A plan to toughen enforcement against debt defaulters by extending court-imposed travel bans from nine months to a possible three years has won unanimous backing from the Shura Council.
The amendment to Article 40 of Decree-Law 22 of 2021 on Execution in Civil and Commercial Matters is designed to prevent debtors from leaving Bahrain to evade court-ordered payments, while maintaining strict judicial oversight and appeal safeguards.
Justice, Islamic Affairs and Endowments Minister Nawaf Al Maawda, who attended the session, told the legislative and legal affairs committee that the revised time frame gives enforcement judges and private executors sufficient opportunity to determine whether a debtor has attachable assets.
“The three-year ceiling is not automatic,” he said. “It is tied to continuing judicial assessment to verify whether assets exist that can satisfy the debt under execution.”
Under the revised text, a travel ban may be imposed if there are credible fears that the debtor may flee the country and if visible assets are insufficient to cover the debt. The order is issued for three months at a time and may be renewed without fees, provided the reasons persist, up to a maximum of three years.
Crucially, the amendment preserves the government’s authority in immigration matters. A travel ban will not prevent the execution of a final deportation order, nor will it restrict the administration’s power to cancel a residency permit or order departure under the law.
Legislative and legal affairs committee chairwoman Dalal Al Zayed said this balance was central to the panel’s unanimous recommendation.
“The final wording adopted by the elected chamber addressed key constitutional concerns by maintaining the executive authority’s powers while strengthening judicial tools to protect creditors’ rights,” she said.
The law also establishes clear appeal safeguards. A debtor may challenge the travel ban before the enforcement judge within seven days of notification and may further appeal the decision within seven days. The court’s ruling is final, and the ban remains in force during the appeal process.
Ms Al Zayed said the provision is general in nature and does not discriminate between citizens and residents.
A related amendment to Article 58 requires enforcement judges to refer cases of deliberate non-disclosure of assets to investigative authorities at the request of creditors, once legal conditions are verified.
The law has now been referred to His Majesty King Hamad for ratification.
Meanwhile, the Shura Council unanimously approved a Royal Decree amending the 2001 Commercial Companies Law aimed at modernising corporate governance, strengthening transparency, and aligning the kingdom’s financial framework with international standards, particularly ahead of its upcoming evaluation by the Financial Action Task Force (FATF) in 2026.
It introduces wide-ranging reforms that include digital transformation of company operations, tighter accountability rules, and the restructuring of company models to enhance investment flexibility.
Present was Industry and Commerce Minister Abdulla bin Adel Fakhro.
mohammed@gdnmedia.bh