Foreign lawyers could be asked to step in to settle commercial arbitration cases in Bahrain.

The Parliament yesterday (April 28) approved the new government-drafted law on arbitration, despite the legislative and legal affairs committee recommending its rejection, said a report in the Gulf Daily News (GDN), our sister publication.

The committee was upset that it was presented by the Cabinet as 'urgent' legislation, which meant MPs only had two weeks to review and vote on it.

MPs also approved another government drafted law on commercial terms disputes involving foreign elements, also submitted as 'urgent', despite the committee recommending its rejection.

Both bills were passed by a narrow margin and MPs clashed with Justice, Islamic Affairs and Endowments Minister Shaikh Khalid bin Ali Al Khalifa and Parliament and Shura Council Affairs Minister Ghanim Al Buainain on the government's use of 'urgent' legislation.

Under the constitution, if 'urgent' legislation is rejected by parliament or the Shura Council, it is then referred to His Majesty King Hamad '“ who can ratify the bill or reject it.

Shaikh Khalid said both bills were in line with the United Nations Commission on International Trade Law principles.

“The new bills will affect operations involving foreign companies and firms, who are now investing in Bahrain or have plans to invest in future,” he said.

“We will now follow international arbitration and allow foreign companies to have their own representation, something that will bring confidence to our judicial system of arbitration.”

He revealed Bahrain was currently handling arbitration cases worth $14 billion from neighbouring countries. - TradeArabia News Service