Last reviewed: November 2026. This brief summarises the sustainability, ESG disclosure and corporate governance landscape in Bahrain for boards, sustainability teams and investor-relations professionals. It is an orientation guide, not legal advice.
Rules, thresholds and deadlines change frequently, and several frameworks described here were being revised at the time of writing. Always confirm the current position with the official source (regulator, exchange or ministry) before relying on any requirement.
Overview
Bahrain is a regional financial centre with a long-established banking, insurance and Islamic finance industry. It moved from voluntary to mandatory ESG reporting faster than most of its neighbours: the Central Bank of Bahrain (CBB), which is the single regulator for financial services and capital markets, introduced binding ESG reporting for listed companies and certain licensees, and Bahrain Bourse aligned its listing rules.
Regulators and stock exchange
- Central Bank of Bahrain (CBB) – regulates banks, insurers, investment firms and capital markets; its Rulebook contains the ESG requirements.
- Bahrain Bourse (BHB) – operates the stock exchange and publishes listing rules and ESG guidance for issuers.
- Ministry of Industry and Commerce – administers the Commercial Companies Law and the Corporate Governance Code for joint stock companies.
Bahrain also hosts AAOIFI, the standard-setter for Islamic finance accounting, auditing, governance and Shari'ah standards, which matters for Islamic banks and sukuk issuers.
ESG / sustainability disclosure requirements
- 2020: Bahrain Bourse issued a voluntary ESG Reporting Guideline for listed companies.
- 2023: the CBB issued an ESG Module in the Common Volume of its Rulebook, making annual ESG reporting mandatory for listed companies and specified licensees (including banks and insurers), starting with the financial year ending December 2024. Reports are submitted to the CBB and published.
- 2024: Bahrain Bourse updated its Listing Rules and guidelines to align with the CBB module.
Check the current Rulebook text for the required content, governance of the report, assurance expectations and deadlines.
Corporate governance code
The Corporate Governance Code issued by the Ministry of Industry and Commerce in 2018 applies to Bahraini joint stock companies (other than CBB licensees). It was amended in 2022 by Ministerial Decision No. 91 of 2022 and renamed the Management and Corporate Governance Code; the amendments added remuneration disclosure requirements and penalties linked to the Commercial Companies Law. CBB-licensed institutions follow the CBB's High-Level Controls module, which incorporates governance requirements for financial firms. Companies publish an annual corporate governance report.
Climate commitments
- Net zero: target year 2060, announced in 2021.
- Interim goal: a 30% reduction in greenhouse gas emissions by 2035.
- Energy: a stated target of 20% renewables in the energy mix by 2035, supported by a National Energy Strategy.
Sustainable finance
Green and sustainability-linked instruments are a growing segment for Bahraini banks and Islamic financial institutions, and the CBB's ESG module extends sustainability reporting to the financial sector itself. Islamic finance standard-setting by AAOIFI and the market for sukuk make Bahrain a reference point for green and sustainable sukuk structures. Companies should expect lenders and investors to use CBB-mandated ESG reports as a primary data source.
Investor relations practice
Bahrain Bourse issuers disclose in Arabic and English, and many larger banks and industrial companies hold regular results briefings. The regional Middle East Investor Relations Association (MEIRA) is active in Bahrain. Because ESG reporting is now mandatory, IR teams should make sure that the ESG report, the corporate governance report and the annual report tell a consistent story, especially on board oversight of sustainability, targets and data quality.
Practical steps for a first or second mandatory cycle: map each required ESG metric to a data owner, document calculation methods (for example GHG Protocol for emissions), have the board or a board committee review the report before submission, and keep an evidence file that would support future external assurance. Reusing the same data set for lender questionnaires, ESG rating agencies and investor presentations reduces effort and the risk of contradictory figures.
What to watch
- Updates to the CBB ESG Module, including any move towards IFRS S1/S2 or assurance requirements.
- Implementation of the 2022 governance code amendments and remuneration disclosure.
- Progress against the 2035 interim emissions target and renewable energy plans.
Official sources
- Central Bank of Bahrain
- CBB Rulebook – ESG Module
- Bahrain Bourse – Sustainability
- Ministry of Industry and Commerce – Corporate Governance
Last reviewed: November 2026. Corprise Knowledge Hub briefs are updated periodically; if you notice a change in the rules, check the official source first.
