Archaic system. Bahrain’s decision to scrap its archaic sponsorship system, likened by the US State Department in its 2007 “Trafficking in Persons Report” to “modern-day slavery,” will also have the benefit of making Bahrain a more attractive place in which to work - an important means by which to attract much-needed foreign direct investment, particularly with the financial crisis.

“The change in regulation is positive for the investment environment and labor mobility,” says Monica Malik, an economist at EFG-Hermes. “It will help to reduce the cost and time linked with labor issues.”

Simon Williams, of HSBC, agrees. “The more easily people can move between posts, the more likely it is you’ll have the right person in the right job.”

According to al-Alawai, the new labor laws will prove to be a spur to the country’s economy. He claims that businesses that oppose the reforms will soon change their minds.

“There is strong opposition from employers, but we think it is good for the market. It will end the black market for illegal visas and will raise salaries, because workers will have an option to go to employers who will treat and pay them better. It will also help us raise the standard of wages amongst Bahrainis,” he says.

“Practically, it will end the sponsorship system and illegal visa system, because those contractors will not be successful. If the sponsor is holding you, holding your passport and not paying your salary, then you can easily just move onto another employer,” he says.

   Email This Post      Print This Post       Previous | Next