Bahrain’s economy is vibrant, and its reforms under Vision 2030 are promising. Moreover, it is a popular destination for expatriates, which makes the “local versus expat” issue a main factor for employers to differentiate themselves in the country. The question of whether to hire local or foreign talent has been posed by business leaders both inside and outside of Bahrain.
The decision impacts aspects such as compliance, expenses, workplace environment, and the development of talent sources for the future. The following is a thorough analysis of the considerations for an employer in Bahrain.
Major Differences: Local vs Expatriate Workforce
By understanding the differences between local and expat workers in Bahrain, employers can decide which type of hiring best fits their business strategy, fulfils their legal obligations, and is the most efficient way of working in their operation.
Local Workers (Bahraini Nationals):
The Labour Law provides Bahraini nationals with preference in hiring (this is commonly referred to as Bahrainisation), a stronger sense of belonging to the local culture, and a sense of entitlement to government-initiated skill development programs, as well as eligibility for social insurance benefits.
The average wage for Bahraini nationals is BD881 (~ $2,294), while the average for expats is BD271 (~ $756). Bahraini nationals are more likely to fill mid- to senior-level roles and to have a history of staying with their employers for a long time.
Expat Workers (Foreign Nationals):
Expatriates are a significant part of Bahrain’s private sector, particularly within sectors such as construction, hospitality, manufacturing, and other technical jobs. As of the first quarter of 2025, Bahrain had seen nearly 470,000 expat workers, exceeding locals in the private sector by a margin of more than three to one. Even though expats possess international experience and represent an important means of addressing labour shortages, 71% of expats earn less than BD200 per month, and expats have much shorter tenures with a single employer.
Advantages of Hiring Local Workers in Bahrain
Legal Compliance and Incentives:
Companies must comply with Bahrainisation standards, with the government, through programs such as Tamkeen, providing wage incentives to localise training and to support the development of Bahraini talent. Achieving localisation commitments will, of course, provide the opportunity and improve the prospects of winning government contracts and avoiding penalties.
Retention and cultural fit:
Bahrainis are more in tune with the market, consumer behaviour, and workplace conduct and are less likely to emigrate for work, meaning more retention of talent and continuity of knowledge.
Social benefits:
Bahraini workers are eligible for state-sponsored social benefits such as pensions and other programs, resulting in higher job satisfaction and morale.
Advantages of Hiring Expat Workers in Bahrain
Flexibility of Talent and Accessibility to Skills:
With the help of expatriates, the skill gaps that are most urgently needed in fields like engineering, IT, healthcare, and manual labour can be filled, especially as Bahrain is going through a rapid digitalisation and infrastructure programs. Besides, when the main requirement of a role is to have the technical expertise or experience in a different country, then the contribution of expatriates in such a case is crucial in terms of insight and experience.
Cost Efficiency:
Many expat workers, particularly in entry-level and mid-level positions, are willing to accept lower salaries due to Bahrain being tax-free, thereby lowering the overall costs to operate a business. This is attractive to companies that are attempting to manage payroll costs.
Diversity and Innovation:
The inclusion of diverse employees in a company constantly brings fresh ideas and also encourages innovation, which is a great tool to help Bahraini firms to be competitive in the worldwide market. Additionally, an expatriate head may facilitate the transfer of the best global practices to local Bahraini teams.
Improved Workforce Mobility:
For businesses hiring on a project or short-term basis, the Employer of Record (EOR) hiring through EORs is made easier by labour market regulations and flexible visa policies, all the while, companies are scaling their workforce.
Key Challenges and Considerations
Integration and Retention:
Adjusting to a different culture is a major part of the lives of expatriate employees, which in turn has an impact on their retention and productivity. If a company prefers to use its resources for the implementation of cultural orientation programmes and the adoption of inclusive onboarding practices, then it is a sure way of facilitating the adjustment process.
Compliance Risks:
Under-fulfilling Bahrainisation targets can carry with it both penalty risks and reputational risks. Employers must be diligent in keeping track of the percentage quota on documentation and provide benefits on par whenever they can.
Wage Disparity and Motivation:
The gap in the salaries of expatriate employees as compared to the locals may negatively affect the spirits of the employees, the amicable relations in the workplace, and the chances of the company facing reputational risks.
Which is Better for Your Business?
It depends on the circumstances. Companies that are working in tightly regulated industries, the government sector, or are inclined towards getting public sector contracts may have to employ Bahraini nationals as their local employees.
On the other hand, companies that need specialised skills fulfilled very quickly or that are trying to cut costs may find it easier and more practical to hire foreign nationals. One of the most competitive Bahraini companies utilises a mix of local and foreign nationals, leveraging the insight and stability of local staff and the flexibility and expertise of foreign nationals.
Best Practice:
Developing an extensive workforce strategy, including specific Bahrainisation goals, in addition to taking action to upskill local talent, while cultivating an inclusive and supportive corporate culture to maximise the value of both local and expat talent.
How 6 Pence Can Help
Locating local labour laws, Bahrainisation, and the right blend of talent can be complicated – especially in a competitive marketplace. 6 Pence offers expert hiring, staffing solutions, and regulatory compliance specifically for what is required in Bahrain.
6 Pence makes it all easy for your business, full-service Bahraini hiring or direct access to a limited number of high-level expatriate experts, we help you find the talent your business needs – skilled, productive, and ready for the future!
Also Read:
How to Hire Domestic Workers in Bahrain
Termination Of Contractual Relationship Under Saudi Labour Law
