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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.

 

Bahrain makes substantial legal changes to sports professions

On 27^th August 2026, Resolution No. (8) of 2026 Issuing the Regulation of Sports Professions (hereinafter referred to as “Sports Regulation”) was promulgated in the Official Gazette. The Sports Regulation is primarily applicable towards sports entities and to anyone who practices sports professions including but not limited to coaches, referees, sports talent scouts, agents. The Sports Regulation goes on to state as follows:

Licensing and Conditions

Article 3 of the Sports Regulation prohibits the practice of sports professions without a valid sports professional license from the General Sports Authority (hereinafter referred to as “Authority”). Towards this, the conditions for obtaining a sports professional license are outlined under Article 4 of the Sports Regulation:

(a) The applicant is required to possess the requisite academic qualification therein qualifying the applicant to practice the profession and to possess the physical fitness required for the profession for which license is sought, subject to the standards as determined by the Authority.

(b) The applicant should not have been convicted of a crime involving moral turpitude or dishonesty, unless rehabilitated.

(c) No previous decision canceling the sports professional license of the applicant should have been issued unless at least 5 years have elapsed from said cancellation.

 

An application of the above license is to be submitted to the Department of Legal Affairs at the Authority and should be attached with the following data and documents as set out under Article 5 of the Sports Regulation:

(a) Academic or professional qualifications, or completion certificates of basic qualifying training courses as issued by accredited local or international bodies.

(b)  Accredited training licenses (local/continental/international) in accordance with classification of accredited coaching certificates.

(c) Physical fitness tests passing documents, professional competency tests and medical examinations.

(d) License issued by the National Health Regulatory Authority pertaining to medical or therapeutic sports-related professions.

(e) Declaration of review of professional standards, code of ethics and relevant terms and conditions, along with an undertaking to abide by them.

 

Granting of License and Obligations

Article 6 of the Sports Regulation vests the Authority with the power to grant the sports professional license upon meeting application conditions and documentation requirements, with said license having a validity of up to two years from date of issuance and can be renewed by means of an application submitted to the Authority no less than thirty days before expiry.

Article 7 of the Sports Regulation, at large, requires licensees to refrain from conduct or practice that prejudices the reputation of the sport; comply with applicable legal framework issued by the Authority and competent authorities; maintain the confidentiality of information related to sports teams and athletes unless where disclosure is permitted by laws and regulations; attending mandatory training and development courses as determined by the Authority; and to not use prohibited substances or methods in sports or to take any form of prohibited doping substances as in accordance with national and international regulations and bylaws pertaining to anti-doping.

 

Expiry of License

Article 8 of the Sports Regulation provides for expiry of license upon non-renewal of term period. It further goes on to state that the license can also expire upon its cancellation in situations including but not limited to breach of obligations under Article 7 of the Sports Regulation, use of prohibited substances, direct or indirect engagement or participation in betting, etc.

Further to the above, the Authority, in its discretion may, prior to cancelling the license, issue a verbal or written warning to the licensee or temporarily suspend the license for a period not exceeding six months. This is entirely dependent on the gravity and the recurrence of the violation.

 

Conclusion

The Sports Regulation adds clarity to the application of the existing sports professions regulations. As a result, good governance and ethical performance of sports professionals can continue to prevail and ensure that future generations of sports professionals operate under a guided framework.

 

Bahrain makes substantial changes regarding legal professionals

On 14 June 2026, Law No. (24) of 2026 promulgating the Legal Profession Law (hereinafter referred to as “Law“) was issued. The Law repealed its 1980 counterpart and seeks to effectively regulate the profession of advocacy. Furthermore, the Law requires law offices to bring their status into conformity with its provisions within one year from the date the Law comes into force, subject to extension by the Minister. Some of the core aspects of the Law are as follows:

1. Scope of Advocacy Work

Article 3 of the Law defines advocacy work to include the following:

• • Appearing before the courts, arbitration tribunals, authorities with judicial jurisdiction, public prosecution, investigating magistrate, administrative investigation bodies, and police departments on behalf of individuals with standing; defending them in actions brought by or against them; and conducting litigation work and related court proceedings;
  • Providing legal consultation;
  • Drafting contracts and related legal procedures;
  • Representing parties in non-judicial work by virtue of a special power of attorney; and
  • Work provided for in any other law in the capacity of legal work.

Article 4 of the Law goes on to state that advocacy work cannot be combined with:

• • Presidency of legislative councils, ministerial positions or municipal councils.
  • Holding public office in the State, or employment in any public body or institution, except where an exemption is granted by way of decree following the recommendation of the Council of the Ministers.
  • Working in banks, companies, associations or employment with individuals, except for professions as licensed by a decision of the Ministry of Justice, Islamic Affairs and Waqf (hereinafter referred to as “Ministry”) as issued by the Minister.

2. General Roll of Lawyers

Article 7 of the Law mandates the establishment of a General Roll for the registration of lawyers at the Ministry containing details such as names, address, place of practice and contact details. Furthermore, the General Roll is to contain the (a) roll of practicing lawyers (containing appended rolls of lawyers licensed to appear before the Minor Court, High Civil Court, Court of Appeal, Court of Cassation and Constitutional Court) (b) roll of trainee lawyers and (c) roll of non-practicing lawyers.

3. Registration

Article 11 of the Law requires enrolled practicing and trainee lawyers to renew their registration each year periodically in accordance with the requirements as determined by a Ministerial decision.

Furthermore, Article 13 of the Law states that a lawyer who does not pay the renewal fees by the end of the year for which the renewal fees are due empowers the Minister, by way of a decision to transfer the lawyer to the roll of non-practicing lawyers after notifying said lawyer. In this instance, the lawyer must pay a fresh registration fee in addition to double the past-due renewal price in order to be re-registered.

4. Comparison with 1980 law

Some of the substantive changes from the Law’s 1980 counterpart i.e., Decree No. (26) of 1980 promulgating the Lawyer’s Law (“1980 Law“) include as follows:

• • Contingency Fees: Article 31 of the 1980 Law outright banned lawyers from any fee arrangement tied to the value of the disputed claim. Article 43 of the Law reverses this to the extent by permitting contingency fees of 25% of the value adjudicated or settled.

• • Tier-based Rolls: The 1980 Law had only a single Roll for practicing lawyers with no court-based tiering. The Law adds to this under Article 7 by splitting the Roll of practicing lawyers to include Minor Court, High Civil Court, Court of Appeal, Court of Cassation and Constitutional Court.

• • Anti-Money Laundering (AML): Article 33 of the Law now casts a mandatory requirement for law offices to maintain a dedicated bank account for fee transactions, therein setting in anti-money laundering compliances within the legal profession.

• • Penalties for unauthorized practice: Article 59 of the Law adds a penalty barring impersonation and unathorized practice of the legal profession, failing which, the defaulter is subject to imprisonment and/or fine not less than BHD 500 and not exceeding BHD 5,000.

• • Fee on settlement or arbitration: While Article 32 of the 1980 Law entitled the lawyer to half the agreed fee (absent any agreement to the contrary), Article 44 of the Law entitles the lawyer who concludes the case by settlement or arbitration and in accordance with the authority delegated by the client, to the agreed fees in full, unless the parties agree otherwise.

Conclusion:

The Law reinforces and adds to the necessary measures to effectively regulate the legal profession and to ensure that advocacy work in the Kingdom of Bahrain continues to operate at the highest standards of professionalism, integrity and competence.

 

Bahrain makes substantial changes concerning the rights of the Elderly

On 21^st April, 2026, the Ministry of Social Development (hereinafter referred to as “Ministry”) promulgated Decision No. 17 of 2026 Issuing the Executive Regulations for Law No. 58 of 2009 concerning the rights of the Elderly (hereinafter referred to as “Executive Regulations”). The Executive Regulations replaces the erstwhile executive regulations as promulgated by Decision No. 1 of 2011 and sets out (among other aspects) the following aspects as part of its mandate:

1. Licensing

Article 3 of the Executive Regulations requires any natural or legal person establishing an institution responsible for the caring, housing and providing necessary services to the elderly (hereinafter referred to as “Institution”) or a day club providing social and recreational services to the elderly in accordance with the programs and schedules approved by the Social Care Department of the Ministry (hereinafter referred to as “Day Club’) to first obtain a license from the Ministry in a manner compliant with the Executive Regulations.

2. Additional Requirements

Further to the above, the Executive Regulations imposes additional requirements for Institutions and Day Clubs to uphold including but not limited to:

• Maintaining administrative and financial bylaws approved by the Social Care Department of the Ministry (“hereinafter referred to as “Department”) and also an independent bank account. (Article 16)
• Institutions or Day Clubs may accept donations, bequests and gifts in accordance with the applicable law and after obtaining authorization from the Department of Support for Civil Organizations at the Ministry. (Article 17)
• The term of the license shall be for a period of two years which is renewable for a similar period, following an application submitted to the Department at least one month prior to the expiration of the license. (Article 18)
• The licensee is required to submit an annual financial report to the Department and as prepared by an approved external auditor. (Article 21)
• Licensees are prohibited from charging any fees for its services without prior written approval and such approval is also required where the licensee wishes to increase such fees. (Article 24)

 

3. Penalty

If the licensee violates any of the licensing terms or conditions as set forth in Law No. 58 of 2009 or the Executive Regulations, Article 28 of the Executive Regulations states that the licensee shall be notified to case and rectify the cause of violation. Furthermore, if the licensee does not comply within ten days from the date of notification, the Minister has the authority to issue a reasoned decision to place the Day Club or Institution under the Ministry’s management or administratively close it, each for a period not exceeding three months, or to cancel the license as may be required.

Notwithstanding the aforementioned, the affected party can appeal this decision before the competent court.

Conclusion:

The Executive Regulations reinforces the necessary protections to the rights of the elderly and brings unique formal structure to entities that act in service of their needs and wants. As such, the Executive Regulations ensures that the elderly continue to live in a dignified and fulfilled manner.

 

Bahrain overhauls the Private Education Sector

 

On 28^th January, 2026, Law No. 4 of 2026 promulgating the Private Educational Institutions Law (“Private Education Law”) was ratified. As part of its core objectives, the Private Education Law seeks to enhance the governance of private educational institutions and ensure a high-quality education system in the Kingdom of Bahrain.

Bearing the significance of this development in mind, private educational institutions existing at the time of enforcement of the Private Education Law have been given one year from the date of enforcement to adjust their status within the ambit of the Private Education Law.

As such, some of the prominent considerations of the Private Education Law are as follows:

1) Licensing Conditions

Article 3 & 4 of the Private Education Law sets out the pre-requisites to be fulfilled for both natural and legal persons prior to establishing any private educational institution in the Kingdom of Bahrain. These are as follows:

Natural Person	Legal Person
1. Be not less than 21 Gregorian years of age	1. Must be licensed by the relevant authorities in Bahrain. Furthermore, the license must include the establishment of a private educational institution as part of its authorized activities and the license shall be issued under the name of the institution.
2. Be of full capacity, good conduct and reputation and not previously convicted of a felony or misdemeanor involving dishonesty, public morals or moral turpitude.	2. Must take a company form as stipulated in the Commercial Companies Law or any other form as mentioned in the applicable legislation, as determined by a Ministerial decision.
3. Must not have been subject to a decision resulting in the cancellation or withdrawal of the license of their previous institution or the closure of that institution. The Minister may, however, issue a decision to waive this requirement.	3. Must be represented by a natural person fulfilling the criteria of Article 4(A) of the Private Education Law.
4. Any other condition as determined by a Ministerial decision.	4. Any other condition as determined by a Ministerial decision.
Common: It is prohibited to establish any private educational institution which a license from the Ministry of Education (“Ministry”) in accordance with the applicable legal framework.   Furthermore, Article 14 of the Private Education Law requires the licensee to operate the institution within six (6) months from the date of issuance of the decision granting the license. Non-operation shall lead to a decision withdrawing said license.

 

2) Internal Regulations

Article 13(a) of the Private Education Law requires institutions to draft their internal regulations to govern academic, administrative and financial aspects in lieu of their license conditions. Such institutions are further required to notify the Ministry for their endorsement within seven (7) days of approval of the internal regulations. Notwithstanding this, the Ministry may object to said regulations within sixty (60) working days from the date of receiving the notification.

 

3) Promotion and Advertising

As under Article 23 of the Private Education Law, institutions are prohibited from promoting itself or its program in a manner that violates applicable laws in the Kingdom of Bahrain or which degrades the honor and dignity of the teaching profession.

 

4) High vs Low Performing Institutions

Ensuring that the quality of education remains aligned with appropriate standards, Articles 34 and 35 of the Private Education Law authorize the Minister to grant privileges to high-performing institutions or to take measures against underperforming institutions, based on evaluations conducted by a competent entity responsible for evaluating institutional performance.

 

Conclusion

Education constitutes a critical aspect in the advancement of humankind. In this respect, the Private Education Law reflects Bahrain’s continued focus on improving the quality of education in the Kingdom. As time progresses, focus will remain on implementation across institutions to ensure conformity.

Reinforcing Security Rights in Bahrain

On 28^th January, 2026, Law No. 3 of 2026 promulgating the Secured Transactions Law (the “Law”) was ratified and promulgated in the Official Gazette. Notably, the objective of the Law, were, among other factors, recognition of security rights over movable assets without requiring transfer of possession and its enforcement in a fair and equitable manner. While the Law is set to come into effect from the first day of the month following twelve months from the date of publication in the Official Gazette (with its executive regulations, within eight months from the day of publication), it is necessary to highlight the Law’s inherent aspects as follows:

1. Scope of Application

By virtue of Article 3 of the Law, the collateral is effectively extended to cover tangible and intangible movable assets (whether current or future) and includes but is not limited to accounts with financial institutions, securities, equipment and work tools, etc. However, it excludes from its scope: (1) expenses, wages, salaries and labor compensation, (2) public funds and waqf funds and (3) future rights related to inheritance and wills.

2. Creation of Security Right

Article 6 of the Law, as a prerequisite towards the creation and effectiveness of a security right between parties, requires the security agreement to be in writing (subject to the manner to be described in the Law’s executive regulations) and includes other characteristics such as but not limited to including a clear and identifiable description of the collateral in the security agreement and possessing ownership or authorization to create a security right. Furthermore, a security right may be secured on present or future obligations.

3. Establishment of Electronic Registry

Article 7 of the Law envisages the creation of an electronic registry to record notices of security rights with public accessibility, as subject to the controls to be specified by the Law’s executive regulations. The electronic registry effectively acts as a database and where concerned parties may submit a request to obtain a report consisting of information contained in the electronic register with such report acting as authoritative evidence against all persons on aspects of proof of date, time of notice registration and information contained therein.

4. Enforcement of Security Rights

Article 8 of the Law sets out the various manners in which security rights under the Law can be enforced against third parties and includes (1) registering a notice in the electronic registry and (2) registering a notice in the electronic registry regarding a security agreement containing a condition for the transfer of possession.

Towards enforcement of security rights, Article 40 of the Law permits the secured party, upon a debtor’s breach of obligations under the secured right to undertake actions such as acquiring, selling, leasing, or licensing the use of the collateral, without court involvement, provided certain conditions are met.

Conclusion

The Law plays a significant role in expanding the scope of security rights while creating a streamlined enforcement and transparent registration system which altogether, builds towards a more dynamic and accessible financial market. As such, even with its implementation deferred to a later date, stakeholders are given sufficient time to adapt and prepare effectively.

Bahrain Brings the Hague Convention on Choice of Court Agreements into Force

On 1 July 2025, Bahrain brought the Hague Convention on Choice of Court Agreements 2005 into force, marking an important step in the development of cross border dispute resolution Bahrain. The move further strengthens Bahrain’s position as a jurisdiction aligned with international standards for commercial litigation.

Bahrain is the first country in the Middle East to ratify the Convention and, notably, the first jurisdiction outside the Hague Conference on Private International Law to do so. This development is expected to be welcomed by international investors, lenders, and commercial parties who place significant weight on certainty and enforceability when negotiating dispute resolution provisions.

Key Features of the Convention

The Convention gives legal effect to exclusive jurisdiction clauses in civil and commercial contracts. Where parties have agreed that disputes are to be resolved exclusively by the courts of a particular contracting state, the Convention seeks to ensure that this choice is respected and that judgments can be enforced across borders.

In practical terms, the Convention operates in two main ways. First, courts in contracting states are required to respect exclusive jurisdiction clauses and should generally decline to hear proceedings brought in breach of such agreements. Second, judgments issued by the chosen court must be recognised and enforced in other contracting states without a review of the merits, subject only to limited exceptions.

This framework provides greater predictability for parties both at the jurisdiction stage and at the enforcement stage of a dispute.

Scope and Limitations

The Convention applies only to exclusive jurisdiction clauses in civil and commercial matters. It does not apply to non-exclusive or asymmetric jurisdiction clauses, which are commonly used in finance and capital markets transactions.

There are also important subject matter exclusions, including insolvency, competition law, certain intellectual property matters, and specific rights in rem relating to immovable property. Parties should therefore continue to assess carefully whether their contracts fall within the Convention’s scope.

Where the Convention applies, the court designated in the exclusive jurisdiction clause must hear the dispute, while other contracting state courts must generally stay or dismiss competing proceedings. Judgments from the designated court must then be recognised and enforced by courts in other contracting states, subject to limited defences such as fraud or manifest incompatibility with public policy.

Regional Significance

Bahrain’s ratification reflects a broader regional trend towards strengthening cross border dispute resolution frameworks. Arbitration has long been supported across the Middle East through widespread adoption of the New York Convention. In the litigation context, courts in the region have increasingly recognised and enforced foreign judgments based on reciprocity or bilateral arrangements.

The Hague Convention offers a multilateral, rules-based alternative for parties who prefer court litigation. It is often described as the litigation counterpart to the New York Convention, providing similar certainty for exclusive jurisdiction clauses as the New York Convention provides for arbitration agreements.

For Bahrain, this development enhances its profile as a jurisdiction that supports international commerce and the effective enforcement of court judgments.

Practical Implications for Contracting Parties

With the Convention now in force, parties may wish to revisit their approach to jurisdiction clauses. In particular, exclusive jurisdiction clauses may become more attractive to parties seeking the certainty of predictable enforcement across contracting states.

That said, the choice between arbitration, exclusive court jurisdiction, and more flexible jurisdiction arrangements will remain transaction specific and driven by considerations such as enforcement strategy, confidentiality, speed, and market practice.

Looking Ahead

Bahrain’s adoption of the Hague Convention on Choice of Court Agreements 2005 is a meaningful step in the evolution of dispute resolution in Bahrain and the wider region. For international businesses and investors, it offers increased certainty, reduced enforcement risk, and further confidence in Bahrain as a sophisticated and reliable legal forum.

As awareness of the Convention grows, it will be interesting to see how market practice develops and whether exclusive jurisdiction clauses gain greater traction in contracts connected to Bahrain.

 

Zu’bi & Partners Advises Nass Corporation B.S.C. (c) on voluntary exit offer and delisting from Bahrain Bourse

Zu’bi & Partners acted as legal counsel to Nass Corporation B.S.C. (c) (formerly Nass Corporation B.S.C.) (the Offeree/Company) in connection with the successful conditional voluntary exit offer by A A N S D Company W.L.L. and the subsequent delisting of the Company’s shares from the Bahrain Bourse, and its conversion from a public shareholding company to a closed shareholding company.

The transaction complied with the CBB Rulebook (Takeovers, Mergers and Acquisitions Module), the Bahrain Bourse Listing Rules, and the Commercial Companies Law, and involved extensive regulatory engagement with the Central Bank of Bahrain, the Bahrain Bourse, and the Ministry of Industry and Commerce.

Zu’bi & Partners advised the Company throughout all phases of the transaction, including regulatory strategy, preparation and review of the offeree board circular and related disclosures, shareholder approvals, delisting procedures, and corporate conversion.

The matter was led by two Senior Counsel – Michael Atere and Daniah Murad, with support from the firm’s corporate and regulatory team.

Advancing Digital Recordkeeping in Bahrain

On 28^th December 2025, Ministerial Decision No. (113) of 2025 concerning the Exemption of Institutions, Companies, and Banks that use Electronic Computers for their Accounting from Maintaining Paper-based Commercial books (the “Ministerial Decision”) was published in the Official Gazette. Effectively, the Ministerial Decision recognizes electronic accounting records as legally valid. This is seen as follows:

(a) Under Article 1 of the Ministerial Decision, institutions, companies and banks that rely on computers in their accounting systems in Bahrain are exempted from maintaining paper commercial books.

The above exemption underscores the effectiveness and widespread usage of electronic systems by businesses for their accounting framework in an increasingly digital age. Furthermore, it reduces the burden businesses may face as a result of administrative costs or related expenses in maintaining physical accounting records.

(b) Article 2 of the Ministerial Decision adds to the above by recognizing the usage of electronic commercial books as having the same legal evidentiary value as paper commercial books. By placing such electronic records on the same evidentiary standing of their physical counterparts, it eases any issues that businesses may face for the purposes of general legal and regulatory compliance or filings before court, as may be necessary.

However, Article 2 of the Ministerial Decision is not absolute. As a prerequisite, the following procedures and rules are to be applied to safeguard the accuracy and integrity of the data as recorded by computer systems:

1. The electronic accounting system needs to incorporate sufficient technical protections to preserve the integrity of the stored data and prevent any modification, deletion or alteration that may occur thereto.

 

2. Furthermore, data must also be entered into the electronic systems on a regular basis and within the legally mandated time frames.

Collectively, Articles 1 and 2 of the Ministerial Decision achieve a middle ground between corporate flexibility and responsibility. While the Ministerial Decision grants greater flexibility to businesses in respect of accounting records, at the same time, such businesses must also ensure adequate technological standards are in place and remain compliant with legal requirements.  

In conclusion, the exemption from businesses that rely on electronic based accounting systems, and the legal recognition of such systems represents a progressive and modernized outlook towards company recordkeeping and compliance. As such, the Ministerial Decision enhances ease of doing business under clear safeguards as stated above and strengthens government oversight, which overall generates a more efficient regulatory environment.