Bahrain's Foreign Ministry summoned the Iraqi charge d'affaires for allegedly breaching diplomatic norms on Tuesday.
A statement carried by state news agency BNA said Moayad Omar Abdul Rahman had made "repeated" violations and his "recent unacceptable behaviour" had interfered with the internal affairs of the kingdom.
At a meeting with Bahrain's Minister of Foreign Affairs, Dr Abdullatif bin Rashid Al Zayani, Mr Rahman was handed a note of official protest.
Shortly after the announcement, Iraqi Foreign Minister Fuad Hussein decided to bring Mr Abdul Rahman back to Baghdad, the ministry's spokesman Ahmed Al Sahaf said in a statement.
Neither Manama and Baghdad would specify what the diplomat had done to draw the censure, nor expand on further consequences.
Iraq has yet to publicly respond.
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Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
