Visa fees more than double

Bahrain on Sunday approved plans to more than double the cost of work permits for foreign nationals despite calls from the business community that the hike could cripple small and medium-sized companies attempting to compete on an international level.

As of July 1 next year, the cost of two-year work permits will rise to 200 Bahraini dinars ($532.9) and the government will begin charging a monthly fee of 10 dinars for the duration - raising the total cost to 320 dinars.

Foreign workers currently pay a one-off fee of about 170 dinars for two-year papers that include work and residency permits.

The move is part of the government's efforts to reduce the kingdom's reliance on expatriate workers, but has been heavily criticised by sections of the business community for reducing small and medium-sized companies' ability to compete internationally.

Some claimed last week that the fee hike could bankrupt smaller firms or make them unable to recruit much-needed skilled workers from abroad.

Foreign workers make up about 38% of the country's 743,000 population, with the percentage of expatriates that make up the country's workforce much higher.

Bahrain in June became the first Gulf Arab oil producer to tax residents' income. The 1% tax is to fund an unemployment insurance programme.

The scheme is part of the government’s efforts to bring Bahrain’s labour laws and policies in line with international standards.

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USER COMMENTS (2 COMMENTS)

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Raising Money Issues
Posted by SF, Dubai, UAE on 4 December 2007 at 13:38 UAE time

Increasing Visa costs charges - will make it difficult for small business to flourish.

It will also increase Labour Issues - as most small companies recover these costs from the employees.

What a person does understand by imposing such additional costs is means of making more money for the country and not to reduce expats workers.

Because if the motive is increasing jobs for the expats then there are other ways to make it rather than increase Visa Costs and Cap Visa period to six years.

In fact this kind of rules would discourage expats to even come to Bahrain.

Bahrain raise in visa and monthly fees
Posted by pamela, Dubai, United Arab Emirates on 4 December 2007 at 08:13 UAE time


I think that the person writing the article about Bahrain made a mistake, because if the 200 dinars is for two years then if you add the 10 dinars per month for two years the total would be 440 Bahraini Dinars for the duration not the 320 listed

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