The Constitution of the Kingdom of Bahrain

Article 2 of the Constitution of Bahrain states that Islamic Shari’a is a principal source for legislation. In one of its key judgments, the Court of Cassation concluded that Article 2 of the constitution represents guidance to the legislative branch that Shari’a shall be considered a principal/main source in respect of the issued laws. In other words, Shari’a is not the only source of legislation.

Islam is the religion of the Kingdom and the legal system is based on the Islamic Shari’a codified systems and the English common law. The Islamic Sharia is the major source of legislation, followed by custom, and natural law or principles of equity and good conscience.

Law No. (64) of 2006 with Respect to Promulgating the Central Bank of Bahrain and Financial Institutions Law

The Central Bank of Bahrain and Financial Institutions Law 2006 ("CBB Law") was promulgated on 6 September 2006 with the issuance of Decree No. (64) of 2006. Decree No. 64 implemented the CBB Law and repealed the Bahrain Monetary Agency Law of 1973 as well as the Insurance Law of 1987. The CBB Law established the Central Bank of Bahrain as the successor organization of the Bahrain Monetary Agency. It also set out the CBB’s mandate, governance and powers.

CBB Capital Market Regulations

• OFS – Offering of Securities
• CBB Disclosure Standards
• MAM – Prohibition of Market Abuse and Manipulation
• Collective Investment Undertakings
• Ministerial Order – Money Laundering
• Resolution No. (59) of 2011 in respect of Procedures for Mortgage of Securities, Seizure, Mortgage Expiration and Lifting of Seizure
• Resolution No. (17) of 2012 in respect of rules and procedures for listing and trading of securities in the licensed financial markets
• Resolution No. (30) of 2015 in respect of amending Resolution No. (59) of 2011
• Resolution No. (54) of 2015 in respect of Dissemination of Listed Companies' Financial Statements and Board of Directors' Meeting
• Resolution no. (11) of 2018 in respect of "Procedures and Rules for the implementation of the Self- Regulatory Organization (SRO) model of the Exchanges licensed by the Central Bank of Bahrain in relevance to listing securities and financial instruments post initial public offering"
• Resolution No. (23) of 2019 for the Issuance of Regulations in respect of Short Selling and Giving Securities on Loan
• Resolution No. 44 of 2014 with respect to Promulgating a Regulation for Close-Out Netting under a Market Contract

National Action Charter

The National Action Charter is a national document that represents Bahraini citizens, their aspirations, community, requirements, and their development. The National Action Charter was issued in December 2000. It specifies the essential components of what makes up the Kingdom of Bahrain, as well as its cultural, historical, Arab and Islamic identity. It identifies the main components of state and society, as well as Bahrain’s relationship with the Gulf Cooperation Council (GCC), Arab and other countries.