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Bahrain is set to strengthen its position as a regional hub for international dispute resolution.
A key piece of legislation approving a host country agreement with the Permanent Court of Arbitration (PCA) will be debated by the Shura Council on Sunday. It could pave the way for the kingdom to host arbitration, mediation and conciliation proceedings under the court’s auspices.
The Shura Council’s foreign affairs, defence and national security committee has recommended approval of the legislation, in principle, following an extensive review of its constitutional, legal and international implications.
Committee chairman Dr Ali Al Rumaihi said the agreement represents a strategic milestone for Bahrain and reinforces its international standing.
“This agreement places Bahrain firmly on the global arbitration map and reflects the kingdom’s commitment to peaceful settlement of international disputes in line with established international legal frameworks,” Dr Al Rumaihi said.
“The committee is satisfied that the agreement fully complies with the Constitution and serves Bahrain’s national interests without imposing additional financial burdens on the state.”
Under the proposed law, Bahrain would formally ratify the Host Country Agreement, granting the PCA legal capacity within the kingdom and enabling it to conduct proceedings locally without the need to establish a permanent headquarters.
The agreement consists of 16 articles covering facilities, security arrangements, immunities and privileges, and dispute settlement mechanisms.
It provides the PCA and its officials, arbitrators and participants with internationally recognised privileges and immunities necessary for the independent and neutral conduct of arbitration proceedings, while requiring full respect for Bahrain’s laws and regulations.
Dr Al Rumaihi stressed that these protections are functional rather than personal.
“The privileges and immunities are designed solely to ensure the proper administration of justice and the independence of proceedings,” he said. “They are not intended for personal benefit, and mechanisms are clearly established to waive immunity if it obstructs justice.”
The committee noted that the agreement aligns with Bahrain’s obligations under the 1907 Convention for the Pacific Settlement of International Disputes, which the kingdom joined under Law No (10) of 2008. Ratifying the host country agreement is seen as a direct implementation of those international commitments.
Importantly, the agreement does not impose financial liabilities on Bahrain. The committee confirmed that logistical support such as meeting venues, security and administrative facilitation would be provided through existing government structures without requiring new budget allocations.
The legislation also positions Bahrain as the first country in the Middle East to conclude a host country agreement with the PCA, joining a select group of nations including Singapore, Portugal, South Africa, India and Malaysia.
“This step will enhance Bahrain’s attractiveness as a venue for resolving regional and international disputes,” Dr Al Rumaihi said. “It offers parties faster, more cost-effective access to arbitration services within the region, while also contributing to the development of national legal expertise.”
The committee concluded that hosting PCA proceedings would generate long-term benefits, including knowledge transfer, professional training opportunities for Bahraini legal professionals, and further development of the kingdom’s legal and institutional infrastructure.
The draft law will be presented to the full Shura Council session on Sunday for debate and consideration.
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