The legal system of Bahrain
A civil-law system with Sharia personal status, and the Gulf state that has gone furthest in codifying family law: the 2009 Family Law finally reduced Sunni personal status to statute, and a 2017 amendment extended unified codification to the Shia community, which had previously been governed by uncodified jurisprudence. The civil code follows the Egyptian Civil Code of 1949, which transmitted French civil-law structure into the Arab world, while personal status, succession and family matters remain governed by Sharia as applied by the courts. Bahrain permits foreign freehold ownership in designated areas more liberally than most of the region, hosts the Bahrain Chamber for Dispute Resolution operating with the AAA, and allows full foreign ownership of companies in most sectors.
Legal tradition
Bahrain belongs to the mixed (civil law and islamic law) tradition. A civil-law system with Sharia personal status, and the Gulf state that has gone furthest in codifying family law: the 2009 Family Law finally reduced Sunni personal status to statute, and a 2017 amendment extended unified codification to the Shia community, which had previously been governed by uncodified jurisprudence. The civil code follows the Egyptian Civil Code of 1949, which transmitted French civil-law structure into the Arab world, while personal status, succession and family matters remain governed by Sharia as applied by the courts. Bahrain permits foreign freehold ownership in designated areas more liberally than most of the region, hosts the Bahrain Chamber for Dispute Resolution operating with the AAA, and allows full foreign ownership of companies in most sectors.
How power is divided
Unitary. Four governorates administered centrally; elected municipal councils were abolished as a tier in 2014 and their functions transferred to the governorates.
Where law comes from
- The 2002 Constitution
- As amended in 2012; Sharia is a principal source of legislation.
- Laws of the National Assembly and royal decrees
- Decree-laws are used extensively between sessions.
- Civil Code 2001 and Commercial Code 1987
- Egyptian-model codifications of obligations and commerce.
- Family Law 2009, extended 2017
- Codified personal status for both the Sunni and Ja'fari communities.
- Constitutional Court judgments
- Binding as to the validity of legislation.
The legal profession
Advocates are licensed by the Ministry of Justice; Bahraini nationality is required for rights of audience before the higher courts, and foreign firms practise in association with local counsel. Bahrain is unusual in the region for the number of foreign firms permitted to advise, reflecting its role as a financial centre. Judges are appointed by royal order on the recommendation of the Supreme Judicial Council, and notarial authentication is required for property transfers and powers of attorney.
Law by topic in Bahrain
- Property & LandBroad foreign freehold in designated areasForeign nationals may own freehold property in designated areas, and Bahrain's rules are among the more liberal in the Gulf.
- Constitutional LawA 2002 constitutional monarchy with a bicameral legislatureThe 2002 Constitution converted the emirate into a kingdom with an elected Council of Representatives and an appointed Shura Council of equal size.
- Employment & LabourLabour Law 36 of 2012 with a flexible work permit routeThe 2012 Labour Law governs private sector employment. Bahrain's flexible work permit, introduced in 2017, lets some migrant workers work without a sponsor.
- Civil ProcedureCivil-law procedure with the BCDR for commercial disputesThe Civil Code and Civil Procedure Law govern ordinary litigation. The Bahrain Chamber for Dispute Resolution handles larger commercial claims and international arbitration.
- Criminal LawA 1976 penal code with a broad state security overlayThe Penal Code of 1976 codifies offences. Counter-terrorism legislation from 2006 onwards adds broadly drafted security offences.
- Family LawA unified family law covering both Sunni and Shia BahrainisLaw 19 of 2017 unified personal status into a single code applying to both Sunni and Shia Muslims, replacing separate uncodified religious practice.
- Business & CorporateFull foreign ownership in most sectors, with no local partner requirementBahrain permits one hundred per cent foreign ownership across most of the economy without a local partner, and has done so longer than its neighbours.
- Tax LawVAT at ten per cent, with no corporate or personal income taxBahrain has no general corporate income tax and no personal income tax. VAT was introduced in 2019 and doubled to ten per cent in 2022.
- Immigration & NationalitySponsored residence with a self-sponsored Golden ResidencyResidence is normally employer-sponsored through the LMRA. The Golden Residency introduced in 2022 gives indefinite self-sponsored residence to qualifying applicants.
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