PCA Agreement

The Kingdom of Bahrain has officially ratified its Host Country Agreement with the Permanent Court of Arbitration (PCA), marking a significant development in international dispute resolution in the Middle East. On 4 February 2026, His Majesty King Hamad bin Isa Al Khalifa signed Law No. 6 of 2026, formally ratifying the agreement that was originally signed on 17 June 2025. The law became effective upon publication in the Official Gazette on 5 February 2026.

This represents a historic milestone. Bahrain is the first country in the Middle East and Arab world to conclude a Host Country Agreement with the PCA, and the first member of the Gulf Cooperation Council to do so.

What is the Host Country Agreement

The Host Country Agreement establishes a comprehensive legal framework enabling the PCA to conduct dispute resolution proceedings within the Kingdom of Bahrain. Under the agreement, Bahrain agrees to facilitate PCA proceedings including arbitration, mediation, conciliation, and fact-finding commissions of inquiry.

The agreement’s key provisions include:

• Facilities and Services
  The Government of Bahrain will provide, at no cost to the PCA, office and meeting space, secretarial services, and communications facilities as deemed reasonably necessary for PCA proceedings and meetings. Proceedings in Bahrain will be held at the premises of the Council for International Dispute Resolution in Manama, which includes three hearing rooms and state-of-the-art technical equipment.
• Privileges and Immunities
  The agreement extends significant privileges and immunities to arbitrators, PCA officials, and participants in proceedings. Participants in proceedings benefit from judicial immunity in respect of statements and actions made during their participation, inviolability of all papers and documents, and exemption from immigration restrictions when traveling for proceedings.
• Institutional Protections
  The PCA itself enjoys immunity from all forms of legal process, and its premises, property, and archives are inviolable. The PCA is exempt from all direct taxes, customs duties, and financial controls, with the freedom to hold funds in any currency and transfer assets to, from, or within Bahrain.
• Security
  Bahrain has undertaken a special duty to protect PCA proceedings and meetings, ensuring security and tranquility and preventing interference or disturbance.

Legal and Practical Implications

The ratification of this agreement carries several important implications for parties engaged in or considering international dispute resolution:

• New Regional Venue Option
  Parties can now opt for Bahrain as a seat for PCA-administered proceedings, providing an alternative to The Hague and other established venues. This is particularly significant for disputes involving parties in the Middle East, North Africa, and Gulf region, where the PCA previously had no host country agreements despite the prevalence of international arbitration in the region.
• Judicial Support Infrastructure
  Arbitration-related litigation or requests to annul awards arising from PCA proceedings seated in Bahrain will be submitted to the Bahrain International Commercial Court, which was established on the model of the Singapore International Commercial Court. Cases can be decided by panels of international judges from various countries, and parties can choose to arbitrate in either English or Arabic.
• Enhanced Access for Arabic-Speaking Parties
  This agreement comes as the PCA’s docket of cases involving Arabic language and parties continues to grow. The new venue provides a practical option for such parties closer to their region of operation.
• Cooperation and Regional Development
  Bahrain has committed to promoting regional cooperation for the effective settlement of international and regional disputes, including communicating the availability of these facilities to competent officials in other countries. Discussions are now underway about opening a PCA office in Bahrain, which would join the PCA’s existing offices in Buenos Aires, Hanoi, Mauritius, Singapore, and Vienna.