Commercial Contracts in Bahrain

Commercial contracts in Bahrain

The firm covers Bahrain matters in cooperation with a partner office in the Kingdom of Bahrain. That partner office is not a branch owned by the firm, and the firm does not itself hold a Bahrain law practice license; local licensing and representation are assessed for each matter. We draft, review and negotiate commercial contracts of all types - for example supply, distribution, agency and services agreements - and advise on how the contract should be framed before it is signed.

The legal framework in Bahrain

Commercial contracts in Bahrain are governed mainly by the Civil Code (Legislative Decree No. 19 of 2001) and the Law on Commerce (Legislative Decree No. 7 of 1987). The Civil Code was issued on 3 May 2001 and published on 9 May 2001. The Law on Commerce took effect on 1 June 1987 and has been amended since, up to Decree-Law No. 51 of 2018 in its published consolidated text. Both are checked against the current official text. Which rules apply depends on the contract type, the parties and the chosen forum.

How we work on a contract

We start with the parties, who can sign for them, the governing law and the forum. We then review or draft the clauses that carry the risk: price and payment, delivery and acceptance, termination, liability, confidentiality and dispute resolution. Signed versions, notices and the negotiation record are kept so a later disagreement can be handled on evidence. Where a disagreement already exists, see our dispute resolution practice, or read the General Commercial & Corporate overview. To scope a specific contract, contact our team. For Bahrain, every clause is read against the Civil Code and the Law on Commerce.

Drafting points for Bahrain

Before signing we verify the counterparty's commercial registration details through the Sijilat portal of the Ministry of Industry and Commerce and match the signatory to its authority. We keep civil-law and commercial-law questions apart in the draft, so each clause is read under the right statute. The firm does not hold a Bahraini license; local representation is assessed with our partner office for each matter.

MENA coordination

The firm was founded in Kuwait in 1986 and has a branch in Cairo. It covers MENA matters in cooperation with partner offices in Saudi Arabia, the UAE and Qatar, and partner offices in Turkey and the United States. Those partner offices are not branches owned by the firm; local licensing and advice are assessed in the relevant jurisdiction.

This page is general information, not advice for a particular entity or transaction.

Frequently asked questions

What law governs commercial contracts in Bahrain?

Mainly the Civil Code (Legislative Decree No. 19 of 2001) and the Law on Commerce (Legislative Decree No. 7 of 1987). Which provisions apply depends on the contract type, the parties and the chosen forum.

Which laws cover commercial contracts in Bahrain?

The Civil Code (Legislative Decree No. 19 of 2001) sets the general contract rules, and the Law on Commerce (Legislative Decree No. 7 of 1987) covers commercial matters. We check each contract against the current official text of both.

Does the firm have an office in Bahrain?

The firm covers Bahrain matters in cooperation with a partner office in the Kingdom of Bahrain. That partner office is not a branch owned by the firm, and the firm does not itself hold a Bahrain law practice license; local licensing and representation are assessed for each matter.

Other markets

Corporate & Commercial Law in Bahrain · Commercial Contracts in Egypt · Commercial Contracts in Saudi Arabia · Commercial Contracts in the UAE · Commercial Contracts in Qatar · Commercial Contracts in Oman