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Influence of Expats in Bahrain: Rise in Employment Opportunities

Sep 25, 2023

Introduction

Bahrain, a small island nation in the Middle East, has witnessed a significant influx of expatriates in recent years. This upturn can be attributed in part to the substantial presence of expatriates in the Bahraini job market. These individuals, often skilled professionals from various parts of the world, play a vital role in the country's economic development. In this article, we will explore how expatriates have influenced the employment landscape and created new opportunities within the Kingdom of Bahrain.
Influence of Expatriates in Bahrain Job Market_ Facts, Figures and Latest Statistics

Infographics by GO-Globe Bahrain

The History of Expatriates in Bahrain

Historically, Bahrain has attracted expatriates due to its strategic location, business-friendly environment, and the discovery of oil. Over the years, the number of expatriates has increased, contributing to the growth of various industries.

Reasons for the Rise in Expatriates in Bahrain

Several factors contribute to the rise in expatriates in Bahrain, including job opportunities, tax benefits, higher wages compared to their home countries, and a relatively better quality of life.

Benefits of Hiring Expatriates

Employing expatriates brings advantages to businesses, such as access to a diverse talent pool, specialized skills, and a global perspective. Professionals from different parts of the world contribute their unique skills, experiences, and perspectives, enriching the overall talent within the job market. Expatriates often possess specialized skills and expertise that might be scarce or in high demand within Bahrain. Employing them helps in filling skill gaps and boosting sectors that require specific technical knowledge. Furthermore, bringing in expatriates infuses a global perspective into the local job market. Their diverse cultural backgrounds and experiences spark innovation, creativity, and the adoption of best practices from around the world. Expatriates are also known for their flexibility and adaptability to new environments and work cultures. This enhanced flexibility often leads to quicker adaptation to organizational changes, making them valuable assets in a dynamic job market. enhances productivity and efficiency within the workplace. The Bahrain job market has ultimately benefitted due to the increased expat hiring, who contribute to its overall success.

Expansion of Industries and Impact on the Job Market

Several sectors in Bahrain are witnessing significant expansion, including finance, healthcare, construction, tourism, and information technology. Expatriates have significantly contributed to this expansion of industries in Bahrain. With their expertise and experience, they often initiate or enhance businesses, thereby bolstering the nation's economic landscape. This expansion translates to more job opportunities for both expatriates and the local population. The influx of expatriates has led to a surge in employment opportunities, especially in sectors requiring specific skills and expertise. The industries experiencing growth require a diverse set of skills, ranging from financial expertise to healthcare professionals and IT specialists. Expatriates, with their specialized skills, efficiently fill these roles, thereby positively impacting the job market.

Social and Cultural Exchange

The presence of expatriates has a significant social and cultural impact, fostering diversity and enriching the local society with various traditions, cuisines, and perspectives. The integration of expatriates into the Bahraini job market has not only brought in new skills but also facilitated a cultural exchange. Different perspectives and approaches to work lead to innovation and creativity within various industries. The presence of expatriates enriches Bahrain's culture by introducing new traditions, languages, cuisines, and perspectives. This cultural diversity fosters tolerance, understanding, and an open-minded approach among the local population. This exchange of ideas ultimately benefits the nation's progress and competitiveness on a global scale.

Workforce Diversity and Integration

Businesses play a critical role in integrating expatriates by promoting cross-cultural understanding, facilitating networking, and providing necessary support and resources. The presence of expatriates enriches the workforce with diversity, both in terms of skills and cultures. This diversity fosters a more inclusive and dynamic work environment, promoting tolerance and understanding among employees. Moreover, a diverse workforce often translates to better decision-making and problem-solving within organizations. Workforce diversity in Bahrain has led to improved problem-solving as diverse teams approach problem-solving from different angles, resulting in comprehensive and effective solutions. The collaboration of minds with unique backgrounds and skills enhances the decision-making process.

Government Policies and Increase in National Revenue

The Bahraini government has implemented policies to manage expatriate inflow, ensuring a balance between expatriate employment and opportunities for local citizens. Regulations aim to protect both expatriate rights and the interests of the local workforce. Meanwhile, expatriates contribute significantly to Bahrain's national revenue through various channels, including taxes, investments, and spending on goods and services. This revenue aids in the development of infrastructure, healthcare, education, and other essential sectors, creating a more conducive environment for all residents.

Local Talent Support

Contrary to concerns about expatriates taking jobs, their presence often complements local talent. Mentorship programs initiated by expatriates can guide and nurture local talent. This hands-on approach accelerates the development of necessary skills and instils confidence in the local workforce. Expatriates often possess advanced skills and expertise. Training and development programs led by them can uplift local talent, enhancing their capabilities and making them more competitive in the job market. Expatriates can encourage entrepreneurship among locals by sharing insights, providing networking opportunities, and fostering a spirit of innovation. This can lead to the establishment of more home-grown businesses. Furthermore, Addressing challenges such as language barriers, cultural differences, and unfair competition ensures a level playing field for both expatriates and locals, and the Bahrain government is working on initiatives to ensure that the local talent is brought into the market.

Influence of Expatriates in Bahrain Job Market: Facts, Figures and Latest Statistics

  • Bahrain ranks 9th out of 53 destinations in the Expat Insider 2023 survey.
  • Bahrain’s real GDP continued its positive performance during 2022, growing by 6.9% 2022 YoY.
  • Economic growth in Bahrain was mainly driven by the non-oil sectors which grew by 9% YoY in 2022 in real terms.
  • Five sectors posted annual real growth exceeding 7%, of which the sectors previously affected by COVID-19 saw the highest growth rates: Hotels and Restaurants which grew of 18.1% and Transportation & Communications by 15.1%. Additionally, the Manufacturing sector expanded by 7.6%, Trade by 7.5%, and Government Services by 7.1%.
  • Bahrain's GDP expanded by 22.9% during Q2 2022 YoY, with the oil sector growing significantly by 51.7% due to the increase in global oil prices. The non-oil sector also grew by 17.8%, mainly due to the contributions of the Manufacturing and Hotels and Restaurants sectors, which expanded by 49.8% and 25.5% YoY, respectively.
  • Bahrain ranks 1st for admin topics (i.e., getting a visa, dealing with local authorities, opening a bank account).
  • 71% of residents in Bahrain are happy with their life in Bahrain, about the same as the global average of 72%.
  • Of all the expats in Bahrain, 24% found a job on their own.
  • 23% of the expats in Bahrain were recruited online from different parts of the world.
  • 10% of expats moved to Bahrain for financial reasons i.e. starting a business, relocating with family, etc.
  • Nearly 9 out of 10 (86%) people in Bahrain say that opening a local bank account is easy (vs. 62% globally).
  • 59% of people in Bahrain do not struggle when dealing with bureaucracy and the local authorities (vs. 39% globally).
  • The language barrier is rather low: 78% of Bahrain residents find it easy to live in Bahrain without speaking the local language.
  • Housing in Bahrain is easy to find in the country (according to 75% vs. 49% globally) but not quite as easy to afford.
  • 64% of expats in Bahrain find it generally easy to make local friends (vs. 43% globally).
  • 64% of expats in Bahrain find it generally easy to make local friends (vs. 43% globally).
  • 82% of expats in Bahrain describe the local population as generally friendly towards foreign residents.
  • The majority of expats in Bahrain, more than 84%, feel welcome in Bahrain.
  • Bahrain ranks only 20th in the Quality of Life Index.
  • Expats are particularly happy with the easy access to all kinds of healthcare services (78% vs. 65% globally), and 78% of Bahrain expats appreciate the quality of medical care.
  • 63% of Bahrain residents agree that the local business culture encourages creativity and thinking outside the box.
  • 27% of Bahrain expats believe they are not paid fairly for their work, and though 48% are happy with the general cost of living, only a little more than half (52%) are actually satisfied with their financial situation.
  • More than two in five, approximately 43% people, do not feel like their disposable household income is enough to afford a comfortable life in Bahrain.
  • Bahrain is ranked 27th for Personal Finance when it comes to expats.

Top Nationalities in Bahrain

  1. Indians - 27%
  2. Pakistanis - 13%
  3. Philippines - 10%

Challenges and Future Outlook

Bahrain, like many Gulf nations, also faces a demographic imbalance, and expatriates play a crucial role in addressing this issue. They fill labor gaps, support the economy, and ensure the smooth functioning of various sectors, ultimately contributing to the country's overall development. While expatriates contribute positively, challenges such as cultural differences, integration issues, and potential strain on public services have been observed. Addressing these challenges is crucial for a harmonious society. As Bahrain continues to grow economically, the role of expatriates is likely to evolve. Balancing their contributions with the needs and aspirations of the local workforce will be essential for sustainable development.

Conclusion

The influence of expatriates in the Bahrain job market cannot be overstated. Their contributions in terms of economic growth, filling skill gaps, expanding industries, encouraging innovation, enhancing workforce diversity, contributing to national revenue, supporting local talent, and addressing demographic imbalances are paramount. Bahrain's welcoming environment for expatriates has undoubtedly propelled its economy and created a win-win situation for both expatriates and the local populace. Businesses can optimize the benefits of hiring expatriates through effective onboarding, cultural integration programs, and fostering a diverse and inclusive work environment. The nation continues to thrive as a global hub for talent, attracting skilled individuals from around the world.

Frequently Asked Questions (FAQs)

Q1: How has the influx of expatriates affected the local job market?

A: The influx of expatriates has positively impacted the local job market by creating more employment opportunities, especially in sectors that require specialized skills.

Q2: Are there government regulations to manage expatriate employment?

A: Yes, the Bahraini government has implemented regulations to manage expatriate employment and strike a balance with opportunities for the local workforce.

Q3: How do expats contribute to skill development in the local workforce?

A: Expats often conduct training and workshops, transferring their skills and knowledge to the local workforce.

Q4: What industries benefit the most from expat influence?

A: Industries such as technology, finance, and healthcare often benefit significantly from the expertise and global perspective of expats.

Q5: How does workforce diversity impact employee satisfaction?

Workforce diversity can enhance employee satisfaction by creating an inclusive and accepting work environment, where employees feel valued and respected for their unique contributions.

Q6: What challenges do businesses face in integrating expatriates into their teams?

A: Businesses often face challenges related to cultural differences, effective integration, and fostering a cohesive work environment when integrating expatriates.

Q7: How can local businesses attract expat talent?

A: Local businesses can attract expat talent by offering competitive compensation packages, a diverse and inclusive work environment, and opportunities for professional growth.

Q8: How can businesses ensure a smooth transition for expatriates coming to Bahrain?

A: Businesses can ensure a smooth transition by providing adequate support, cultural integration programs, and addressing any challenges promptly.

Q9: What are the long-term implications of a significant expatriate presence in Bahrain?

A: The long-term implications include a more diverse society, enriched culture, and a broader global perspective that can contribute to Bahrain's continued growth and development.

Q10: What policies has Bahrain implemented to support expatriates?

Bahrain has implemented various policies to support expatriates, including streamlined visa processes and initiatives to improve the quality of life for expats living and working in the country.

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