Bahrain is set to take a major step towards solidifying its status as a regional hub for international dispute resolution as MPs vote on a landmark agreement with the Permanent Court of Arbitration (PCA) during the weekly session on Tuesday.
The foreign affairs, defence and national security committee, chaired by MP Hassan Bukhammas, endorsed the draft law ratifying the Host Country Agreement between Bahrain and the PCA, paving the way for the establishment of an official PCA base in the kingdom.
Mr Bukhammas said the move will “significantly elevate Bahrain’s position on the global legal map,” noting that the agreement mirrors arrangements previously granted by countries such as Singapore, Austria, and Mauritius.
The agreement grants PCA the privileges and immunities needed to conduct arbitration, mediation, conciliation, and commissions of inquiry within Bahrain. It ensures legal protections for arbitrators, officials, witnesses, and participants, similar to international norms and comparable host country agreements worldwide.
Government ministries expressed strong support, with the Justice, Islamic Affairs and Endowments Ministry highlighting Bahrain’s growing role in consensual dispute resolution, and the Foreign Ministry pointing to the PCA’s 125-nation membership and its expanding network of regional offices.
Mr Bukhammas stressed that the agreement will transform Bahrain into a preferred venue for international parties seeking fast, neutral, and cost-effective dispute settlement.
“Instead of cases being handled in Europe or Asia, parties in our region will be able to resolve disputes right here in Bahrain. This brings economic activity, legal expertise, and international visibility,” he added.
The committee approved the draft law unanimously, saying the partnership aligns with Bahrain’s long-term strategy to diversify its economy and strengthen its diplomatic footprint.
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