Launch of the New Bahraini International Commercial Court: A 2026 Outlook

time 4 min 36 sec January 19, 2026 (Edited)

Following the introduction of its enabling legislation in 2024 (Royal Decree No. (9) of 2024) (the “BICC Law”), the Bahrain International Commercial Court (the “BICC”) officially launched on 5 November 2025 to hear international commercial disputes. As we look ahead, the BICC is poised to become a significant forum for cross-border commercial dispute resolution in the region. 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 most significant features distinguishing the BICC—and one that will be closely watched in 2026—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 jurisdiction for a limited number of claims. As we move into 2026, stakeholders should anticipate further regulations or judicial guidance clarifying how this overlap will be managed between the two Courts. Businesses with disputes potentially falling within both Courts should seek early advice on forum selection strategy.

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.

 

Looking Ahead: The BICC’s Trajectory in 2026 and Beyond

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. In 2026, we expect to see the BICC begin building its body of jurisprudence, which will be closely monitored by businesses, investors, and legal practitioners across the region.

Certain practical questions remain to be addressed as the BICC matures through 2026. 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. Businesses, investors, and compliance teams with cross-border commercial interests in Bahrain should proactively consider how the BICC may serve their dispute resolution needs and ensure their contractual dispute resolution clauses are appropriately drafted to take advantage of this new forum. Our team is well-positioned to advise on jurisdiction selection, drafting of dispute resolution clauses, and representation before the BICC.

The BICC's launch marks a pivotal moment for international dispute resolution in Bahrain, and 2026 will be a defining year as the Court begins to establish its jurisprudence and operational track record. Businesses with cross-border commercial interests should consider how the BICC's unique features—including its appellate link to the SICC—may benefit their dispute resolution strategy.