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Find out moreIn May Law Update’s edition, we examined the continued relevance of English law across MENA jurisdictions and why it remains a cornerstone of commercial transactions, dispute resolution, and cross-border deal structuring.
From the Dubai Court’s recognition of Without Prejudice communications to anti-sandbagging clauses, ESG, joint ventures, and the classification of warranties, our contributors explore how English legal concepts are being applied, interpreted, and adapted in a regional context.
With expert insight across sectors, including capital markets, corporate acquisitions, and estate planning, this issue underscores that familiarity with English law is no longer optional for businesses in MENA. It is essential.
2025 is set to be a game-changer for the MENA region, with legal and regulatory shifts from 2024 continuing to reshape its economic landscape. Saudi Arabia, the UAE, Egypt, Iraq, Qatar, and Bahrain are all implementing groundbreaking reforms in sustainable financing, investment laws, labor regulations, and dispute resolution. As the region positions itself for deeper global integration, businesses must adapt to a rapidly evolving legal environment.
Our Eyes on 2025 publication provides essential insights and practical guidance on the key legal updates shaping the year ahead—equipping you with the knowledge to stay ahead in this dynamic market.
The Kingdom of Bahrain has enacted substantial amendments to its Commercial Law in 2025, reinforcing protections around cheques, banking practices, and consumer rights. These legislative updates are set to modernise key financial instruments and enhance transparency in the commercial landscape.
On 11 May 2025, His Majesty King Hamad bin Isa Al Khalifa ratified Law No. (23) of 2025, introducing targeted amendments to the Commercial Law issued by Legislative Decree No. (7) of 1987 (the “Amendment Law”). These changes took effect the day following publication in the Official Gazette and are intended to strengthen cheque enforcement, reduce financial risk, and promote orderly commercial transactions.
In cases of death or legal incapacity of a joint account holder, the remaining account holders must notify the bank within 10 days of their intent to continue or close the account. Banks are required to freeze the share of the deceased/incapacitated until succession is confirmed.
Holders of bills of exchange may now directly pursue payment from all liable parties, including the drawer and endorsers, upon maturity if unpaid.
Banks are obligated to certify cheques—partially or fully—if sufficient funds are available. Certification confirms that such funds are reserved and cannot be denied under compliant circumstances.
Upon receiving an objection from the drawer, the drawee must immediately withhold payment and reserve the relevant amount until the issue is legally resolved.
Non-payment must be evidenced through a bank statement confirming the date of presentment or via clearinghouse confirmation, secured during the presentment period.
Bis Issuing blank cheques as credit or guarantee instruments is now illegal. Violators may face fines between BHD 200 and BHD 2,000. Submission of blank cheques for payment may result in penalties ranging from 10% to 200% of the cheque value (minimum BHD 500; maximum BHD 10,000).
Banks are now mandated to partially honour cheques when accounts lack full coverage, unless explicitly refused by the cheque holder. Each partial settlement must be recorded on the cheque and accompanied by a formal certificate. The Central Bank of Bahrain (CBB) will oversee the implementation of electronic and procedural systems governing such payments.
Cheques marked as “no funds” or “partially paid” are now treated as enforceable instruments under Bahrain’s Civil and Commercial Execution Law (Decree Law No. 22 of 2021), enabling direct execution without prior litigation.
The CBB is entrusted with supervising licensed financial institutions, issuing implementation guidelines, and coordinating with relevant authorities to enforce the new provisions. This includes oversight on credit reporting obligations tied to returned or partially paid cheques.
The implementation of the partial cheque settlement regime will be phased, depending on the readiness of technical infrastructure and procedural protocols.
These reforms demand immediate attention from corporates, financial institutions, and consumers handling cheque-based transactions. Stakeholders should:
For further guidance on compliance with Law No. (23) of 2025 or navigating the amended commercial and banking framework, our team stands ready to assist.
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