Gulf Daily News
 
MANAMA, Nov 11: Bahrain's exporters and firms dependent largely on expat workers will be the hardest hit by the new labour fees.

The country will also lose its competitive edge as such fees would be levied in the region for the first time, says a study released last night by Bahrain Chamber of Commerce and Industry.

The two-year study on the impact of profitability was conducted by Ernst and Young and covered 300 companies, according to our sister paper Akhbar Al Khaleej. The study recommended:

• Work permits be renewed next year for two years as is the practice now.
• With effect from January 1, 2009, work permits be issued according to the new labour fees (BD200 + BD5 monthly).
• During these three years, expat workers must have the freedom of transferring sponsorship, Bahrainisation quotas must be abolished and the Labour Law amended.
• A Labour Fund must be set up to provide small and medium-sized companies with technical support to improve productivity. They must also get financial support from Bahrain Development Bank.