Bahrain’s New Railway Regulation Law: Key Features of Legislative Decree-Law No. (42) of 2026

Bahrain’s New Railway Regulation Law: Key Features of Legislative Decree-Law No. (42) of 2026

The Kingdom of Bahrain has introduced a comprehensive legislative framework governing the establishment, management, operation, maintenance and development of railway infrastructure through Legislative Decree-Law No. (42) of 2026 Promulgating the Railway Regulation Law (the “Railway Law”).

The Decree was published in the Official Gazette on 17 September 2026. This represents an important development in Bahrain’s transport regulatory framework, establishing a dedicated legal regime for railway infrastructure and services and laying the foundations for the future development and integration of Bahrain’s railway network with regional GCC railway infrastructure.

The Decree-Law consists of three provisions introducing the accompanying Railway Law:

Article 1 provides that the Railway Law shall apply without prejudice to applicable international agreements, treaties, and protocols.

Article 2 requires the competent minister to issue the executive regulations and decisions necessary for implementation within one year from the Law’s entry into force.

Article 3 provides that the Decree-Law enters into force on the day following its publication in the Official Gazette.

1. Scope and Objectives of the Railway Law

Article 2 establishes the scope of application of the Railway Law. It applies to railways in Bahrain, all activities connected with them, and persons involved in their construction, management, operation, maintenance, development or investment, as well as railway users.

The objectives of the legislation are set out in Article 3. These include:

• regulating the establishment, management, operation, maintenance, and development of railways in accordance with international standards and practices;
• promoting separation between the infrastructure owner, infrastructure manager and railway operator where possible;
• strengthening operational safety and protecting persons and property;
• encouraging investment and private-sector participation;
• integrating railways with other modes of transport;
• strengthening regional connectivity with GCC railway networks; and
• taking environmental protection and sustainable development into account.

Of particular significance is the law’s recognition of the importance of structural separation between infrastructure ownership, infrastructure management, and railway operations. This approach is intended to facilitate transparent and non-discriminatory access to railway infrastructure while supporting competition.

2. Regulatory Responsibilities

The law creates a regulatory structure under which the Ministry responsible for transport affairs retains overall responsibility for regulating and supervising railway affairs.

Under Article 4, the Ministry is responsible for, among other matters, proposing railway legislation and policies, preparing the comprehensive national railway network plan, entering into relevant agreements and coordinating with other authorities to achieve integration between railways and other transport systems.

Article 4 also expressly provides for coordination with the GCC Railway Authority concerning the implementation of the GCC railway project and applicable interoperability requirements, systems and common GCC specifications.

At the operational regulatory level, Article 5 assigns significant responsibilities to the competent department. These include issuing railway activity licenses, supervising licensees, issuing safety certificates, approving technical standards, conducting inspections, undertaking independent technical investigations of accidents and incidents, proposing railway corridors and safety zones, and proposing passenger and freight tariffs.

This establishes a regulatory model in which the Ministry retains policy and supervisory functions while the competent department performs licensing, technical, safety, and enforcement functions.

3. Railway Infrastructure and Infrastructure Management

Under Article 6, ownership of railway infrastructure may be transferred to another owner with approval of the competent department and in accordance with applicable legislation.

Article 7 imposes obligations on infrastructure owners, including maintaining infrastructure in a condition suitable for safe operation, making infrastructure available to the infrastructure manager in accordance with applicable agreements, obtaining prior approval for material changes to infrastructure, and immediately notifying the competent department of accidents and incidents (Article 24).

Article 8 sets out the obligations of the infrastructure manager. These include managing and maintaining railway infrastructure, providing operators with fair, transparent, and non-discriminatory access to the network, implementing a safety management system, maintaining technical and operational records, reporting accidents and obtaining prior approval for material changes to the network.

Importantly, Article 9 establishes the principle of separation between infrastructure management and railway operations. Subject to exceptions determined in the public interest by the Council of Ministers, an infrastructure manager, or a person lacking financial and administrative independence from it, may not obtain a license to operate railway services.

4. Licensing for Railway Activities

Article 13 establishes a general prohibition against conducting railway activities without a license issued by the competent department.

The licensing regime is further developed in Articles 14 to 21.

Article 14 permits the competent department to license railway operators already licensed in GCC states to operate on Bahrain’s national network, subject to applicable bilateral or multilateral agreements.

Under Article 15, an applicant for a license must, among other requirements:

1. be an eligible legal person meeting the applicable classification requirements;
2. not have been finally declared bankrupt;
3. possess the financial solvency, technical competence and administrative capabilities necessary for the licensed activity; and
4. satisfy any additional requirements prescribed by the executive regulations.

With the Minister’s approval, the Competent Department may exempt an applicant from any licensing condition where this is consistent with the public interest and appropriate to the nature of the license and activity.

The competent department must determine a complete license application within 60 days under Article 16.

The license is personal under Article 18 and may not be transferred without prior written approval. Article 19 further requires separate licensing for additional sites or branches where required by the nature of the licensed activity.

Under Article 20, the competent department may suspend a license for up to three months or cancel it by reasoned decision in specified circumstances, including breaches of the law regulations or license conditions.

5. Railway Safety

Safety is a central component of the new legislation.

Article 22 provides that railway infrastructure, railway vehicles and railway services may not be operated or provided without a safety certificate issued by the competent department.

Article 23 requires both infrastructure managers and operators to establish, implement, periodically review and update a Safety Management System. This must include, among other matters:

• identification and assessment of risks;
• emergency and evacuation procedures;
• qualification and training requirements for safety-critical personnel; and
• internal audit and review mechanisms.

The competent department may also require an independent accredited safety assessor to evaluate the effectiveness and suitability of the safety management system.

Article 24 imposes general safety obligations on infrastructure owners, infrastructure managers and operators. These include taking measures to reduce risks, implementing emergency procedures, notifying the competent department of relevant accidents and incidents, maintaining appropriate liability insurance, protecting persons and property, and obtaining prior approval for material changes to railway systems or infrastructure.

6. Railway Corridors and Safety Zones

The Law introduces specific protections for railway corridors.

Under Article 11, the Minister determines the railway corridor in coordination with relevant authorities and infrastructure and service providers.

Certain activities within the railway corridor are prohibited without prior approval from the competent department. These include constructing structures that obstruct railway visibility or signals, installing lights or signs that interfere with railway signaling, carrying out works that may cause landslides or threaten infrastructure, placing materials or obstacles within the railway corridor, and undertaking any activity considered capable of affecting railway safety.

Article 12 further regulates prohibited conduct within or affecting railway infrastructure and provides the basis for criminal sanctions for specified conduct.

7. Inspection and Technical Investigation

Articles 25 and 26 establish the inspection and technical investigation framework.

Under Article 25, the competent department is responsible for inspecting railway infrastructure, facilities, operations and maintenance to ensure compliance with the Law and its implementing regulations.

Inspectors may enter relevant sites and facilities, inspect railway vehicles, examine records and documents, obtain copies and conduct necessary examinations and tests within their statutory authority.

Article 26 provides for an independent technical investigation into railway accidents and incidents. The purpose is to determine their causes and contributing factors, identify lessons learned and make recommendations designed to prevent recurrence and improve safety.

Importantly, the technical investigation does not prevent the commencement of criminal or administrative investigations by other competent authorities.

8. Network Access, Stations and Tariffs

The Law establishes a regulatory framework for access to railway infrastructure.

Under Article 27, infrastructure managers must grant operators access to railway networks, including tracks, stations, energy facilities and maintenance facilities, on fair, transparent and non-discriminatory terms.

The relevant rights are to be regulated through network-use agreements, which require prior approval from the competent department.

Similarly, Article 28 requires station operators to provide licensed passenger and freight operators with access to stations on fair, transparent and non-discriminatory terms.

Article 29 addresses the charges payable for network and station use and provides for a mechanism for determining, calculating, reviewing and collecting such charges. It also gives the competent department authority to determine disputes concerning access conditions and usage charges.

Under Article 30, passenger and freight tariffs, license and certificate fees and other service charges are determined by the Minister following Council of Ministers’ approval and based on a proposal from the competent department in coordination with the Ministry of Finance and National Economy.

9. Rights of Railway Users

The Law also introduces express statutory protections for railway users.

Article 32 provides users with the right to safe and regular railway services meeting applicable quality standards and tariffs.

Operators must provide clear information concerning timetables, tariffs and operating arrangements and must provide appropriate facilities for persons with disabilities and elderly persons.

The Article also requires effective complaint procedures and provides for compensation for specified cases of delay, cancellation or interruption of services in accordance with the executive regulations.

A user may further challenge an operator’s decision concerning a complaint before the competent department in accordance with the prescribed procedures.

10. Regional Railway Connectivity

Article 33 reflects Bahrain’s broader objective of connecting its national railway infrastructure with regional networks.

The competent department is required to promote connections between Bahrain’s railway network and railway networks in GCC states and other countries, subject to applicable bilateral or multilateral agreements.

The provision also requires consideration of interoperability requirements and standards agreed with GCC states.

This provision is particularly significant in the context of the wider GCC railway project, as it provides an express domestic legal basis for regional interoperability.

11. Criminal Liability and Penalties

The Law introduces significant criminal penalties for conduct that threatens railway safety.

Article 34 establishes a range of offences and penalties.

Under Article 34(1), attacking or assaulting a railway vehicle or infrastructure with the intention of taking it or its contents, injuring persons aboard, or diverting its route is punishable by imprisonment for between five and ten years. Where the conduct results in destruction of the vehicle or infrastructure, the penalty is life imprisonment, while death or life imprisonment may apply where the conduct results in death.

Under Article 34(2), intentional destruction, disruption or damage to railway infrastructure is punishable by imprisonment of between five and ten years and a fine of between BHD 3,000 and BHD 100,000. More serious consequences, including life imprisonment or death, apply where the offence results in destruction or death. In all cases, the offender must also be ordered to pay the value of what was damaged or, where possible, to restore it to its former condition.

Article 34 also criminalizes conduct that intentionally or negligently endangers railway safety and unauthorized crossing of railway tracks.

Of particular practical significance, Article 34(7) provides for detention of up to three years and/or a fine of between BHD 1,000 and BHD 5,000 for operating railway activities without the required license, providing false or misleading information to the competent department, or obstructing officials, inspectors or technical investigators in performing their statutory duties. 34(7)(a) also covers operating in breach of license terms, not just without a license.

12. Administrative Violations and Sanctions

The Law establishes a separate administrative enforcement regime in Articles 35 to 37.

Under Article 35, administrative violations attributed to railway licensees are referred to a specialized committee established under Article 36.

Article 36 requires the Minister to establish a committee comprising persons with appropriate technical and legal expertise. The committee considers alleged administrative violations and makes recommendations to the Minister.

Under Article 37, administrative measures and sanctions may include:

• requiring the licensee to cease the violation and remedy its effects;
• removing the causes of the violation at the offender’s expense;
• suspending an activity;
• suspending a license or safety certificate for up to six months;
• cancelling a safety certificate;
• cancelling a license; and
• imposing an administrative fine of up to BHD 20,000.

The administrative fine may be doubled up to twice the maximum (BHD 40,000) where the same violation is repeated within one year.

13. Judicial Enforcement and Appeals

Article 38 provides certain authorized employees with judicial enforcement powers in relation to offences under the Law.

These officials may enter relevant railway sites and facilities, inspect railway vehicles, examine records and documents, conduct inspections and record violations within their jurisdiction.

The Law also establishes a specific grievance and judicial review mechanism under Article 39.

An interested party may submit a grievance to the Minister against a decision issued under the Law within 30 days of notification. The grievance must be determined within 30 days, failing which it is deemed implicitly rejected.

A decision rejecting the grievance may then be challenged before the competent court within 60 days from notification of the rejection or from the date on which the grievance is deemed rejected.

14. Confidentiality, Records and Technical Standards

The final provisions of the Law create a framework for regulatory information and technical standards.

Under Article 40, the competent department must establish railway records containing information concerning licenses, safety certificates, accidents, inspections and other relevant matters. Licensees must provide periodic reports concerning their activities, safety information and other requested information.

Article 41 establishes confidentiality obligations for persons who obtain confidential information concerning railway activities, operators or infrastructure managers through their employment or functions. The obligation continues even after the relevant employment, contractual relationship or official capacity ends.

Finally, Article 42 requires the competent department to issue technical manuals and standards concerning the design, operation, maintenance and safety of railway infrastructure within six months of the issuance of the executive regulations. These standards must be reviewed and updated where necessary to reflect technological, operational and safety developments.

Conclusion

Legislative Decree-Law No. (42) of 2026 represents a significant step in the development of Bahrain’s transport regulatory framework. Rather than regulating railways solely through general transport legislation, Bahrain has established a dedicated legal regime addressing infrastructure ownership and management, licensing, safety certification, network access, user rights, regional interoperability, enforcement and liability.

The Law’s emphasis on separating infrastructure management from railway operations, ensuring non-discriminatory network access, establishing comprehensive safety-management requirements and facilitating GCC interoperability suggests that the legislation has been designed not merely for the regulation of existing railway activity but also to provide the legal architecture necessary for the development of a modern and regionally integrated railway system.

For businesses and investors, the principal areas requiring attention will likely include the forthcoming executive regulations, licensing requirements, technical and safety standards, insurance obligations, network-access arrangements and the administrative and criminal consequences of non-compliance.

The effectiveness of the new framework will therefore depend significantly on the implementation of regulations required under Article 2 of the Decree-Law and the detailed regulations contemplated throughout the Railways Law.