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Bahrain Launches International Commercial Court
3 min 59 sec Written by
n.alrayes@tamimi.com 
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Launch of the New Court
After the introduction of its law in 2024 (Royal Decree No. (9) of 2024) (the “BICC Law”), the Bahrain International Commercial Court (the “BICC”) officially launched on the 5th of November to hear international commercial disputes. The BICC introduces a unique and dynamic framework between Bahrain and Singapore for resolving cross-border commercial disputes.
Features of the BICC
One of the main features of the BICC is its innovative appellate mechanism. Unless the parties object, BICC judgements are appealed to the International Committee of the Singapore International Commercial Court (the “SICC“). Alternatively, parties may opt to appeal judgements to the BICC’s own appellate body. This arrangement establishes global standards for the BICC within the region by providing access to the trusted expertise of the SICC, whilst ensuring legal consistency for businesses operating across jurisdictions. The International Committee of the SICC comprises judges from both the SICC and the BICC to ensure an effective appellate framework.
Subject to party consent, the BICC has jurisdiction over international commercial disputes. Under the BICC Law, a dispute is considered international if:
- a party’s headquarters is located outside Bahrain;
- a significant part of the contract performance occurs outside Bahrain; or
- the subject matter of the dispute is situated outside Bahrain.
A dispute is considered commercial if its subject matter relates to relationships of a commercial nature, including but not limited to:
- supply of goods or services;
- distribution agreements;
- investment and financing;
- banking transactions;
- insurance;
- franchising agreements; and
- joint ventures.
The BICC further attracts international disputes by allowing proceedings to be conducted in English and Arabic, non-Bahraini counsel representation and the application of foreign laws. Judgments issued under the BICC shall be considered as judgments issued by a competent authority in the Kingdom and shall be subject to immediate enforcement without the need for guarantees.
Interaction with the BDCR
Bahrain previously established Bahrain Chamber for Dispute Resolution (“BDCR”) which has mandatory jurisdiction over disputes with a claim amount exceeding BHD 500,000 (app. USD 1.3 million), of commercial nature and with one of the parties being a financial institution licensed by the Central Bank of Bahrain or a commercial company as defined under Bahraini law.
It is expected that the BDCR will operate alongside the BICC with a slight overlap in the jurisdiction for a limited number of claims. It is currently unclear how this overlap will be facilitated between the two Courts, as we await more regulations to come out and for judgments regarding this matter.
Below is a comparison between the BICC and the BDCR.
| BDCR | BICC | |
|---|---|---|
| Establishment Legislation | Legislative Decree No. 30 of 2009. | Royal Decree No. 9 of 2024. |
| Jurisdiction | Mandatory if dispute meets certain thresholds (amount > BHD 500,000) and parties are of certain types (financial institution, commercial companies) and dispute is of a commercial type. | Based on party consent. Either: (1) parties agree in writing to submit their dispute to BICC, or (2) one party files and the other accepts BICC’s jurisdiction explicitly or implicitly. |
| Language | Cases can be managed and decided in either Arabic or English; parties may choose English under specific conditions. | Proceedings can either be in English and Arabic, if certain requirements are satisfied. |
| Arbitration and Mediation Centre | Has arbitration/mediation rules and centre. | Does not have arbitration/mediation rules or centre. Only allows disputes of arbitration-related matters (provisional measures, appointment/disqualification of arbitrators, annulment or recognition of arbitration decisions) |
| Leadership | Chairman Mr. Ali Abdulla Al Aradi and Chief Executive Officer Mr. Ahmed Husain. | President Jan Paulsson and Deputy President Christopher Greenwood KC. |
| Appeal | BCDR Court judgments are not appealable but may be challenged before the Bahraini Court of Cassation for annulment on limited grounds. | Appeals go to the International Committee of the Singapore International Commercial Court (SICC), unless parties agree for appeal to be heard by BICC’s Appellate Body. |
| Legal Representation | Non-Bahraini lawyers may represent parties provided they have joint power of attorney with a Bahraini lawyer authorised to practise before the Court of Cassation. | Non-Bahraini attorneys may represent parties in conjunction with a Bahraini attorney in Arabic disputes; non-Bahraini attorneys may represent parties alone in non-Arabic disputes. |
BICC Ambitious Future
The establishment of the BICC represents a significant milestone in Bahrain’s ambition to position itself as a leading international dispute resolution hub in the Middle East. By combining innovative features—including bilingual proceedings, the acceptance of foreign law, and a unique appellate partnership with the SICC—the BICC offers international businesses a compelling alternative forum for resolving cross-border commercial disputes.
Certain practical questions remain to be addressed as the BICC begins operations. The jurisdictional overlap with the existing BDCR requires clarification through forthcoming regulations or judicial decisions to ensure predictability for potential users. Additionally, the Court’s success will ultimately depend on its ability to attract high-quality cases, build a strong body of jurisprudence, and demonstrate efficiency in case management and decision-making.
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