Bahrain: Draft Law Amending Bahrainization Policies Currently Under Review

The Council of Representatives in Bahrain is reviewing a draft law that would impose a 30% cap on the number of foreign national workers allowed to work in private-sector commercial establishments. The proposed legislation would impose monetary fines (expected to be up to 20% of a foreign worker’s salary) or administrative penalties on employers who breach the new requirements. Although further details are not clear, it is expected that the 30% cap will subsequently increase in a staggered fashion and that, as a separate initiative, Bahraini authorities will seek to limit the total number of work permits issued within specific timeframes to foreign national workers. The reforms, if implemented, would significantly affect the hiring practices of businesses. In Bahrain, the legislative implementation process can take several months, with both the Shura Council and the Council of Representatives (or the National Assembly, if applicable) needing to approve a law before it is then sent to the King for endorsement. Employers are encouraged to monitor the passage of these reforms and begin reassessing their current recruitment strategies in order to adequately prepare for future legislative changes.

The proposed reforms are part of broader efforts to increase the number of Bahraini nationals working in the private sector. The Bahraini government aims to employ 20,000 Bahraini nationals in the private sector and train at least 10,000 Bahraini nationals by the end of 2024.