Bahrain

Market Overview
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This natural geographic advantage is being continuously enhanced by new, large-scale infrastructure projects. As the smallest economy of the six-member Gulf Cooperation Council (GCC), Bahrain’s total population approaches 1.6 million, which is comprised of around 760,000 Bahrainis and 820,000 non-Bahrainis. Bahrain is a member of the Gulf Cooperation Council (“GCC”), together with Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Historically an important maritime hub, Bahrain has been a commercial centre for the region for millennia; a meeting point for ancient trading routes and travellers from all over the world.

As a nation, Bahrain has maintained a thriving business environment to the present day – whilst also using its vibrant, multicultural history to develop a prosperous tourism industry.

Almost a century ago Bahrain was the first country in the GCC to discover oil, and, several decades later, it was also the first to begin to diversify its economy to prepare for an era beyond oil. It is because of this history that when you come to Bahrain, you will meet Bahrainis with decades of expertise in areas such as financial services, IT, manufacturing and logistics – with a strong understanding of the industry, and the region’s markets.

In addition, Bahrain’s long track record of investment in education has meant that Bahrainis have always played an important role in the country’s economic development, and have preserved a strong entrepreneurial streak. The majority of Bahrainis work in the private sector, and a recent survey found that 70% of young Bahrainis were interested in starting their own business – twice as high as anywhere else in the region.

Bahrain has been recognised as a desirable business location by a number of international rankings:

  • The Heritage Foundation ranked Bahrain the most liberal business environment in the MENA region – and the 18th in the world- in its 2016 Index of Economic Freedom
  • KPMG’s Cost of Doing Business in Bahrain report, published in December 2015, found the overall cost of doing business in Bahrain to be significantly lower than in Dubai and Qatar
  • The 2015 HSBC Expat Explorer Survey ranked Bahrain as 4th in the world for most desirable destinations for expatriates, and first in the region
  • Bahrain’s networked readiness has been ranked amongst the top 30 countries internationally

The investment climate in Bahrain has long been recognised by international agencies and investors as both positive and stable. Providing access to a vibrant economy, Bahrain maintains a business-friendly environment and continues to offer a liberal approach to attracting foreign investment and business. Bahrain is actively promoting a startup culture and empowering the private sector to play a more significant role in driving economic growth.

Bahrain does not apply ownership restrictions to most commercial activities undertaken by foreign companies or their branches - such commercial activities can be 100% owned by foreign shareholders. The Kingdom offers valuable opportunities for businesses and excellent market access to other growing GCC economies. Notable business incentives offered by Bahrain include:

  • Low establishment and operational costs
  • Few indirect taxes for private enterprises and individuals
  • Highly skilled bilingual local and global workforce
  • 100% foreign ownership of business assets.
  • No restrictions on the repatriation or remittance of profits or capital.
  • No restrictions on the import/export of local and foreign currencies.
  • No tax on income, capital gains, sales, estate interest, dividends or royalties.
  • Permits 100% foreign ownership of businesses in many types of business activities.
  • Easy access to the rest of the region - it takes less than one hour to get to Saudi Arabia, the UAE and Qatar.
  • One of the most educated and skilled workforce in the Gulf.
  • Most flexible visa policies in the region.

Companies in Bahrain can be 100% foreign-owned with restrictions applying only in certain sectors, such as trading activities, construction or catering services. International investors can choose between several types of business structure. A commercial company set up in Bahrain can choose from one of the following:

  • General Partnership Company
  • Limited Partnership Company
  • Joint Venture Company (known as Association in Participation)
  • Shareholding Company (known as Joint Stock Company or BSC)
  • Limited Partnership by Shares Company
  • Limited Liability Company (W.L.L)

Process for establishing different types of business structure

In May 2015, a new commercial registration system (the Sijilat) was launched in cooperation with the E-Government Authority and government agencies related to commercial licenses. Sijilat serves as the primary system to initiate and finalize commercial transactions entirely online.

To establish a Company, investors must obtain a Commercial Registration (CR) along with the necessary business licences and/or approvals. Businesses are considered legally established once registered with the Ministry of Industry and Commerce through obtaining a CR certificate (without a licence). Typically, the timeframe to obtain a licensed CR is three to four weeks.

Procedural and substantive requirements

It is essential to obtain an electronic advanced key (the “eKey”) by registering at the E-Government Authority in Bahrain via (www.ekey.bh) to submit any commercial transaction, or a notarized power of attorney who has an advanced eKey, without prejudice to the provisions of the Commercial Companies Law No. (21) of 2001.

Additionally, applications can be submitted through one of the professional bodies registered in the Ministry of Industry and Commerce that legally represent and apply for a commercial registration on behalf of investors, as well as any other service under the umbrella of the Sijilat portal.

Economy

Bahrain is a free market economy without any restrictions on capital movements, foreign exchange, foreign trade or foreign investment. Various factors help to support Bahrain’s strong position among GCC countries for foreign direct investment (FDI), not least the free transferability of currency and that few industries require local equity participation.

The Bahraini Dinar is a strong and stable currency. Since 2001, it has been pegged (at a rate of USD 2.66) against the US dollar. In 2006, Bahrain became the first (and still the only) Gulf state to sign a bilateral agreement with the United States (i.e. Free Trade Agreement). Bahrain also has deep, long-lasting ties with the UK: it was a British protectorate for more than 100 years before gaining independence in 1971.

Bahrain has signed numerous Free Trade Agreements (FTAs) with various countries, which facilitate preferential access to these markets for Bahraini entities and businesses. These FTAs work to provide reduced or even eliminated tariffs, making exports more competitive.

In the decade up to 2022, consumer price inflation in Bahrain averaged 1.6 per cent, and at the end of 2023 it was less than 1 per cent. In the wake of the Ukraine conflict, surging oil prices helped to lift Bahrain’s GDP growth to 4.9 per cent in 2022, and it further expanded by 2.5 per cent in 2023.

Petroleum is Bahrain's most exported product, comprising roughly 60% of all export receipts, 70% of government revenues, and 11% of total GDP. Aluminium is the second most exported product, followed by financial services and construction materials. Other important and growing sectors include: tourism, logistics and manufacturing.

Bahrain’s state-owned energy asset holding company, Bapco Energies, rebranded itself in May 2023 as part of its focus on maximizing enterprise value through trading and investing in new technologies and renewables.

Meanwhile, a continued programme of privatisation will contribute to Bahrain’s long-term plans for economic development and diversification. This opening up of key state-owned assets for investment is set to boost investor interest further.

Current opportunities & future prospects

A range of large infrastructure and development projects are taking place across the GCC, most notably in Saudi Arabia and the UAE, which are creating opportunities for both Bahraini firms and international companies.

To help move Bahrain from an economy built on oil to one driven by a diverse set of non-hydrocarbon business sectors, including manufacturing and tourism, Bahrain has announced more than 20 strategic infrastructure projects worth more than $30 billion. These include the construction and development of five offshore cities on artificial islands off Bahrain’s coastline, which will double Bahrain’s land area by 2030, these projects will be mostly funded via public-private partnerships.

Other large-scale government infrastructure projects include:

  • $7 billion Bahrain Petroleum Company (BAPCO) modernisation & expansion project
  • $3.5 billion King Hamad Causeway transportation infrastructure project - a new 15-mile causeway between Bahrain and Saudi Arabia.
  • $2 billion Bahrain Metro project

Among other local Bahraini projects, the construction of a new seawater reverse osmosis desalination plant is planned by Bahrain’s Electricity and Water Authority (EWA) and in August 2023, the government announced a deal to develop a 72-MW solar park, the country’s largest.

Similarly, Bahrain’s electric vehicle (EV) charging infrastructure is being accelerated.

In the move towards a greener, more sustainable economy, Bahrain launched a National Energy Strategy in November 2023, which aims to cut the country’s greenhouse gas emissions by 30 per cent by 2035, before reaching net zero by 2060.

As part of the focus on its economic growth, Bahrain aims to lead the Gulf region in its digital economy. As a first-mover in emerging business and finance domains, including open banking, cloud computing and advanced manufacturing, the Kingdom has made significant strides in investing in Fintech and other emerging technologies.

Bahrain is now home to the largest financial technology centre in the Middle East, Bahrain’s FinTech Bay - one of the Kingdom's most important initiatives focusing on investment in innovation, including advanced laboratories and business accelerators.

The Kingdom has fostered a vibrant startup ecosystem through initiatives such as the Bahrain Fintech Bay and via Bahrain’s Economic Development Board (EDB) offering support for startups and entrepreneurs in the region. There also plans to exploit developments in artificial intelligence (AI) and to use Bahrain’s desert plains as a location for data centres.

Legal system

Overview

The legal system of Bahrain is a hybrid system deriving from a number of jurisprudential traditions including Islamic Sharia, Egyptian civil, criminal and commercial law (the Egyptian system itself is derived from the French Napoleonic code, local tradition and custom).

Over recent years, Bahrain has undertaken significant efforts to reform its legal system in order to promote economic development. Bahrain’s legal system consists of a network of courts that handle a wide range of civil, criminal, and commercial cases.

In 2017, Bahrain introduced significant changes, including the establishment of dedicated commercial courts which focus exclusively on resolving business disputes and providing a specialized approach to handling complex commercial matters.

The well-established national arbitration centre, the Bahrain Chamber for Dispute Resolution (BCDR), facilitates efficient dispute resolution, which further enhances Bahrain’s reputation as an attractive jurisdiction for business in the region. BCDR's current arbitration and mediation rules came into effect in 2022 and 2019, respectively.

Court System and Jurisdiction

Bahrain has a well developed legal framework when compared to some of its neighbours. Bahrain’s court system comprises of Civil Courts and Sharia Courts. The Court of Cassation is the highest court. As a civil law jurisdiction, the decisions of higher courts are not binding on the decisions of the lower courts thus decisions of the Court of Cassation are authoritative but not binding. The Sharia Courts are generally responsible for Family Law and inheritance matters.

Bahrain is a signatory to the New York Convention on the Enforcement of Foreign Arbitration Awards. Therefore, all relevant arbitral awards from a signatory seat would be recognised and enforced by the Bahraini courts subject to satisfying certain requirements. Bahrain is also a signatory to the Riyadh Convention for the Execution of Judgments, Delegations and Judicial Notification which authorises the execution of judgments issued by courts of the GCC member countries.

Bahrain’s court system and the jurisdiction of the Bahrain courts are governed by Bahrain Decree-Law No. 42/2002 On the Issuance of the Judiciary Law. The main law defining the categories of Bahrain courts and classifying the jurisdiction of each level or degree of the courts is Bahrain Decree-Law No. 42/2002.

Bahrain’s judicial system consists of Civil Courts and Sharia Courts. Other courts, such as the BCDR Court and the Constitutional Court. have their own specific laws.

The core legislation governing the procedures of the Civil Courts is Bahrain Decree-Law No. 12/1971 on the Issuance of the Civil and Commercial Procedures Law (as amended). Bahrain’s Civil Courts have the power to adjudicate all disputes relating to civil, commercial, and administrative matters.

They are comprised of:

The Court of Cassation.

The High Court of Appeal.

The High Court.

The Lower Court.

The Court of Urgent Matters.

The Court of Execution.

Foreign investment restrictions

Bahrain takes a pragmatic approach towards FDI and foreign ownership of local companies. The EDB facilitates commercial registry applications and liaises with government ministries to assist the operations of global companies.

As a major business hub in the Gulf region, Bahrain has one of the most flexible investment environments to attract foreign investors. Through its liberal approach to FDI, Bahrain actively seeks to attract foreign investors and businesses; no product localization is enforced, and foreign investors are not obliged to use domestic content in goods or technology.

Foreign companies are also not required to have local partners in order to do business: 100% foreign ownership of business is therefore allowed, although sector-specific restrictions may apply. Sectors that are open to 100% foreign investment include: technology, tourism, healthcare, education, manufacturing, and business services. Where restrictions apply in sectors such as construction, foreign ownership may be limited to 49%.

Bahrain also prides itself on offering an attractive and open regulatory environment to international businesses with governance standards that deliver exceptional stability. Although regulation is clear, simple and transparent, several laws have recently been introduced laws alongside other changes to Bahrain’s business regulatory environment, including commercial registration requirements, quality standards, and import restrictions.

Bahrain’s business-friendly economy and stable financial system are matched by an equally attractive corporate tax regime. Bahrain currently has no personal or (except for oil companies) corporate income tax (CIT), capital gains tax, withholding taxes, variable stamp taxes, or other taxes on the repatriation of profits. There are no taxes levied on capital inflows or outflows. At the rate of only 10%, Bahrain’s value added tax (VAT) regime is substantially below VAT rates applied elsewhere in the region.

As one of the only remaining GCC countries without a comprehensive CIT, Bahrain is, however, set to relandscape its tax regime by introducing CIT to the Kingdom. The Bahrain Minister of Finance and National Economy announced the move in May 2023, and it is likely to apply to all commercial activities.

The CIT rate is anticipated to be in the range of 5% to 10% for businesses that fall below the Base Erosion Profit Shifting (BEPS) Pillar II threshold. For businesses above the threshold, a tax rate commensurate with the Global Minimum Tax (GMT) rate of 15% is likely.

Anti-Money Laundering

Bahrain’s implementation of the Anti-Money Laundering Law in 2001 and its membership in the Financial Action Task Force (“FATF”) puts it in a strong position to counter the financing of terrorism and prevention of money laundering. A person who commits any of the following acts shall have committed an offence related to money laundering:

  • Failure to disclose to the Enforcement Unit any information or suspicion acquired in the course of that person’s trade, business, profession, employment or otherwise regarding the offence of money laundering;
  • Failure or refusal to follow or obstruction or hindering of any order issued by the Enforcement Unit or issued at its request by the Investigation Magistrate pursuant to investigation of the offence of money laundering; and
  • Disclosure of any information or suspicion acquired in the course of that person’s trade, business, profession, employment or otherwise regarding the issue of an investigation order or attachment order in a money laundering offence, where such disclosure is likely to prejudice the investigation.

Documents Issued By Foreign Entities

All documents prepared or assembled outside Bahrain and which are used for incorporating an entity in Bahrain or seeking a licence to carry out business must be:

  • Notarised by a notary public in their country of origin;
  • Stamped by the Ministry of Foreign Affairs and the Embassy of Bahrain (or designated Bahraini Consulate in the region) at the country of origin; and
  • Further be stamped at the Embassy of the concerned country in Bahrain and the Bahrain Ministry of Foreign Affairs.

Bahrain is a signatory to the Hague Apostille Convention. Therefore, if the documents were issued from another signatory country, there is no need to go through the legalisation process under paragraphs (ii) and (iii) above after obtaining the Apostille stamp.

Top tips

Given its strategic location, doing business in Bahrain is generally a quick, efficient process. To ensure that everything goes smoothly in the Kingdom, some tips are suggested:

  • Understanding the Business Culture: Unlike some other jurisdictions, Bahrain enjoys a relatively laid-back and friendly environment for doing business: a unique business culture which values personal relationships and trust. As a result, building rapport and maintaining good relationships with local partners (including the ministries and other governmental entities) and clients is essential.
  • Networking is an essential pillar to doing effective business in Bahrain. Due to its size and island feel, attending networking events, forums, and conferences helps to build and cement relationships with potential clients, partners and government officials.
  • Competition and employment. Bahrain's market is competitive, especially in sectors like finance, hospitality, and real estate. Be sure to conduct thorough market research to understand your competitors and differentiate your offering. Although Bahrain has a skilled workforce, there can be labour shortages in some specialised fields. Recruitment and retention of talent can therefore be competitive and challenging, particularly in niche areas.
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Commercial, corporate and M&A

Bahrain Enacts Amendments to the Commercial Law Enhancing Cheque Regulations

His Majesty King Hamad bin Isa Al Khalifa, King of Bahrain, has ratified and promulgated Law No. (23) of 2025, implementing significant amendments to Bahrain’s Commercial Law, originally issued by Decree-Law No. (7) of 1987. These amendments, approved by both the Shura Council and the House of Representatives, aim to modernise and strengthen the legal framework governing commercial transactions, particularly focusing on cheque regulations. Key Amendments: Joint Account Holder Regulations: The revised Article (283) Clause (4) mandates that upon the death or legal incapacitation of a joint account holder, the remaining holders must inform the bank of their intention—whether to continue or close the account within ten (10) days. The bank is required to freeze the deceased or incapacitated person’s share as of the date of death or incapacity until a legal successor is appointed by the competent Sharia or civil court, ensuring clarity and security in joint account management. Cheque Certification and Payment: Changes to Article (451) detail enhanced procedures for cheque certification. The drawee may certify cheques wholly or partially and must do so upon request if sufficient funds are available. Certified cheques have their cover frozen, ensuring funds remain available for the holder until the cheque presentation deadlines expire. Partial Payment of Cheques: A new dimension is added with Article (465 bis), allowing drawees to make partial payments if the account balance is less than the cheque value, unless the holder refuses. This provision aims to minimize cheque dishonours and improve payment flow, with the Central Bank of Bahrain empowered to regulate the procedures. Legal Enforcement of Cheques: Article (465 bis 1) establishes that cheques marked for insufficient funds or partial payment are enforceable documents under the Execution Law in Civil and Commercial Matters. This strengthens the legal standing of such cheques, enhancing creditor protection. Prohibition and Penalties: Article (491 bis) introduces strict penalties for the misuse of blank cheques, including fines ranging from two hundred to ten thousand dinars, depending on the infraction. This aims to deter the use of cheques as credit or guarantee instruments, aligning with consumer protection efforts. Partial Payment and Enforceability of Cheques Bahrain has implemented a partial payment mechanism for cheques. Pursuant to Article 465 bis, where the drawer’s account holds insufficient funds to cover the full value of a cheque, the drawee bank must make partial payment of the available amount to the bearer, unless the bearer refuses such partial payment. In such cases, the bank is required to mark the cheque to reflect the partial payment, return the original cheque to the bearer, and issue a certificate confirming the amount paid. The remaining funds — whether constituting full or partial payment — must be frozen by the drawee bank and held under its responsibility for the benefit of the cheque bearer until the expiry of the cheque’s presentation period, which is six (6) months from the date of issuance, as prescribed under Article 451(4). Once this period lapses, the bank is no longer permitted to process the cheque or make any payments against it, even if sufficient funds become available at a later stage, as per Article 451. In such cases, the bearer must resort to the Execution Court, as the amended law now recognises the cheque as an enforceable instrument under the Civil and Commercial Execution Law (Decree-Law No. 22 of 2021). This allows the bearer to apply directly for enforcement without the need to first obtain a judgment through ordinary civil proceedings. These amendments aim to protect the rights of cheque bearers while reducing reliance on criminal proceedings against drawers. Previously, where a cheque was issued without sufficient funds, the standard procedure was to file a criminal complaint under Article 393 of the Penal Code (Decree-Law No. 15 of 1976), which often led to lengthy proceedings and, in some cases, custodial sentences or fines. Such outcomes could delay or prevent repayment, especially where imprisonment impacted the drawer’s financial position, thereby diminishing the bearer’s chances of recovery. By allowing partial payments, the reform enhances confidence in cheques as a means of payment, promotes commercial efficiency, and helps relieve pressure on the criminal justice system by shifting such disputes towards civil enforcement procedures. Criminalisation of Blank Cheques The recent amendments introduce an explicit prohibition on issuing blank cheques intended to serve as instruments of credit or security. Any person who issues a blank cheque as a credit or guarantee instrument in contravention of Article 491 shall be subject to a fine of not less than two hundred Bahraini Dinars (BD 200) and not exceeding two thousand Bahraini Dinars (BD 2,000). Moreover, where a bearer completes the details of a blank cheque and presents it for encashment, the bearer is liable to a fine of no less than 10% and no more than twice the amount entered on the cheque. In all cases, the fine must not be less than BD 500 and may not exceed BD 10,000. The Ministry of Industry, Commerce and Tourism, being the competent ministry responsible for consumer protection under Law No. (35) of 2012, has been assigned responsibility for receiving and acting upon complaints against non-financial institutions that breach the relevant provisions, in accordance with Law No. (35) of 2012 concerning Consumer Protection. This measure forms part of broader efforts to promote good governance and uphold consumer rights. By contrast, financial institutions engaged in lending or financing activities remain under the direct regulatory supervision of the Central Bank of Bahrain. This legislative reform represents a significant step toward resolving recurring issues in commercial practice and enhancing consumer protection. In particular, it aims to curb the longstanding practice of compelling clients to issue blank cheques as collateral, which has historically given rise to forgery risks and disputes. Joint Accounts Operation Post-Death or Incapacity The amended law permits surviving or legally capable joint account holders to continue operating a joint account in the event of the death or legal incapacity of one of the account holders, provided that the bank is notified within ten (10) days from the date of death or incapacity, as required by Article 283(4). In such cases, only the share of the deceased or incapacitated party is to be frozen as of the date of death or incapacity, pending the appointment of a legal successor. This reform marks a significant departure from the previous approach, under which the entire account would be frozen until a successor was legally appointed. The new mechanism facilitates business continuity, minimises operational disruptions, and helps mitigate potential financial losses or legal complications. Conclusion In conclusion, the recent amendments to Bahrain’s Law of Commerce mark a significant advancement in the regulation of cheque transactions, reflecting a modern approach to commercial practices. By introducing partial payment mechanisms and enhancing the enforceability of cheques, these reforms aim to bolster confidence in cheques as reliable payment instruments while reducing the burden on the criminal justice system. The prohibition on issuing blank cheques as credit or guarantee instruments and stringent penalties for misuse further underscore Bahrain’s commitment to consumer protection and financial integrity. Additionally, the updated regulations for joint account operations ensure continuity and security in economic transactions following the death or incapacitation of an account holder. Overall, these legislative changes are poised to enhance commercial efficiency, protect consumer rights, and foster a more robust and reliable financial environment in Bahrain. Authors: Saad Al Doseri, Founding Partner, Al Doseri Law Shooq Mohamed Nimah, Senior Associate, Al Doseri Law The provisions of the amended Law of Commerce pursuant to Law No. (23) of 2025, amending the Law of Commerce No. (7) of 1987: Article One The texts of Articles (283) clause (4), (410) paragraph (1), (451) paragraphs (2), (3), and (4), (474) paragraph (2), (480) paragraph (1), (482), and (491) of the Commercial Law issued by Decree-Law No. (7) of 1987, shall be replaced with the following text: Article (283) Clause (4):Upon the death or legal incapacitation of one of the joint account holders, the remaining holders must notify the bank of their intention to continue the account within ten days from the date of death or incapacitation. The bank must freeze withdrawals from the joint account equivalent to the share of the deceased or legally incapacitated partner until a legal successor is appointed. Article (410) Paragraph (1):The holder of a bill of exchange, upon non-payment at maturity, may have recourse against endorsers, the drawer, and others obligated. Article (451) Paragraphs (2), (3), and (4): 2. The drawee may mark the cheque as certified either wholly or partially, indicating the availability of the full or partial funds at the drawee on the date of certification, and the drawee’s signature on the front of the cheque constitutes its certification. 3. The drawee cannot refuse to certify the cheque if requested by the drawer or holder and if there are sufficient funds to cover the full or partial amount of the cheque. 4. The full or partial cover of a certified cheque remains frozen with the drawee for the benefit of the holder until the cheque presentation deadlines expire. Article (474) Paragraph (2): If the drawee receives an opposition, it must refrain from paying the cheque’s value wholly or partially to its holder and reserve the full or available amount in the account until a decision is made. Article (480) Paragraph (1): The holder of a cheque has recourse against the drawer, endorsers, and others obligated if presented within the legal period and not fully paid, and if refusal of full or partial payment is proven by protest. In lieu of protest, refusal of payment or partial payment can be proven by: a) A statement issued by the drawee mentioning the day of cheque presentation. b) A statement from the clearinghouse indicating the cheque was presented within the legal period and not fully paid, dated and written on the cheque itself, and signed by the issuer. Article (482): Non-payment or partial payment must be proven as described in paragraph (1) of Article (480) before the presentation period expires. If the presentation occurs on the last day of this period, refusal of payment or partial payment may be proven on the next business day. Article (491): It is prohibited to issue blank cheques for use as credit or guarantee instruments. The Ministry concerned with consumer protection, under Law No. (35) of 2012 concerning consumer protection, shall take necessary actions to enforce the provision mentioned in paragraph (1) of this article. The Central Bank of Bahrain shall ensure compliance by licensees under the Central Bank of Bahrain and Financial Institutions Law issued by Law No. (64) of 2006 to enforce the mentioned provision. Article Two New articles numbered (465 bis), (465 bis 1), and (491 bis) are added to the Commercial Law issued by Decree-Law No. (7) of 1987, as follows: Article (465 bis): If the account balance is less than the cheque value, the drawee must partially pay the available amount unless the holder refuses partial payment. The cheque holder may re-present a cheque partially paid. The drawee must mark the cheque indicating partial payment upon each partial payment and return the original cheque to the holder with a certificate of partial payment. The Central Bank of Bahrain may issue a decision to specify an alternative mechanism for proving partial payment other than marking the cheque. The Central Bank of Bahrain shall issue a decision regulating the conditions, controls, and procedures related to the application of the partial payment provisions of the cheque, whether payment is in cash or by written settlement methods such as account entry, bank transfer, clearing, or other means specified by the Central Bank. The drawer’s credit record is marked if a cheque is returned due to insufficient funds or if partially paid. The Central Bank of Bahrain will issue a decision defining the cases and procedures of this marking, its duration, and procedures for its removal. Article (465 bis 1): A cheque marked by the drawee for insufficient funds or partially paid is an enforceable document under the Execution Law in Civil and Commercial Matters issued by Decree-Law No. (22) of 2021. The Minister of Justice, after approval by the Supreme Judicial Council, may issue a decision regulating the rules and procedures for executing a cheque marked by the drawee for insufficient funds or partially paid. Article (491 bis): Violators of paragraph (1) of Article (491) shall be fined not less than two hundred dinars and not more than two thousand dinars. Any holder of a blank cheque who completes the cheque details and presents it for payment shall be fined not less than ten percent of the amount recorded on the cheque and not more than twice that amount, with the fine not less than five hundred dinars and not exceeding ten thousand dinars in all cases. Article Three The Central Bank of Bahrain shall determine, in coordination with relevant authorities, the stages for implementing the partial payment of cheque values as stipulated in paragraph (1) of Article (465 bis) of Article Two of this law, after ensuring the technical arrangements and readiness of drawees necessary to effectively ensure partial payment of cheques.
Al Doseri Law Firm - 22 May 2025
Dispute Resolution

Exploring Mediation: Concepts, Procedures, and Acceptance in the Arab Community

Founding Partner Saad Al Doseri examines the growing use of mediation to resolve disputes in the Arab region. Whilst mediation enjoys popularity in other jurisdictions globally, it is not yet widely used in the Middle East, although that interest is increasing. In his article below, Saad examines the merits of mediation, including the advantages of choosing it over other ADR methods such as arbitration, as well as how the concept of mediation aligns closely with Arab and Islamic cultural nuances.
Al Doseri Law Firm - 16 May 2025