BCDR-AAA - Bahrain Chamber for Dispute Resolution.
Why BCDR-AAA?
The Bahrain Chamber for Dispute Resolution (BCDR-AAA), in partnership with the American Arbitration Association (AAA) provides international and regional businesses and governments contracting in the Gulf and beyond with purpose-built alternative dispute resolution (ADR) solutions for the rapid, effective and binding resolution of commercial disputes.
Cases before the BCDR-AAA are divided between Section One: Statutory ADR Tribunals; and, Section Two: Mediation and Arbitration services.
Why choose BCDR-AAA over other regional ADR centres?
- The Bahrain Chamber for Dispute Resolution (BCDR-AAA) is partnered with the world's leading alternative dispute resolution centre, the American Arbitration Association (AAA), ensuring the highest standards of international best practice;
- BCDR-AAA's "Free Arbitration Zone" provides business with the jurisdictional and legal certainty to the recognition of arbitration awards without the involvement of the national courts;
- BCDR-AAA provides the very latest in global ADR solutions with high-tech, custom designed facilities;
- BCDR-AAA is entrenched in Bahraini law - providing independence from the government;
- BCDR-AAA offers flexibility, whereby parties may choose their lawyer, the applicable law and the language in which the dispute resolution is carried out;
- BCDR-AAA offers tailor-made solutions for businesses in the shape of pre-emptive dispute resolution clauses which can be inserted in to company contracts.
- Bahrain provides an excellent environment for ADR services due to its world class, reliable, professional and effective legal system;
- Bahrain is the Middle East's largest and most effectively regulated financial centre, with over 400 licensed financial institutions;
- Bahrain has a very close social and economic tie with all of its neighbours, including the Kingdom of Saudi Arabia through the King Fahad Causeway;
- Bahrain has easy access, with an international airport connected to over 50 destinations worldwide;
- Multinational companies have felt comfortable doing business in Bahrain for decades.
Section One: Statutory ADR Tribunals
Under Royal Decree No.(30) of 2009, any dispute where the claim exceeds BD500,000 (approximately US$1.3 million) and involves either an international commercial dispute or a party licensed by the Central Bank of Bahrain (CBB), is referred to the BCDR-AAA. Previously, these cases would come within the jurisdiction of the courts of Bahrain.
Benefits of Statutory ADR Tribunals:
- Ensure an effective and rapid outcome;
- Provide faster resolutions than national courts and potentially save the parties thousands, even millions, in legal fees;
- Benefit Bahrain's commercial, banking and financial services sectors;
- Offer flexibility to the parties as they may choose their lawyer and the applicable law;
- Provide independence from the government.
Section Two: Mediation and Arbitration
BCDR-AAA provides ADR services such as mediation and arbitration in the unique "Free Arbitration Zone" which offers jurisdictional and legal certainty to the recognition of arbitration awards, an essential component of modern day commercial transactions.
The "Free Arbitration Zone" is a world first, whereby parties to an international dispute are bound to the outcome; the award is guaranteed and is not subject to challenge in Bahrain. The "Free Arbitration Zone" therefore offers jurisdictional and legal certainty to the recognition of arbitration awards.
Mediation is a confidential process through an independent and neutral third party ‘mediator' who assists the disputants to negotiate and reach a mutual decision to their dispute.
Trained mediators do not impose a decision upon the parties, unlike arbitration, however, through their facilitation and technical skills they assist the parties to explore the issues in depth and reach the best possible joint decision to the dispute.
- Saves costs: mediation potentially saves thousands in legal fees;
- Saves time: through mediation the majority of disputes are resolved within one working day through mediation, saving individuals and organizations lengthy court battles;
- Less risk: mediation settlements are with the agreement of both parties, therefore a settlement is only made when both parties are satisfied with the agreement;
- Maintains relationships: mediation at BCDR-AAA is confidential, thereby maintaining privacy between the parties and often leading to more satisfactory outcomes for both parties.
Arbitration is a dispute resolution process in which the disputing parties present their case to a third party intermediary (or a panel of arbitrators) who examine all the evidence and then make a decision for the parties. Unlike mediation, the arbitrator determines the verdict.
- Arbitration it is more flexible than the court process;
- Arbitration as a route to resolve a legal dispute has become ever more attractive due to lower fees and faster processing than traditional litigation;
- With the BCDR-AAA, disputants can choose their own arbitrator, who can be an expert in the topic in dispute, unlike the judge for litigation;
- Arbitration is usually much quicker than litigation, especially since the result is binding and not open to appeal as per litigation;
- Arbitration is private, avoiding the disclosure of trade secrets and potentially embarrassing information;
- Arbitration provides the ability to retain greater control over the process including the selection of applicable law, language and location of the arbitration process;
- Arbitration is generally considered more efficient and fair.
How can BCDR-AAA benefit my company?
BCDR-AAA offers businesses across the region an effective, transparent and fair way to resolve disputes, providing an important part of doing business in the kingdom, and the region more widely, as an alternative to the potentially lengthy and costly battles in courts.
Statutory ADR Tribunals provide domestic businesses with a cheaper, less time consuming process than the national courts, with a more secure and reliable outcome. Meanwhile mediation and arbitration services offer a more efficient alternative to litigation for international companies.
BCDR-AAA, through its ADR services, provides businesses with:
- The opportunity for quicker resolution of disputes;
- Potentially cheaper solution for the resolution of disputes;
- A certainty of outcome (through Statutory ADR Tribunals);
- Privacy and confidentiality;
- Flexibility;
- Opportunity to choose the judges;
- Allows for local knowledge and regional aspects to be taken in to consideration.
Why wait?
Businesses do not need to wait for a dispute to occur to approach BCDR-AAA; pre-emptive action can be taken in the form of dispute clauses inserted into contracts that are tailored to the parties' needs. By entering into formal ADR/mediation agreements and establishing mediation services or schemes employers can manage conflict proactively and control risk factors in litigation.
Inserting an ADR clause potentially provides substantial savings in legal and management fees, and most importantly, keeps the dispute out of the public arena.
Further information can be found on our Draft Clauses page.
Why BCDR-AAA Trifold