Bahrain approves maximum cap on work permits to reduce dependency on foreign labour

Bahrain’s legislators have approved a proposed amendment to the 2006 Labour Market Regulatory Law, which introduces a maximum cap on work permits as part of the country’s broader national labour market reform.

In a unanimous vote, supporters said, the move is intended to reduce the nation's dependancy on foreign workers and boost job opportunities for Bahraini talent.

MP Jalila Al Sayed, chairwoman of Parliament’s services committee, who led the proposed cap, explained: “The goal is to enhance job opportunities for Bahrainis, reduce economic outflows through remittances and encourage the recruitment of qualified foreign professionals committed to local laws,” 

Nevertheless, the amendment is not without challenges, as the Acting Labour Minister and Minister for Legal Affairs Yousif Khalaf warned against the risks of a rigid cap. He said: “The current law gives the minister power to introduce a cap, if necessary, depending on circumstances. Enforcing it would mean several vital infrastructure and investments could be harmed if we are unable to get more workers when needed.”

He also underlined the significant drop in expat permits during the Covid-19 pandemic, which dropped down by 21 per cent in 2019–2020, followed by a 25 per cent rebound over the next two years. “So it is more of a dynamic approach rather than enforcement as the country needs to fast-track development,” Khalaf added.

The ministers also noted additional concerns such as - including rising inflation, unlicensed street vendors, and broader issues of public order, calling for stronger measures to uphold Bahrain’s economic and social stability.

And MP Abdulnabi Salman, Parliament’s first deputy speaker, underscored growing tensions over vocational permits, claiming that expats are increasingly taking over jobs meant for Bahrainis. “When we have no cap on expats, it is expected that they will come to the country en masse and take up jobs and businesses intended for Bahrainis. Even the crime rate is up and Interior Ministry statistics show that mostly expats are involved, the case of bootleggers in Eker being a recent example.”

MP Khalid Bu Onk, spokesman for the Strategic Thinking Bloc, shared personal anecdotes to support the call for tighter controls. “A fellow MP had BD3,000 stolen from his car by an unlicensed food delivery driver,” he said. He also noted that his domestic worker had fled just two days earlier. “Now I’m required to pay for her return ticket, while those who helped her escape face no accountability.”

He argued for an overhaul of the existing expat vocational labour registration system. “We must replace it with a more disciplined system that protects society and reduces illegal labour,” he said, urging urgent reforms.

Still, others are warning that any move to limit flexibility in the labour market must be weighed carefully.

LMRA Chief Executive Nibras Talib emphasised that the current legal framework already allows for adaptive responses to economic shifts. The Bahrain Chamber echoed that concern, cautioning that rigid caps could weaken the private sector’s ability to meet changing labour demands.

The chamber instead called for “a broader legislative framework that preserves flexibility while supporting economic growth.”

On the other hand, the General Federation of Bahrain Trade Unions welcomed the proposed amendment as a “positive step” towards empowering the Bahraini workforce.

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But the Bahrain Recruitment Agencies Association struck a more cautious tone, warning the move could contradict the Bahrain's Economic Vision 2030. They called for clearer definitions of targeted labour segments and urged the LMRA to carry out regular market studies to avoid unintended consequences.

The legislation has now been forwarded to the Shura Council for further review.