrain

International arbitration is most commonly used as a contractual dispute resolution mechanism through arbitration clauses in commercial contracts. Bahrain is also increasingly chosen as a regional seat of arbitration due to its modern arbitration legislation, supportive judiciary, and strategic location within the GCC. The Kingdom’s accession to the New York Convention and the streamlined enforcement procedures before the Bahrain Chamber for Dispute Resolution (BCDR) – which permit enforcement proceedings to be conducted in English or Arabic, with typical recognition decisions issued within seven to ten days of the hearing – further enhance its appeal as a seat for international arbitration.

Key Sectors

International arbitration in Bahrain is mainly concentrated in sectors involving cross-border investment and complex commercial dealings, including:

• Construction and infrastructure
• Energy and utilities
• Banking and financial services
• Real estate and property development
• Telecommunications and technology
• Joint ventures and shareholder disputes

Construction and Infrastructure

Construction and infrastructure disputes are especially common due to:

• The complexity of large-scale projects
• Multiple contractual relationships
• Frequent involvement of international contractors and consultants

Financial Services

Banking and financial services generate significant arbitration activity in Bahrain, reflecting the Kingdom’s status as a regional financial centre. Bahrain hosts many international financial institutions and is characterised by frequent cross-border financial transactions, resulting in disputes that often involve substantial complexity and international dimensions.

Commercial Drivers

The growth of foreign investment and regional commercial activity has also increased arbitration in:

• Shareholder disputes
• Investment disputes
• Commercial contract disputes

Main Arbitral Institutions

The principal institution administering arbitration in Bahrain is the BCDR, established under Legislative Decree No. 30 of 2009 (as amended by Legislative Decree No. 64 of 2014). It administers arbitration and mediation in commercial, financial and investment disputes, and offers both Arabic and English-language proceedings.

Alongside BCDR-administered proceedings, parties frequently choose international institutional rules such as:

• International Chamber of Commerce (ICC)
• London Court of International Arbitration (LCIA)

These are preferred due to their strong international reputation, their well-developed procedural frameworks, and the wide enforceability of awards rendered under their rules.

New Institutions in the Last 12 Months

No new arbitral institutions have been established in Bahrain in the past 12 months.

Designated Supervisory Court

Bahrain has designated specialised courts to perform supervisory functions under its arbitration framework. Pursuant to Legislative Decree No. 9 of 2015 promulgating the Bahrain Arbitration Law, the High Civil Court is the competent court for purposes of Article 6 of the UNCITRAL Model Law. It is vested with authority to assist in the appointment and challenge of arbitrators, determine jurisdictional objections, grant interim measures, and hear applications to set aside arbitral awards.

Governing Law and Basis

International arbitration in Bahrain is governed by the Arbitration Law promulgated by Legislative Decree No. 9 of 2015. This law incorporates the UNCITRAL Model Law on International Commercial Arbitration (1985, as amended in 2006) as an annex and integral part of the legislation. It applies to arbitrations seated in Bahrain and, in certain cases, to arbitrations seated abroad where the parties have agreed to its application. The Arbitration Law has adopted Article 7 of the Model Law (2006) for the definition of an arbitration agreement and its form, requiring a valid arbitration agreement to be in writing and to constitute a clear agreement between the parties to refer disputes to arbitration.

Degree of Alignment With the Model Law

Bahrain’s Arbitration Law closely follows the Model Law, with minimal divergence. The deviations are largely confined to the promulgating provisions, including the designation of the High Civil Court as the competent court for Article 6 functions, the adoption of Option I for the definition and form of the arbitration agreement under Article 7, and a requirement that the Arbitration Law be interpreted in light of its international origin and the need to promote uniformity in interpretation.

Legislative Stability

The current arbitration framework in Bahrain is governed 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 publication 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 resolution 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 attractive 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 Centre, which is set to house a new GCC arbitration hub.

Legal Requirements

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 the other. It may also be established by incorporation 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 contractual 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.

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 considerations 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 primarily through public policy limitations.

It also operates as a control mechanism at the enforcement stage, as arbitral awards may be set aside, or their recognition and enforcement refused, if the subject matter is not capable of settlement by arbitration under Bahraini law.

Governing Law of the Arbitration Agreement

In line with Article 8 of the UNCITRAL Model Law, Bahraini courts generally determine the law governing the arbitration agreement based on the parties’ express choice. Where no choice is made, the law of the seat of arbitration is typically applied.

Enforcement by National Courts

Bahraini courts adopt a pro-arbitration approach consistent with the Model Law. Where a dispute is brought before a court in a matter covered by an arbitration agreement, the court must, upon request by a party no later than its first submission on the substance of the dispute, refer the matter to arbitration unless the arbitration agreement is found to be null and void, inoperative, or incapable of being performed. The court will not interrogate the merits of the underlying dispute when enforcing an arbitration agreement.

Practical Approach and Enforcement Trend

In practice, Bahraini courts generally enforce valid arbitration agreements and refrain from allowing parallel court proceedings. This reflects a strong judicial policy in favour of upholding party autonomy and supporting arbitration. The courts’ approach is consistent with Bahrain’s international treaty obligations and reflects its standing as a Model Law jurisdiction.

Separability of the Arbitration Clause

Bahrain recognises the principle of separability under Article 16(1) of the Arbitration Law, which is based on the UNCITRAL Model Law.

Effect of Invalidity of the Main Contract

An arbitration clause is treated as an agreement independent of the other terms of the contract in which it is contained. As a result, a finding that the main contract is null and void does not automatically render the arbitration clause invalid.

The arbitration agreement may therefore remain valid and enforceable even if the underlying contract is found to be invalid.

Party Autonomy in Appointment

Party autonomy in the selection of arbitrators is broad in Bahrain. The parties are free to determine the number of arbitrators and the procedure for their appointment. If the parties do not agree on the number, the default position is three arbitrators. No person may be precluded from acting as an arbitrator on the basis of nationality unless the parties agree otherwise.

Key Legal Limits

The main limitations on party autonomy relate to mandatory requirements of independence and impartiality. Arbitrators must remain independent and impartial throughout the proceedings and must meet any qualifications agreed by the parties.

Failure of Agreed Appointment Mechanism

Where the parties’ agreed method for selecting arbitrators fails, Article 11 of the Arbitration Law provides default procedures.

In a three-member tribunal, each party appoints one arbitrator and the two arbitrators then appoint the chair. If a party fails to appoint its arbitrator within 30 days of a request, or if the two arbitrators fail to agree on the chair within 30 days, the appointment is made by the High Civil Court upon request of a party. In cases involving a sole arbitrator, the court will also appoint the arbitrator if the parties cannot agree.

The court may further intervene where any agreed appointment procedure fails due to non-performance by a party or a third party, including an appointing institution.

Multiparty Arbitrations

The UNCITRAL Model Law does not provide a specific default mechanism for multiparty arbitrations. In such cases, where the agreed appointment structure breaks down, the court’s appointing authority under Article 11(4) is relied upon to ensure the constitution of the tribunal.

Scope of Court Intervention

A Bahraini court may intervene in the constitution of an arbitral tribunal only in the limited circumstances expressly provided under the Arbitration Law. This reflects the principle that court intervention is restricted to cases where it is specifically permitted by law.

The High Civil Court may be requested to make appointments where the agreed appointment mechanism fails under Article 11, including situations where a party, arbitrator or appointing authority fails to act.

Limits on Court Powers

In exercising its appointing authority, the court must consider any qualifications required of the arbitrator and ensure independence and impartiality. Where a sole arbitrator or presiding arbitrator is being appointed, the court also takes into account the desirability of appointing an arbitrator of neutral nationality, where appropriate.

Court decisions relating to the appointment of arbitrators are final and not subject to appeal, which helps prevent procedural delay and ensures efficiency in constituting the tribunal.

Grounds for Challenge

An arbitrator may be challenged only where circumstances exist that give rise to justifiable doubts as to their impartiality or independence, or where the arbitrator does not possess the qualifications agreed by the parties. A party may challenge an arbitrator it has appointed only for reasons that become known after the appointment has been made.

Challenge Procedure

The parties may agree on a procedure for challenges. Failing such agreement, the challenging party must submit a written statement of reasons to the tribunal within 15 days of becoming aware of the tribunal’s constitution or the relevant circumstances.

The tribunal decides on the challenge unless the challenged arbitrator withdraws or the other party agrees to the challenge. If the challenge is unsuccessful, the challenging party may apply to the High Civil Court within 30 days. The court’s decision is final and not subject to appeal, and the arbitral proceedings may continue while the challenge is pending.

Removal of Arbitrators

Separately, an arbitrator’s mandate may be terminated under Article 14 of the UNCITRAL Model Law, as incorporated into Bahraini law through Legislative Decree No. 9 of 2015, if the arbitrator becomes unable to perform their functions or fails to act without undue delay.

Independence, Impartiality and Disclosure

The Arbitration Law imposes a continuing duty on arbitrators to remain independent and impartial throughout the proceedings. A person who is approached in connection with a potential appointment must disclose any circumstances likely to give rise to justifiable doubts as to their impartiality or independence.

Once appointed, an arbitrator must disclose any such circumstances without delay and continue to do so throughout the arbitration.

Standard for Challenge

The same threshold – ”justifiable doubts” as to impartiality or independence – also forms the substantive basis for challenging an arbitrator under Bahraini law.

Supplementary Standards in Practice

In international arbitration practice, parties and arbitral institutions frequently supplement these statutory requirements by reference to the IBA Guidelines on Conflicts of Interest in International Arbitration.

Competence-Competence Principle

Bahrain recognises the principle of competence-competence under Article 16(1) of the UNCITRAL Model Law, as incorporated into Bahraini law through Legislative Decree No. 9 of 2015. This allows an arbitral tribunal to rule on its own jurisdiction, including objections relating to the existence or validity of the arbitration agreement.

Relationship With Separability

This power operates alongside the principle of separability, meaning that a finding that the main contract is invalid does not, by itself, affect the validity of the arbitration clause.

Timing of Jurisdictional Objections

A jurisdictional objection must be raised no later than the submission of the statement of defence.

Circumstances for Court Intervention

Court involvement in questions of jurisdiction is deliberately limited under the Arbitration Law. Where an arbitral tribunal rules as a preliminary matter that it has jurisdiction, any party may, within 30 days of receiving notice of that ruling, request the High Civil Court to decide the issue.

The court’s decision is final and not subject to appeal, and the arbitral proceedings may continue while the request is pending.

Where jurisdiction is joined to the merits, the issue may instead be raised later during setting-aside proceedings under Article 34 or at the enforcement stage under Article 36.

Judicial Approach to Intervention

Bahraini courts generally adopt a supportive and non-interventionist approach to arbitration, intervening only within the limited circumstances expressly provided by law.

Review of Negative Jurisdictional Rulings

The framework does not provide for court review of a tribunal’s negative jurisdictional ruling (ie, where the tribunal finds that it lacks jurisdiction), as court review under Article 16(3) is triggered only where the tribunal affirms jurisdiction.

Before the Tribunal

A jurisdictional objection must first be raised before the arbitral tribunal no later than the submission of the statement of defence, in accordance with Article 16 of the Arbitration Law.

After a Preliminary Jurisdictional Ruling

If the tribunal rules on jurisdiction as a preliminary question and affirms its jurisdiction, a party may, within 30 days of receiving notice of that ruling, request the High Civil Court to decide the issue.

After the Final Award

If the tribunal addresses jurisdiction only in its final award on the merits, the issue may be raised only after the award is issued, either through setting-aside proceedings under Article 34 or at the enforcement stage under Article 36.

Standard of Review

On questions of jurisdiction, Bahraini courts apply an independent standard of review rather than a deferential one. Under Article 16(3) of the Arbitration Law, the High Civil Court, when seised of a challenge to a preliminary ruling on jurisdiction, makes its own determination of the issue, effectively applying a de novo standard of review.

Distinction From Merits Review

This is distinct from the court’s approach to the merits of an arbitral award. In that context, the court does not reassess factual or legal findings and is limited to the narrow statutory grounds for setting aside or refusing enforcement under Articles 34 and 36 of the Arbitration Law.

Court Approach to Breach

Where a party commences court proceedings in breach of an arbitration agreement, Bahraini courts will, upon request by the other party made no later than its first statement on the substance of the dispute, refer the parties to arbitration in accordance with Article 8 of the Arbitration Law.

This applies unless the arbitration agreement is found to be null and void, inoperative, or incapable of being performed.

Judicial Attitude

Bahraini courts generally adopt a pro-arbitration approach and are willing to uphold valid arbitration agreements by declining jurisdiction in favour of arbitration where appropriate.

Effect of Parallel Proceedings

The existence of parallel court proceedings does not prevent arbitration from being commenced or continued, and an arbitral tribunal may proceed to render an award even where related court proceedings are pending.

General Rule (Consent-Based Arbitration)

Arbitration in Bahrain is fundamentally based on consent. The Arbitration Law does not provide an express mechanism for extending arbitral jurisdiction to persons or entities that are not parties to the arbitration agreement or signatories to the underlying contract. This reflects the principle of privity that underpins consensual dispute resolution.

Extension to Non-Signatories

Non-signatories may only be bound in limited circumstances recognised under general principles of Bahraini contract law. These include situations such as agency, assignment, succession, or incorporation by reference. Where such principles establish a sufficient legal nexus or deemed consent, a non-signatory may, in principle, be bound by an arbitration agreement.

Scope of Application

These principles may apply to both domestic and foreign third parties. However, the threshold for extending jurisdiction remains high and is assessed on a strict case-by-case basis.

Power to Grant Interim Measures

Unless the parties agree otherwise, an arbitral tribunal in Bahrain may grant interim measures upon a party’s request, in line with Article 17 of the Arbitration Law.

Such measures may include orders to:

• Maintain or restore the status quo
• Prevent actions likely to cause harm or prejudice to the arbitral process
• Preserve assets for satisfaction of a future award
• Preserve relevant evidence

Requirements for Relief

To obtain interim relief, the requesting party must generally show:

• That harm not adequately reparable by damages is likely to occur
• That such harm outweighs the harm to the other party
• A reasonable likelihood of success on the merits

Binding Effect and Enforcement

Interim measures issued by the tribunal are binding on the parties. Under Article 17H of the Arbitration Law, they are also enforceable upon application to the competent court, regardless of the country in which they were issued.

Court-Ordered Interim Relief in Arbitration

The courts in Bahrain play a supportive role in relation to interim relief in arbitral proceedings. It is not incompatible with an arbitration agreement for a party to seek interim measures from the courts before or during arbitration.

Under Article 17J of the Arbitration Law, Bahraini courts have the power to grant interim measures in aid of arbitration regardless of whether the seat of arbitration is in Bahrain. This means courts may grant relief in support of foreign-seated arbitrations, thereby enhancing Bahrain’s role as a supportive forum for international arbitral proceedings.

Such relief may include measures to preserve assets, maintain the status quo, or prevent actions that could frustrate the arbitral process.

Emergency Arbitrators

The Arbitration Law does not specifically regulate emergency arbitrators. However, emergency arbitrator procedures may be available where the parties have adopted institutional rules that provide for such a mechanism.

Relief granted by an emergency arbitrator is generally binding on the parties within the framework of those institutional rules, although its effectiveness depends on the applicable enforcement mechanism under those rules and any subsequent court assistance.

Court Intervention After Emergency Appointment

Once an emergency arbitrator or arbitral tribunal is constituted, court intervention remains limited to the supportive powers expressly permitted under the Arbitration Law. Courts do not typically interfere with the emergency arbitrator’s role, but they may still grant ancillary interim measures where appropriate.

Position Under National Law

The Arbitration Law does not contain a specific provision expressly addressing security for costs. There is no standalone statutory regime for security for costs in arbitration, and the question is therefore left to the procedural discretion of the tribunal and any applicable institutional rules.

Arbitral Tribunal’s Powers

The arbitral tribunal has broad powers in relation to interim measures. It may require a party requesting an interim measure to provide appropriate security in connection with that measure, and must require security in respect of a preliminary order unless it considers this inappropriate or unnecessary.

While there is no standalone statutory regime for security for costs, these interim-measure powers may, in appropriate circumstances, be used in a manner that effectively requires security where necessary to preserve the integrity of the arbitral process.

Role of the Courts

The courts may also grant supportive interim relief in aid of arbitration under their general powers in the Arbitration Law, although there is no express, separate statutory framework for court-ordered security for costs.

Applicable Legal Framework

The procedure of arbitration in Bahrain is governed by the Arbitration Law and the annexed UNCITRAL Model Law. This framework is supplemented by any procedural rules agreed by the parties, including any applicable institutional rules.

Party Autonomy and Tribunal Powers

The parties are free to agree on the procedure to be followed in the arbitration. Failing such agreement, the arbitral tribunal may conduct the proceedings in the manner it considers appropriate, including determining the admissibility, relevance, materiality and weight of evidence.

Institutional Rules

Where the parties select institutional rules – such as those of the BCDR, ICC or LCIA – those rules apply alongside the mandatory provisions of the Arbitration Law.

General Procedural Framework

The Arbitration Law establishes a flexible procedural framework rather than rigid mandatory steps, subject to the fundamental requirements of equal treatment of the parties and the right to present one’s case. This approach is consistent with the UNCITRAL Model Law and affords parties and tribunals substantial latitude in structuring proceedings.

Commencement and Written Submissions

Unless otherwise agreed, proceedings commence on the date the respondent receives the request to refer the dispute to arbitration. The claimant then submits a statement of claim and the respondent a statement of defence within the time limits agreed by the parties or determined by the tribunal.

Hearings and Evidence

The tribunal has discretion to decide whether to hold oral hearings or proceed on a documents-only basis. However, it must hold hearings at an appropriate stage if requested by a party, unless the parties have agreed otherwise. All submissions and evidence must be communicated to the other party.

Language of the Proceedings

The parties are free to agree on the language of the arbitration. Failing agreement, the arbitral tribunal determines the language of the proceedings.

Fundamental Duties

Arbitrators are required to treat the parties with equality and ensure that each party is given a full opportunity to present its case. They also have a continuing duty to disclose any circumstances that may give rise to justifiable doubts as to their impartiality or independence.

Procedural Powers

Arbitrators have broad procedural discretion, including the power to:

• Determine the admissibility, relevance, materiality and weight of evidence
• Appoint experts
• Determine the place and language of the proceedings where the parties do not agree
• Apply the rules of law chosen by the parties to the substance of the dispute

Liability and Protection

An arbitrator appointed under the Arbitration Law is generally not liable for acts or omissions carried out in the course of their duties unless such conduct amounts to bad faith or gross wrongdoing. However, liability may arise in cases of resignation without justifiable cause or at an inopportune time.

Requirements for Counsel in Arbitration

Representation in international arbitration proceedings seated in Bahrain is liberalised. The Arbitration Law permits parties in international commercial arbitration to be represented by counsel of their choice, including lawyers who are not admitted in Bahrain.

Accordingly, foreign-qualified counsel may appear in international arbitration proceedings seated in Bahrain without being required to hold domestic Bahraini legal qualifications. This contrasts with court litigation, which remains subject to the requirements of the Legal Profession Law promulgated by Legislative Decree No. 24 of 2026 (“Legal Profession Law”). By way of example, Articles 5 and 8 restrict the practice of legal advocacy to lawyers registered under the Law and set out the ordinary registration requirements, including Bahraini nationality, full legal capacity, a recognised law or Sharia-and-law degree, good character and the absence of specified criminal, disciplinary or incompatibility issues, and successful completion of the admission examination. Article 24 also permits a non-Bahraini lawyer to be licensed by ministerial decision for one or more specific cases before designated specialised circuits, but only jointly with a Bahraini lawyer admitted before the Court of Cassation and Constitutional Court and not in criminal, administrative, Sharia, personal status, rental or labour cases.

Scope of Application

This liberal approach applies specifically to international arbitration and reflects the principle of party autonomy in representation. Notably, the Arbitration Law expressly provides that non-Bahraini lawyers may represent parties in international commercial arbitration in Bahrain, affording international entities freedom of choice in the appointment of legal representation. While domestic court practice imposes stricter qualification requirements – including a requirement that a licensed Bahraini lawyer represent parties before Bahraini courts – these restrictions do not extend to arbitral proceedings.

Practical considerations may arise, however, where court assistance is required in support of arbitration (for example, interim measures or enforcement proceedings).

General Approach

There is no automatic, litigation-style discovery process in arbitration in Bahrain, unlike the position in common-law court proceedings. The collection and submission of evidence is primarily governed by party agreement and the discretion of the arbitral tribunal, which has broad power to determine the admissibility, relevance, materiality and weight of evidence. The principle of disclosure that applies in common-law jurisdictions does not apply: the court – or in arbitration, the tribunal – will not accept non-specific requests for discovery of documents or information.

Evidence at Pleading and Hearing Stage

In practice, parties typically rely on documentary evidence, witness statements and expert reports. Oral hearings commonly include cross-examination of witnesses and experts. The process is generally flexible and shaped by the procedural framework agreed by the parties or directed by the tribunal.

Disclosure and Procedural Fairness

All statements, documents and information submitted by one party must be communicated to the other party, reflecting the principles of equal treatment and the right to be heard. While it is possible for a party to request the tribunal to order the opposing party to disclose documents that are defined in a specific request, such orders are discretionary and in practice are not routine. The requesting party must demonstrate a legitimate interest in the documents for the purposes of the arbitration.

Use of International Rules

Parties frequently adopt the IBA Rules on the Taking of Evidence in International Arbitration to structure document production, witness testimony and expert evidence, although these are not mandatory under Bahraini law.

Applicable Evidentiary Standards

Arbitral proceedings in Bahrain are not governed by the strict technical rules of evidence that apply in domestic court litigation. Instead, the arbitral tribunal has discretion under the Arbitration Law to determine the admissibility, relevance, materiality and weight of evidence.

Relationship With Domestic Evidence Law

The formal rules of evidence under Bahraini civil and commercial procedure do not apply to arbitration proceedings. This allows arbitral tribunals greater procedural flexibility compared to domestic courts.

Practical Approach

In practice, this flexibility enables tribunals to tailor the evidentiary process to the needs of the dispute and, where appropriate, to apply soft-law instruments such as the IBA Rules on the Taking of Evidence in International Arbitration.

Tribunal Powers and Court Assistance

An arbitral tribunal in Bahrain does not have direct coercive powers over witnesses or third parties. However, it may seek assistance from the national courts under Article 27 of the Arbitration Law.

Under this provision, the tribunal, or a party with the tribunal’s approval, may request the competent Bahraini court to assist in taking evidence. The court may then execute the request in accordance with its own procedures, including compelling the production of documents or witness testimony where necessary.

Parties vs Non-Parties

This mechanism is particularly relevant in relation to non-parties, as arbitral tribunals lack authority to compel their co-operation directly.

By contrast, parties to the arbitration are generally bound by the tribunal’s procedural orders, including directions relating to document production and witness evidence. However, enforcement of non-compliance depends on the tribunal’s procedural powers and, where necessary, assistance from the courts.

General Position

The Arbitration Law does not impose an express, general statutory duty of confidentiality covering arbitral proceedings, documents or awards. This is consistent with the position under the UNCITRAL Model Law, which does not mandate confidentiality as a default feature of arbitration.

Practical Protection of Confidentiality

In practice, confidentiality is primarily ensured through:

• The parties’ agreement
• The applicable institutional rules (such as BCDR, ICC or LCIA rules)
• Confidentiality orders issued by the arbitral tribunal
• The private nature of arbitral hearings

Use of Information in Other Proceedings

Because there is no overarching statutory confidentiality obligation, the use of information from arbitral proceedings in subsequent proceedings is not automatically restricted. Parties that wish to ensure confidentiality, including limitations on subsequent disclosure or use, should expressly provide for this in their arbitration agreement or adopt institutional rules that contain confidentiality provisions. In practice, this is commonly done by incorporating rules of major international arbitral institutions, which typically include confidentiality frameworks.

Form and Content Requirements

An arbitral award must be made in writing and signed by the arbitrator or arbitrators. In a tribunal composed of more than one arbitrator, the signatures of a majority are sufficient, provided that the reason for any omitted signature is stated.

The award must state the reasons upon which it is based, unless the parties have agreed otherwise or it is an award on agreed terms. It must also indicate the date of the award and the place of arbitration, which is deemed to be the place where the award was made.

Time Limits for Delivery

The Arbitration Law does not prescribe a fixed statutory time limit for the delivery of an arbitral award. The timeframe is therefore governed by the parties’ agreement or by any applicable institutional rules. This approach preserves flexibility for parties and tribunals to manage the proceedings according to the complexity and requirements of the dispute.

However, the Arbitration Law does provide specific time limits for post-award processes, including correction, interpretation, and the issuance of additional awards under Article 33.

General Position

The Arbitration Law does not prescribe a closed list of permissible remedies. The arbitral tribunal determines the dispute in accordance with the rules of law chosen by the parties and the terms of the contract, taking into account applicable trade usages. This flexible framework allows tribunals to award remedies appropriate to the circumstances of the case.

Tribunals may therefore award remedies available under the applicable substantive law, including damages, specific performance, declaratory relief and interest.

Limits on Remedies

The principal limitation is public policy. Any remedy that is contrary to the public policy of Bahrain may not be enforced and may expose the award to annulment or refusal of recognition and enforcement.

In practice, this may limit the availability or enforceability of certain remedies, such as purely punitive damages.

Interest and Legal Costs

The Arbitration Law does not contain detailed provisions governing interest or the allocation of costs, leaving these matters to the substantive law applicable to the dispute and any institutional or procedural rules agreed by the parties.

Entitlement to interest is therefore determined by the applicable substantive law governing the dispute. Arbitral tribunals generally have discretion in relation to the allocation of arbitration and legal costs.

General Approach to Costs Allocation

In practice, tribunals sitting in Bahrain frequently adopt a “costs follow the event” approach, allocating costs by reference to the parties’ relative success in the proceedings. This approach is consistent with prevailing international arbitration practice and provides parties with a measure of predictability in cost allocation.

However, tribunals retain broad discretion and may depart from this approach, including by ordering cost sharing or adjusting cost allocation based on the parties’ conduct and the circumstances of the case.

Availability of Appeal

There is no appeal on the merits of an arbitral award in Bahrain. The only recourse to the courts is an application for setting aside under Article 34 of the Arbitration Law. This reflects the principle of finality that underpins international arbitration practice.

Procedure and Time Limit

An application for setting aside must be brought within three months of receipt of the award or of the disposal of any request made under Article 33 of the Arbitration Law.

Grounds for Setting Aside

The grounds for setting aside are limited and exhaustive and include:

• Incapacity of a party or invalidity of the arbitration agreement
• Lack of proper notice or inability to present one’s case
• Excess of jurisdiction by the tribunal
• Improper composition of the tribunal or procedural irregularity
• Non-arbitrability of the subject matter
• Conflict with public policy

Enforcement Stage

A party may also resist recognition and enforcement of an award on equivalent grounds under Article 36 of the Arbitration Law.

General Rule on Alteration

The grounds for setting aside under Article 34 of the Arbitration Law are mandatory and exhaustive. Parties cannot by agreement expand the bases on which a court may review or set aside an award, nor can they contract out of or exclude the supervisory jurisdiction of the courts at the seat.

Scope and Exceptions

The limitation applies strictly to state court intervention. However, the law does not restrict contractual procedural variations within the arbitration itself:

• No expansion of court review: Parties cannot create new legal or factual grounds for a court to overturn an award.
• No exclusion of judicial oversight: Agreements to completely waive the right to apply for a setting aside under Article 34 are invalid.
• Permissible internal appeals: Parties may validly agree to an internal arbitral appeal mechanism, such as a second-instance arbitral tribunal, as this relates to arbitral procedure rather than court supervision.

Nature of Review

The standard of judicial review of the merits is highly deferential, as there is no review of the merits of an arbitral award under Bahraini law. This reflects the Arbitration Law’s policy of finality and minimal court intervention in matters governed by arbitration.

Scope of Court Authority

In set-aside and enforcement proceedings under Articles 34 and 36 of the Arbitration Law, the court’s authority is strictly confined:

• No factual re-examination: The court does not re-examine or overturn the tribunal’s findings of fact.
• No legal reassessment: The court does not review the tribunal’s interpretation or application of the substantive law.
• Strict procedural focus: Judicial scrutiny is limited strictly to the exhaustive procedural and public policy grounds set out in the law.

Ratification and Status

Bahrain acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards by Legislative Decree No. 4 of 1988, subject to reservations. The Convention is the primary treaty framework governing the recognition and enforcement 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 Convention framework. Additionally, the Arbitration Law has aligned the enforcement procedures for arbitral awards in accordance with the principles of the Convention, with further measures ensuring that the process 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 international users.

International treaties in force in Bahrain are expressly preserved by the Arbitration Law and continue to apply alongside domestic legislation.

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, subject 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 transferred to the BCDR, where a party may elect to proceed 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 Cassation, 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 Convention.

Pending Set-Aside Proceedings

Where set-aside or suspension proceedings are ongoing 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 sovereign immunity at the enforcement stage. Accordingly, any defence of sovereign immunity is governed by general principles and applicable treaties. In practice, immunity from execution is typically more readily upheld than immunity from jurisdiction.

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 exceptional 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.

This standard is interpreted narrowly and is reserved for serious violations of fundamental legal principles. Consistent with the international orientation of the Arbitration Law, the public policy exception is applied restrictively and is not used as a means of reviewing the merits of the award.

Availability in Bahrain

The Arbitration Law does not provide for class action or group arbitration, and there is no statutory framework in Bahrain establishing such procedures.

Basis for Aggregation of Claims

Because arbitration is fundamentally consent-based, any form of joinder or aggregation of claims would depend on the parties’ agreement or the application of institutional rules, rather than any statutory class mechanism.

Practical Position

In practice, class action or group arbitration is not a feature of the Bahraini arbitration landscape.

Ethical Codes

Counsel Standards

Counsel practising in Bahrain are subject to the professional standards set out in the Legal Profession Law. These regulate professional conduct, ethics, and disciplinary obligations for licensed practitioners.

Arbitrator Standards

Arbitrators are governed primarily by the Arbitration Law, which imposes duties of independence, impartiality, and disclosure. The statutory liability regime provides that arbitrators are only liable in cases of bad faith or gross wrongdoing.

Soft-Law and Institutional Standards

The Arbitration Law does not establish a dedicated ethical code for international arbitration. In practice, parties and tribunals commonly rely on soft-law instruments such as the IBA Guidelines on Conflicts of Interest in International Arbitration and the IBA Guidelines on Party Representation, as well as any applicable institutional rules and codes of conduct.

Overall Framework

Together, domestic legislation and widely accepted international soft-law instruments form the ethical framework governing counsel and arbitrators in Bahrain-seated arbitration proceedings.

Regulatory Position

There is currently no specific legislation in Bahrain regulating or restricting third-party funding of arbitration, and the Arbitration Law is silent on the subject.

Permissibility and Practical Approach

Third-party funding is therefore not prohibited in Bahrain. However, funded parties should be mindful of potential disclosure expectations that may arise under applicable institutional rules or in connection with arbitrators’ duties of independence and conflict disclosure.

Legal Framework

In the absence of a dedicated regulatory regime, third-party funding arrangements are governed by general principles of Bahraini contract law.

Legal Position

The Arbitration Law, in line with the UNCITRAL Model Law, does not expressly confer a power on arbitral tribunals or courts in Bahrain to consolidate separate arbitral proceedings.

Basis for Consolidation

Consolidation is therefore only possible where the parties have agreed to it, including by adopting institutional rules that permit consolidation in defined circumstances (such as related parties or related contracts).

Role of the Courts

Bahraini courts do not have a statutory power to consolidate arbitral proceedings on their own initiative.

General Rule

As a general principle, only the parties to the arbitration agreement are bound by it and by any resulting arbitral award. This reflects the consensual nature of arbitration and the principle that arbitral jurisdiction is founded upon party agreement.

Exceptions for Non-Signatories

A third party – whether domestic or foreign – may be bound only in limited circumstances under general principles of law, including assignment, succession and agency, or where the third party has otherwise consented to or assumed the arbitration agreement.

Role of the Courts

Bahraini courts do not have a free-standing power to bind foreign third parties to an arbitration agreement or award in the absence of a recognised legal basis. Any binding effect on a non-signatory depends on specific factual circumstances establishing consent or legal succession.