Bahrain

His Majesty King Hamad bin Isa Al Khalifa, King of Bahrain, has ratified and promulgated Law No. (23) of 2025, implementing significant amendments to Bahrain’s Commercial Law, originally issued by Decree-Law No. (7) of 1987. These amendments, approved by both the Shura Council and the House of Representatives, aim to modernise and strengthen the legal framework governing commercial transactions, particularly focusing on cheque regulations. Key Amendments: Joint Account Holder Regulations: The revised Article (283) Clause (4) mandates that upon the death or legal incapacitation of a joint account holder, the remaining holders must inform the bank of their intention—whether to continue or close the account within ten (10) days. The bank is required to freeze the deceased or incapacitated person’s share as of the date of death or incapacity until a legal successor is appointed by the competent Sharia or civil court, ensuring clarity and security in joint account management. Cheque Certification and Payment: Changes to Article (451) detail enhanced procedures for cheque certification. The drawee may certify cheques wholly or partially and must do so upon request if sufficient funds are available. Certified cheques have their cover frozen, ensuring funds remain available for the holder until the cheque presentation deadlines expire. Partial Payment of Cheques: A new dimension is added with Article (465 bis), allowing drawees to make partial payments if the account balance is less than the cheque value, unless the holder refuses. This provision aims to minimize cheque dishonours and improve payment flow, with the Central Bank of Bahrain empowered to regulate the procedures. Legal Enforcement of Cheques: Article (465 bis 1) establishes that cheques marked for insufficient funds or partial payment are enforceable documents under the Execution Law in Civil and Commercial Matters. This strengthens the legal standing of such cheques, enhancing creditor protection. Prohibition and Penalties: Article (491 bis) introduces strict penalties for the misuse of blank cheques, including fines ranging from two hundred to ten thousand dinars, depending on the infraction. This aims to deter the use of cheques as credit or guarantee instruments, aligning with consumer protection efforts. Partial Payment and Enforceability of Cheques Bahrain has implemented a partial payment mechanism for cheques. Pursuant to Article 465 bis, where the drawer’s account holds insufficient funds to cover the full value of a cheque, the drawee bank must make partial payment of the available amount to the bearer, unless the bearer refuses such partial payment. In such cases, the bank is required to mark the cheque to reflect the partial payment, return the original cheque to the bearer, and issue a certificate confirming the amount paid. The remaining funds — whether constituting full or partial payment — must be frozen by the drawee bank and held under its responsibility for the benefit of the cheque bearer until the expiry of the cheque’s presentation period, which is six (6) months from the date of issuance, as prescribed under Article 451(4). Once this period lapses, the bank is no longer permitted to process the cheque or make any payments against it, even if sufficient funds become available at a later stage, as per Article 451. In such cases, the bearer must resort to the Execution Court, as the amended law now recognises the cheque as an enforceable instrument under the Civil and Commercial Execution Law (Decree-Law No. 22 of 2021). This allows the bearer to apply directly for enforcement without the need to first obtain a judgment through ordinary civil proceedings. These amendments aim to protect the rights of cheque bearers while reducing reliance on criminal proceedings against drawers. Previously, where a cheque was issued without sufficient funds, the standard procedure was to file a criminal complaint under Article 393 of the Penal Code (Decree-Law No. 15 of 1976), which often led to lengthy proceedings and, in some cases, custodial sentences or fines. Such outcomes could delay or prevent repayment, especially where imprisonment impacted the drawer’s financial position, thereby diminishing the bearer’s chances of recovery. By allowing partial payments, the reform enhances confidence in cheques as a means of payment, promotes commercial efficiency, and helps relieve pressure on the criminal justice system by shifting such disputes towards civil enforcement procedures. Criminalisation of Blank Cheques The recent amendments introduce an explicit prohibition on issuing blank cheques intended to serve as instruments of credit or security. Any person who issues a blank cheque as a credit or guarantee instrument in contravention of Article 491 shall be subject to a fine of not less than two hundred Bahraini Dinars (BD 200) and not exceeding two thousand Bahraini Dinars (BD 2,000). Moreover, where a bearer completes the details of a blank cheque and presents it for encashment, the bearer is liable to a fine of no less than 10% and no more than twice the amount entered on the cheque. In all cases, the fine must not be less than BD 500 and may not exceed BD 10,000. The Ministry of Industry, Commerce and Tourism, being the competent ministry responsible for consumer protection under Law No. (35) of 2012, has been assigned responsibility for receiving and acting upon complaints against non-financial institutions that breach the relevant provisions, in accordance with Law No. (35) of 2012 concerning Consumer Protection. This measure forms part of broader efforts to promote good governance and uphold consumer rights. By contrast, financial institutions engaged in lending or financing activities remain under the direct regulatory supervision of the Central Bank of Bahrain. This legislative reform represents a significant step toward resolving recurring issues in commercial practice and enhancing consumer protection. In particular, it aims to curb the longstanding practice of compelling clients to issue blank cheques as collateral, which has historically given rise to forgery risks and disputes. Joint Accounts Operation Post-Death or Incapacity The amended law permits surviving or legally capable joint account holders to continue operating a joint account in the event of the death or legal incapacity of one of the account holders, provided that the bank is notified within ten (10) days from the date of death or incapacity, as required by Article 283(4). In such cases, only the share of the deceased or incapacitated party is to be frozen as of the date of death or incapacity, pending the appointment of a legal successor. This reform marks a significant departure from the previous approach, under which the entire account would be frozen until a successor was legally appointed. The new mechanism facilitates business continuity, minimises operational disruptions, and helps mitigate potential financial losses or legal complications. Conclusion In conclusion, the recent amendments to Bahrain’s Law of Commerce mark a significant advancement in the regulation of cheque transactions, reflecting a modern approach to commercial practices. By introducing partial payment mechanisms and enhancing the enforceability of cheques, these reforms aim to bolster confidence in cheques as reliable payment instruments while reducing the burden on the criminal justice system. The prohibition on issuing blank cheques as credit or guarantee instruments and stringent penalties for misuse further underscore Bahrain’s commitment to consumer protection and financial integrity. Additionally, the updated regulations for joint account operations ensure continuity and security in economic transactions following the death or incapacitation of an account holder. Overall, these legislative changes are poised to enhance commercial efficiency, protect consumer rights, and foster a more robust and reliable financial environment in Bahrain. Authors: Saad Al Doseri, Founding Partner, Al Doseri Law Shooq Mohamed Nimah, Senior Associate, Al Doseri Law The provisions of the amended Law of Commerce pursuant to Law No. (23) of 2025, amending the Law of Commerce No. (7) of 1987: Article One The texts of Articles (283) clause (4), (410) paragraph (1), (451) paragraphs (2), (3), and (4), (474) paragraph (2), (480) paragraph (1), (482), and (491) of the Commercial Law issued by Decree-Law No. (7) of 1987, shall be replaced with the following text: Article (283) Clause (4):Upon the death or legal incapacitation of one of the joint account holders, the remaining holders must notify the bank of their intention to continue the account within ten days from the date of death or incapacitation. The bank must freeze withdrawals from the joint account equivalent to the share of the deceased or legally incapacitated partner until a legal successor is appointed. Article (410) Paragraph (1):The holder of a bill of exchange, upon non-payment at maturity, may have recourse against endorsers, the drawer, and others obligated. Article (451) Paragraphs (2), (3), and (4): 2. The drawee may mark the cheque as certified either wholly or partially, indicating the availability of the full or partial funds at the drawee on the date of certification, and the drawee’s signature on the front of the cheque constitutes its certification. 3. The drawee cannot refuse to certify the cheque if requested by the drawer or holder and if there are sufficient funds to cover the full or partial amount of the cheque. 4. The full or partial cover of a certified cheque remains frozen with the drawee for the benefit of the holder until the cheque presentation deadlines expire. Article (474) Paragraph (2): If the drawee receives an opposition, it must refrain from paying the cheque’s value wholly or partially to its holder and reserve the full or available amount in the account until a decision is made. Article (480) Paragraph (1): The holder of a cheque has recourse against the drawer, endorsers, and others obligated if presented within the legal period and not fully paid, and if refusal of full or partial payment is proven by protest. In lieu of protest, refusal of payment or partial payment can be proven by: a) A statement issued by the drawee mentioning the day of cheque presentation. b) A statement from the clearinghouse indicating the cheque was presented within the legal period and not fully paid, dated and written on the cheque itself, and signed by the issuer. Article (482): Non-payment or partial payment must be proven as described in paragraph (1) of Article (480) before the presentation period expires. If the presentation occurs on the last day of this period, refusal of payment or partial payment may be proven on the next business day. Article (491): It is prohibited to issue blank cheques for use as credit or guarantee instruments. The Ministry concerned with consumer protection, under Law No. (35) of 2012 concerning consumer protection, shall take necessary actions to enforce the provision mentioned in paragraph (1) of this article. The Central Bank of Bahrain shall ensure compliance by licensees under the Central Bank of Bahrain and Financial Institutions Law issued by Law No. (64) of 2006 to enforce the mentioned provision. Article Two New articles numbered (465 bis), (465 bis 1), and (491 bis) are added to the Commercial Law issued by Decree-Law No. (7) of 1987, as follows: Article (465 bis): If the account balance is less than the cheque value, the drawee must partially pay the available amount unless the holder refuses partial payment. The cheque holder may re-present a cheque partially paid. The drawee must mark the cheque indicating partial payment upon each partial payment and return the original cheque to the holder with a certificate of partial payment. The Central Bank of Bahrain may issue a decision to specify an alternative mechanism for proving partial payment other than marking the cheque. The Central Bank of Bahrain shall issue a decision regulating the conditions, controls, and procedures related to the application of the partial payment provisions of the cheque, whether payment is in cash or by written settlement methods such as account entry, bank transfer, clearing, or other means specified by the Central Bank. The drawer’s credit record is marked if a cheque is returned due to insufficient funds or if partially paid. The Central Bank of Bahrain will issue a decision defining the cases and procedures of this marking, its duration, and procedures for its removal. Article (465 bis 1): A cheque marked by the drawee for insufficient funds or partially paid is an enforceable document under the Execution Law in Civil and Commercial Matters issued by Decree-Law No. (22) of 2021. The Minister of Justice, after approval by the Supreme Judicial Council, may issue a decision regulating the rules and procedures for executing a cheque marked by the drawee for insufficient funds or partially paid. Article (491 bis): Violators of paragraph (1) of Article (491) shall be fined not less than two hundred dinars and not more than two thousand dinars. Any holder of a blank cheque who completes the cheque details and presents it for payment shall be fined not less than ten percent of the amount recorded on the cheque and not more than twice that amount, with the fine not less than five hundred dinars and not exceeding ten thousand dinars in all cases. Article Three The Central Bank of Bahrain shall determine, in coordination with relevant authorities, the stages for implementing the partial payment of cheque values as stipulated in paragraph (1) of Article (465 bis) of Article Two of this law, after ensuring the technical arrangements and readiness of drawees necessary to effectively ensure partial payment of cheques.

The Kingdom of Bahrain has taken positive steps towards protecting individuals from personal and data theft with the introduction of the amendments brought along by Legislative Decree No. (3) of 2025. Founding Partner Saad Al Doseri and Trainee Lawyer Noor Fathalla provide their insight on the recent amendments to Bahrain’s Penal Code. Saad and Noor’s article has been published in The Oath, 20 February 2025 – a link to their article as published may be found here. The Legislative Decree No. (15) of 1976 promulgating the Penal Code (the “Penal Code”) has been amended by Legislative Decree No. (3) of 2025 (the “Amendments”), which considerably broadens the scope of the definition of theft to efficiently reflect today’s rising concerns regarding cybercrime and the theft of modern electronic devices. The Amendments The Amendments added the following clauses to the Penal Code: New Clause (12) to Article (380): Any mobile phone, or laptop, or tablet, or any other electronic, magnetic, optical, or electrochemical device, a tool integrating communication and computing technologies, or any device capable of receiving, transmitting, processing, storing, and retrieving data at high speed. Third paragraph to Article (380): The minimum penalty prescribed in the preceding two paragraphs shall be imprisonment for no less than one year if the theft involves the devices or tools mentioned in Clause (12) of this Article with the intent to obtain the information, data, or images that they contain. Second and third paragraphs to Article (396): The penalty shall be imprisonment for a term not exceeding two years or a fine not exceeding five hundred dinars if the crime involves a mobile phone, laptop, tablet, or any electronic, magnetic, optical, electrochemical device, or a tool integrating communication and computing technologies or any device capable of receiving, transmitting, processing, storing, and retrieving data at high speed. The penalty shall be imprisonment for a term not exceeding two years and a fine not exceeding five hundred dinars, or either of these penalties if the devices or tools mentioned in the preceding paragraph are seized to obtain the information, data, or images they contain. Previous Clauses The previous Penal Code has specified eleven (11) circumstances of theft in which the minimum prison sentence is three (3) months. Some of these circumstances include theft in places of worship or residence, theft in modes of transportation, a marina, or an airport, armed theft, theft through misrepresentation, and more. What Do the Amendments change? Evidently, the circumstances listed do not specify cybercrime nor the theft of modern electronic devices. Thus, the Amendments added an additional clause (12) to Article 380 to explicitly criminalise the theft of a mobile phone, laptop, tablet, or any electronic, magnetic, optical, electrochemical device, or any device integrating communication and computing technologies, or any other device capable of rapidly receiving, transmitting, processing, storing, and retrieving data (“Modern Electronic Devices”). The Amendment included an additional minimum sentence of one (1) year if the theft of said devices was with the intention of obtaining information, data, or images. Furthermore, Article 396 was amended to include two additional paragraphs: To explicitly criminalise the unintentional theft or the theft of lost Modern Electronic Devices with a maximum sentence of two (2) years or a maximum fine of BHD500 (Five Hundred Bahraini Dinars); and A maximum sentence of two (2) years or a maximum fine of BHD500 (Five Hundred Bahraini Dinars) or both, should the said theft occur with the intention of obtaining information, data, or images. Was the Penal Code Amendments Necessary with the existing Law No. 60 of 2014 on Information Technology Crimes? The Amendments to Bahrain’s Penal Code, introduced by Legislative Decree No. (3) of 2025 complements this existing framework by addressing modern electronic device theft and cybercrimes. While Law No. 60 of 2014 focuses broadly on IT-related crimes, the Amendments expand the Penal Code’s scope to include detailed provisions for the theft of devices capable of storing and processing data, such as mobile phones and laptops. This addition is crucial as it provides specific penalties for device theft with the intent to access stored information, thereby enhancing legal protections against technological misuse and aligning with the broader objectives of Law No. 60 of 2014. The Amendments were set in place to maintain the relevancy of the Penal Code and adapt to current developments. The risks of modern theft, such as financial crimes through electronic means and the breach of personal data, have naturally risen with the increased use and possession of Modern Electronic Devices. Thus, it is necessary to stay vigilant and aware of any scams. Conclusion The recent Amendments to Bahrain’s Penal Code, introduced by Legislative Decree No. (3) of 2025 mark a significant step forward in addressing the evolving landscape of cybercrime and electronic device theft. These changes specifically target the theft of mobile phones, laptops, tablets, and other modern electronic devices, providing clear legal consequences for such actions. By imposing stricter penalties for thefts committed with the intent to access sensitive information, the Amendments enhance the legal framework and align closely with the overarching objectives of Law No. 60 of 2014 on Information Technology Crimes. This proactive approach ensures that Bahrain’s legal system remains robust and relevant in the face of technological advancements and the associated risks of data breaches and cyber-related financial crimes, thereby offering greater protection to individuals and their personal data. Authors: Saad Al Doseri, Founding Partner, Al Doseri Law Noor Fathalla, Trainee Lawyer, Al Doseri Law

Founding Partner Saad Al Doseri examines the growing use of mediation to resolve disputes in the Arab region. Whilst mediation enjoys popularity in other jurisdictions globally, it is not yet widely used in the Middle East, although that interest is increasing. In his article below, Saad examines the merits of mediation, including the advantages of choosing it over other ADR methods such as arbitration, as well as how the concept of mediation aligns closely with Arab and Islamic cultural nuances. An Arabic version of Saad’s article has been published in Al Ayam, a national newspaper in Bahrain. A link to Saad’s article as published in Al Ayam can be found here. Mediation has become one of the alternative means for dispute resolution and has gained widespread popularity in several developed countries such as Australia, Hong Kong, and the United States of America. It is still in the introductory phase in our Arab region. As mentioned, it is an alternative means of dispute resolution, meaning an alternative to ordinary court litigation. Mediation shares with arbitration the reasons that led to its adoption, including: The slow litigation process in ordinary courts is burdened by the volume and complexity of cases due to the evolution of economic, financial, and investment relations and transactions and the introduction of many systems of commercial and specialized relations in general. Therefore, resolving such disputes takes a long time in ordinary courts, especially with the existence of two levels of litigation and the possibility of appeal, which does not conform with the speed required in such transactions. Avoiding the principle of public trials in ordinary courts to maintain the confidentiality of the dispute is considered one of the most important reasons for parties whose reputation and status are significant and trusted by their associates to protect trade and industrial secrets. Mediation has advantages over arbitration for other important reasons that led to its adoption, such as: The desire of the disputing parties to maintain amicable relations between them. Avoid ordinary courts and arbitration due to the uncertainty of the final ruling. Avoid high court fees and arbitrator fees compared to relatively low mediation fees. Court fees and arbitrator fees are calculated based on the dispute’s value, while mediation fees are typically based on the time spent and the meeting venue cost. Ordinary courts and arbitration are bound to apply the law, whereas mediation applies what has been consensually agreed upon by the parties, which may not necessarily reflect the application of the law. Mediation meets the parties’ needs and goals, not the rights guaranteed to them in the contract or law. Needs and goals may exceed or fall short of rights. After presenting the main reasons for resorting to mediation as an alternative means of dispute resolution, we can see the purpose and its main advantages, which are unavailable in arbitration or any other means. We will now address the concept of mediation in light of the above. Concept of Mediation: Mediation means negotiations by a neutral and independent third party, the mediator, between two disputing parties to help them reach a joint decision to resolve the dispute. Unlike the arbitrator or judge, the mediator does not have the authority to impose a binding judgment on the parties. Mediation is characterised as a purely voluntary system from beginning to end. Through the dynamics of negotiations, the mediator seeks to reach a solution that satisfies both parties as a prelude to ending the dispute. The mediator manages the meeting between the parties productively and effectively through specific skills to elicit the final and acceptable outcomes for them. To achieve this, the mediator must gain the trust of all parties, maintain neutrality and independence, facilitate the exploration of all parties’ interests, and disclose any potential conflicts of interest or circumstances that might affect their impartiality. since trust in the mediator is the essential element for the success of negotiations and, thus, mediation, ultimately achieving the goal of resolving the dispute. Mediation does not result in a binding judgment for the parties; rather, what they consensually agree upon is executed unless a written agreement is drafted and signed before a notary public and granted executory force. This means the obligations arising from mediation can be agreed to be enforced judicially in the enforcement court in the manner judgments are enforced if one party fails to fulfil its obligations. An important fact must always be considered by the mediator from the beginning of the mediation process until its conclusion: the foundation of mediation is the consensual will of the parties to resolve their dispute through it. The parties’ combined will is the main driver that propels the mediation process. The mediator derives their confidence and position from this will to conduct and manage the mediation process positively. Difference between Mediation and Arbitration: Arbitration is an agreement to submit a dispute to a specific person or persons to resolve it outside the competent court. Arbitration begins with an agreement between the parties to refer any dispute arising between them for resolution to an arbitrator or arbitration institution. Upon the occurrence of the dispute, the arbitrators are chosen in the manner agreed upon in the agreement. After the appointment, the parties meet with the arbitrators to sign the arbitration agreement, which defines the arbitrators’ jurisdiction, procedures, applicable law, arbitration duration, language, and other matters related to the dispute and procedures. Arbitration ends with a judgment that can be enforced, like court judgments, where the arbitrator(s) commit to the procedural rules applicable by agreement and the law. Parties can appeal the judgment for nullification even if they agree to consider it final if there are reasons for nullification. In contrast, mediation consists of negotiations assisted by a third party who does not have the authority to issue a binding judgment for the parties but helps them reach a satisfactory solution and then conclude an agreement to settle the dispute, which is executed voluntarily between the parties. Negotiations do not necessarily end with an agreement to settle the dispute in mediation. The agreement can also be executed if the parties agree to grant it executory force as a documented instrument and enforce it through the enforcement court. It is noteworthy that the mediator, like the arbitrator, does not require being a legal professional for expertise and qualifications, but knowledge of the law will undoubtedly give them an advantage and better understanding of the legal implications of the mediation process, enriching the mediation process and enlightening the parties. However, the mediator must possess mediation skills and be able to manage the process sequentially and properly, as well as the ability to communicate positively with the parties. Is it permissible to combine mediation and arbitration? Some may wonder about combining two alternative means of dispute resolution in one dispute. The answer is that there is no conflict between them and, more so, no conflict in combining mediation and ordinary courts. Mediation is supposed to be the first means or step to resolve the dispute before resorting to courts or arbitration, avoiding high court fees and arbitrator fees compared to relatively low mediation fees, or preserving amicable relations and other reasons previously mentioned for resorting to mediation. When mediation fails, the dispute resolution clause mentioned in the contract, which may refer the dispute to ordinary courts or arbitration depending on the parties’ agreement, is applied. Therefore, in countries where the concept of mediation is widespread, a new clause is included under the dispute resolution section, mentioning mediation as the first means of dispute resolution. An agreement may also be reached on a specific mediator or institutional mediation, as is the case with arbitration. Mediation can also be agreed upon in a separate agreement if not in the contract. Does the Arab community accept mediation? The Arab community is characterised by a deeply ingrained social nature among its members. The common factors in the Arab community, such as religion, lineage, customs, and traditions, have no equivalent in other communities, which may often be characterised by a degree of coldness and materialism in relationships among its members. This particularity of the Arab community may act as either a positive or negative factor regarding the concept of mediation. This particularity, which sometimes includes inwardness and disdain for anything foreign, may prevent the adoption and spread of new concepts in the Arab community, especially if they appear to be Western in nature. However, the essence of mediation is not foreign to the habits and customs of our simple Arab community. Mediation is applied spontaneously and informally at the family level, but not in the professional manner we are dealing with now. Disputes between spouses are often resolved through a mediator from the family. The same applies to conflicts within the family or tribe, with the eldest member resolving the issue. Even if mediation in its current form is not applied in the Arab community, another method is applied to resolve disputes in the Arab community that is similar in concept to mediation or sometimes arbitration. What is used in the Arab community agrees with mediation in maintaining the confidentiality of disputes, such as between spouses or within the family or tribe, as maintaining a good reputation and amicable relations is the primary goal in our conservative society. Our Arab cultural heritage is rich with models, whether in the Quran and Sunnah or in precedents that urge amicable resolution between disputants and avoid division and disagreement. These are the messages of prophets and messengers and the concerns carried by reformers throughout the ages. Islam came with a culture of reconciliation and encouraged it, linking it with piety and making it a means of drawing closer to Allah. This is mentioned in many places in the Quran and Sunnah, such as Allah Almighty said: “The believers are but brothers, so make settlement between your brothers. And fear Allah that you may receive mercy.” (Quran 49:10) Allah Almighty said: “And do not make [your oath by] Allah an excuse against being righteous and fearing Allah and making peace among people. And Allah is Hearing and Knowing.” (Quran 2:224) The Prophet Muhammad (peace be upon him) said: “Shall I not tell you of a deed better than fasting, prayer, and charity?” They said: “Yes,” He said: “Reconciling between people.” (Narrated by Abu Dawood) The Prophet Muhammad (peace be upon him) said: “The son of Adam does not do anything better than prayer, reconciliation between people, and good character.” (Narrated by Al-Bukhari) Our culture urges us to take a positive stance towards disputants by attempting to reconcile them. It is unacceptable for us to merely observe disputes. I am sure many of you have been in a similar situation, trying in your way to ease a conflict in your family or among friends and mitigate its intensity. Therefore, we conclude that the culture of mediation, in its simple concept, is activated within social relationships in our Arab community and finds its basis in the Arab and Islamic cultural heritage. It remains active within the different relationships in society, such as commercial and labour relations. This requires more efforts to raise awareness. It is premature to judge the extent to which our Arab community accepts the concept of mediation, especially in the scope of commercial relationships, as it is still in the introductory phase. We all remember how much time we needed to accept the idea of arbitration, which resulted from workshops, seminars, and scientific sessions over the years. Accepting the concept of arbitration led to its adoption in most contracts, and the arbitration clause became one of the essential clauses in model commercial contracts. Accepting the idea of arbitration also resulted in its inclusion as a subject in the curricula of law faculties in most Arab countries, preparing the new generations to apply it. Basic Stages of Mediation: The mediation process comprises five main stages that ensure both the mediator and the parties are prepared to begin the mediation process and apply it effectively to achieve its purpose. However, the primary burden falls on the mediator in all these stages. The mediator precedes the parties in reviewing all documents and understanding the claims and arguments of both parties, not to judge them but to understand the dispute and its background well, which will help suggest some proposals and understand the parties’ opinions that may arise during the mediation process. The mediator must communicate professionally and neutrally with the parties throughout the mediation stages and maintain their independent status and balanced positive interaction. First: The Preparatory Stage: In this stage, the mediator meets with the parties separately or collectively, or even by phone, to gather as much information as possible and answer any questions the mediator may have after reviewing the documents. In this stage, procedural matters regarding the meeting schedule, timetable, and document exchange mechanism can be arranged. Second: The Preliminary Stage: This stage begins with the commencement of mediation procedures, where the mediator meets with the parties, delivers the opening statement, and explains the mediation process, its stages, and the rules everyone must adhere to during mediation. Third: The Mutual Understanding Stage: The mediator helps the parties understand the dispute issues better according to each party’s perspective. Each party is asked to clarify their viewpoint, and only the mediator can direct any clarifying questions to the speaking party. The purpose of this stage is to achieve mutual acknowledgement implicitly by the parties of the problem base presented by each party. Then, the parties can identify the issues they face, which may often differ from what is stated in the documents. Fourth: The Negotiation Stage: This is the most critical stage in mediation, where the mediator uses their skills to help the parties determine and explore settlement options. The mediator should attempt to overcome any obstacle or deadlock one party may impose on another. Fifth: The Agreement Stage: In this stage, the mediator summarises the offers made by each party to resolve the dispute and ensures that the agreement is written in the form of an agreement. The mediator may inquire from the parties whether anything has been overlooked. At this stage, it is not required to agree on all outstanding issues; it suffices to record what has been agreed upon and postpone unresolved issues to another meeting or in the near future as per the parties’ wishes. Mediation Procedures: Generally, the procedures begin with the mediator inviting the parties to sit together at one table with the mediator, whether the mediation is at a mediation centre or with an independent mediator trusted by the disputing parties. The mediator opens the mediation procedures by reviewing the dispute between the parties and explaining each party’s perspective with complete neutrality. Depending on the nature of the dispute, the parties may attend personally or with representatives. The parties present their perspectives, and the mediator must allow each to explain their viewpoint, arguments, and reasons. Then, it is the mediator’s turn to negotiate using several criteria, the most important of which are: Clarifying to the parties the importance of cooperation and maintaining relations between them, as it is better than severing relations if the dispute continues, and the possibility that the parties may find themselves at a deadlock that will not benefit either of them. The mediator categorises contentious issues according to their importance, deduced from discussions with the parties and identifies matters that can be agreed upon, postponing addressing sensitive issues that may lead to alienation between the parties. Establishing and determining alternatives, even assuming that the parties wish to end the dispute, deciding on potential alternatives they can agree on is necessary. The mediator may have several ideas regarding other options. Still, they should wait until the parties make their suggestions since they naturally have more information that enables them to propose acceptable solutions. The mediator should avoid putting one party in a position where they must reject the mediator’s suggestions in the presence of the other party. It is better if the suggestions come from the parties themselves, so if rejected by the other party, the mediator can intervene to calm the situation and offer other suggestions considering both parties’ viewpoints and potential concession limits. What the mediator sees fit to follow to prevent reaching a deadlock: Here, the mediator should assume the role of an empathic listener for each party and then transition to the role of an agent of reality, advising the parties that a solution will not be possible without considering the issue flexibly and being ready for some concessions by both parties. Subsequently, meetings occur between the mediator and each party separately, known as caucuses, where the mediator meets individually with each party to reduce emotional intensity, build trust between the parties, propose alternatives to reach a realistic outcome consistent with both parties’ interests, maintain their relationship, and avoid boundaries that lead to anger and conflict. The mediator must maintain strict confidentiality of all information disclosed during individual meetings (caucuses) and must obtain explicit permission from a party before sharing any information from these private sessions with the other party. During this time, the mediator must maintain trust with each party separately to reach an agreement with them. The Agreement: The mediator identifies the points on which the parties can agree to move to the agreement stage, where the proposed settlement agreement is prepared and reviewed with the parties or their representatives, and amendments are made until the final form is agreed upon. If signed, the agreement is implemented consensually between the parties. The agreement may include a clause stating that it is given executory force, meaning it can be executed directly before the enforcement court like judgments issued by courts after being stamped with executory force and entered into the enforcement court for execution as a judgment in case the parties do not voluntarily execute it. Can Mediation Be a Means to Resolve Disputes? Mediation is effective, quick, and reasonably priced compared to ordinary litigation or arbitration procedures. In the state of New York, small cases related to car insurance accidents are referred to mediation, where they are resolved quickly away from ordinary litigation procedures. Claims are settled through mediation, and the agreement is executed immediately. Some Reservations from Practitioners: Based on practical experiences in our region, the concept of mediation as an alternative means to resolve disputes still needs support to clarify its concept and its advantages that are not available in arbitration and ordinary courts. Conclusion: For mediation to take its role as a tool for resolving disputes, individuals must be convinced of it as an effective means of dispute resolution. On the other hand, it must be legally protected by the legislator in any legal system. Mediation also needs legal media promotion by economic, commercial, and official circles. Mediation can play a role in saving time and money when resolving disputes. Naturally, it requires qualified individuals with a good reputation, knowledge of dialogue management, legal background, and, most importantly, being trusted by the parties. The legislator in the Kingdom of Bahrain intervened through Decree-Law No. 22 of 2019 regarding mediation for dispute resolution to regulate mediation provisions, granting legitimacy to mediation procedures, and setting the guidelines for mediators and parties regarding mediation procedures and mediator work rules. It covers areas of concern for practitioners, including mediator obligations, work conditions, confidentiality maintenance, and granting enforceable authority to agreements reached with the mediator’s help, resulting in the agreement being executed in the manner court judgments are executed.

Specialist MENA-based law firms Al Doseri Law and GLA & Company today announce the formation of a strategic alliance in the Kingdom of Bahrain, bolstering the offerings of both firms in the Middle East and North Africa (MENA) region. The partnership will allow GLA & Company and Al Doseri Law to collaborate conflict-free on client matters, facilitating the sharing of knowledge and materials between the firms. Benefitting from their combined experience of a broad range of matters in the MENA legal landscape, the alliance will leverage the strengths of each firm, providing both with access to better and more comprehensive resources. The announcement follows last year’s partnership between GLA & Company and Habib Al Mulla and Partners, which has enabled both firms to elevate their offering of legal services and deepen their knowledge of the MENA legal landscape. Saad Al Doseri, Founding Partner at Al Doseri Law, commented, “We are excited to announce the formation of our collaboration agreement with GLA & Company. Despite being a reasonably young firm, GLA & Company already has an unparalleled reputation in the United Arab Emirates, Kingdom of Saudi Arabia, Kuwait and Egypt. “Both Al Doseri Law and GLA & Company are driven by a commitment to meeting our clients’ expanding requirements. We look forward to working with Nader Al-Awadhi, Alex Saleh and the rest of the GLA team to provide unmatched legal advice for all our clients, across all our practice areas.”  Commenting on the partnership between the firms, Alex Saleh, Managing Partner at GLA & Company, said: “We are delighted to collaborate with Al Doseri Law on this next stage in our growth. Demand for legal services in the MENA region is ever-increasing, and this new partnership will allow us to tap into Al Doseri Law’s unmatched expertise and deliver solutions of the very best calibre in the Kingdom of Bahrain.” The collaboration between GLA & Company and Al Doseri Law will broaden the scope of the firms’ offerings to clients. This association will allow them to increase their reach in the corporate and commercial disputes sector, with both firms already leading players in their respective jurisdictions. The combination of Al Doseri Law’s specialist expertise in commercial matters with GLA & Company’s recognised regional presence will offer clients a greater breadth of services, with leading experts in the field. The collaborative agreement between Al Doseri Law and GLA & Company is effective immediately. This news was covered in Zawya on 3 June 2024, please see here, and in TradingView on 3 June 2024, please see here.