Bahrain Scraps Paper Commercial Books for Digitally Managed Firms

Manama: Institutions, companies, and banks in Bahrain that maintain their accounts through electronic systems will no longer be required to keep paper commercial books, following a new decision issued by the Ministry of Industry and Commerce and published in the latest edition of the Official Gazette.

Under Decision No. 113 of 2025, electronic commercial books will now be officially recognised by the ministry and granted the same evidentiary value as traditional paper records, marking a significant step in Bahrain’s digital transformation of business and regulatory practices.

The recognition, however, is subject to strict conditions. The decision stipulates that electronic accounting systems must incorporate robust security measures to safeguard stored data and prevent alteration, deletion, or tampering. In addition, all accounting entries must be recorded regularly and within legally prescribed time limits.

The decision is grounded in existing legislation, including the Commercial Code issued by Decree-Law No. 7 of 1987, particularly Article 20, the Commercial Companies Law issued by Decree-Law No. 21 of 2001, and the Electronic Communications and Transactions Law issued by Decree-Law No. 54 of 2018, as amended by Law No. 29 of 2021.

Signed by Minister of Industry and Commerce Abdulla bin Adel Fakhro, the decision was issued following Cabinet approval and a submission from the ministry’s undersecretary. It will come into force from the day after its publication, with the undersecretary tasked with overseeing its implementation.

The move is expected to reduce administrative burdens, support efficiency, and further encourage the adoption of secure digital systems across Bahrain’s business sector.