Finance

Bahrain arbitration court strengthens Singapore ties

November 20, 2024, 3:43 PM

Bahrain hopes its International Commercial Court will draw in new businesses and high-net-worth individuals — Bahrain hopes its International Commercial Court will draw in new businesses and high-net-worth-individuals

International Commercial Court
Targeting family offices
Aims to attract ultra HNWIs

Bahrain is seeking to emulate the success of a Singapore-based arbitration panel by launching its own International Commercial Court.

It will target ultra-high-net-worth individuals and family offices, which are private wealth management advisory firms serving multi-generational wealthy families.

The specialised arbitration centre is modelled on the Singapore International Commercial Court (SICC) and is to be launched “soon”, according to Ali Al Mudaifa, chief of business development at Bahrain Economic Development Board (EDB).

It follows the signing of a treaty between Bahrain and Singapore earlier this year and the official enactment of the court by royal decree in August.

SICC was established in 2015 and has also served as the inspiration for the China International Commercial Court. A major feature of the court is the inclusion of international judges.

Al Mudaifa said the launch is aimed at attracting global and regional family offices as well as high net worth individuals and businesses to Bahrain.

“We’ve certainly seen how successful Singapore has been with attracting Asian capital and being a hub for Asian family offices, particularly from neighbouring countries and more particularly from China,” he said.

“So we would like to see that happen here in Bahrain, especially as it’s really an opportune time given that Singapore and many other jurisdictions have reached such a high level of saturation.”

The legal tie-up between the two countries also provides an opportunity for parties to appeal from its judgements to a body of judges drawn from the courts of both Bahrain and Singapore, as well as to judges of the SICC.

In the UAE, both Abu Dhabi General Markets and Dubai International Financial Centre have adopted English Common Law, which has helped attract thousands of holding companies and hundreds of family offices.

“Historically, Bahrain has offered lower incorporation fees compared to other GCC countries. Combined with a robust legal framework, this could bolster investor confidence and attract a wave of businesses and high-net-worth individuals seeking a safe and reliable alternative to the UAE,” said Scott Cairns, managing director of Creation Business Consultants in Dubai.

Investment outlook

Bahrain has attracted over $100 million in investment commitments from Singapore-based companies since November 2023.

A delegation from the kingdom, which included representatives from Bahrain EDB and the central bank, attended the Singapore Fintech Festival.

Earlier this month, Singapore Gulf Bank, a digital platform backed by Bahrain’s sovereign wealth fund and Whampoa Group, launched corporate banking services in Bahrain. Asia Cargo Network, a private air cargo carrier, freighter and logistics company from Singapore set up in the kingdom just over a year ago with an investment of over $100 million.

And Crypto.com, a cryptocurrency exchange company based in Singapore, has also set up in Bahrain, starting with the launch of its crypto.com card.

“We are currently in talks with many other prominent Singaporean names to set up substantial operations in country,” said Al Mudaifa.

Bahrain’s efforts to diversify its economy away from a reliance on hydrocarbons include a golden license programme, which has been central to attracting substantial regional and international investments.

In 2023, the programme facilitated $2.4 billion in investment from nine major projects, expected to create 3,000 jobs.

The kingdom set a new record by attracting $6.8 billion in foreign direct investment in 2023.