Arbitration in Bahrain: The Arbitration Law and the BCDR Explained

How arbitration works in Bahrain: the 2015 Arbitration Law based on the UNCITRAL Model Law, the BCDR and its 2022 Rules, and enforcing awards.

Bahrain has positioned itself as a regional centre for commercial dispute resolution. If your contract has a Bahraini arbitration clause, or you are choosing a forum for a Gulf deal, here is how the system works.

The Arbitration Law

Bahrain's Arbitration Law, issued by Law No. 9 of 2015, adopts the UNCITRAL Model Law on International Commercial Arbitration in full. That means familiar international rules on the arbitration agreement, appointing and challenging arbitrators, interim measures, the conduct of proceedings, and setting aside awards.

The BCDR

The Bahrain Chamber for Dispute Resolution (BCDR), established in 2009, has two parts:

• The BCDR Court, a specialist court for larger disputes — claims above BHD 500,000 where at least one party is a financial institution licensed by the Central Bank of Bahrain, or where the dispute is an international commercial dispute.
• The BCDR arbitration centre, which administers arbitrations when parties agree to the BCDR Arbitration Rules. It also offers mediation.

The BCDR Arbitration Rules 2022

The current Rules took effect on 1 October 2022. Notable features include:

• disclosure of third-party funding;
• power for the tribunal to order security for costs;
• electronic hearings;
• impartiality statements from tribunal-appointed experts;
• a filing fee and published case-management fees and arbitrator rate caps (check BCDR's website for the current schedule).

According to published BCDR statistics, most of its arbitrations have concluded within 12 months.

Enforcing awards

• Bahrain is a party to the New York Convention (since 1988), so Bahraini awards can be enforced in most countries, and foreign awards can be enforced in Bahrain.
• It is also party to the GCC and Riyadh conventions on enforcement within the region.
• Bahraini courts handle court assistance under the Arbitration Law, including recognition and enforcement and set-aside applications.

Drafting a Bahrain arbitration clause

1. Name the institution (for example, BCDR) and the rules.
2. State the seat — Bahrain — so the Arbitration Law applies.
3. Agree the language (English is possible) and the number of arbitrators.
4. Consider whether to include mediation first.

How AI can help

AI can help you check an arbitration clause for gaps — missing seat, unclear rules or language — and prepare a structured first draft of a request for arbitration for review by your lawyer.

Try it: use LexArab's arbitration support.

This article is general information, not legal advice. Consult a qualified Bahraini arbitration lawyer.