Bahrain has recently enacted Law No. 9 of 2024 concerning the Bahrain International Commercial Court (BICC), establishing it as an independent legal entity under the oversight of the Minister of Justice. This new court is designed to handle a broad range of disputes with a focus on international commercial matters and arbitration-related issues.

The BICC has the authority to adjudicate disputes if the parties agree in writing to submit to its jurisdiction or if one party initiates proceedings and the other party accepts jurisdiction explicitly or implicitly. The court’s jurisdiction includes:

• International Commercial Disputes: These involve cases where at least one party is located outside Bahrain or where the subject matter is closely connected to another location. Such disputes encompass various commercial relationships, including contracts for the supply or exchange of goods and services, distribution agreements, commercial representation or agency, rights management, leasing, construction, consultancy, engineering, licensing, investment, financing, banking, insurance, joint ventures, and transportation by air.
• Arbitration-related Disputes: This category includes disputes related to interim measures, the appointment or removal of arbitrators, and the recognition or annulment of arbitration awards.

Parties are free to agree on the law governing their disputes. In the absence of such an agreement, the Dispute Resolution Panel will determine the applicable law, ensuring it aligns with Bahrain’s public policy.

The court’s council will establish regulations concerning the rules, procedures, and timelines for disputes within its jurisdiction.

Non-Bahraini lawyers are permitted to represent parties in disputes conducted in languages other than Arabic. Further, non-Bahraini lawyers are permitted to represent parties in disputes conducted in the Arabic language when working with a licensed Bahraini lawyer authorised to appear before the Court of Cassation.

Judgments issued by the BICC are subject to appeal before the Appeal Authority, which will be established by the court president. Parties may agree in writing that BICC judgments are final and not subject to appeal, except in cases where the judgment or procedures affecting it are invalid. The judgment from the Appeal Authority is final and cannot be appealed or challenged further before the Cassation Court.

If a judgment from the BICC is issued in the English language, it may be appealed in other jurisdictions that are signatories to specific treaties with Bahrain, unless the parties involved have mutually agreed in writing to file the appeal before the Appeal Authority in Bahrain.

On 20 March 2024, Bahrain entered into a treaty with the Government of the Republic of Singapore concerning appeals from the Bahrain International Commercial Court (BICC). Under this treaty, judgments issued in the English language by the BICC can be appealed in Singapore before its competent appeal court, provided that the parties have not agreed otherwise.

The Bahrain International Commercial Court aims to be a leading venue for resolving international commercial disputes, offering a specialised legal framework that meets global standards. The law outlines the court’s jurisdiction, organisational structure, and procedural rules, emphasising the facilitation of efficient and fair resolution of cross-border commercial matters. Including a provision in your agreements to refer disputes to the BICC can help ensure more efficient and effective legal proceedings. For more information or inquiries, please contact us.