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 recognise and enforce arbitral awards originating from other jurisdictions, ensuring a streamlined process without the need for a retrial on the merits.
The grounds for refusal of recognition and enforcement of an arbitral award are specifically delineated under Article V of the Convention and Article 36 of the Arbitration Law. These include scenarios where a party demonstrates that the arbitration agreement was invalid due to incapacity or non-compliance with applicable laws, or where there was a lack of proper notice or opportunity to present a case during arbitration proceedings. Moreover, refusal may also arise if the subject matter falls outside the scope of arbitration or if the composition of the arbitral tribunal or the procedure was not in accordance with the agreed terms or the law of the jurisdiction where the arbitration took place. Additionally, if the award has not yet become binding or has been set aside by a competent authority, it may not be recognised or enforced. The court may also refuse to recognise or enforce the arbitral award if it finds that the subject matter is not capable of settlement by arbitration under the law of Bahrain or the recognition or enforcement of the award would be contrary to the public policy of Bahrain.
In Bahrain, the enforcement of arbitral awards follows a structured two-stage process:
First Stage: Recognising the arbitration award before the High Civil Court
The claimant initiates proceedings by filing an application before the High Civil Court, submitting the original award along with an Arabic translation if necessary, and paying the requisite court fees. The High Civil Court reviews the application, notifies the defendant, and schedules a hearing before issuing a judgment on the recognition and enforcement of the award. This judgment is subject to appeal within 45 days to the Appeal Court and subsequently to the Cassation Court, ensuring thorough judicial review.
Second Stage: Enforcing the arbitration award before the Execution Court
Following successful recognition, the enforcement phase proceeds to the Execution Court. Prior to filing an enforcement application, the claimant must issue a legal demand notice to the defendant, by registered mail with acknowledgment of receipt or by electronic method. The claimant may file the application before the Execution Court after the lapse of at least 7 days from the date of the notice.
After filing the application before the Execution Court, the defendant (if it is a company) will be given a period of 21 days from the date of submitting the enforcement application to reach for a settlement with the claimant. If the said period is lapsed without reaching for a settlement, the Execution Court would commence the enforcement measures.
By adhering to these procedural standards as per the Convention and the provision of Arbitration Law, Bahrain facilitates an effective mechanism for international arbitration. This framework reinforces Bahrain’s position as a jurisdiction supportive of arbitration, offering certainty and predictability for parties engaged in cross-border commercial disputes seeking enforceable arbitration awards within its legal system.
ASAR Al Ruwayeh & Partners has a proven track record of successfully representing clients in enforcing foreign arbitral awards before Bahraini courts. For more information or any inquiries, please contact us at www.asarlegal.com.
