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Bahrain: Shura Panel Moves to Block Companies Law Amendment
Bahrain Daily Tribune, 5 April 2026: Bahrain’s Shura Council is reviewing a proposal to amend Bahrain Decree-Law No. 21/2001 On the Issuance of the Commercial Companies Law, as its Financial and Economic Affairs Committee recommends rejecting the draft over long‑term economic risks.
The Shura Council is examining the report of its Financial and Economic Affairs Committee on a draft law amending Article 264 of Bahrain Decree-Law No. 21/2001. The draft, submitted by the Council of Representatives in an amended form, is currently under consideration.
Committee member Khalid Al‑Maskati said the committee recommended rejecting the amendment, warning that it could impose additional burdens on businesses and weaken Bahrain’s competitiveness. He stressed that the Kingdom’s long‑standing policies to attract investment and build confidence had delivered strong results and should not be undermined.
Al‑Maskati cited Bahrain’s more than 91,000 commercial registrations, dominated by small and medium‑sized enterprises, and noted significant growth in foreign direct investment, including over $2 billion in industrial FDI. He said these gains reflected coordinated legislative and executive efforts and a free, competitive economic environment.
The committee concluded that altering the framework in a way that disrupts this balance could harm the national economy over the long term. It therefore urged rejection of the draft to preserve investment appeal and support sustainable growth.
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