Features of BCDR-AAA

BCDR-AAA was established by Legislative Decree No. (30) of 2009 (Arabic) (English) as ammended by Legislative Decree No. (64) of 2014 (Arabic) which confers two types of jurisdiction on the BCDR-AAA:

  • Jurisdiction by Law (Section 1)
  • Jurisdiction by Party Agreement (Section 2)

Section 1 - Jurisdiction by Law

Key Features:

  • Tribunals appointed are composed of three members, two judges of the highest Bahraini jurisdictions and the third member chosen from the BCDR-AAA's roster of neutrals.
  • Judgements rendered by (Section 1) tribunals are considered as final judgments issued by the courts of the Kingdom of Bahrain.
  • Judgements are not appealable and the only recourse available is annulment under limited grounds of challenge before the Bahraini Court of Cassation. 
  • Foreign lawyers may represent parties in Jurisdiction by Law (Section 1) cases if they have a joint power of attorney with a Bahraini lawyer authorized to practice before the Bahrain Cassation Court. 

Enforcement of (Section 1) Judgements:

In December 2012, a New York Supreme Court judge ruled that a $25 million judgment from the Bahrain Chamber for Dispute Resolution was equivalent to a court judgment in Bahrain and was enforceable in the State of New York as a foreign judgment.

Statistics (as of December 2014):

125 cases filed with the total value of claims exceeding US$ 2.3 Billion.

  • Of those cases 26.4% were awarded/settled within 6 months;
  • 36% were awarded/settled within 6-12 months;
  • 13.6% were awarded/settled within 12-18 months;
  • 5.8% were awarded/settled within 18-24 months;
  • 1.6% were awarded/settled after 24 months; and
  • 16.6% are ongoing.

Section 2 - Jurisdiction by Party Agreement

Key Features:

  • Arbitration and Mediation Rules are based on the American Arbitration Association's International Dispute Resolution Procedures, which follow international standards and best practices.
  • Free Arbitration Zone: Under Article (25) of Bahraini Legislative Decree No. (30) for 2009, parties to an arbitration seated in Bahrain and governed by a law other than Bahrain law may choose to exclude the Bahrain courts from hearing annulment challenges to the arbitral award.
  • Foreign lawyers may represent parties in BCDR-AAA arbitration and mediation cases.