Bahrain has introduced a new legal framework for the regulation of private educational institutions through Law No. 4 of 2026, enacted in January 2026, replacing Decree-Law No. 25 of 1998.
The new law introduces enhanced licensing, governance and financial oversight requirements for private schools and nurseries operating in Bahrain. A 12-month transition period applies to existing institutions.
What is the new law?
The new law establishes a revised framework governing the licensing, operation and supervision of private educational institutions in Bahrain.
It applies to private nurseries, kindergartens, private schools, and educational centres, while higher education institutions and vocational training centres remain subject to separate regulatory regimes.
Key developments under the new law
Key changes introduced by the law include:
- Two-stage licensing framework
An initial approval stage (pending any additional regulatory approvals), followed by a final operating licence. - Financial reporting obligations
Institutions must notify the Ministry of Education if they are unable to meet certain financial obligations, including where at least 5% of the total payroll remains unpaid. - Governance requirements
Mandatory establishment of a Parents’ Council for private schools and increased oversight of governance structures. - Clarification of permitted activities
Clear distinction between educational activities (school and nurseries) and training activities (educational centres). - Enhanced penalties
Imprisonment for up to one year and/or increased fines of up to BHD 100,000, in addition to potential licence suspension or revocation.
Why this matters for operators and investors
The new law introduces a more structured regulatory environment for private education providers in Bahrain.
In particular:
- Increased compliance requirements in relation to financial reporting and governance
- Greater regulatory oversight of financial and operational stability
- More defined licensing processes, which may affect timelines for new projects
- Potential additional revenue opportunities, subject to Ministry approval, through the use of school facilities
What should private education institutions do now?
During the transition period, operators and investors should consider:
- Reviewing financial monitoring systems to ensure compliance with reporting obligations
- Assessing governance structures, including the establishment of Parents’ Councils
- Updating constitutional documents and internal policies to align with the new law
- Evaluating ongoing or planned transactions, including acquisitions and restructurings
How ASAR can assist
ASAR can assist clients in assessing the impact of the new law, including through compliance reviews, transaction support and governance structuring.
For further information, please contact ASAR Bahrain at: asarbh@asarlegal.com
