.jpg?20260423')
Seventy-eight bankruptcy cases have been filed in Bahrain over the past three years and Justice, Islamic Affairs and Endowments Minister Nawaf Al Maawda has revealed that 60 of these cases have been resolved, 16 are still pending and two have been suspended.
Of the resolved cases, 48 were dismissed or rejected. The remaining 12 concluded through settlements, termination of proceedings, abandonment or inadmissibility rulings.
The minister revealed that work is under way, in co-ordination with the Supreme Judicial Council and the Economic Development Board (EDB), to draft amendments to the 2018 law to address practical challenges and align with international best practice.
He also highlighted new e-services added to the national portal, allowing parties to add litigants during cases, appeal bankruptcy judge decisions and save lawsuit data progressively while filing.
The responses were addressed to Parliament Speaker Ahmed Al Musallam and tackled separate questions from MPs Dr Hisham Al Asheeri on reorganisation and bankruptcy, and MP Hassan Ibrahim on religious facilities and endowments in the Northern Governorate’s constituency four.
Mr Al Maawda said Decree-Law No 22 of 2018 on Reorganisation and Bankruptcy marked a ‘qualitative leap’ in Bahrain’s legal and commercial framework by enabling financially distressed companies to reorganise or liquidate through structured judicial procedures that protect creditors and support business continuity.
“From the beginning of 2023 until the end of the first quarter of 2026, 78 reorganisation and bankruptcy cases were filed,” he said. “Sixty of these cases have been resolved, 16 are still pending and two are suspended.”
Mr Al Maawda noted that a joint study with the EDB showed Bahrain’s bankruptcy and reorganisation case numbers remain low compared to other countries, with no consistent increase despite global economic challenges.
He stressed transparency, pointing to Ministerial Decision No 72 of 2018, which established a public bankruptcy register on the ministry’s website listing case numbers, parties and trustees.
“This reflects our commitment to transparency and protecting the rights of all parties,” he said.
In his second reply, Mr Al Maawda turned to questions concerning mosques, ma’atams and endowment properties.
He said constituency four includes 51 mosques and 123 endowment properties supervised by the two General Directorates of Endowments.
“The government gives utmost importance to the care, maintenance and restoration of mosques, in co-ordination with the Endowments Councils and relevant authorities,” he said.
Mr Al Maawda outlined the formal legal steps required for registering endowment properties, beginning with obtaining a Sharia court endowment deed, followed by real estate documentation and final registration with the Endowments Directorate.
“An endowment does not acquire official status until all legal and regulatory steps are completed and the property is formally registered,” he explained.
On specific requests raised by Mr Ibrahim, he confirmed that co-ordination is ongoing to allocate land for the expansion of Salmabad Ma’atam, issue the deed for Imam Hassan Al Zaki Ma’atam in Salmabad, complete construction of a mosque in Howrat A’ali, review a proposal concerning Jablat Habshi Ma’atam and finalise procedures to dedicate land for a new mosque there based on a donor’s request.
“These matters are being followed up with the relevant endowments directorates and authorities to take the appropriate steps,” he said.
Mr Al Maawda reaffirmed the ministry’s commitment to close co-operation with Parliament to develop procedures and legislation that serve the public interest and protect rights.
The GDN reported in 2019 that Bahrain-based international aluminium rolling mill, Garmco was the first company in the kingdom to make use of the new law, which is based on Chapter 11 insolvency legislation in the US.
The company had faced financial distress due to global economic conditions, and after the issuance of Law No 22 of 2018 promulgating the Reorganisation and Bankruptcy Law.
The company’s general assembly decided to benefit from the provisions of the law by filing a reorganisation case, according to a statement.
The purpose of the law is for firms to get their financial affairs in order by restructuring and avoid liquidation.
mohammed@gdnmedia.bh
&uuid=(email))