Foreign job for Asians
Bahrain
Living, working or studying in Bahrain?
Just Landed helps you manage everyday life. Our Bahrain Guide covers topics like visas, housing, jobs and finance. Join the Just Landed Community, get in touch with people like you and share your experiences. Most importantly, have fun!
Documentation required to enter Bahrain
The movement of foreigners is tightly controlled in Bahrain, and issuing of visas and other permits is subject to strict bureaucratic procedures.
Those who are denied access therefore have little opportunity for appeal. Fortunately, the average expatriate doesn’t need to deal with much of the bureaucracy. Most companies and institutions, large or small, have a ‘fixer’, whose job is to wade through the red tape generated by the various ministerial departments in order to obtain work and residence visas for foreign workers and their families. The fixer will also act as your guide whenever your presence is required.
The documents required to enter Bahrain include the following:
Note also that any visible connection with Israel, e.g. an Israeli passport or an Israeli entry stamp, will disqualify you from entry.
While you’re in Bahrain, you’re required to carry identification documents, e.g. passport or national identity card and appropriate entry and residence visas. Note that it’s common for labour officials to carry out spot checks on businesses in search of workers employed illegally and to inspect passports in the possession of the employer.
This isn’t to suggest that Bahrain is a repressive regime: expatriates have little to worry about if they conduct themselves in a reasonable way, obey the laws and observe the rules of the culture. Indeed, you will usually be treated with kindness and generosity.
Visas
How to obtain a visa
Visas are required by most visitors to Bahrain, whether on holiday or business trips or intending to live and work there.
In order to obtain a visa, you require a sponsor, which is normally your employer if you’re working. If you’re visiting for a holiday or business, the hotel where you’re staying can act as your sponsor. To request this service, you must send your travel itinerary and passport details by fax a few weeks in advance of your stay. Ensure that confirmation has been given and that your visa will be left at your point of entry before you depart. A small fee will be added to your hotel bill for this service. Additionally, your hotel might be able to obtain short extensions to your stay, provided they’re sure of your itinerary during the stay. The hotel is responsible for you during your time in the country. If you’re taking up work in Bahrain, your sponsor will normally arrange the necessary visas and permits for you.
Most visas and permits consist of passport stamps, so that immigration authorities can easily check that you have the necessary authorisation when you enter or leave the country. There are costs associated with the various visas and permits, but in the case of foreign workers these are normally met by your employer. Note that the prices quoted below should be taken as a guide only, as they’re subject to change, as are the conditions and requirements; the relevant state’s embassy or consulate can provide you with the current information.
Types of Visa
What sort of visa do I need?
All nationals of Gulf Cooperation Council (GCC) member states (i.e. the six Gulf states) and British citizens (by birth) may enter Bahrain without a visa and receive an entry stamp in their passport.
British citizens can stay for a month and gain a short extension by applying to the Directorate of Immigration and Passports, Bahrain International Airport, PO Box 331, Manama (Tel. 973-528 883).
All other visitors require one of the following visas. Note that, although certain visas are theoretically obtainable on arrival in Bahrain, young single women should be sure to arrange them in advance, as they will come under scrutiny at the point of entry owing to the recent increase in the number of prostitutes attempting to enter Bahrain.
Note also that the immigration authorities are very strict with those whose passport states their occupation as journalist, writer or editor, unless their visit has prior permission from the Ministry of Information (PO Box 253, Bahrain, Tel. 973-781 888). Even if your visit to Bahrain is unconnected with your work as a writer, you’re likely to be refused entry or at best will be allowed to approach the Ministry of Information, under supervision, for permission to enter the country. Journalists on official visits are sponsored by the Ministry and are accompanied by an official during their visit, with transport supplied.
Tourist VisaBahrain has a burgeoning tourist industry and is keen to promote this further, as it’s a valuable source of income. Tourist visas are issued for stays of two weeks to citizens of the European Union (EU), Australia, Canada, Hong Kong, Japan, New Zealand and the USA. Applicants must possess valid, up-to-date passports and a return or onward ticket. A small charge is made – around BD5 ($12) – and hotels can arrange visas if given advance notice. Tourist visas don’t allow you to engage in any employment.
Visitor VisaThese visas are for other foreign nationals and require the sponsorship of a Bahraini, who has to apply to the Directorate of Immigration and Passports on the visitor’s behalf. They’re valid for a month and cost BD22 (around $54). They don’t allow employment.
72-hour & Seven-day VisasThese are obtainable at the point of entry for short stay business visitors and cost around BD10 ($24) and BD15 ($36) respectively. You need a return or onward ticket and a valid passport.
Business VisaThose intending to stay longer than a week on business must obtain a business visa through the Bahrain embassy in their own country. Business visas are valid for up to four weeks. You must complete an application form and present your passport, photographs, an employer’s letter indicating the purpose of the trip and a ‘letter of no objection’ or a ‘ no objection certificate’ (NOC) from your Bahraini sponsor, although this last is rarely asked for. There’s a fee (e.g. £20 in the UK). The duration of the visa varies according to the nature of the trip.
Work VisaIf you’re taking up employment in Bahrain, you require a work visa, which is normally valid for one or two years. This also entitles you to reside in the country. A medical examination is required and fees are applicable. Your sponsor normally arranges most of the necessary paperwork.
Family VisaThe immediate family of those working in Bahrain can obtain a family visa (sometimes also called a residence permit) for around BD22 ($54), which entitles them to residence status for the period of employment. Members of the family aren’t allowed to work, unless separate arrangements are made and the appropriate work visas obtained.
Employment prospects
Bahrain allows plenty of foreign workers into its territory, but almost exclusively on a temporary basis.
Expatriates aren’t generally allowed to become part of the permanent population. Foreign workers are dealt with in a fair but controlled way, paid and treated well, and at the end of their time in the region, thanked and rewarded for their efforts. On the other hand, the government is conscious of the need to provide decent jobs with career paths for their own young people, who are increasingly educated and aware of the attractions of the outside world – many attend universities in the USA or UK. Having made major investments in education and social welfare, they hope that eventually Bahrain will become almost self-sufficient in terms of labour.
A majority of outside observers, however, believe that expatriates will have a substantial role to play for many years to come, and it seems likely that expatriates will continue to be important for the next two or three decades, although there will undoubtedly be changes in the number of people employed and the type of skills required. For example, the vast construction projects currently found throughout the region (e.g. road systems, airports, ports and trading zones) will become less numerous, with a resulting decline in the number of manual workers required. Commercial development, however, will lead to further building programmes as Bahrain’s economy continues to grow. Managerial, professional and particularly technological experience will still be in strong demand for many years to come. But there will be none of the mass immigration and resulting demands for citizenship that have been experienced in western societies, or the current trend of economic refugees looking for a better way of life. Bahrain will simply not allow it. Foreigners cannot become citizens or own land and property, although there appears to be some lessening of the restrictions, certainly as regards owning one’s own business.
There are other general issues to consider: you’re contemplating a move to a culture that’s almost certainly different to your own; will the way of life, and particularly the restrictions imposed on you, suit you? Will the relocation benefit your long-term career prospects? Will your family (especially any children) cope with and benefit from the move? What impact will it have on their education and employment prospects? If you aspire to be your own boss, as many people do, be aware that starting a business in the region can prove difficult and that you will almost always be required to have a local partner who has a majority holding. Is that acceptable to you?
The Middle East has been the scene of considerable conflict and unrest in recent decades, although the Gulf states are generally safe places to live and work. However, before travelling anywhere in the Middle East, it’s wise to obtain advice from your country’s foreign office. Note also that homosexuality is regarded as a criminal offence throughout the region.
You should ideally have a firm offer of employment before travelling to Bahrain. Speculative visits are occasionally successful, but you need to be notably lucky and have high-grade qualifications and experience to stand any chance. In addition, you will almost certainly need knowledgeable local contacts and have done some research into the types of company which would most value your experience.
BahrainThe Kingdom of Bahrain is an absolute monarchy (although its head is an emir) and the only Gulf state with strict primogeniture (the principal by which title or property descends to the eldest son) in the royal family. With a population of around 620,000, Bahrain is the smallest of the Gulf states but has an influence that belies its size. Bahrain was the site of the first discovery of oil on the Arabian peninsula side of the Gulf. This occurred at an opportune time, coinciding with the breakdown of the global pearl market, which was previously a crucial part of Bahrain’s economy. Since then, Bahrain has shown foresight by diversifying its economy away from an almost total reliance on oil production. This has been necessary because, in comparison with the other Gulf states, Bahrain has limited oil resources, with an output of around 50,000 barrels per day, although it also receives around three times that amount daily, from coastal offshore fields shared with Saudi Arabia. Oil production now accounts for only 10 to 15 per cent of the gross domestic product, the latter around US$6 billion annually.
The state controlled companies Bahrain National Oil Company (BANOCO) and Bahrain Petroleum Company (BAPCO) located at Awali control the oil resources and have extensive development plans, including the production of refined unleaded fuel. BAPCO at Awali is in effect a small town, with extensive on-site amenities for its employees and their families. Other energy industries include BANAGAS, which provides gas services.
Aluminium Bahrain (ALBA) is the largest aluminium smelter in the Middle East, although it has a strong competitor from DUBAL, which is based in Dubai. ALBA’s Bahraini ownership has Saudi Arabian and German companies as minority partners and it provides a significant portion of Bahrain’s non-oil based exports. It has bred many downstream industries, such as a large rolling mill and an aluminium extrusion company, BALEXCO, manufacturing products for industrial and home use, including for export.
The Gulf’s largest ship repair yard, Arabian Ship Repair Yard (ASRY), operates at Sitra and employs a large workforce, both national and foreign, to cater for ships using the region’s busy oil routes. Bahrain originally aimed to become the centre for service industries in the Gulf, but that crown has been claimed by Dubai. The exception to this is the financial services industry, in which Bahrain reigns supreme, having taken the position that Beirut originally held, before the conflict in the Lebanon. Banks from all over the world have established branches in Bahrain, with retail, investment and off-shore operations. Today, Bahrain has almost 200 international banks and financial institutions, all under the control of the Bahrain Monetary Agency (BMA), which also has also overseen the Bahrain Stock Exchange since it opened in 1989. Banking and finance is now the second-largest sector in the economy, accounting for over a quarter of the GDP, and the service sector is the country’s largest employer, followed by general commerce and then government occupations.
The Bahrain Telecommunications Company (BATELCO) is a national company that was formed in 1981 after the take-over of the country’s telecommunications system, previously operated by the UK’s Cable & Wireless. BATELCO provides first-class satellite telecommunication links and cellular and internet services, advanced telecommunications being a pre-requisite for the operation of Bahrain’s financial services. Evidence of BATELCO’s efficiency is provided by the fact that many of the world’s leading financial institutions choose Bahrain as their regional base. Bahrain also boasts two ‘free zones’: Mina Sulman and North Sitra.
Tourism is growing rapidly in the Arabian peninsula, and Bahrain is a popular destination. It has long benefited from being at the crossroads of east and west and has been a stopping-off point for international airlines for many years. This has led to an openness and acceptance of foreigners visiting and working in the country, and might account for the genuine hospitality of the people in this friendly little country. Small it might be, but Bahrain’s political influence and goodwill in the region outweigh its size.
Bahrainis have a reputation for being astute and occupy many positions alongside their foreign counterparts in the state’s financial institutions. In recent times, more have been reaching positions of power, encouraged by the programme of ‘Bahrainisation’, which has been designed to encourage the local population to take full-time employment, develop their skills and at the same time reduce the risk of local unemployment.
Sponsorship
What is a sponsor?
All foreigners require a local sponsor in order to visit Bahrain (whether on holiday or business) or live and work there.
Whereas in the west the word ‘sponsor’ is commonly used of individuals or businesses paying to have their names associated with an artistic or sporting event, in the Gulf it has a quite different meaning: a sponsor acts as a sort of guardian as well as guarantor and must undertake all administrative work (i.e. paperwork) on behalf of the foreigner, including applying for a work and residence visa, opening a bank account and signing a rental accommodation contract.
A sponsor can be an individual, a company or an institution. In the case of employees, your employer usually also acts as your sponsor; visitors may be sponsored by a business partner or associate or by the hotel in which they’re staying. Those aiming to do business or set up a business in Bahrain should research the local business environment, establish contacts and find an individual or company with a good reputation and experience in the relevant field to act as your sponsor, who will expect remuneration for his services.
The sponsorship system is an effective form of immigration control. As your sponsor is responsible for you and ‘takes the rap’ if you misbehave or contravene any regulations (which will also involve him in loss of ‘face’ in the community), he automatically checks that you’re reliable and trustworthy, as well as ensuring that you don’t inadvertently step out of line. For this reason, your sponsor is an important source of help and advice and a valuable ‘ally’. Note that there is talk of the sponsorship requirement being waived in some states, particularly for foreigners wanting to set up businesses in the free trade zones, but this hadn’t happened at the time of publication.
Recruitment Agencies
How they operate
Recruitment consultants or agents play a major role in the placement of workers in a host of occupations in Bahrain.
In view of the distance between Bahrain and the countries that supply many of the region’s employees, it’s necessary for agents to act as middlemen. Private recruitment consultants and headhunters in western countries (and particularly in London and New York) deal with most managerial jobs in Bahrain, while agencies in India (particularly Bombay), Sri Lanka, Pakistan, Korea, the Philippines (Manila) and Thailand (Bankok) supply most of the enormous number of manual labourers employed in Bahrain’s numerous construction projects.
Agencies tend to specialise in particular areas of work, e.g. medical and nursing staff, computer personnel, accountants, construction managers, executive and office staff, engineering and the technical trades. Agency and consultancy fees are paid by the employer, with no charge to staff. Fees are usually a percentage of the annual salary, ranging from 10 to 20 per cent for most jobs but lower for those with high salaries. Regular customers are often offered preferential rates.
Recruitment agencies in Bahrain itself are sometimes used for placing expatriates in temporary work or for expatriate wives wishing to take up local employment. There are numerous regulations controlling the employment of spouses, and separate work visas are needed; the agent handles the details. Local agents are also used if expatriates change jobs. This, however, is uncommon, as expatriates are normally sent to Bahrain under contract and job changes are restricted by their employers. You might under certain circumstances be allowed to break your contract, in which case a local agency might be of use. Otherwise, at the conclusion of your contract, a local agency might find you another job.
Government Employment ServiceBahrain has no equivalent of the nationally-organised job centres found in western countries, and it’s the responsibility of the Ministries of Labour and Social Affairs to deal with employment (Ministry of Labour and Social Affairs, PO Box 32333, Manama (Tel. 973-687 800)).
Bahrain is trying to balance the need to import foreign labour with the interests of the local population, and companies are strongly encouraged to take on local nationals where possible. This ‘encouragement’ can be quite robust, and the Ministries are able to restrict the number of work visas issued or renewed to a company in order to comply with a quota of local intake.
Working conditions
Salary & Working hours
Salaries in Bahrain are usually similar to or greater than those paid in western countries.
But because the region has no personal taxation, net income is usually much greater, which is one of the major attractions of working in Bahrain. In the past, remuneration packages were split into various elements: basic salary, car provision or allowance, housing provision or allowance, medical cover, education for children and air tickets for home visits. Today, however, employers tend just to pay a salary, which covers all these expenses, although in some cases there are performance or other bonuses.
In addition to their salary, contract workers are awarded an‘indemnity’ at the end of the contract period. The indemnity is usually based on basic salary excluding any bonuses. The indemnity can be a significant amount of money if you’ve been working in Bahrain for a long time, and many people manage either to accumulate a reasonable financial cushion or to live the high life. If you’re clever and disciplined, you should be able to do some of both. The indemnity has nothing to do with insurance but is an end-of-contract bonus which is required by law to be paid to expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some cases 20) days of basic pay per year of employment for the first three years and thereafter a month’s salary per year of employment.
Note that some Arab companies regularly delay the payment of salaries, cash flow problems being passed on to their staff. In this event, you have little alternative but to wait.
Working Hours & OvertimeThe working week in Bahrain tends to vary between 40 and 48 hours, depending on the particular company’s policy. Office hours are usually from 8.30 or 9.00 am to 5.30 or 6.00 pm. There are no differences in time keeping between summer and winter. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours.
Friday is the Muslim rest day and, if your company has a five-day working week, the other day off will probably be either Thursday or Saturday. Saturday is the more popular choice for international companies, as taking Thursday off would mean a reduction in the number of operational days in common with much of the rest of the world. Conversely, other companies insist on Thursday, as the school ‘weekend’ is Thursday and Friday.
What you need to know
The general rule is that you’re given three written warnings detailing your failings or shortcomings before dismissal.
If you break the law, you can be instantly dismissed if the situation warrants it and the employer is so inclined. If you become involved in an altercation serious enough to warrant police attention, for example, or if you’re found guilty of drunken driving, your employer might dismiss you. You would be deemed to have defaulted on the terms of your contract and be ineligible for any indemnity payment due to you. However, an employee cannot be dismissed (or demoted) while on leave out of the country.
If you’re made redundant, the termination clause in your contract (of one month or whatever is applicable) comes into effect. Your employer might enhance the offer if he feels that your work deserves it or if it will cause hardship for you to have to leave Bahrain.
DisputesArabs sometimes make far-reaching judgements based on the ‘chemistry’ between you and them. If they don’t like you, they’re likely to look for excuses to terminate the association. It’s obviously in your interest to resolve any dispute amicably yourself, as you can never predict the outcome and, even if you ‘win’, it might be damaging or even disastrous to your career prospects.
Expatriates should avoid legal tussles whenever possible, which are time consuming and can lead to untold difficulties. If a dispute arises that cannot be immediately resolved between your employer and yourself, take your case to the relevant Ministry of Labour. If they agree with your interpretation of events, they will take the matter up with your employer on your behalf. Each state has its own labour laws, and an English-language version can be obtained from the Ministry. In general, the Ministries can be relied upon to make fair judgements in cases of dispute and don’t tend to be biased in favour of local employers. Do be aware, however, that adjournments or delays in sorting out any disputes usually work to the detriment of the employee: delays mean time and money, and the expatriate will have a limited amount of both. Serious disputes, however, are rare.
The region has no tradition of organised trades unions, and their formation is illegal; strikes, therefore, are virtually unknown. It’s possible to form an association within your company to make approaches on a collective basis to management, but this would have validity only within the individual company. Individual representation to the management is possible, but you will need to be understated, brave and have your return plane ticket handy!
The movement of foreigners is tightly controlled in Bahrain, and issuing of visas and other permits is subject to strict bureaucratic procedures.
Those who are denied access therefore have little opportunity for appeal. Fortunately, the average expatriate doesn’t need to deal with much of the bureaucracy. Most companies and institutions, large or small, have a ‘fixer’, whose job is to wade through the red tape generated by the various ministerial departments in order to obtain work and residence visas for foreign workers and their families. The fixer will also act as your guide whenever your presence is required.
The documents required to enter Bahrain include the following:
- a passport valid for at least six months (it’s useful to have at least three or four photocopies);
- at least six passport-size photographs;
- a marriage certificate (if applicable);
- birth certificates for all family members;
- a medical certificate in the case of workers.
Note also that any visible connection with Israel, e.g. an Israeli passport or an Israeli entry stamp, will disqualify you from entry.
While you’re in Bahrain, you’re required to carry identification documents, e.g. passport or national identity card and appropriate entry and residence visas. Note that it’s common for labour officials to carry out spot checks on businesses in search of workers employed illegally and to inspect passports in the possession of the employer.
This isn’t to suggest that Bahrain is a repressive regime: expatriates have little to worry about if they conduct themselves in a reasonable way, obey the laws and observe the rules of the culture. Indeed, you will usually be treated with kindness and generosity.
Visas
How to obtain a visa
Visas are required by most visitors to Bahrain, whether on holiday or business trips or intending to live and work there.
In order to obtain a visa, you require a sponsor, which is normally your employer if you’re working. If you’re visiting for a holiday or business, the hotel where you’re staying can act as your sponsor. To request this service, you must send your travel itinerary and passport details by fax a few weeks in advance of your stay. Ensure that confirmation has been given and that your visa will be left at your point of entry before you depart. A small fee will be added to your hotel bill for this service. Additionally, your hotel might be able to obtain short extensions to your stay, provided they’re sure of your itinerary during the stay. The hotel is responsible for you during your time in the country. If you’re taking up work in Bahrain, your sponsor will normally arrange the necessary visas and permits for you.
Most visas and permits consist of passport stamps, so that immigration authorities can easily check that you have the necessary authorisation when you enter or leave the country. There are costs associated with the various visas and permits, but in the case of foreign workers these are normally met by your employer. Note that the prices quoted below should be taken as a guide only, as they’re subject to change, as are the conditions and requirements; the relevant state’s embassy or consulate can provide you with the current information.
Types of Visa
What sort of visa do I need?
All nationals of Gulf Cooperation Council (GCC) member states (i.e. the six Gulf states) and British citizens (by birth) may enter Bahrain without a visa and receive an entry stamp in their passport.
British citizens can stay for a month and gain a short extension by applying to the Directorate of Immigration and Passports, Bahrain International Airport, PO Box 331, Manama (Tel. 973-528 883).
All other visitors require one of the following visas. Note that, although certain visas are theoretically obtainable on arrival in Bahrain, young single women should be sure to arrange them in advance, as they will come under scrutiny at the point of entry owing to the recent increase in the number of prostitutes attempting to enter Bahrain.
Note also that the immigration authorities are very strict with those whose passport states their occupation as journalist, writer or editor, unless their visit has prior permission from the Ministry of Information (PO Box 253, Bahrain, Tel. 973-781 888). Even if your visit to Bahrain is unconnected with your work as a writer, you’re likely to be refused entry or at best will be allowed to approach the Ministry of Information, under supervision, for permission to enter the country. Journalists on official visits are sponsored by the Ministry and are accompanied by an official during their visit, with transport supplied.
Tourist VisaBahrain has a burgeoning tourist industry and is keen to promote this further, as it’s a valuable source of income. Tourist visas are issued for stays of two weeks to citizens of the European Union (EU), Australia, Canada, Hong Kong, Japan, New Zealand and the USA. Applicants must possess valid, up-to-date passports and a return or onward ticket. A small charge is made – around BD5 ($12) – and hotels can arrange visas if given advance notice. Tourist visas don’t allow you to engage in any employment.
Visitor VisaThese visas are for other foreign nationals and require the sponsorship of a Bahraini, who has to apply to the Directorate of Immigration and Passports on the visitor’s behalf. They’re valid for a month and cost BD22 (around $54). They don’t allow employment.
72-hour & Seven-day VisasThese are obtainable at the point of entry for short stay business visitors and cost around BD10 ($24) and BD15 ($36) respectively. You need a return or onward ticket and a valid passport.
Business VisaThose intending to stay longer than a week on business must obtain a business visa through the Bahrain embassy in their own country. Business visas are valid for up to four weeks. You must complete an application form and present your passport, photographs, an employer’s letter indicating the purpose of the trip and a ‘letter of no objection’ or a ‘ no objection certificate’ (NOC) from your Bahraini sponsor, although this last is rarely asked for. There’s a fee (e.g. £20 in the UK). The duration of the visa varies according to the nature of the trip.
Work VisaIf you’re taking up employment in Bahrain, you require a work visa, which is normally valid for one or two years. This also entitles you to reside in the country. A medical examination is required and fees are applicable. Your sponsor normally arranges most of the necessary paperwork.
Family VisaThe immediate family of those working in Bahrain can obtain a family visa (sometimes also called a residence permit) for around BD22 ($54), which entitles them to residence status for the period of employment. Members of the family aren’t allowed to work, unless separate arrangements are made and the appropriate work visas obtained.
Employment prospects
Bahrain allows plenty of foreign workers into its territory, but almost exclusively on a temporary basis.
Expatriates aren’t generally allowed to become part of the permanent population. Foreign workers are dealt with in a fair but controlled way, paid and treated well, and at the end of their time in the region, thanked and rewarded for their efforts. On the other hand, the government is conscious of the need to provide decent jobs with career paths for their own young people, who are increasingly educated and aware of the attractions of the outside world – many attend universities in the USA or UK. Having made major investments in education and social welfare, they hope that eventually Bahrain will become almost self-sufficient in terms of labour.
A majority of outside observers, however, believe that expatriates will have a substantial role to play for many years to come, and it seems likely that expatriates will continue to be important for the next two or three decades, although there will undoubtedly be changes in the number of people employed and the type of skills required. For example, the vast construction projects currently found throughout the region (e.g. road systems, airports, ports and trading zones) will become less numerous, with a resulting decline in the number of manual workers required. Commercial development, however, will lead to further building programmes as Bahrain’s economy continues to grow. Managerial, professional and particularly technological experience will still be in strong demand for many years to come. But there will be none of the mass immigration and resulting demands for citizenship that have been experienced in western societies, or the current trend of economic refugees looking for a better way of life. Bahrain will simply not allow it. Foreigners cannot become citizens or own land and property, although there appears to be some lessening of the restrictions, certainly as regards owning one’s own business.
There are other general issues to consider: you’re contemplating a move to a culture that’s almost certainly different to your own; will the way of life, and particularly the restrictions imposed on you, suit you? Will the relocation benefit your long-term career prospects? Will your family (especially any children) cope with and benefit from the move? What impact will it have on their education and employment prospects? If you aspire to be your own boss, as many people do, be aware that starting a business in the region can prove difficult and that you will almost always be required to have a local partner who has a majority holding. Is that acceptable to you?
The Middle East has been the scene of considerable conflict and unrest in recent decades, although the Gulf states are generally safe places to live and work. However, before travelling anywhere in the Middle East, it’s wise to obtain advice from your country’s foreign office. Note also that homosexuality is regarded as a criminal offence throughout the region.
You should ideally have a firm offer of employment before travelling to Bahrain. Speculative visits are occasionally successful, but you need to be notably lucky and have high-grade qualifications and experience to stand any chance. In addition, you will almost certainly need knowledgeable local contacts and have done some research into the types of company which would most value your experience.
BahrainThe Kingdom of Bahrain is an absolute monarchy (although its head is an emir) and the only Gulf state with strict primogeniture (the principal by which title or property descends to the eldest son) in the royal family. With a population of around 620,000, Bahrain is the smallest of the Gulf states but has an influence that belies its size. Bahrain was the site of the first discovery of oil on the Arabian peninsula side of the Gulf. This occurred at an opportune time, coinciding with the breakdown of the global pearl market, which was previously a crucial part of Bahrain’s economy. Since then, Bahrain has shown foresight by diversifying its economy away from an almost total reliance on oil production. This has been necessary because, in comparison with the other Gulf states, Bahrain has limited oil resources, with an output of around 50,000 barrels per day, although it also receives around three times that amount daily, from coastal offshore fields shared with Saudi Arabia. Oil production now accounts for only 10 to 15 per cent of the gross domestic product, the latter around US$6 billion annually.
The state controlled companies Bahrain National Oil Company (BANOCO) and Bahrain Petroleum Company (BAPCO) located at Awali control the oil resources and have extensive development plans, including the production of refined unleaded fuel. BAPCO at Awali is in effect a small town, with extensive on-site amenities for its employees and their families. Other energy industries include BANAGAS, which provides gas services.
Aluminium Bahrain (ALBA) is the largest aluminium smelter in the Middle East, although it has a strong competitor from DUBAL, which is based in Dubai. ALBA’s Bahraini ownership has Saudi Arabian and German companies as minority partners and it provides a significant portion of Bahrain’s non-oil based exports. It has bred many downstream industries, such as a large rolling mill and an aluminium extrusion company, BALEXCO, manufacturing products for industrial and home use, including for export.
The Gulf’s largest ship repair yard, Arabian Ship Repair Yard (ASRY), operates at Sitra and employs a large workforce, both national and foreign, to cater for ships using the region’s busy oil routes. Bahrain originally aimed to become the centre for service industries in the Gulf, but that crown has been claimed by Dubai. The exception to this is the financial services industry, in which Bahrain reigns supreme, having taken the position that Beirut originally held, before the conflict in the Lebanon. Banks from all over the world have established branches in Bahrain, with retail, investment and off-shore operations. Today, Bahrain has almost 200 international banks and financial institutions, all under the control of the Bahrain Monetary Agency (BMA), which also has also overseen the Bahrain Stock Exchange since it opened in 1989. Banking and finance is now the second-largest sector in the economy, accounting for over a quarter of the GDP, and the service sector is the country’s largest employer, followed by general commerce and then government occupations.
The Bahrain Telecommunications Company (BATELCO) is a national company that was formed in 1981 after the take-over of the country’s telecommunications system, previously operated by the UK’s Cable & Wireless. BATELCO provides first-class satellite telecommunication links and cellular and internet services, advanced telecommunications being a pre-requisite for the operation of Bahrain’s financial services. Evidence of BATELCO’s efficiency is provided by the fact that many of the world’s leading financial institutions choose Bahrain as their regional base. Bahrain also boasts two ‘free zones’: Mina Sulman and North Sitra.
Tourism is growing rapidly in the Arabian peninsula, and Bahrain is a popular destination. It has long benefited from being at the crossroads of east and west and has been a stopping-off point for international airlines for many years. This has led to an openness and acceptance of foreigners visiting and working in the country, and might account for the genuine hospitality of the people in this friendly little country. Small it might be, but Bahrain’s political influence and goodwill in the region outweigh its size.
Bahrainis have a reputation for being astute and occupy many positions alongside their foreign counterparts in the state’s financial institutions. In recent times, more have been reaching positions of power, encouraged by the programme of ‘Bahrainisation’, which has been designed to encourage the local population to take full-time employment, develop their skills and at the same time reduce the risk of local unemployment.
Sponsorship
What is a sponsor?
All foreigners require a local sponsor in order to visit Bahrain (whether on holiday or business) or live and work there.
Whereas in the west the word ‘sponsor’ is commonly used of individuals or businesses paying to have their names associated with an artistic or sporting event, in the Gulf it has a quite different meaning: a sponsor acts as a sort of guardian as well as guarantor and must undertake all administrative work (i.e. paperwork) on behalf of the foreigner, including applying for a work and residence visa, opening a bank account and signing a rental accommodation contract.
A sponsor can be an individual, a company or an institution. In the case of employees, your employer usually also acts as your sponsor; visitors may be sponsored by a business partner or associate or by the hotel in which they’re staying. Those aiming to do business or set up a business in Bahrain should research the local business environment, establish contacts and find an individual or company with a good reputation and experience in the relevant field to act as your sponsor, who will expect remuneration for his services.
The sponsorship system is an effective form of immigration control. As your sponsor is responsible for you and ‘takes the rap’ if you misbehave or contravene any regulations (which will also involve him in loss of ‘face’ in the community), he automatically checks that you’re reliable and trustworthy, as well as ensuring that you don’t inadvertently step out of line. For this reason, your sponsor is an important source of help and advice and a valuable ‘ally’. Note that there is talk of the sponsorship requirement being waived in some states, particularly for foreigners wanting to set up businesses in the free trade zones, but this hadn’t happened at the time of publication.
Recruitment Agencies
How they operate
Recruitment consultants or agents play a major role in the placement of workers in a host of occupations in Bahrain.
In view of the distance between Bahrain and the countries that supply many of the region’s employees, it’s necessary for agents to act as middlemen. Private recruitment consultants and headhunters in western countries (and particularly in London and New York) deal with most managerial jobs in Bahrain, while agencies in India (particularly Bombay), Sri Lanka, Pakistan, Korea, the Philippines (Manila) and Thailand (Bankok) supply most of the enormous number of manual labourers employed in Bahrain’s numerous construction projects.
Agencies tend to specialise in particular areas of work, e.g. medical and nursing staff, computer personnel, accountants, construction managers, executive and office staff, engineering and the technical trades. Agency and consultancy fees are paid by the employer, with no charge to staff. Fees are usually a percentage of the annual salary, ranging from 10 to 20 per cent for most jobs but lower for those with high salaries. Regular customers are often offered preferential rates.
Recruitment agencies in Bahrain itself are sometimes used for placing expatriates in temporary work or for expatriate wives wishing to take up local employment. There are numerous regulations controlling the employment of spouses, and separate work visas are needed; the agent handles the details. Local agents are also used if expatriates change jobs. This, however, is uncommon, as expatriates are normally sent to Bahrain under contract and job changes are restricted by their employers. You might under certain circumstances be allowed to break your contract, in which case a local agency might be of use. Otherwise, at the conclusion of your contract, a local agency might find you another job.
Government Employment ServiceBahrain has no equivalent of the nationally-organised job centres found in western countries, and it’s the responsibility of the Ministries of Labour and Social Affairs to deal with employment (Ministry of Labour and Social Affairs, PO Box 32333, Manama (Tel. 973-687 800)).
Bahrain is trying to balance the need to import foreign labour with the interests of the local population, and companies are strongly encouraged to take on local nationals where possible. This ‘encouragement’ can be quite robust, and the Ministries are able to restrict the number of work visas issued or renewed to a company in order to comply with a quota of local intake.
Working conditions
Salary & Working hours
Salaries in Bahrain are usually similar to or greater than those paid in western countries.
But because the region has no personal taxation, net income is usually much greater, which is one of the major attractions of working in Bahrain. In the past, remuneration packages were split into various elements: basic salary, car provision or allowance, housing provision or allowance, medical cover, education for children and air tickets for home visits. Today, however, employers tend just to pay a salary, which covers all these expenses, although in some cases there are performance or other bonuses.
In addition to their salary, contract workers are awarded an‘indemnity’ at the end of the contract period. The indemnity is usually based on basic salary excluding any bonuses. The indemnity can be a significant amount of money if you’ve been working in Bahrain for a long time, and many people manage either to accumulate a reasonable financial cushion or to live the high life. If you’re clever and disciplined, you should be able to do some of both. The indemnity has nothing to do with insurance but is an end-of-contract bonus which is required by law to be paid to expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some cases 20) days of basic pay per year of employment for the first three years and thereafter a month’s salary per year of employment.
Note that some Arab companies regularly delay the payment of salaries, cash flow problems being passed on to their staff. In this event, you have little alternative but to wait.
Working Hours & OvertimeThe working week in Bahrain tends to vary between 40 and 48 hours, depending on the particular company’s policy. Office hours are usually from 8.30 or 9.00 am to 5.30 or 6.00 pm. There are no differences in time keeping between summer and winter. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours.
Friday is the Muslim rest day and, if your company has a five-day working week, the other day off will probably be either Thursday or Saturday. Saturday is the more popular choice for international companies, as taking Thursday off would mean a reduction in the number of operational days in common with much of the rest of the world. Conversely, other companies insist on Thursday, as the school ‘weekend’ is Thursday and Friday.
What you need to know
The general rule is that you’re given three written warnings detailing your failings or shortcomings before dismissal.
If you break the law, you can be instantly dismissed if the situation warrants it and the employer is so inclined. If you become involved in an altercation serious enough to warrant police attention, for example, or if you’re found guilty of drunken driving, your employer might dismiss you. You would be deemed to have defaulted on the terms of your contract and be ineligible for any indemnity payment due to you. However, an employee cannot be dismissed (or demoted) while on leave out of the country.
If you’re made redundant, the termination clause in your contract (of one month or whatever is applicable) comes into effect. Your employer might enhance the offer if he feels that your work deserves it or if it will cause hardship for you to have to leave Bahrain.
DisputesArabs sometimes make far-reaching judgements based on the ‘chemistry’ between you and them. If they don’t like you, they’re likely to look for excuses to terminate the association. It’s obviously in your interest to resolve any dispute amicably yourself, as you can never predict the outcome and, even if you ‘win’, it might be damaging or even disastrous to your career prospects.
Expatriates should avoid legal tussles whenever possible, which are time consuming and can lead to untold difficulties. If a dispute arises that cannot be immediately resolved between your employer and yourself, take your case to the relevant Ministry of Labour. If they agree with your interpretation of events, they will take the matter up with your employer on your behalf. Each state has its own labour laws, and an English-language version can be obtained from the Ministry. In general, the Ministries can be relied upon to make fair judgements in cases of dispute and don’t tend to be biased in favour of local employers. Do be aware, however, that adjournments or delays in sorting out any disputes usually work to the detriment of the employee: delays mean time and money, and the expatriate will have a limited amount of both. Serious disputes, however, are rare.
The region has no tradition of organised trades unions, and their formation is illegal; strikes, therefore, are virtually unknown. It’s possible to form an association within your company to make approaches on a collective basis to management, but this would have validity only within the individual company. Individual representation to the management is possible, but you will need to be understated, brave and have your return plane ticket handy!
