A Breakdown of Bahrain’s New International Commercial Court
Bahrain introduced Royal Decree Law No. 9 of 2024, establishing the Bahrain International Commercial Court (BICC). The purpose is designed to enhance Bahrain’s position as a premier hub for international commercial dispute resolution. In this article we explore the key aspects of the new law and its anticipated impact.
The BICC is a newly formed independent legal entity with exclusive jurisdiction over international commercial disputes. It aims to streamline complex cases and provide a specialized forum for resolving commercial disagreements efficiently. The court can adjudicate cases based on parties’ agreements, even in situations where other judicial bodies may lack jurisdiction.
Jurisdiction: International and Arbitration-Related Disputes
The BICC’s jurisdiction is broad, covering:
– International Commercial Disputes: These include disputes where one party, a transaction, or obligations are connected to a foreign jurisdiction. The scope includes sectors such as goods, services, distribution, construction, banking, insurance, and joint ventures.
– Arbitration-Related Disputes: This includes provisional measures, appointment of arbitrators, and recognition or annulment of arbitration rulings.
The court’s jurisdiction is triggered either through explicit agreements or implied consent, and these agreements are treated independently from other contractual terms. This ensures that the BICC’s jurisdiction cannot be contested even if the broader contract is disputed.
Efficient Dispute Resolution and Legal Representation
The BICC will operate under clear procedural regulations established by the Court Council. These regulations ensure consistency in dispute resolution. Importantly, both Bahraini and non-Bahraini attorneys can represent parties, allowing for flexibility in both Arabic and non-Arabic proceedings. This opens the door to international legal collaboration and ensures accessibility for global litigants.
Immediate Enforcement of Rulings
Rulings made by the BICC are enforceable immediately, without the need for additional guarantees. However, the court retains discretion to suspend enforcement if there is a risk of significant harm or if an appeal seems likely to succeed, ensuring a balance between enforcement and fairness.
The creation of the BICC signals Bahrain’s commitment to becoming a leading destination for international commercial arbitration and litigation. The court is expected to attract international businesses by offering a reliable legal framework. While there may be concerns over the use of English in legal proceedings, the benefits of a globally inclusive court far outweigh the challenges.
