Bahrain’s Approach to Cross-Border Disputes and Recognition of Foreign Judgments
Dispute Resolution / Bahrain
Noor Al RayesPartner, Head of Litigation – Bahrain
Hiba AbidTrainee Solicitor,Dispute Resolution
As a global hub for trade and investment, Bahrain has established a robust legal framework for resolving cross-border disputes and ensuring the effective recognition and enforcement of foreign judgments and arbitral awards within its jurisdiction. Bahrain recognises the importance of cross-border legal cooperation and has signed various international treaties to facilitate such enforcement. As a signatory to several key international treaties, Bahrain has aligned its legal framework with global standards. Bahrain’s approach to resolving cross-border disputes integrates both domestic legal principles and international conventions. This article provides a comprehensive analysis of Bahrain’s approach to enforcing foreign judgments, examining the relevant treaties, legislation, procedural considerations, and factors that may influence the enforcement process.
Bahrain is a signatory to several important treaties that govern the reciprocal recognition and enforcement of foreign judgments. For example, Bahrain is a signatory party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (the “New York Convention”) which is crucial in ensuring the global recognition and enforceability of arbitral awards, fostering international trade and investment by providing a reliable mechanism for resolving cross-border disputes. Another key treaty is the Hague Convention for the Pacific Settlement of International Disputes (1907) which facilitates the enforcement of judgments related to international disputes, ensuring that foreign judgments are given due consideration in Bahrain. Other key treaties include the Convention on the Settlement of Investment Disputes between States and Nationals of other States (1965) and the Gulf Cooperation Council Convention for the Execution of Judgments, Delegations, and Judicial Notifications (1995). These treaties establish the foundational principles for the enforcement of foreign judgments in Bahrain. However, if there is no treaty establishing reciprocal recognition between Bahrain and the foreign country, the recognition of foreign judgments is governed by the Bahrain Civil and Commercial Procedures Act 1971 (“CCPA”).
In such cases, an application can be made to the High Civil Court to request the recognition of the foreign judgment. This effectively initiates a new legal action, and the court may reassess the issues if the defendant raises a defence.
Domestic Legislation – Arbitral Awards and Foreign Judgments
Where there is a treaty establishing reciprocal recognition, the Bahraini courts will follow terms and procedures outlined in the relevant treaty, ensuring that foreign judgments and arbitral awards are given due recognition and enforcement in Bahrain, provided they meet the necessary legal requirements as set forth by the domestic legislation as well. This framework governs the recognition and enforcement of both foreign judgments and arbitral awards, offering clarity and consistency in cases involving international legal matters.
a) Foreign Judgments When a foreign judgment needs to be recognised in Bahrain, the Bahrain courts will base their assessment on Article 16 of Decree Law No. 22 of 2021 promulgating Implementation Law in Civil and Commercial Matters (the “Execution Law”), which provides that the following must be satisfied in order for a foreign judgment to be recognised under Bahrain law:
The foreign court must have had jurisdiction over the case based on international jurisdictional rules;
The litigants must have been properly summoned and represented;
The judgment must be final under the law of the foreign court; and
The judgment must not contradict any prior Bahraini judgment and must not violate public policy or morality in Bahrain.
b) Arbitral Awards In addition to the above, international commercial arbitral awards are recognised and enforced in Bahrain, given the ratification to the New York Convention. Arbitral awards are assessed in Bahrain based on principles pursuant to Decree No. 9 of 2015 promulgating the Arbitration Law (the “Arbitration Law”). Arbitration Law fully adopts the Model Law of the United Nations Commission on International Trade Law (the "UNCITRAL Model Law"). Article 34 of the UNCITRAL Model Law stipulates the following grounds for the court to consider when determining whether an arbitral award should be set aside:
One party lacked the capacity to enter into the arbitration agreement;
Due process was not followed, such as improper notice or inability to present its case;
The award addresses issues outside the scope of the arbitration agreement;
The arbitral tribunal was improperly formed; or
The subject matter is not allowed for arbitration under Bahraini law or the award goes against public policy.
Prior to proceeding with enforcement in Bahrain, a foreign judgment or arbitral award must first be recognised by this court. The process of enforcing foreign judgments and arbitral awards begins with the High Civil Court. The application for recognition of foreign judgments or arbitral awards is submitted to the High Civil Court, which evaluates whether the foreign decision meets the criteria established under Bahraini law, such as the Execution Law or the Arbitration Law (as described above). If the court finds that the foreign judgment or award satisfies these legal requirements, it will grant recognition, thereby allowing for enforcement.
Once recognised, the Court of Execution is responsible for the actual enforcement of the judgment or award, mirroring the procedures it follows for domestic decisions. The High Civil Court assesses foreign judgments under Article 16 of the Execution Law, while foreign arbitral awards are examined according to the specific grounds outlined in the Arbitration Law.
Following recognition, appeals can be filed against foreign judgments or arbitral awards before the enforcement process begins. Once any appeals have been resolved and the recognition process is complete, the enforcement process proceeds with the Court of Execution. This ensures that foreign judgments and arbitral awards are enforceable within the Bahraini legal system. Furthermore, Bahraini law does not prescribe a fixed limitation period for enforcement; however, a general statute of limitations of 15 years applies. This applies to both foreign judgments and arbitral awards, ensuring enforcement within a reasonable period from the date of the judgment or award.
It is also important to note that the enforcement of foreign judgments in Bahrain is subject to the broad principles of public policy. This can impact the enforceability of certain foreign judgments, particularly those that involve moral or religious issues. If a foreign judgment contradicts public policy in Bahrain, it may not be recognised or enforced, even where it satisfies all other legal requirements.
Bahrain has developed a strong legal framework for the recognition and enforcement of foreign judgments, reinforced by its participation in various international treaties.
A defendant may raise specific defences against the enforcement of a foreign judgment, but generally, they cannot contest the merits of the judgment itself. Under articles 22 and 23 of the Execution Law, the role of the Execution Court is to enforce the foreign judgment, without reopening or re-evaluating the underlying legal issues or facts of the case. This means that the Execution Court will not review the original court’s decision on liability or whether the scope of the award was correct or fair.
If any part of a foreign judgment appears to be practically unenforceable, the Execution Court Judge must not offer an opinion on how to resolve the issue. Instead, the judge is required to seek clarification in writing from the trial judge who issued the original judgment. This ensures that any uncertainties regarding the judgment are addressed before proceeding with enforcement. In general, when a foreign judgment comes from a country with which Bahrain has a reciprocal enforcement agreement, Bahraini courts will not reconsider the merits of the judgment. This means that as long as the judgment is final, it was issued according to the laws of the country where it originated, the defendant was properly notified of the proceedings, and the judgment does not violate Bahraini public policy, the court will enforce the foreign judgment as issued by the arbitral tribunal. The court’s role in this situation is to ensure the enforcement process moves forward, without delving into the details of the original case.
However, in cases where the foreign judgment comes from a country that does not have a reciprocal enforcement agreement with Bahrain, the situation changes. In such cases, the defendant has the right to challenge the merits of the judgment itself. This means that the defendant can present arguments related to the substance of the case, such as questioning the fairness of the judgment or the appropriateness of the ruling. The Bahraini court will then consider these defences before deciding whether to grant recognition, as per the CCPA, and proceed with enforcement.
Bahrain has developed a strong legal framework for the recognition and enforcement of foreign judgments, reinforced by its participation in various international treaties. While the enforcement process is typically straightforward, it is essential for parties seeking to enforce foreign judgments to be mindful of the jurisdictional requirements, public policy considerations, and procedural obligations. The country’s judicial system remains adaptable, reflecting Bahrain’s commitment to maintaining an efficient, internationally recognised legal environment for resolving cross-border disputes.
For further information,please contact Noor Al Rayes and Hiba Abid.
Published in March 2025
