A proposed legislation seeking to impose a fixed annual ceiling on foreign work permits has been firmly rejected by the Shura Council, amid warnings that the move could destabilise Bahrain’s labour market, undermine investor confidence and fuel illegal employment.
The draft law, which proposed amending Article (Four) of the 2006 Labour Market Regulatory Law, would have obligated the Labour Market Regulatory Authority (LMRA) to set a strict numerical cap on permits issued across all sectors.
However, the Shura Council yesterday voted unanimously to reject the proposal in principle and referred it back to Parliament for review.
LMRA chief executive Nibras Talib emerged as a prominent voice during the debate, stressing that Bahrain’s labour market is built on flexibility, not rigid quotas.
“Bahrain does not operate a quota-based system,” Mr Talib told members. “We already apply caps determined by each commercial registration and business activity. We establish how many permits are required – or whether they are required in the first place – based on real economic need.”
He warned that forcing the authority to apply a mandatory, across-the-board ceiling would weaken its ability to respond to supply and demand, encourage irregular labour practices and disrupt long-term workforce planning.
“Business activity and Bahrain’s economy are based on dynamic movement,” he said. “This requires flexibility according to need at the time, or future commitments, without causing disruption to labour flow.”
Shura services committee vice-chairman and rapporteur Talal Al Mannai said the amendment would undermine legislative flexibility and turn regulation into a rigid procedural burden with little practical benefit.
“A strict numerical ceiling may appear effective in theory, but in practice it risks becoming a purely formal obligation without real impact,” he said.
Mr Al Mannai added that successful workforce nationalisation requires integrated policies – including training, wage support and incentives – not blunt legislative tools that could infringe on businesses’ right to recruit talent needed for growth.
During the debate, several members cautioned that the proposal could send negative signals to investors.
Dr Ali Al Haddad said the amendment ‘fails to achieve the purpose for which it was drafted’ and could restrict the executive authority’s ability to keep pace with rapid labour market changes.
Dr Hani Al Saati highlighted the legislative philosophy behind the issue, arguing that general laws should be permissive rather than obligatory.
“When we impose obligation and fix a ceiling, we strip the law of its discretionary authority,” he said. “Guided permissiveness gives regulators room to act wisely.”
First vice-chairman Jamal Fakhro questioned the premise of the amendment altogether. “If the aim is to employ Bahrainis, this is not the right law,” he said.
“If the aim is to monitor expatriate numbers, this is also not the right place. The current text already allows setting upper limits when needed, either overall or by sector.”
He added that, given Bahrain’s need to continuously attract investment, imposing fixed restrictions on foreign labour would be counterproductive.
Shura’s legislative and legal affairs committee chairwoman Dalal Al Zayed said rigid caps could push some employers towards illegal labour practices or prompt companies to exit the Bahraini market.
She also noted that the Bahrain Chamber and recruitment agencies had opposed the proposal, while the General Federation of Trade Unions supported it.
Member Ali Al Aradi said the amendment was unworkable in a globally connected economy. “We cannot bind the authority with fixed numbers while Bahrain seeks leadership in modern industries and foreign investment,” he said.
The Labour Ministry backed the LMRA’s position, emphasising that fixed permit ceilings have no proven impact on boosting Bahraini employment and often lead to irregular labour markets.
mohammed@gdnmedia.bh
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