Expats living in Bahrain are now sending home more than $2.5 billion (BD945 million) every year, according to a top Bahraini economist.

This is more than double the estimated $1.3 billion (BD491.4 million) being remitted by foreigners from Bahrain in 2001, revealed Gulf Global Economic Consultancy chairman Dr Hussain Al Mahdi.

He predicts the Gulf region will continue to rely on an expat workforce, despite efforts to fill jobs with unemployed nationals.

That is because of the unprecedented economic growth fuelled by high oil prices, which he also warned would lead to even higher costs of living.

"It is estimated that development projects being carried out in Bahrain in the coming 10 years will be valued at more than $30 billion," Dr Al Mahdi told the Gulf Daily News, opur sister publication.

"The region will continue to be hit by a shortage of supply to meet the increasing demand," he pointed out.

Although labour market reforms are aimed at creating at least 10,000 new jobs for Bahrainis every year, he said more than 80 per cent of them now go to foreigners.

He added that employment figures showed an increase from 248,483 in 2003 to 378,471 last year, but the percentage of Bahrainis in the private sector was on the decline.

"The number of jobs in the private sector increased during this period from 212,884 to 340,217," he said.

"However, the share of expatriates increased during the same period from 70.8 to 80.4 per cent.

"Such an increase does not go in line with the objective of the new labour reforms to create more jobs for Bahrainis."

Dr Al Mahdi warned that an increase in public debt was also a major economic challenge, saying the figure rose from BD591 million in 2003 to BD616.6 million last year.-TradeArabia News Service