Bahrain: Recommends Extending Environmental Protection Appeals Period

The Daily Tribune, 10 January 2025: The House of Representatives’ Public Utilities and Environment Committee has endorsed a legislative proposal aimed at extending the appeal period for administrative decisions under the environmental protection and wildlife conservation law from 30 to 60 days.

The proposal highlights that the current 30-day timeframe may not be adequate for stakeholders to effectively challenge decisions.

Extending the appeal period would allow for a more comprehensive review before initiating legal action.

The proposal also points out that many Bahraini laws already permit a 60-day appeal period for administrative decisions.

For example, Bahrain Law No. 27/2022 concerning biological and toxin weapons allows for a 60-day appeal period following the rejection of an appeal.

While the Ministry of Oil and Environment and the Supreme Council for the Environment have refrained from expressing a governmental stance, the Supreme Judicial Council has stated that it is not within their jurisdiction to provide an opinion at this stage.

The proposed law is set for discussion and voting in the House of Representatives.

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Bahrain: Proposed Labour Law Changes Could Burden SMEs

The Daily Tribune, 6 January 2025: Changes to Bahrain’s labour laws could pose challenges for small and medium-sized businesses, as a local MP has cautioned, urging the government to enhance support for traders amid increasing economic pressures.

The amendments to Bahrain Decree-Law No. 12/2024, which update Article 40 of Bahrain Law No. 19/2006 regulating the labour market, come at a time when businesses are facing reduced purchasing power and cash flow issues.

The MP has argued that the current economic climate necessitates more flexibility in enforcing penalties on traders, particularly as some delays in meeting financial obligations are due to auditing firms prioritising larger companies.

He has emphasised that limited liability businesses need adequate time to submit their accounts and that it is unjust to penalise them for delays often caused by auditors focusing on major players.

The MP has highlighted the importance of simplifying processes for traders to ensure fair market competition and provide consumers with more affordable options.

He has also welcomed the amendments aimed at reducing legal disputes against small businesses, advocating for these enterprises to have the opportunity to adjust their operations and remain viable.

The proposed changes could support micro-businesses and encourage more Bahrainis to start their own ventures.

He has called for additional measures to bolster these efforts and ensure their success.

Statistics from the Labour Market Regulatory Authority (LMRA) have revealed numerous cases of foreign workers operating without permits and incidents of labour being employed without proper authorisation or breaching permit terms.

These figures highlight the need for tighter oversight while protecting legitimate businesses.

The MP has praised Tamkeen’s efforts in subsidising Bahraini wages in the private sector, describing these programs as crucial for making Bahrainis the preferred choice for employers.

He urged further investment in such schemes to attract more job seekers and called for improved cooperation between government bodies to address labour violations efficiently without overburdening small firms.

The recent amendments, highlight the necessity for a business-friendly environment that balances the rights of all parties.

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Bahrain: Bahrain Bourse Updates the Listing Rules

Bahrain Bourse announced the publication of its updated Listing Rules and Guidelines, which would be effective immediately in alignment with the Central Bank of Bahrain’s (CBB) ESG requirements.

Analysis

The revised Listing Rules and Guidelines incorporate new disclosure requirements related to Environmental, Social, and Governance (ESG) standards, as mandated by the CBB’s ‘Common Volume ESG Module’. These rules apply to all securities listed on the Mainboard Market and future listings on Bahrain Bourse.

The new ESG disclosure requirements aim to standardise reporting among issuers, requiring them to establish their own ESG reporting framework in line with BHB and CBB guidelines. Issuers must submit their ESG reports within six months after the end of their financial year, either as a stand-alone report or as part of the company’s annual report.

The CBB’s ‘Common Volume ESG Module’ is applicable to all listed companies for the reporting period ending December 2024. From the end of 2024, these reporting requirements will be applied comprehensively to listed companies and CBB licensees. The module also addresses ESG-related risks in alignment with Bahrain’s Economic Vision 2030, the UN Sustainable Development Goals (SDGs), and the “Blueprint Bahrain” national action plan announced during the COP28 conference in the UAE.

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Bahrain: Shura Council Approves Doubling Small Claims Limit to BD1,000 in Courts

The Daily Tribune, 18 December 2024: The Shura Council has endorsed a proposal to double the limit for small claims that can be substantiated through witness testimony, increasing it from BD500 to BD1,000.

This initiative aims to streamline and reduce the costs associated with resolving minor financial disputes in Bahrain’s courts.

Prompted by changing economic conditions, the proposal will now be sent to the government for legislative drafting.

If enacted, individuals will be able to use witness testimony for claims up to BD1,000, thereby reducing the reliance on costly legal procedures.

Members of the Shura Council have emphasised that this change would make the legal process more accessible for ordinary Bahrainis dealing with minor financial disagreements.

One council member noted that the previous 500-dinar limit was outdated and no longer aligned with current realities.

Increasing the limit to 1,000 dinars is expected to make legal action less intimidating and help individuals resolve disputes without incurring significant expenses.

The First Deputy Chairman of the Shura Council expressed support for the change but stressed the need for precise legal wording to ensure its effectiveness.

If approved, this adjustment would mark a significant step towards simplifying legal processes for Bahrain’s citizens, facilitating quicker and less burdensome resolutions for small-scale disputes.

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Bahrain: Shura Council Reviewing Amendments to Penal and Evidence Laws

The Shura Council in Bahrain discussed the report of the Foreign Affairs, Defense and National Security Committee regarding a draft law amending some provisions of the Penal Code and the report of the Legislative and Legal Affairs Committee on the proposed law amending some provisions of the Evidence Law in Civil and Commercial Matters.

Analysis
Protection of Modern Communication Means

The Council reviewed a report from the Committee on Foreign Affairs, Defense, and National Security regarding a draft law to amend certain provisions of Bahrain Decree-Law No. 15/1976 on the Penal Law, and associated with Bahrain Decree No. 7/2024. The committee recommended approval of the draft law in principle.

This legislative proposal aims to safeguard modern communication devices such as mobile phones and laptops, which contain personal information, banking data, and other sensitive details. The law seeks to impose stricter penalties for the unlawful exploitation of such data, reflecting the increased reliance on these devices in daily life and the need for protective legislation.

Amendments to the Civil and Commercial Evidence Law

Additionally, the Council discussed a report from the Legislative and Legal Affairs Committee on a proposed amendment to Bahrain Decree-Law No. 14/1996 on the Law of Evidence in Civil and Commercial Matters. The proposal suggests raising the maximum value threshold for legal transactions that can be proven by witness testimony from 500 to 1,000 dinars. This change considers the evolving economic conditions, the purchasing power of the currency, and the nature of current civil transactions. The committee recommended allowing consideration of this proposal, aligning with Bahrain’s legislative policy to update laws in response to economic developments.

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Bahrain: Enhances Fraud Protections with New Timeshare Regulation

The Daily Tribune, 9 December 2024: Holidaymakers and property investors in Bahrain are set to benefit from enhanced fraud protections following the Shura Council’s approval of a new law regulating timeshare agreements.

This legislation, linked to Bahrain Royal Decree No. 33/2023, is now on its way to the Speaker of Parliament for referral to the Crown Prince and Prime Minister, before its final submission to the King.

The law establishes clear legal guidelines for timeshare transactions, safeguarding the rights and responsibilities of all parties involved, while promoting investment in Bahrain’s tourism and property sectors.

The Services Committee’s report highlights six key areas covered by the draft law: oversight authority duties, licensing terms, contract conditions, inspections, legal enforcement, and criminal accountability.

The Tourism Minister described the law as a significant enhancement to Bahrain’s tourism sector, emphasising its role in establishing administrative procedures that protect consumers. She highlighted specific articles that address contractual matters and procedural safeguards, ensuring a comprehensive legal safety net for beneficiaries.

The legislation aligns with the Government Programme (2023-2026), which prioritises tourism as a central component of the country’s economic growth strategy. It supports major tourism projects and strengthens the legal framework governing property and tourism investments, with consumer protection at its core.

The responsible authority will have the power to enforce compliance, issue and renew licenses, and coordinate with other agencies overseeing timeshare schemes.

Strict conditions on licences, technical standards, and contract terms aim to eliminate fraudulent operators and protect buyers.

Despite initial concerns over vague wording in some sections, the Shura Council ultimately endorsed the measure after securing necessary revisions and clarifications.

The law is seen as a valuable framework that provides transparency for investors and safeguards the public interest, reflecting the collaborative efforts of various committees and authorities over the past months.

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Bahrain: Introduces Progressive Financial Security System for Expatriate Workers

Arab Times, 3 December 2024: Expatriates employed in Bahrain’s private sector have a significant reason to celebrate as the Kingdom unveils a progressive system designed to secure their financial future upon job termination.

This new initiative introduces a streamlined end-of-service indemnity (EOSI) system for non-Bahraini workers, marking a pivotal advancement in labour rights reform.

The mechanism ensures that expatriates receive their accumulated benefits without delay, addressing a long-standing issue of traditional payment holdups.

Employers are now mandated to make monthly contributions to the Social Insurance Organisation (SIO), revolutionising the management of indemnity payments.

For many expatriates, the challenge of navigating complex administrative procedures has been a source of frustration.

The SIO has addressed this by implementing an intuitive online system that simplifies the process.

Upon job termination and registration with the Labour Market Regulatory Authority (LMRA), workers can easily claim their benefits through SIO’s e-services.

The system is designed to be user-friendly, ensuring that even intricate tasks, such as attaching proof of an International Bank Account Number (IBAN) in PDF format, are straightforward and efficient.

This reform represents a landmark moment for expatriate workers in Bahrain.

By centralising payments through the SIO, the Kingdom is demonstrating its commitment to fairness, transparency, and the financial well-being of its expatriate community.

A comprehensive guide to the new process is available on the SIO website, offering workers a clear path to securing their entitlements.

For many, this reform not only provides financial relief but also fosters a renewed sense of inclusion within Bahrain’s evolving workforce landscape.

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Bahrain: New Regulations On Medical Devices And Products

The Daily Tribune, 26 November 2024: The Chairman of the Supreme Health Council has announced new regulations aimed at ensuring the quality of medical devices and products in Bahrain.

The decision mandates that all establishments must obtain a licence from the National Health Regulatory Authority (NHRA) to market contact lenses, medical devices, and lasers used for cosmetic purposes.

Under the new regulations, all entities are required to secure a licence from the NHRA, and any activity related to medical devices and products is strictly prohibited unless conducted by a licensed establishment.

This move is intended to strengthen oversight and ensure that only approved products are available in the market.

Furthermore, the regulations stipulate that medical devices and products must only be used in health facilities that hold the appropriate licenses issued by the NHRA.

No device or product may be manufactured, imported, or marketed in Bahrain without prior registration with the NHRA and obtaining written permission for marketing.

The decision outlines that devices and products registered in Bahrain must come from one of the following reference countries: Saudi Arabia (SFDA), the United States (FDA), Australia (TGA), Japan (PMDA), the United Kingdom (MHRA), Ireland (HPRA), Switzerland (Swissmedic), France (ANSM), and Germany (BfArM).

Registration with one of these countries is required, along with payment of the applicable fees.

Establishments are also obligated to store and transport medical devices and products according to the manufacturer’s instructions.

Failure to comply may result in the NHRA revoking the registration of the medical device or the establishment’s licence.

Furthermore, the marketing and advertising of medical devices and products are prohibited without prior authorisation from the NHRA and payment of the required fees.

However, low-risk home medical devices, such as digital thermometers and blood pressure monitors, are exempt from this requirement.

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