Legislative Decree Establishing the Bahrain International Commercial Court
The Official Gazette published Legislative Decree No. 9 for the year 2024 which the Government intends to refer to the Legislative Branch before the commencement of the third session of the sixth legislative term.
The Legislative Decree provided for the establishment of the “Bahrain International Commercial Court,” as the law aims to enhance the Kingdom’s standing as a centre for dispute settlement by the choice of parties, to settle disputes in accordance with global best practices in cooperation with international commercial courts of global standing and prestigious reputation, and to encourage the use of international dispute resolution means in cross-border trade, contributing to the enhancement of commercial justice.
The Court shall have – according to the Legislative Decree – a President, a Vice-President, and a number of members of dispute settlement panels appointed by decree, and the President of the Court may have more than one deputy.
The Court Council shall undertake the formation of an Advisory Council competent to provide advice to the Court Council; to ensure that dispute settlement is conducted in accordance with best practices, and to evaluate the performance of the Court, the members of the dispute settlement panel, and the Appellate Body.
According to the Legislative Decree, the Court shall have jurisdiction to hear international commercial disputes. A dispute is international if the domicile of one of the parties to the dispute, or the place where a substantial part of the obligations arising from the commercial relationship is performed, or the place with which the subject matter of the dispute has the closest connection, is situated outside the Kingdom.
A dispute is commercial if its subject matter relates to relationships of a commercial nature, whether contractual or non-contractual, including any transaction for the supply or exchange of goods or services, distribution agreements, commercial representation or commercial agency, management of rights for third parties, hire-purchase, construction of factories, consulting services, engineering works, issuance of licenses, investment, financing, banking operations, insurance, exploitation agreements or concessions, joint ventures, and other forms of industrial or commercial cooperation, and the transport of goods or passengers by air, sea, or land.