Abu Dhabi: The GCC countries have agreed to put off the six-year residency cap indefinitely, a top official said on Tuesday.

Dr Juma Bin Ali Bin Juma, Oman's Labour Minister, told Gulf News yesterday on the sidelines of the Abu Dhabi Dialogue on overseas labour, the residency cap was postponed because of pressure from businesses and other circles in the GCC countries.

"Initially, GCC countries were broadly in favour of a proposed law to impose a six-year residency cap on unskilled foreign workers, but it was proved impractical for the time being," Bin Juma said. The residency time ceiling, he said, may not be the best option and needs more discussions.

The proposed law would allow unskilled labourers to work on a three-year contract, renewable only once. However, it would be applied separately to each country, meaning labourers could continue to work in other Gulf countries.

However, the Omani minister admitted that the residency cap was meant to address fears that unskilled foreign manpower who live for long periods might demand "civil and political rights". This is why, he said, foreign workers are recruited in Oman on two-year contract, renewable with the approval of the Labour Ministry.

Bin Juma said the GCC countries favour cutting down the foreign workforce through depending on technology rather than intensive and cheap manpower.

He urged the business community to reduce their dependence on foreign manpower. Bin Juma added that labour sending and receiving countries are partners and "should work together to solve problems involved in the process, taking into account the demographic and other particularities of the Gulf region.