Like other Gulf countries, Bahrain is pushing for "Bahrainization" by reducing the number of foreign workers in both public and private sectors. According to the Council of Ministers, this effort aims to tackle unemployment, which hit 5.4% by the end of 2022.
In line with this shift, many Bahraini companies are now focusing on hiring locals for jobs previously held by foreigners, matching skills with specialized roles.
What is Bahrainization?
Bahrainization is a policy implemented by the Bahraini government to increase the number of Bahraini citizens employed in the public and private sectors. The goal is to reduce reliance on foreign workers and create more job opportunities for Bahrainis. However, Bahrainization is more than just a policy; it’s a vision for the future of Bahrain's workforce.
Current Expat Population in Bahrain:
1,499,269
Top Expat Nationalities Operating in Bahrain:
Indians: 290,000
Sector-Specific Targets for Bahrainization in Private Sector
- Medical
- Legal
- Accounting
- Education
- Banking
- Aviation
Read more: Top Applicant Tracking System in Bahrain
History of Bahrainization
Origins in the 1980s:
- Bahrainization began in the 1980s due to high unemployment rates among Bahrainis and the growing number of expatriate workers.
- The government introduced quotas and incentives for companies to hire Bahraini citizens, focusing initially on public sector jobs.
Development in the 1990s:
- During the 1990s, the policy extended to the private sector, with more stringent requirements for businesses to employ locals.
- Training programs and educational reforms were implemented to equip Bahrainis with the necessary skills for various industries.
Early 2000s Initiatives:
- The Economic Vision 2030, launched in 2008, further emphasized Bahrainization as part of the broader goal to diversify the economy and reduce oil dependency.
- Specific targets were set for various sectors to create a more sustainable and skilled Bahraini workforce.
Modern Implementation:
- In recent years, Bahrain has continued to enforce Bahrainization through regulatory measures and incentives.
- The government collaborates with industries to ensure alignment between educational outputs and market needs, fostering a competitive and capable local workforce.
- With unemployment rates still a concern, recent efforts have intensified, particularly in sectors like banking, retail, and hospitality, to prioritize the employment of Bahraini nationals.
Current Focus and Challenges:
- Today, Bahrainization remains a key element of national policy, addressing ongoing economic challenges and striving for a balanced and inclusive job market.
- Despite progress, challenges persist, including resistance from businesses accustomed to cheaper foreign labor and the need for continuous skill development among Bahrainis.
Read more: Top Recruitment Platforms in Bahrain
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Updates in the Bahrainization Policy in 2024
A new draft law in Bahrain aims to enhance Bahrainization across key medical, legal, accounting, education, banking, and aviation sectors. The legislation mandates companies to prioritize hiring Bahraini nationals within two years. Despite concerns from the Ministry of Labour and the Bahrain Chamber of Commerce and Industry (BCCI), the law has gained support from the Legislative and Legal Affairs Committee. The BCCI calls for a thorough review to ensure effective implementation. The initiative aligns with Bahrain's broader economic recovery plans and employment strategies.
New Draft Law: Aims to boost Bahrainization in sectors like medical, legal, accounting, education, banking, and aviation.
Hiring Mandate: Companies must prioritize hiring Bahraini nationals within two years.
Support and Concerns: Legislative and Legal Affairs Committee supports the law; Ministry of Labour and Bahrain Chamber of Commerce and Industry (BCCI) express concerns.
Review and Implementation: BCCI calls for a thorough review to ensure effective implementation.
Economic Strategy: The initiative aligns with Bahrain's economic recovery and employment strategies.
Read more: What is Qatarization?
What is the Penalty for Non-compliance to Bahrainization?
Here are the penalties for non-compliance:
Employers
If an employer does not comply with the relevant Bahrainization rate, they can now apply for work permits for foreign nationals by paying an additional fee of BHD 300 during the application process. However, it’s recommended that employers strive to meet the applicable Bahrainization rates.
Individual Violations
Imprisonment: Anyone breaching provisions related to Bahrainization may face imprisonment for no less than three months and no more than one year.
Fines: The fine ranges from BD 1000 to BD 2000. For repeated violations, the imprisonment term increases from 6 months to 2 years, with fines ranging from BD 2000 to BD 4000.
Business Suspension: In some cases, the court may suspend the activities of the convict or close their business for up to one year.
Expulsion: Foreign individuals violating provisions may be fined (not exceeding BD 100) and expelled from the Kingdom, with a ban on permanent return or a temporary period of at least three years.
Employer Fines: Employers, recruitment agencies, or their representatives violating certain provisions may face fines ranging from BD 500 to BD 1000, doubling upon repetition.
Read more: What is Kuwaitization?
What is the Goal of Bahrainization?
Bahrainization aims to increase the employment of Bahraini nationals across various sectors, thereby reducing reliance on foreign labor. This initiative aims to tackle unemployment among Bahraini citizens, ensure sustainable economic growth, and create a skilled local workforce aligned with the country's broader economic recovery and employment strategies. The focus is on prioritizing hiring Bahraini nationals in critical industries, such as medical, legal, accounting, education, banking, and aviation, within a specified timeframe.
Read more: What is Omanisation?
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in Bahrain
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Reduce time-to-hire by 40%
How to Overcome the Challenges of Bahrainization?
Here is how companies can meet their Bahrainization targets more effectively:
1. Training and Development: Invest in training programs to enhance the skills of Bahraini employees and ensure they are equipped to fill key roles.
2. Partnerships with Educational Institutions: Collaborate with local universities and vocational schools to align curricula with industry needs, creating a pipeline of qualified Bahraini graduates.
3. Incentives for Hiring Locals: Take advantage of government incentives and subsidies to employ Bahraini nationals.
4. Career Pathways: Establish clear career development pathways to retain Bahraini talent by offering opportunities for growth and advancement.
5. Flexible Work Arrangements: Implement flexible work arrangements, including part-time and remote work options, to attract a broader pool of Bahraini candidates.
As businesses navigate evolving landscapes, securing skilled Bahraini talent is crucial for success. With Iris by Qureos, you can unlock the potential of top Bahraini professionals, enhancing your workforce while seamlessly achieving Bahrainization goals. Get in touch today to find top talent in Bahrain!
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