THE Shura Council has approved landmark legislation to host the Permanent Court of Arbitration (PCA), marking a major step towards establishing the kingdom as a regional hub for international dispute resolution.
The draft law will now be sent to His Majesty King Hamad for ratification following Parliament’s approval last month.
The move would enable the PCA to conduct arbitration, mediation and conciliation proceedings in the kingdom without establishing a permanent headquarters.
Justice, Islamic Affairs and Endowments Minister Nawaf Al Maawada described the agreement as a major step in Bahrain’s long-term strategy to attract international arbitration centres.
“This court will help enhance and develop the skills and knowledge of all those involved in the field,” the minister said.
“Once the court is registered in Bahrain, all its programmes and facilities will be opened for benefit. Everything is now pending final approval before procedures are put in motion.”
He stressed that the presence of the PCA would provide direct professional and institutional benefits, particularly for the legal sector, by opening access to international training programmes, expertise and best practices in arbitration and dispute settlement.
“Bahrain is not merely hosting a court, but investing in a future-ready legal ecosystem that enhances confidence, capability and international credibility.”
The draft law approves the Host Country Agreement attached to Decree No (39) of 2025.
Under the agreement, Bahrain would grant the PCA the legal capacity required to operate locally and oversee international disputes through arbitration, mediation, conciliation and fact-finding commissions.
According to the Shura Council’s foreign affairs, defence and national security committee, the agreement fully complies with the Constitution and does not impose additional financial burdens on the state.
Committee chairman Dr Ali Al Rumaihi said it represents a strategic milestone that strengthens Bahrain’s international legal standing.
“This agreement places Bahrain firmly on the global arbitration map and reflects the kingdom’s commitment to the peaceful settlement of disputes in line with international legal frameworks,” he said.
The 16-article agreement regulates facilities, security arrangements, immunities and privileges, while ensuring full respect for Bahrain’s laws and sovereignty. The committee emphasised that the privileges granted to PCA officials, arbitrators and participants are functional rather than personal, and may be waived if they obstruct justice.
During deliberations, several Shura Council members highlighted the broader impact of the agreement.
Legislative and legal affairs committee chairwoman Dalal Al Zayed praised the efforts of the ministry, the Supreme Judicial Council and international partners in positioning Bahrain among advanced countries in arbitration services.
She said the agreement would generate significant returns through knowledge exchange, training and the creation of national arbitration expertise, encouraging Bahraini lawyers to move into more advanced international practice.
Dr Ibtisam Al Dallal described the agreement as the first of its kind in the Middle East and Arab world, calling it a qualitative leap in establishing a fair and neutral legal environment.
Members sought assurances on funding, logistics and the use of Bahraini legal talent. In response, committee rapporteur Ali Al Aradi reaffirmed that logistical support would be provided through existing government structures without new budget allocations.
“By hosting PCA proceedings, Bahrain would join a select group of countries, including Singapore, Portugal, South Africa, India and Malaysia, and become the first in the Middle East to conclude such an agreement,” he said.
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