BAHRAIN has solidified its standing as a premier global destination for international dispute resolution, with new data revealing a judiciary that overwhelmingly supports the finality and enforceability of arbitral awards.
According to the ‘Analysis of Challenges to Arbitration Awards Report 2025’ released by global law firm Reed Smith, Bahraini courts upheld a staggering 92.37 per cent of arbitral awards challenged between 2018 and 2024.
The findings highlight a remarkably high legal threshold for overturning awards in the kingdom, with the success rate for set-aside applications sitting at just 7.63pc.
Commenting on the findings, the Supreme Judicial Council (SJC) said that the report positions Bahrain among the world’s leading judicial systems supportive of arbitration.
An SJC statement noted that the rejection of more than 92pc of annulment applications reflects a ‘stable and predictable judicial approach’ that provides essential legal certainty for the global commercial community.
“This consistency is attributed to the effective application of Arbitration Law No 9 of 2015, which is based on the UNCITRAL Model Law,” the council added. “Our judiciary applies a strict interpretation of statutory grounds for setting aside awards, treating annulment as an exceptional remedy rather than a means to re-litigate disputes.”
In collaboration with the Justice, Islamic Affairs and Endowments Ministry, the report examined challenges to arbitral awards before the courts of Bahrain.
The Reed Smith report credits Bahrain’s success to its robust legislative framework and the pivotal role of institutions like the Bahrain Chamber for Dispute Resolution (BCDR) and the GCC Commercial Arbitration Centre (GCCCAC).
Notably, the report found that BCDR arbitrations rendered at least 26 awards during the review period, further cementing the kingdom’s reputation for world-class services.
A significant milestone highlighted in the analysis is the 2021 amendment to the Judicial Authority Law. This allows parties in high-value disputes – where awards exceed BD500,000 – to conduct related court proceedings entirely in English.
“This provision is particularly beneficial in disputes involving international parties, ensuring consistency in language throughout the legal process,” the report noted.
Both the report and the SJC highlighted a transformative shift in the assessment of legal costs. Bahraini courts are increasingly moving away from awarding only nominal sums, now demonstrating a willingness to approve actual and reasonable attorneys’ fees when properly substantiated.
The SJC emphasised that this approach serves a dual purpose: it ensures fair recovery for prevailing parties and actively discourages unmeritorious challenges intended to delay the enforcement of awards.
The data shows that the majority of challenges – particularly those alleging violations of public policy or procedural irregularities – were dismissed for lack of sufficient legal basis. Courts remained strict on procedural matters; for instance, challenges based on a signatory’s alleged lack of authority were consistently rejected.
The SJC concluded that this judicial stance reflects Bahrain’s ongoing commitment to modernising its legislative framework and strengthening its position as a regional hub for legal services, ensuring that once an arbitral award is rendered, it remains final and binding.
Bahrain High Commercial Court Judge Zain Hasan Al Asfoor and SJC Chief of the International Co-operation Office Noof Ajaji contributed to the report.
avinash@gdnmedia.bh
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