The aim of the paper that I intend to present is to trace back the development of workforce localisation policies in the Kingdom of Bahrain (Bahrainisation) post the neoliberal economic reforms that started in 2002. The Bahrainisation policies refers to different type of policy tools that aim at replacing the immigrant workers with nationals. The paper is based on data collected during a field work study in 2016 to study the labour market policy-making process in Bahrain between 2002-2016. Collected data covers personal interviews and policy papers. The post field work reflections will be drawn from interest group’s annual reports, media, and labour market data. The Focus of the paper will be on two interacting factors that affected the changes to Bahrainisation policies since the economic reforms . First, how the neoliberal norms informed the development of labour market policies in Bahrain. The Economic Development Board that initiated the labour and economic reforms supported deregulating the labour market and restructuring the economy from public to private sector. This strategy aimed to integrate Bahraini economy in the global market and to prepare the country for post oil economy. The second explanation to the localisation policies is with reference to policy process and how it enabled the private sector to affect the policy decision. The Bahrain chamber of commerce and industry negotiated the new terms for implementing Bahrainisation policies and were able to influence the policy outcomes. The need for businessmen to finance the labour market reform project was a source of influence over the policy outcome. They were able to ensure that the cost of hiring immigrant labour will not increase unless the Bahrainisation rates decreases. To conclude, the neoliberal norms that informed the Bahrainisation policies in the past 18 years have not succeeded in solving the segmented labour market nor limiting the rising unemployment among Bahrainis. However, the failure of such reforms to reduce the cost and right gap between Bahrainis and immigrant labour is not solely explained by the neoliberal norms. The business sector ability to renegotiate the Bahrainisation policies and its implementation is a major factor that contributed to the current policy outcomes. Thus, labour market structural reforms in Bahrain must take in to account the political feasibility of change. The political feasibility of change requires an examination of actors and events that affects the policy process and policy decisions.