Businessmen in Bahrain have spoken out against the introduction of a new health insurance fee for expatriates, claiming it will hit small and medium-sized enterprises (SMEs) hardest.

The Bahrain Chamber of Commerce and Industry (BCCI) held a special session last week to discuss its objection to the decree, which has seen the fee for expatriate work permits raised from BD26 ($68.5) to BD76 ($200) while Bahraini work permits have increased from BD18 ($47.4) to BD22 ($57.9).

BCCI first vice-chairman Othman Sharif Alrayes said the chamber was drafting a letter to HRHPrime Minister Prince Khalifa bin Salman Al Khalifa requesting that the decision be reviewed, reported the Gulf Daily News (GDN), our sister publication.

'The BCCI did not receive any information from the Health Ministry before this decision was made,' he said.

'Usually with royal decrees, ministries are supposed to consult the private sector beforehand but this didn't happen.'

The decision, Alrayes said, 'will affect everyone' especially as it comes at a time when businesses are trying to lower their overheads.

'But it will mostly affect new businesses and SMEs by hindering their growth,' he said. 'This decision needs to be discussed as a priority and discussed at length.'

Meanwhile, Manama Suq committee vice-chairman Mahmood Al Namliti said he had been 'inundated' with calls from SMEs complaining about the increased fees.

'This insurance is too expensive and is not necessary in such a small country as Bahrain,' he told the GDN. 'It will make businesses suffer.'

The fee system already in place was sufficient, Al Namliti said.

'SMEs in Manama have been approaching me because they don't understand the decision,' he said. 'The BCCI also do not agree with this decision and is in fact trying to reverse it.'

The businessman said the move was badly timed and would affect consumers as well as businesses.

'This will affect consumers too as businesses will have to raise their prices,' he said. 'This decision could not have come at a worse time as Bahrain is desperately trying to attract business and this will just give them another reason to go to a neighbouring country.'

Al Namliti added that the BD35 million ($92 million) the fee is expected to raise would be far higher than current expenditure on expatriate care. – TradeArabia News Service