FAQs

What services does ASAR offer in agency and distribution agreements?

ASAR provides legal support on agency and distribution matters, including due diligence, contract review under Bahraini law, and strategies to limit liability, manage termination, and avoid compensation risks.

What are the key legal requirements for agency agreements in Bahrain?

Agency agreements must be registered with the Ministry of Industry and Commerce to be recognised as commercial agencies, though registration is not required for legal validity and is often discouraged for foreign principals.

How are disputes related to agency and distribution agreements resolved in Bahrain? 

Disputes are typically resolved through Bahraini courts or the Bahrain Chamber for Dispute Resolution (BCDR) for international commercial claims over BHD 500,000. Parties may agree to arbitration or a foreign governing law, but the party invoking the foreign law must prove it, and it cannot conflict with Bahrain’s public order. If not proven, Bahraini law applies by default.

Can foreign companies appoint distributors or agents in Bahrain?

Yes, this is common practice. However, foreign companies should ensure that their chosen local distributor or agent has a registered legal presence in Bahrain, holds the appropriate commercial licences (e.g. general trade or authorised distributor activity), and is legally permitted to market and distribute products within the country.

What protections does Bahraini law offer to agents or distributors?

If the relationship qualifies as a commercial agency, Bahraini law provides strong protections to Bahraini-registered agents. Most notably, agents may be entitled to compensation upon termination or expiry of the agreement—particularly if they can demonstrate success in promoting the principal’s products. This includes potential goodwill compensation, unless the termination was due to the agent’s misconduct or resignation.

What services does ASAR provide in the aviation sector?

ASAR provides a comprehensive range of legal services to clients in the aviation sector, including advice on aircraft financing and leasing, aircraft acquisitions and disposals, regulatory compliance, licensing and approvals, and representation in aviation-related disputes through litigation, arbitration, and mediation.

What are the key considerations in aircraft leasing transactions?

Aircraft leasing in Bahrain is governed by the Civil Aviation Law, which incorporates international conventions such as the Chicago Convention. While the law does not explicitly address IDERA, the Bahrain Civil Aviation Authority (BCAA) has accepted IDERAs that follow the Cape Town Convention template. Local regulations may require additional security documents, such as mortgages or pledges, depending on the transaction structure. Although foreign law may govern the lease, Bahraini courts may not enforce foreign judgments without a retrial, particularly where the dispute falls within local jurisdiction.

What legal aspects should be considered for aircraft financing?

Aircraft financing in Bahrain involves registering security interests, such as aircraft mortgages, with the Civil Aviation Affairs Authority, ensuring compliance with aviation and corporate laws, addressing visa requirements for foreign personnel, and considering the enforcement of foreign judgments and arbitration awards under international conventions.

What are the regulatory requirements for operating an airline in Bahrain or other GCC countries?

To operate an airline in Bahrain or other GCC countries, companies must meet stringent regulatory requirements focused on safety, security, and efficiency. In Bahrain, a business must be registered as a legal entity under the Commercial Companies Law (Law No. 21 of 2001) and hold a commercial license in accordance with the Commercial Registration Law (Law No. 27 of 2015). Bahrain follows the ISIC4 classification, which defines permissible air transport activities, including passenger and freight services, aircraft handling, travel agencies, and reservation systems, all subject to regulatory approvals.

How does ASAR assist with dispute resolution in the aviation industry?

ASAR assists clients with resolving aviation-related disputes through litigation, arbitration, or mediation, and provides support with pre-judgment attachment or post-judgment seizure of aircraft and engines to secure or enforce claims.

What services does ASAR offer in banking and finance?

ASAR advises on a wide range of banking and finance matters, including corporate finance transactions such as syndicated, club, and bilateral lending—both secured and unsecured—as well as financial hedging. The firm supports capital markets deals involving equity, debt, hybrid instruments, and structured products, including IPOs and private placements. Expertise also covers project finance and public-private partnerships, as well as the formation of collective investment undertakings in Bahrain and internationally. ASAR provides regulatory guidance across financial services, including insurance, brokerage, and market making.

What are the key legal considerations in syndicated loans?

A primary consideration is the choice of reference rate, particularly in light of the transition away from LIBOR, and whether a term or overnight rate is used depending on the currency. Other key issues include the type of syndication (underwritten or best efforts), clear-market provisions, syndicate structure, borrower rights regarding assignments and amendments, and the powers of the security agent in secured syndicated financing.

How are cross-border financing transactions structured?

When a borrower is domiciled in Bahrain, the transaction is typically structured by having the local entity accede to the foreign-law governed financing documents as a borrower or obligor. There is usually no need to involve a local financial institution to front the financing, although appointing a local security agent may be advisable if the security includes registered mortgages or similar interests.

What is the regulatory framework for banking in Bahrain?

Banking activity in Bahrain is regulated by the Central Bank of Bahrain Law of 2006, as amended, and the CBB Rulebook. Conventional banks are governed by Volume 1 of the Rulebook, while Islamic banks fall under Volume 2. Additional laws, such as the Law of Commerce and the Civil Code, also apply to the contractual instruments used in banking transactions.

How does ASAR assist with regulatory compliance in the banking sector?

ASAR provides regulatory support by advising on licensing and authorisation requirements, helping clients meet ongoing compliance obligations, and reviewing internal policies, procedures, and documentation to ensure alignment with Bahrain’s legal and regulatory framework.

What services does ASAR offer in capital markets and securities?

ASAR advises on bond and Sukuk issuances, IPOs, securities regulations, and the marketing and sale of local and foreign securities. We support banks, investment firms, fund managers, and individual investors with practical legal solutions aligned with evolving regulatory requirements in the Gulf.

What is the role of ASAR in an IPO process?

We guide clients through Bahrain’s IPO process, ensuring regulatory compliance and managing legal risks. Our team helps optimize capital structures, conduct due diligence, and explore exit strategies such as private sales and IPOs, taking into account market liquidity and underwriter regimes.

What are the main regulations governing securities offerings in Bahrain?

Securities offerings are primarily governed by the Central Bank of Bahrain’s OFS Module in the CBB Rulebook, which sets out requirements for issuance, offering, and marketing. The Bahrain Bourse also regulates listing, disclosure, and trading through its own rules.

What disclosure standards apply to listings and public offerings?

The CBB Disclosure Standards require issuers to provide detailed prospectuses, ongoing financial reports, timely updates on material events, and disclosures on insider trading and market abuse. These standards apply to IPOs, secondary offerings, and listed companies.

What is the process for listing a company on a stock exchange?

Listing on the Bahrain Bourse involves submitting a detailed application with financials, legal documents, and a prospectus. The Bourse reviews the company’s financial position, governance, and regulatory compliance before approving the listing. The process typically spans several months.

What services does ASAR offer in commercial litigation and arbitration?

ASAR handles commercial litigation and arbitration across sectors such as banking, construction, insurance, property, tax, and employment. The firm represents clients before all court levels and arbitral tribunals, offering strategic advice and supporting alternative dispute resolution where appropriate.

What is arbitration, and how is it different from litigation?

Arbitration is an alternative to traditional litigation, offering parties the opportunity to resolve disputes outside of court in a private setting. Unlike litigation, arbitration requires both parties to agree to submit their dispute to an arbitrator for a binding decision. In arbitration, neutral arbitrators hear evidence, evaluate arguments, and issue a final decision. Litigation, on the other hand, involves a public court process with set rules and procedures, potentially leading to levels of appeal. While litigation can be time-consuming, arbitration is often chosen for its efficiency and privacy.

Can international arbitration awards be enforced in Bahrain?

Yes, Bahrain stands as a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“Convention”), supported by the provisions set forth in its Arbitration Law, Law No. 9 of 2015 adopting UNCITRAL Model Law on International Commercial Arbitration 1985 with amendments as adopted in 2006 (“Arbitration Law”). Under this framework, Bahrain courts undertake to recognize and enforce arbitral awards originating from other jurisdictions, ensuring a streamlined process without the need for a retrial on the merits.

What is the role of the Bahrain International Commercial Court (BICC)?

The BICC is an independent court under the Ministry of Justice, handling international commercial and arbitration-related disputes. It has jurisdiction over cases with foreign party or cross-border elements, including those involving contracts, distribution, construction, and investment. The BICC also deals with arbitration matters such as interim measures, appointment of arbitrators, and recognition or annulment of awards. Parties may choose the governing law, or the court will determine it in line with Bahrain public policy. BICC judgments may be subject to international challenge under applicable treaties or agreements.

How can ASAR assist with international arbitration cases?

ASAR advises on all stages of international arbitration, from drafting arbitration clauses to representing clients in proceedings. We guide clients through procedural complexities, assist with recognition and enforcement of awards in Bahrain, and ensure effective protection of their commercial interests.

What types of practices are prohibited under competition law?

Bahrain’s Competition Law prohibits arrangements that hinder competition, especially those that fix prices, limit or control production, or divide markets or sources of supply. Abuse of a dominant position is also banned, including imposing unfair trade conditions or restricting production or market access. Additionally, market concentration transactions require prior approval from the competition authority.

How does ASAR assist clients in complying with competition regulations?

ASAR advises clients on the application of Bahrain’s Competition Law to their specific circumstances, helping identify potential competition risks. We also support clients with filings to the competition authority and manage interactions with the authority. In M&A transactions, we provide guidance on market concentration restrictions and approval requirements. 

Can mergers or acquisitions be blocked under competition law?

Mergers or acquisitions that result in a shift in market control require prior approval from the competition authority. Without this approval, the authority can compel parties to reverse or adjust the transaction to eliminate market concentration.   

What are the penalties for violating competition law in Bahrain?

Penalties depend on the nature of the violation. The competition authority may order the cessation or amendment of the conduct, require restructuring or divestment to reduce market concentration, and impose financial or administrative penalties.

What should I do if I suspect anti-competitive behaviour in my industry?

If anti-competitive behaviour is suspected, ASAR can assess whether the behaviour constitutes a legal violation under Bahrain’s Competition Law. If a breach is suspected, any party with a legitimate interest can file a written complaint with the competition authority requesting an investigation.

How can ASAR assist with setting up a company in Bahrain?

ASAR provides comprehensive support for company formation in Bahrain, advising on suitable legal structures, licensing requirements, and foreign ownership options. We handle documentation, registration, and interactions with government authorities until the commercial registration is complete. Our deep knowledge of local regulations helps clients navigate the process efficiently and in alignment with Bahrain’s business environment.

What should companies consider when restructuring or reorganizing?

Key considerations include the impact on existing contracts, the need to amend operational licenses or registrations, restrictions on foreign ownership of certain activities, and any existing violations noted in commercial registration records. Addressing these issues early is critical to ensuring a compliant and effective restructuring process.

How does ASAR assist with shareholder agreements and disputes?

ASAR’s corporate and dispute resolution teams advise on drafting and negotiating shareholder agreements, and assist in resolving shareholder disputes, leveraging deep local knowledge and cross-border experience to protect client interests.

What are the key considerations in mergers and acquisitions (M&A)?

M&A transactions require careful legal due diligence, attention to regulatory compliance, and strong contractual documentation. ASAR advises on structuring, negotiation of key agreements, obtaining necessary approvals, and completing all implementation steps up to closing before the relevant Bahraini authorities.

How can ASAR help my business comply with data protection laws?

ASAR can provide comprehensive legal counsel to help your business navigate the complexities of Bahrain’s Data Protection Law (PDPL). Our experienced team has a deep understanding of local regulations and international data protection standards, such as the GDPR.

What are the key data protection laws in Bahrain?

Bahrain’s data protection landscape is primarily governed by the PDPL. However, other legal provisions, such as the Constitution, Penal Code, Penal Procedure Code, Cybercrime Law, and Electronic Transactions Law, also impact data protection and privacy. These laws provide authorities with the power to access, intercept, and collect user data in specific circumstances, particularly when investigations are related to criminal activities or national security.

What steps can businesses take to avoid data breaches?

The PDPL in Bahrain has established a data protection authority that has issued guidelines on data protection measures. These measures, including privacy by design, robust security measures, and regular vulnerability assessments, aim to safeguard personal data. While specific standards for “robust” security measures and privacy frameworks aren’t explicitly defined, organizations can refer to international standards like the ISO/IEC 27000 family, which have been adopted by the Ministry of Interior.

What are the legal consequences of non-compliance with data protection regulations?

The PDPL in Bahrain imposes a range of penalties for data protection violations. These penalties include civil liability for damages, criminal liability with potential imprisonment and fines, administrative penalties such as fines from the Personal Data Protection Authority (PDPA), and the possibility of conciliation proceedings. The severity of the penalties can vary based on the nature and extent of the violation.

How does ASAR assist with cross-border data transfer compliance?

ASAR advises clients on meeting the requirements of Bahrain’s Personal Data Protection Law (PDPL), which is closely modelled on the GDPR and supports Bahrain’s position as a regional data centre hub. We assist with identifying lawful transfer mechanisms, conducting Data Protection Impact Assessments to assess risk, and ensuring appropriate safeguards are in place. Our team helps clients adapt internal policies and contractual arrangements to align with both Bahraini and international data transfer regulations.

How can ASAR assist with employment contracts?

ASAR drafts and reviews employment contracts to ensure compliance with Bahrain labour law. We help employers and employees identify legal risks, clarify obligations, and resolve disputes related to employment terms.

What are the legal requirements for terminating an employee in Bahrain?

Termination must comply with Bahrain Labour Law No. 36 of 2012, particularly Articles 107, 109, and 110. Employers must provide a valid reason, ensure the termination is not arbitrary or discriminatory, and issue written notice, typically 30 days unless the contract states otherwise. Unlawful terminations may entitle the employee to compensation.

What are the common causes of employment disputes and how can ASAR resolve them?

Disputes often arise from unlawful termination or miscalculated entitlements, especially for expatriates. ASAR supports employers by ensuring compliance with termination procedures, verifying entitlements, securing signed acknowledgments, and drafting release agreements to reduce legal risk and promote early resolution.

How does employment law regulate discrimination and harassment in the workplace?

Labour Law No. 36 of 2012 prohibits workplace discrimination and harassment based on gender, race, religion, language, or disability. Dismissals on such grounds are considered unfair under Article 104 and may entitle the employee to compensation under Article 111, plus additional compensation unless a higher amount is specified in the employment contract.

How can ASAR assist with energy projects in Bahrain?

ASAR offers comprehensive legal support across all stages of energy projects, from structuring and financing to securing permits and regulatory approvals. We also draft and negotiate key project agreements, including those for supply, construction, and operations.

What are the key regulations governing the oil and gas sector in Bahrain?

Bahrain’s oil and gas sector is governed by the Oil and Gas Law, Petroleum Exploration and Production Agreements (PEPAs), and stringent environmental laws. ASAR helps clients comply with these regulations by preparing and/or reviewing agreements, liaising with regulatory authorities, and ensuring adherence to health, safety, and environmental standards.

How does ASAR support renewable energy projects?

ASAR offers specialized support for renewable energy projects, including guidance on licensing requirements, regulatory approvals, and compliance with Bahrain’s sustainability standards. The firm drafts power purchase agreements (PPAs), supply contracts, and financing arrangements while advising on government incentives and tax exemptions, enabling clients to capitalize on opportunities in the growing renewable energy market.

What role does ASAR play in energy-related contract negotiation and financing?

ASAR is instrumental in negotiating and structuring energy-related contracts, ensuring agreements are clear, enforceable, and aligned with client goals. The firm also assists on advising from a legal perspective concerning securing funding through bank loans, private equity, or other financial mechanisms, mitigating risks and ensuring compliance with regulations.

How does ASAR handle energy-related disputes and regulatory compliance?

ASAR provides robust representation in energy-related disputes arising from contractual disagreements, regulatory issues, or environmental concerns. The firm resolves conflicts through mediation, arbitration, or litigation while offering ongoing advisory services to help clients maintain compliance with Bahrain’s energy laws, environmental regulations, and safety standards.

How does ASAR help fintech companies navigate Bahrain’s regulatory landscape?

ASAR provides tailored legal guidance on Bahrain’s fintech regulations, advising on licensing, structuring, and compliance under the Central Bank of Bahrain (CBB) framework. We have experience across digital banking, payment services, crowdfunding, and crypto assets, helping clients enter the market, adapt to regulatory changes, and manage legal risk.

How does ASAR support fintech companies in obtaining necessary licenses to operate?

We guide clients through the licensing process, from assessing regulatory requirements to preparing applications and liaising with the CBB. ASAR also assists companies entering the CBB’s regulatory sandbox to test new products in a controlled environment, helping them move from concept to market with regulatory certainty.

How does ASAR assist fintech companies with legal matters related to cryptocurrencies and blockchain?

ASAR advises on licensing, compliance, and operational structuring for crypto and blockchain ventures. We help clients navigate the regulatory sandbox, draft commercial agreements, manage disputes, and stay aligned with Bahrain’s evolving legal framework.

How does ASAR ensure fintech clients comply with data privacy and security regulations?

We provide legal counsel on Bahrain’s Personal Data Protection Law (PDPL) and global standards like the GDPR. Our services include Data Protection Impact Assessments, breach response strategies, and guidance on cross-border data transfers to help clients safeguard data and meet compliance obligations.

How can ASAR assist fintech companies in structuring partnerships and complying with legal requirements?

ASAR advises on structuring partnerships and joint ventures, ensuring agreements address regulatory compliance, data privacy, and AML/CFT requirements. We also support clients with filings, enforcement matters, and dispute resolution.

How does ASAR assist businesses in navigating government procurement processes?

ASAR provides end-to-end support for businesses participating in government procurement, advising on eligibility, tender compliance, and regulatory requirements. We help interpret tender documents, assess risks, and ensure submissions are accurate and competitive.

What are the legal requirements for participating in government tenders in Bahrain?

We guide businesses through registration with Bahrain’s Government Tender Board meeting financial and technical criteria and preparing documentation. For foreign bidders, ASAR advises on residency or local partnership requirements based on the tender’s scope. The firm ensures all registration, documentation, and legal steps are completed accurately, including pre-qualification evaluations to establish project capacity.

How does ASAR assist with government procurement disputes and compliance?

ASAR represents clients in disputes involving tender decisions, contract terms, or compliance issues, through negotiation or formal proceedings. We also conduct compliance audits to prevent breaches and help maintain regulatory integrity.

What are the rules for foreign companies bidding on government contracts?

Foreign companies may need to partner with a local entity or establish a registered presence in Bahrain. ASAR advises on meeting these requirements and navigating regulatory, ownership, and cultural considerations.

How does ASAR ensure businesses meet anti-corruption regulations in procurement?

We help clients implement anti-corruption policies and perform due diligence. ASAR also advises on internal controls and reporting mechanisms to support ethical and transparent procurement practices.

How can ASAR assist with regulatory approval for pharmaceuticals and medical devices?

ASAR’s healthcare and life sciences team advises on all aspects of regulatory compliance, including the approval, registration, distribution, and marketing of pharmaceuticals and medical devices. We support clients in developing strategies and submitting applications to Bahrain’s National Health Regulatory Authority (NHRA).

What are the key regulations governing the health care sector in Bahrain?

Bahrain’s healthcare sector is regulated by a comprehensive legal framework. Key laws and guidelines include:

• Legislative Decree No. 18 of 1997– Regulates the practice of pharmacists and pharmaceutical centres
• Legislative Decree No. 21 of 2015– Governs private health facilities
• Law No. 38 of 2009– Establishes the National Health Regulatory Authority (NHRA)
• Resolution No. 48 of 2020– Addresses quality control of medical devices and products
• NHRA Guidelines– Including the Medical Devices Regulation (v2.0), Labelling Guidelines (Feb 2022), Advertising Guidelines, and Violation Guidelines (Mar 2021)

How does ASAR assist with health care mergers and acquisitions (M&A)?

ASAR advises on structuring, due diligence, documentation, and implementation of healthcare M&A transactions, ensuring compliance with NHRA and Ministry of Industry and Commerce requirements. Our support covers both local and cross-border deals, with a focus on regulatory alignment and execution efficiency.  

What are the legal requirements for clinical trials in Bahrain?

Clinical trials in Bahrain require prior NHRA approval. ASAR assists with preparing and submitting applications, reviewing clinical trial agreements, and advising on sponsor obligations and regulatory strategy to ensure full compliance with NHRA Protocols.

How can clients benefit from ASAR’s expertise for an insurance business in Bahrain?

ASAR advises insurance clients on regulatory compliance, licensing, and corporate governance. We draft and review policies, structure reinsurance deals, and handle claims and disputes, offering strategic legal support backed by strong regulator relationships.

How is the insurance industry regulated in Bahrain?

The Central Bank of Bahrain (CBB) regulates the sector under its Volume 3 – Insurance Rulebook, which covers licensing, governance, risk management, financial reporting, customer protection, and anti-money laundering (AML) measures. Bahrain’s framework aligns with the International Association of Insurance Supervisors (IAIS) core principles.

How does ASAR help businesses navigate commercial insurance policies?

We advise on reinsurance transactions, policy drafting, disputes, and compliance. Our experience spans sectors including construction, liability, and M&A, enabling tailored legal solutions across complex insurance matters.

How can ASAR assist insurance companies with claims above BHD 500,000 in Bahrain?

For claims exceeding BHD 500,000, ASAR represents insurers before the Bahrain Chamber for Dispute Resolution (BCDR) which has jurisdiction over high-value insurance disputes. We manage the full process, from assessment to litigation, ensuring compliance and protecting client interests.

How can ASAR assist when an insured seeks early policy termination and unjustified compensation?

ASAR reviews policy terms, advises on rightful entitlements, and supports insurers in denying improper claims. We handle disputes to ensure legal compliance and protect the insurer’s position.

How can ASAR guide me through the complexities of Sharia-compliant financial transactions?

ASAR advises clients on structuring Sharia-compliant financial transactions, helping them identify the most suitable approach for their commercial and financial objectives. We assist throughout the process—from evaluating structural options to drafting and negotiating documentation—through closing and drawdown.

What role does ASAR play in structuring Islamic finance agreements?

ASAR does not issue Sharia compliance opinions (fatwas), but we assist clients in structuring Sharia-compliant transactions by drawing on our strong knowledge of market practices and key Sharia principles, including AAOIFI standards and guidelines. For complex structures, we work closely with Sharia boards and advisors to ensure alignment with applicable requirements.

How can ASAR assist in resolving disputes related to Islamic finance?

ASAR represents banks and financial institutions in Islamic finance disputes before Bahraini courts and the Bahrain Chamber for Dispute Resolution (BCDR) for claims over BHD 500,000. We handle matters involving Sharia principles and disputes between CBB-licensed entities and their clients.

What expertise does ASAR offer in navigating the regulatory environment for Islamic finance in Bahrain?

ASAR can provide guidance with respect to the application of Volume 2 of the CBB Rulebook applicable to Islamic banks and other sectors of financial regulations governing Sharia compliant financial institutions and Sharia compliant products.

How can ASAR support businesses looking to enter the Islamic finance market?

ASAR helps businesses understand available Sharia-compliant structures, evaluate their pros and cons, and select the most suitable option for entry into the Islamic finance sector.

How can ASAR assist me in navigating the M&A process in Bahrain?

ASAR advises across all stages of M&A transactions—from initial structuring, letters of intent, and legal due diligence to drafting and negotiating definitive agreements, satisfying regulatory conditions, and managing closing. We also advise on public M&A with respect to compliance with Module TMA of Volume 6 of the CBB Rulebook.

What role does ASAR play in conducting due diligence for M&A transactions?

ASAR assists clients in preparing an information request list to gather key documents from the vendor. We then conduct legal due diligence and provide a report—either red-flag or comprehensive—highlighting material risks. Effective due diligence is critical to a successful M&A transaction, particularly in supporting post-closing integration. Partnering with an experienced legal team like ASAR helps ensure informed decision-making throughout the process.

How can ASAR help me understand the regulatory approvals required for M&A?

Based on due diligence findings, ASAR identifies the required regulatory approvals necessary for the acquisition, including anti-trust approvals and supports clients through the necessary filings in Bahrain.

What strategies does ASAR recommend for negotiating M&A contracts?

ASAR tailors' negotiation strategies to each transaction, considering the industry, commercial position, and bargaining power of the parties. Our focus is on maximizing value through commercial insight.

How does ASAR support businesses in addressing employee impacts during M&A transactions?

Our employment specialists identify workforce implications during due diligence and advise on restructuring and compliance post-closing.

How can ASAR assist in structuring and negotiating private equity deals in Bahrain?

ASAR supports clients throughout the acquisition process, including preparing investment proposals and memoranda based on due diligence findings. We also advise on financing structures such as leveraged buyouts, negotiating multi-tier finance documents, and assisting with security arrangements. Additionally, we help set up Bahrain-domiciled private equity funds, leveraging the Limited Partnership Law and navigating the regulatory framework.

What role does ASAR play in conducting due diligence for private equity transactions?

ASAR tailors' due diligence to meet private equity disclosure needs and post-acquisition goals, providing clear insights for both investors and strategic planning.

How does ASAR ensure compliance with Bahrain’s regulatory requirements for private equity?

We assess licensing requirements, identify necessary approvals, and advise on ongoing compliance under Bahrain’s regulatory regime, including Volume 7 of the CBB Rulebook.

What expertise does ASAR offer in drafting and reviewing key legal documents for private equity funds?

ASAR offers top tier drafting and review based on regional best practices and tested precedents from complex transactions across the GCC.

How can ASAR support private equity clients in planning and executing exit strategies?

We assist with a range of exit options, from private sales and secondary offerings to IPOs, tailoring advice to align with commercial goals and market conditions.

How does ASAR assist with real estate transactions in Bahrain?

ASAR provides end-to-end support on real estate transactions, including due diligence to identify legal and title risks, review and drafting of sale and purchase agreements, and verification of ownership rights. We also liaise with regulators to secure approvals and documentation, ensuring each transaction complies with Bahrain’s property laws and proceeds efficiently.

What services are available to foreign investors purchasing property in Bahrain?

We guide foreign investors through Bahrain’s property laws, especially in designated freehold zones open to non-citizens. ASAR secures the necessary approvals, provides tailored advice on investment structuring to enhance legal protection and tax efficiency, and acts as a liaison with regulators to ensure a smooth and compliant acquisition process.

How does ASAR handle the complexities of real estate development?

ASAR supports developers with financing arrangements, zoning and land-use approvals, and municipal permits. We draft and negotiate construction and consultancy contracts, and help resolve disputes swiftly if they arise, allowing projects to progress without unnecessary legal delays.

What role does ASAR play in commercial lease agreements?

We draft and negotiate commercial leases tailored to the needs of landlords or tenants, addressing rent, renewals, maintenance, termination, and liability limitations. ASAR ensures all leases comply with Bahrain’s tenancy laws and helps resolve any related disputes to maintain long-term, workable arrangements.

How does ASAR safeguard real estate investments through legal strategies?

ASAR mitigates risk through thorough due diligence, regulatory guidance, and strategic structuring. Should disputes arise, we represent clients in litigation or arbitration to protect their investments and enforce their rights.

How can ASAR support companies during reorganization? 

ASAR advises companies navigating restructuring under Bahrain’s Reorganisation and Bankruptcy Law (Legislative Decree No. 22 of 2018). We help assess restructuring options, represent clients in reorganization proceedings, liaise with the Reorganization Trustee, and review reorganization plans and debt agreements. We also support negotiations with creditors and regulators to help clients achieve workable outcomes.  

What guidance does ASAR offer to businesses facing insolvency? 

We assist companies in financial distress by clarifying their rights and obligations under the Reorganisation and Bankruptcy Law. ASAR helps determine the appropriate path—reorganization, liquidation, or restructuring—and supports the preparation and filing of bankruptcy petitions. We represent clients in court, liaise with the Bankruptcy Trustee, and ensure their interests are protected throughout the process.

How does ASAR handle voluntary liquidation?

ASAR ensures voluntary liquidations are efficient and compliant. We oversee asset valuation, file required legal documents, notify creditors, and oversee fair asset distribution. By coordinating with all stakeholders, we facilitate a smooth and transparent winding-up process under Bahrain’s legal framework.

What assistance does ASAR provide to directors during insolvency?

We guide directors through their legal duties during insolvency, including obligations to creditors and shareholders. ASAR helps mitigate personal liability, supports decision-making in line with the law, and prepares directors to respond to regulatory or creditor inquiries.

How can ASAR assist shipowners and charters with compliance under Bahrain’s maritime law?

ASAR advises shipowners and charterers on compliance with Bahrain’s Maritime Law No. (10) of 2022, including dispute resolution, enforcement of maritime claims, and alignment with applicable international conventions to protect operational and legal interests.

Who is the competent court to issue the precautionary attachment of a vessel that is landed in Bahrain?

The Bahrain Court of Urgent Matters is the competent authority to issue precautionary vessel attachments when a vessel is docked in Bahrain. The same urgent request may be submitted before the substantive court if the proceedings on the merits have been initiated, accompanied by a request for precautionary attachment of a vessel docked in Bahrain.

How can ASAR assist creditors with maritime debts by attaching vessels while they are ported in Bahrain?

ASAR guides creditors through the process of securing precautionary attachment orders from the Court of Urgent Matters for vessels docked in Bahrain, provided the claim qualifies as a maritime debt under Bahrain’s Maritime Law. Once the court issues the order, we coordinate its registration with the port authority and the vessel’s pilot to prevent departure. ASAR also ensures that the required substantive claim is filed with the High Civil Court within five days to preserve the attachment’s validity. Throughout, we safeguard the creditor’s position and ensure full legal compliance.

How can ASAR assist creditors with general average claims?

ASAR helps creditors establish whether a loss qualifies as general average and ensures that claims are properly documented and substantiated. We support clients through the contribution process, verify the accuracy of loss calculations, and help secure appropriate payment from all liable parties.

How can ASAR assist with maritime liens arising from general average and salvage claims?

Debts arising from general average and salvage claims create maritime liens on vessels under Article 32 of Bahrain’s Maritime Law. ASAR helps creditors assert and enforce these liens, ensuring they are recognized and prioritized for recovery. We represent clients throughout the enforcement process, including in court proceedings if necessary.

How does ASAR assist businesses with tax planning and compliance under Bahrain’s tax laws?

ASAR advises clients on Bahrain’s primary tax regimes, particularly VAT and the multinational enterprise (MNE) top-up tax. We assist in understanding compliance requirements and structuring operations to help mitigate tax exposure.

Does ASAR assist clients with respect to the multinational enterprise Tax Law?

ASAR advises clients on how the MNE Tax Law applies to their operations and offers structural alternatives to support tax efficient outcomes. We also assist in executing any transactions required to implement those structures.  

How does the multinational enterprise Tax affect my business?

MNE groups with annual revenues of € 750 million or more are subject to a minimum tax rate in Bahrain. If an MNE’s effective tax rate in a jurisdiction is below 15%, a top-up tax will apply, aligning Bahrain’s framework with global standards such as the EU Council Directive 2022/2523 and the GLoBE rules.

How can ASAR support businesses in appealing tax assessments and decisions by the NBR?

ASAR’s litigation team is experienced in challenging NBR tax assessments. We guide clients through the appeal process and maintain productive relationships with tax authorities to support constructive engagement.

How can ASAR assist startups and investors in navigating venture capital transactions?

While Bahrain’s venture capital market is still developing, ASAR draws on its regional expertise to support startups in securing early-stage equity financing — from seed funding through Series A and beyond. 

What agreements does ASAR typically draft and review in venture capital financing?

ASAR prepares key documents including the term sheet, investment agreement, and share issuance documents for ordinary and preferred shares. We also draft and negotiate shareholder agreements and investor rights agreements.

How does ASAR support clients through the due diligence process in venture capital deals?

Due diligence for early-stage companies focuses on core assets — particularly intellectual property — that underpin the business model. ASAR tailors its diligence process to match this risk profile.

What regulatory considerations does ASAR help clients address for venture capital in Bahrain?

These really depend on the nature and structure of the financier noting that the pool of available financing is much more limited compared to private equity given the high-risk profile of the industry and the scarcity of dedicated funds. The deal would more likely be structured as club-deal involving a few investors. ASAR can help in identifying regulatory requirements triggered by the selected deal structure.

How does ASAR guide clients through venture capital exit strategies?

Exit options generally mirror those of private equity, including private sales and IPOs. While the time horizon is often longer, ASAR helps clients prepare for exit from the outset, ensuring the investment structure and governance support a clean and commercially viable transition.