Bahrain Daily Tribune. 1 December 2025: A 60 Article law will allow Bahraini businesses to use receivables, stock or other moveable assets as pan collaterial.

The new law has now been approved by shura councillors. The change is expected to cut borrowing costs for small and medium sized companies and improve Bahrain’s score on the World Bank’s New Business Readiness Index. The council backed the bill in full and it is expected to face a formal vote at the next sitting. The law is attached to Bahrain Decree No. 11/2025 and has already cleared Parliament.

It creates a single system for security rights over moveable property supported by an electronic notice register which will record and enforce these rights, as well as arranging the priorities between creditors. Companies will be able to keep using assets that they have pleaded.

The law will also let secured creditors enforce against collateral outside court in cases of default.

Further detail on how the system will operate will be detailed in the executive regulations.

The new register will allow both sides to have a clear view of existing pledges.

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