Manama: His Majesty King Hamad bin Isa Al Khalifa has ratified and promulgated Law (3) of 2026, marking the establishment of the Secured Transactions Law. This legislative move follows the approval from both the Shura Council and the Council of Representatives, indicating a significant step in the Kingdom's legal framework.
According to Bahrain News Agency, the newly ratified law will see the provisions of the attached Secured Transactions Law come into effect, with specific guidelines outlined in Article (I). The new law addresses issues related to secured transactions, providing a structured legal framework for such dealings.
Article (II) of the law specifies that the existing provisions under the Commercial Companies Law, the Civil Code, and the Central Bank of Bahrain and Financial Institutions Law will continue to apply regarding security rights. However, these provisions will only remain in effect where they do not conflict with the new Secured Transactions Law.
Furthermore, Article (III) mandates that the minister concerned with commerce, or any other designated minister, is required to issue the executive regulations for the new law. This process is to be completed within eight months from the day following the law's publication in the Official Gazette, contingent upon approval from the Cabinet.
Finally, Article (IV) states that the Prime Minister and relevant ministers are tasked with implementing the law's provisions. The law will officially come into force on the first day of the month, twelve months after its publication in the Official Gazette.