Legal gateway

TDT | Manama

Email : editor@newsofbahrain.com

A proposed court that allows international investors to settle disputes in Bahrain, and to appeal rulings via Singapore, has been backed by the Shura Council’s Legislative and Legal Affairs Committee ahead of a vote on Sunday.

The committee says Decree-Law No. 9 of 2024, which sets up the Bahrain International Commercial Court, is sound in constitutional and legal terms.

It was issued on 27 August 2024 during the recess of both chambers and placed before the legislature on 1 September within the month set by Article 38 of the Constitution.

The measure is presented as strengthening Bahrain’s role as a venue chosen by parties to resolve cross-border commercial cases, working with well-regarded international commercial courts and encouraging recognised methods of dispute resolution in trade across borders.

Urgency was cited on three grounds. The government wants to act on the 20 March 2024 agreement with Singapore on appeals from the new court.

It also pointed to a consultancy services agreement signed in March 2024 for one year, extendable by three months, to support legislation, promotion, business growth and staff training for the court.

A faster route to settle disputes, saving companies time and money, is put forward as a way to draw foreign direct investment.

The decree-law has an introductory chapter and three further chapters, 22 articles in all.

The opening chapter defines key terms and sets the aims of the law.

The first chapter sets up the court, confirms its independence and separate legal personality, and places supervision with the Minister of Justice or another minister named by decree.

The court works through a President, a Dispute Resolution Panel, an Appellate Panel, panel members and a Registrar-General.

A Court Council made up of the President, the Vice-President and all panel members manages the court’s affairs, issues by-laws and decisions, and appoints the Registrar-General, a chief executive and an external auditor.