Gulf Countries Implement New Measures to Boost Indigenization, Expatriates Face Heavier Fees

Gulf countries are implementing new measures to strengthen indigenization, with expatriates facing increased fees for work permits. The Bahrain government has proposed a plan to raise the work permit fee for non-resident workers by ten percent or more. Three options are on the table, with the first option suggesting a doubling of the work permit fee from 100 to 200 dinars, an increase in health care fees to 144 dinars, and a hike in the monthly fee for businesses with over five employees to 20 dinars per worker. The second and third options propose a ten percent increase in renewal fees and various adjustments in health care and monthly charges. These measures are part of the government’s broader strategy to boost indigenization, and if approved, they will take effect from January 1, 2025.

The proposed fee hikes may pose challenges for expatriates, as the increased financial burden could impact their overall cost of living in Bahrain. The move aligns with the broader trend in Gulf countries, where there is an increasing focus on prioritizing local talent and reducing dependence on foreign workers. Expatriates in Bahrain, like those in other Gulf nations, will need to navigate these changes, potentially reconsidering their financial plans and strategies in response to the evolving economic landscape in the region.

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