A proposal to abolish the parallel Bahrainisation system that allows employers to bypass the required national employment quotas by paying an additional fee for expat work permits is set for debate during Tuesday’s weekly Parliament session.
Five MPs, led by public utilities and environment affairs committee vice-chairman Bader Al Tamimi, argue that the system complicates the goal of increasing employment opportunities for Bahrainis.
The MPs highlighted three main concerns:
1. Employment challenges for Bahrainis. The system provides an easy way for employers to avoid hiring Bahrainis, leading to stagnation in Bahrainisation efforts.
2. Rising unemployment rates. Unemployment, particularly among university graduates, continues to rise as businesses opt to hire expat workers instead of qualified Bahraini candidates.
3. Economic growth and social security contributions. Increasing local employment would enhance the country’s economic stability and boost contributions to the social insurance system, providing a long-term solution for jobseekers.
The proposal has sparked a debate between the Labour Market Regulatory Authority (LMRA), the Bahrain Chamber and the General Federation of Bahrain Trade Unions (GFBTU).
The LMRA argued that abolishing the system would weaken one of the key incentives for hiring Bahrainis.
It also warned of potential negative repercussions on national employment rates and compliance with Bahrainisation quotas.
“Raising the cost of hiring expat workers under the parallel Bahrainisation system directly supports the 2023-2026 National Labour Market Plan and aligns with the government’s programme to create quality job opportunities for Bahrainis,” said LMRA chief executive Nibras Talib.
“The system imposes an additional BD500 fee on employers seeking foreign work permits, if they do not meet their Bahrainisation quota,” he added.
“This fee encourages businesses to prioritise hiring Bahrainis, maintaining a balance between economic growth and local employment.
“Additionally, there are several initiatives aimed at enhancing the competitiveness of Bahraini workers.”
Mr Talib said multiple measures were being taken before the parallel permission is granted.
“There’s a 21-day waiting period before issuing work permits for expat workers, during which employers must advertise job vacancies in local newspapers and interview Bahraini candidates,” he said.
“Also, there is continued support from Tamkeen (Labour Fund) in supporting Bahraini wages to enhance employment prospects.
“Skill development programmes are on offer in collaboration with the Labour Ministry to prepare Bahrainis for high-demand jobs.”
The LMRA provided statistics on work permits issued under the parallel Bahrainisation system.
In 2021, there were 10,933 new parallel permits and 18,506 renewals.
In 2023 (until November), 12,251 new permits were issued and 27,849 renewals.
Also opposing the proposal, the Bahrain Chamber cited concerns about its impact on business operations and economic growth.
“The proposed abolition of the parallel Bahrainisation system would harm employers and contradict Bahrain’s Vision 2030 economic principles,” it said in writing.
“The chamber believes that forcing companies to hire unqualified workers just to meet Bahrainisation quotas could lower productivity and disrupt market dynamics.
“There is a need for long-term legislative solutions to enhance workforce skills rather than making abrupt regulatory changes.
“The labour market operates based on supply and demand. If Bahraini workers lack the necessary qualifications, businesses will struggle to meet their operational needs,” the chamber warned.
It urged policymakers to focus on comprehensive economic reforms rather than partial measures that could weaken investor confidence.
However, the GFBTU supported the proposal, citing the rising number of unemployed Bahrainis and declining consumer purchasing power.
“The parallel Bahrainisation system was introduced without consulting workers’ representatives, and it has only worsened the unemployment crisis,” it said in a written statement.
It argued that favouring foreign workers over Bahrainis has led to an economic slowdown, reducing liquidity in the market and negatively affecting small businesses.
Parliament services committee chairwoman Jalila Al Sayed, whose committee has recommended that the proposal be given the go-ahead, said that it presents a complex challenge that pits labour market reforms against economic flexibility.
“While proponents argue that removing the system would create more jobs for Bahrainis and strengthen the economy, opponents warn that it could backfire by disrupting business operations and reducing competitiveness,” she said.
“However, national employment should be a core legislative focus regardless of any circumstance; the labour market will adjust accordingly.”
Meanwhile, MPs are also set to vote on a proposal by the Strategic Thinking Bloc, led by Parliament’s financial and economic affairs committee chairman Ahmed Al Salloom to calculate pensions for Bahrainis working on temporary contracts for long periods in government and private establishments.
He said the current system was unfair as it deprived Bahrainis from future financial guarantees when they reached retirement age or were unable to continue working.
The Civil Service Commission has stated that only employees on the official government payroll are granted pension benefits with the Social Insurance Organisation (SIO).
The Health Ministry said medics on temporary work permits receive benefits as those on permanent contracts until the commission approves their inclusion on the official payroll making them eligible for pension rights.
The SIO said it deals with an employer and employee through official registration, and from which pension contributions and benefits are later calculated.
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