Bahrain Launches National Plan to End Unemployment

Bahrain’s capital, Manama. (Asharq Al-Awsat)
Bahrain’s capital, Manama. (Asharq Al-Awsat)
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Bahrain Launches National Plan to End Unemployment

Bahrain’s capital, Manama. (Asharq Al-Awsat)
Bahrain’s capital, Manama. (Asharq Al-Awsat)

Bahrain launched Monday a program to recruit young Bahrainis, increase their opportunities in quality jobs through training and rehabilitation, and support wages so they can compete in the private sector and make citizens the first choice of employment for institutions and companies.

The government’s plan included a 66 percent increase in the corresponding work fees from BD300 (about $798) to BD500 ($1,330) per every two years.

The flexible work permit registration fees will be increased from BD200 to BD500, with a recurring monthly payment worth BD30.

The government also confirmed the implementation of all initiatives of the National Employment Program, which was launched by Premier Prince Khalifa bin Salman Al Khalifa at the session held by the cabinet on Monday.

This came during a press conference in which Bahraini officials gave details about the four key initiatives within the program.

The officials included Minister of Finance and National Economy Prince Salman bin Khalifa, Minister of Labor and Social Development Jameel Humaidan, and Chief Executive of Bahrain’s Labor Fund (Tamkeen) Dr. Ibrahim Janahi.

The Premier said the program would contribute to employing and qualifying Bahrainis in accordance with the market’s needs in the upcoming period.

He outlined the importance of achieving the program’s targets along with its key initiatives, which include launching an awareness campaign to encourage citizens to register in the National Employment Program, amending the unemployment insurance draft law in order to increase compensation fees, increasing fees associated with the Parallel Bahrainization System and the Flexible Work Permit, and redesigning Tamkeen’s Training and Wage Support Program.

Humaidan, for his part, encouraged locals to register in the Program while affirming that the ministry continues to assess and monitor unemployment rates in accordance with international best practices.

Janahi, however, said the program will pave the way for redesigning Tamkeen’s wage support program within one month.

He pointed out that under the current Wage Support Program, Tamkeen’s contribution is focused on new graduates as well as experienced employees.

For new graduates, Tamkeen encourages companies to hire Bahrainis through the Wage Support Program, which contributes to the salaries of Bahrainis over the first three years of employment: 70 percent in the first year, 50 percent in the second year, and 30 percent in the third year. Its contribution reaches up to BD500 per month.

Whereas for experienced employees, Tamkeen will allocate BD250 or 25 percent of the salary for experienced Bahraini employees in the private sector.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.