Achieving a higher level of labor nationalization in the public and private sectors has been a key priority for countries throughout the Gulf Cooperation Council (GCC) since the early 1980s. These efforts have been driven by GCCC leaders all too aware of the long-term political, economic, and social ramifications of the region’s dependence on expatriate employees to swell the workforce, especially within the private sector. IN a bid to reduce this historical reliance, they have implemented a range of measures aimed at increasing nationalization levels over the years. However, these measures, which focus primarily on quotas or exclusions, have led to rule avoidance and illicit practices instead of a genuine effort to increase national employment. As a result, current nationalization levels remain insufficient throughout the region.
The GCC today faces significant national underemployment despite the rapid economic growth, increased economic diversification, and nationalization efforts seen in recent years. In addition, the “plug and play’ model of recruiting expatriates to sustain the private sector is no longer viable. It has resulted in organizations treating the hiring of nationals as a necessary, and costly burden with very limited benefits. Therefor the private sector must now explore new approaches to meeting the challenging task of hiring and ‘upskilling’ nationals-a demographic that, thanks to the security and benefits offered, often favors the public sector.
