Bahrain Enhances its Global Commerce through the Bahrain International Commercial Court (BICC)

18 November 2024

Glory Sony

On 27 August 2024, the Kingdom of Bahrain introduced Royal Decree Law No. (9) of 2024, establishing the Bahrain International Commercial Court (BICC).

Manama: This legislation aims to bolster Bahrain’s position as a global leader in international commercial dispute resolution, offering a specialized forum for handling complex commercial disputes.

The new law establishes the BICC as an independent entity with legal personality, dedicated solely to adjudicating international commercial disputes. Its main goal is to streamline the resolution process and provide a specialized forum for intricate commercial matters.

Comprehensive Jurisdiction

The BICC has exclusive jurisdiction over disputes, as long as the parties have agreed to its jurisdiction. This court can intervene even in cases where traditional courts lack the competence. The jurisdiction of the court encompasses:

1. International Commercial Disputes: The court handles disputes involving commercial relationships—whether contractual or non-contractual—where one party is based outside Bahrain, or where key aspects of the dispute occur outside the country. This includes:
• Transactions for the supply goods or services
• Distribution, commercial representation, and agency contracts
• Management of third-party rights, leasing, and construction projects
• Consulting services, engineering, and investments
• Banking, insurance, joint ventures, and other commercial cooperations.
2. Arbitration-Related Matters: The BICC also resolves disputes involving arbitration, such as:
• Provisional measures
• Appointment or disqualification of arbitration members
• Annulment or recognition of arbitration awards

Jurisdiction Agreement

• The parties must explicitly or implicitly accept the BICC’s jurisdiction, which can be done by including a jurisdiction clause in contracts or participating in proceedings without objection.
• Any agreement regarding the court’s jurisdiction must be documented in writing or via another accessible format. Even if the jurisdiction clause is part of a larger contract, it is considered independent and cannot be challenged due to the validity of the broader contract.

Regulation of Dispute Resolution Procedures

The law stipulates that the Court Council will issue regulations to govern the rules, procedures, and deadlines for disputes within its jurisdiction. This ensures transparency, consistency, and efficiency in resolving disputes.

Representation Before the Court

The law allows flexibility in representation before the BICC:

• Non-Bahraini attorneys can represent parties alongside a Bahraini lawyer, especially for cases conducted in Arabic. This ensures international expertise is available in the legal process.
• For cases in languages other than Arabic, non-Bahraini attorneys can represent clients independently, which is essential for international parties to feel comfortable and have access to skilled legal representation.

Immediate Enforcement of Rulings

Rulings from the BICC are immediately enforceable in Bahrain, without the need for guarantees. However, if there is a risk of significant harm from execution, the Dispute Resolution or Appellate Body may suspend enforcement at the request of the concerned party. In such cases, the body may require guarantees or other measures to protect the rights of the ruling party.

Anticipated Impact

The establishment of the BICC is expected to streamline commercial dispute resolution in Bahrain. The court’s emphasis on international legal practices is likely to attract businesses seeking a reliable, fair, and efficient platform for resolving disputes. However, traditionalists may have concerns about the shift from Arabic to English, particularly in contexts where local legal practices have been well-established.

Conclusion

With the introduction of the Bahrain International Commercial Court Law, Bahrain is positioning itself as a key player in global commercial arbitration and dispute resolution. This progressive approach to legal practice is expected to encourage increased international participation and strengthen Bahrain’s reputation in the global commercial arena.

ALKETBI TOUCH

Contact ALKETBI team of experts, for a customized strategy on understanding how the BICC may optimize flows for your company. Our staff can assist you in creating a solid structure for commercial dispute resolution in Bahrain reflecting our vast regional experience.