Contract help/consultation

Non-compete clauses are standard but usually for very senior employees or highly technical specialized staff with confidential information.  As an example, I have always had these in my contract for the last 10 years in Bahrain, UAE and Saudi.  But some companies put them as standard clauses for all positions so it varies. 

However from what you mentioned:

1) 3 years is too long.  Usually it's around 2 years and in Bahrain, only one year is enforceable.  And this needs to specify location as well as type of role clearly
2) Any other company is not valid.  It is usually restricted to direct competitors only

However, I would not worry.  Whatever is in the contract, enforcement of non-compete clauses is a different matter altogether. 

The burden is on the company to prove that:

a) You worked for a direct competitor in a similar position to your current one and this role/location exclusion was specified clearly in your contract and you violated that intentionally and
b) There was direct loss to the company as a result of that and damages need to be imposed - almost impossible to prove.  This if proven allows the company to claim financial damages 

Worst case, they can only restrict you getting employed by a direct competitor but not by any other company (as that is illegal).

Thank you so much Sir!

That part of the contract got me really worried. Was planning to inquire to the company as I feel that it was too restrictive. I am in UAE also and my contract here states only for same position of the same type of company.

Your response keeps off a little burden from my mind. Is it advisable to contact my employer and clarify it still with them? This is the only reason why upto now I did not send the signed contract to them..

Sure clarify it with them.

Also point out (but verbally, don't put in writing to avoid bad relationship) that enforcement time period in Bahrain is 1 year and in rare cases, 2 years as well as the fact that they cannot restrict you for working for companies that are not in competition with them.

Then suggest to them to put direct competitor, 1 year and location/role.  They may or may not do it depending on if this is a standard clause for all of their contracts.  Then it is up to you, how you want to proceed.  One advice I always give is to never resign from the current employer until you have the visa in your hand - so follow that