Draft Law Enhancing Bahrainisation Under Review
The Council of Representatives is currently reviewing a draft law that could significantly impact private-sector employment practices. The proposed legislation aims to impose a 30% cap on the number of foreign nationals permitted to work in private-sector commercial establishments. Employers who breach this requirement could face fines of up to 20% of a foreign worker’s salary or other administrative penalties. Although the specific details of the legislation are still under discussion, it is expected that the 30% cap may be gradually increased over time.
The Labour Market Regulatory Authority (LMRA) is anticipated to implement parallel measures to restrict the issuance of work permits for foreign workers within designated timeframes.
In Bahrain, the legislative process comprises several stages. Once the draft law has been reviewed and approved by the Council of Representatives, the Shura Council, and potentially the National Assembly, it will be sent to the King for final endorsement. This process may take several months, giving employers a limited timeframe to evaluate the potential impact of the reforms on their recruitment strategies and workforce planning.
Businesses are encouraged to closely monitor the progress of these legislative changes and proactively assess their hiring practices to ensure future compliance. Early planning will be critical in adapting to the evolving regulatory landscape.
The proposed reforms align with Bahrain’s broader Bahrainisation strategy, which seeks to increase local employment in the private sector. As part of its Vision 2030 goals, the government aims to employ 20,000 Bahraini nationals in private-sector roles and train at least 10,000 Bahrainis by the end of 2024. These initiatives reflect the government’s commitment to enhancing workforce localisation while reducing reliance on expatriate labour.
The draft law capping foreign workers in the private sector represents a significant shift in the country’s employment policies. By encouraging greater participation of Bahraini nationals in the workforce, the proposed reforms aim to drive sustainable economic growth and social inclusion. While the legislative process is ongoing, businesses should remain vigilant, reassess their recruitment strategies, and take proactive measures to ensure alignment with future requirements.
