LOCALIZATION/NATIONALIZATION IN THE GCC: MEETING THE CHALLENGE Anthony J. Figliolini, CAHRS Graduate Research Assistant

Oil and Gas development in countries of the Gulf Cooperation Council (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman) has brought a rapid rise in economic prosperity and improvement of the quality of life for the citizens of those countries. Due to initial shortages in skilled and unskilled labor, foreign workers were brought to help build the economies of the GCC. However, as political, economic, and demographic challenges have made it more difficult for countries to employ foreign nationals while at the same time a large number of citizens are unemployed, Nationalization/Localization (Saudization, Emiratization, etc.) programs were put in place to replace foreign workers and create new employment opportunities for local nationals as well as diversify national economies. The issue of localization is one that presents great challenges for countries to replace foreign workers and create jobs of quality for their populaces, but also offers opportunity to foreign firms to make headway into a group of countries that have some of the highest economic growth rates on earth. Firms that are successful in recruiting and developing local talent are tied to the economic fabric of the region and have demonstrated a commitment to long-run success. While many of these successful relationships took years to develop, the fast pace of growth and high-performance global HR management enables firms working in these regions to develop close ties and good reputations to eventually become employers of choice. This paper discusses the current state of localization in the GCC and discusses best practices for success from companies based in the GCC and outside. First, we discuss government motivations behind localization and describe the challenges that it presents to firms operating in the region. Second, we show that success with localization comes out of a long-run set of recruitment and retention strategies that are grounded in established global standards (with adjustments for local conditions) and display a long-term commitment to be partners in development of GCC countries and their people. Finally, we discuss the various elements that could shape the future of localization and how firms can consider preparing for them. Much of the research for this paper was obtained through interviews with executives working in the GCC who face localization challenges every day. These leaders represent six CAHRS-sponsor organizations and three non-CAHRS sponsor companies. Three of these companies are locally based in the GCC, while six are based in the United States or Europe but have active operations in the region. These nine companies represent a broad range of industries, including energy, banking, manufacturing, technology, real estate development, government and education. The Current Localization Situation Localization has been in the minds of GCC leaders ever since oil was first discovered and foreign business and expertise were brought in to take advantage of it. Current GCC countries have a desire to increase the percentage of local nationals who are working in the private sector for reasons that are grounded in the demographic, political, and economic conditions under which they operate. Demographics With the rapid growth of economies and foreign workforces, the countries of the GCC have found themselves in a unique situation. Exhibit 1 shows that the countries of the GCC experienced rapid economic growth in the period 1960-2000, ranging from 3.6 percent for Bahrain and 4.1 percent for Saudi Arabia, to 6.5 percent for Qatar to 8.8 percent for the UAE. The table shows that population growth has since slowed to about 4 percent per year (Fasano & Iqbal, 2003), but economic growth continues at about 3 percent per year with more coming with higher oil prices. The population under 15 is quite large in

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some countries, topping 43 percent in Saudi Arabia and Oman, so the number of young people entering the job market will stay the same or increase. There are 10 million foreigners in the GCC (Pakkiasamy, 2004), with presence ranging from 26 percent of the national population of Oman to 82 percent of the population of the UAE. Foreigners make up a large portion of the workforce also, comprising 90 percent of workers in the UAE and Qatar. Most of these expatriates are in lower-level jobs and earn less than local nationals. Harry cites studies that current economic growth has created more low paying, low skilled, low status jobs rather than the high-profile ones that locals prefer (Harry, 2007). And unlike in the Americas or Europe, migration is for a short period for work only, not settlement. Politics The demographic factors mentioned above give great political motivations to localization programs. Regarding demographics in his nation, UAE nation builder and former President Sheikh Zayed bin Sultan al-Nahyan said in January 2003, “This imbalance continues to pose a grave problem which threatens the stability of our society and the prospects for future generations” (Suliman, 2006). Rees, Mamman, and Braik (2007) note that it could be argued that GCC nationalization is related to a desire to consolidate and maintain political independence and manage ones own affairs. The Arab philosophy that the prosperity of the Gulf should be shared with all Arabs combined with regional conflicts (especially the Iraqi invasion of Kuwait) have heightened security fears about non-GCC Arab expatriates and limited their ability to stay in the region (Harry, 2007). Countries have found that Arab expatriates have been the easiest to replace with local nationals as many of their jobs are Arabic-speaking, clerical, professional, and in the public sector (Abdalla, 2006), which are attractive job characteristics that locals often look for. Also, having large populations of low paid, and sometimes mistreated workers can cause security concerns, as can a large population of discontented, unemployed young people. Economics The economic factors behind localization are of great concern to firms doing business in the region as they have the most influence over present and future profitability. Localization is an attempt to end the dependence on foreign expertise, especially in the oil industry. The formation of Saudi Aramco and its growth to become the largest oil company in the world could be seen by many states as a model of localization for self reliance. The drop in oil prices in the mid 80’s to late 90’s and Saudi Arabia’s subsequent going into debt (Background Note: Saudi Arabia, 2008), and the realization that oil supplies have their limits made GCC countries concerned about economic dependence on oil and so looked to localization to aid in economic diversification. Countries are losing money in remittance outflows as foreign workers send what money they save back to their home countries instead of keeping it in the GCC. In the period 1993-2002, Saudi Arabia saw 585.4 billion Saudi riyals ($151.1 Billion), which is about 60 billion riyals ($15 billion) a year, leave the country in remittances (Pakkiasamy, 2004). Having such a high percentage of the national workforce being employed by the government (62.4 percent of public workforce is local, but less than 2 percent of the private in Qatar) and often over-employed (Abdalla, 2006) also has economic costs that pushing locals to take jobs in the private sector could address. As was mentioned above, the UAE and Qatar have the highest percentage of foreign workforce in region, and also the highest per-capita income (Suliman, 2006) showing how important the foreign workforce is to economic prosperity. Governments have the difficult task of balancing the needs to develop the local workforce with the need to take advantage of the economic boom while it continues. With inflation in recent years, GCC expatriates cannot save as much as they could in the past and so might not be attracted to the region (Weir, 2008), so employing locals might become an economic necessity.

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Unemployment and Education Local unemployment rates are high despite high economic growth rates (Dyer 2006). According to McKinsey & Company’s Kito de Boer, unofficial estimates put overall unemployment in Saudi Arabia, Bahrain, and Oman at 15 percent or more, with unemployment at more than 35 percent for 16- to 24-year-olds (Unemployment Drives GCC Reforms, 2007). De Boer believes that to address its unemployment problem, GCC counties need to create 300,000 high-quality private sector jobs annually at twice the current salaries, de Boer estimated. However, in order to create this number of jobs countries need an appropriate education system, suitable work ethic within the host population, and willingness on the part of employers to make a sustained and genuine effort to support and transfer skills, attitudes, and behaviors (Harry, 2007). As outlined below, countries have not been preparing their young people well for work in the private sector. Challenges for Firms in the Region Firms doing business the GCC face structural and cultural issues that make it difficult for them to hire and retain local employees. Keeping up with quota regulations is a challenge as regulation language and level of enforcement vary. In Qatar, firms must report their percentage of Qataris every six months and must train Qataris if they employ certain foreign technical specialists. Often the quotas that governments set are unrealistic. For example, in 2003 the Saudi Manpower Council set a limit of 20% on the percentage of the Saudi population that can be taken up by foreign workers and their families. However, Pakkiasamy (2004) doubts that this quota could be achieved as Saudi Arabia has only been able to achieve five percent total Saudization in the 1998-2003 period, and given current population growth trends, to reach the goal more than three million expatriates would have to leave to achieve 80 percent Saudization by 2013. As unrealistic as some goals are, the penalties can be severe. For example, a firm that does not comply with nationalization laws can be banned from receiving government contracts in Saudi Arabia (Cabinet adopts measures, 2005) or receive bad publicity in the local market if the government decided to make your firm an example. However, the executives we interviewed said that enforcement varies by country and industry. Some firms try to skirt the laws by setting up one local entity for all local employees and another for expatriates, but trying such a tactic is not ethically sound. The UAE and Qatar both have had corporate rules that all businesses operating there must have at least 51% local citizen ownership as an attempt to give local citizens leadership positions (Background Note: United Arab Emirates, 2008). However, Qatar has since done away with this requirement, and some report that Qatarization is not actively enforced (Abdalla, 2006). One 5-star hotel manager in Oman notes that the country promotes itself as a tourist destination, but the current requirement of 75 percent Omanization with an increase to 85 percent by 2010 will stand in the way as the local supply of talent is insufficient to meet the goals. Also, talented Omanis opt for jobs that pay better than those in the hotel industry (Skyrocketing Salaries, 2008). One large difficulty in localization is in dismissing local citizen employees. Legally required dismissal processes are complicated and firms are not happy that local employees see jobs as rights rather than opportunities. Mellahi (2006) writes that private firms in the region are used to having a hire-and-fire culture with foreign employees, but this culture will have to change as more protected locals enter the private workforce. The hire-and-fire mentality also led to less training and development opportunities for employees, so recently firms have had to bolster their efforts in this area as employees demand it (Harry, 2007). Only Bahrain has unemployment insurance (Unemployment bill planned, 2006), and few firms have pension plans so severance costs can be high.

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Competition for Talent High growth rates in the GCC have created high demand for skilled employees. However the challenges to education systems that are just now adjusting to sending its students into private work and the sometimes unrealistic expectations of local citizen job seekers makes meeting this demand very difficult for HR managers. The element of recruiting and retention that gets written about often given recent inflationary pressures is the rise of salaries in the region, but pay is not the only motivating factor for local employees. Local nationals are paid more than expatriates as a whole. For instance, Mellahi (2006) notes that locals in Saudi Arabia receive on average three times the salary that expatriates receive, with variance by sector. Bayt.com (2008) finds in their regional employment study that while employee loyalty improved visibly with income, Gulf nationals comprised the group in the survey with the lowest levels of loyalty linked to pay, with 8% indicating that loyalty was not linked to pay. When asked about factors other than pay that drive loyalty, Gulf nationals were most prone to citing line management as a key factor, at 43 percent of the group. Assured long term career growth was the most important non-pay variable across foreign and local groups. Local nationals were also the most likely to favor professional training and development courses, with 51 percent of all Gulf nationals citing these as a positive inclusion in their total compensation package in lieu of a proportion of salary. A common theme through all of our conversations was the difficulty in meeting the high demands of today’s younger workers. From the impressions of our interviewees, we developed a common profile of what young employees want: good pay, recognition and promotion, and challenging work, with a desire to make things happen. Usually recruiting is a slow, deliberate process, which is not optimal as it does not fit with worker demand in rapidly growing economies but is necessary as it is almost impossible to dismiss local employees as mentioned above. Local nationals have for so long grown up with high-paying, low-stress government positions as a birthright so expectations are high, and many workers would rather stay out of the workforce and wait for government jobs rather than take jobs that they see as being beneath them. Family is a very important structure in the GCC (Suliman, 2006), so working for a company that is recommended by or well known to your family members is important. The education systems in the region have not been producing GCC citizen employees with the technical, professional, and managerial skills that private employers need. The US Department of State notes, “The mismatch between the job skills of Saudi graduates and the needs of the private job market at all levels remains the principal obstacle to economic diversification and development” (Background Note: Saudi Arabia, 2008). Khalid al-Falih, senior vice-president of industrial relations at Aramco, has issued a plea to the kingdom's young engineers, claiming the shortage of qualified personnel is making jobs more challenging. "When we look at tables on the number of engineers per 100,000 residents, Britain leads the pack with an average of 5,300," he says. "In Saudi Arabia, that number is 460" (Aramco seeks engineers, 2007). Harry (2007) believes that the problem is that education has been traditionally built on developing a national identity and religion and not on skills that are useful in the workplace. Universities in the region are still young and many of them are still finding their strengths. Institutions in the area need to develop educational system with focus on science and mathematics, and students need to be encouraged to follow those fields. To help train present and future employees, firms either work closely with learning institutions in developing courses or take advantage of government learning credits for training nationals (Mellahi, 2006). Many students have been going abroad for study, many either sponsored by companies or governments (see Exhibit 2 for percentages studying outside their home countries). The students who study abroad go to the UK, US, Jordan, Australia, and Canada for their studies (Exhibit 2). Students generally do return and remain in their home countries. In the Middle East, the GCC countries have the lowest skilled migration rate to OECD countries with the 1990 survey showing Oman (0.3 percent), UAE (0.5 percent),

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Saudi Arabia (0.7 percent) and Qatar (2.1 percent) with the lowest percentages. These rates did not change significantly in the 2000 survey (Islamic Development Bank 2006). Recruiting experienced personnel for senior management and technical positions is challenging. Many firms look to recruit experienced hires from other companies in what one executive described as a “Robbing Peter to pay Paul” situation. Recruiting agencies, which were traditionally used only to recruit expatriates but are now used to recruit local nationals, are very popular in recruiting nationals. International agency Heidrick & Struggles reports that its Middle East revenues have doubled in the past two years (2007). Companies also leverage their existing pool of national employees to find people because, as one executive noted, “Good talent knows good talent.” Firms are offering bonuses to employees for attracting successful employees to the company. Retention Difficulties One factor that makes recruiting experienced professionals easier while causing headaches for HR managers is retention. Retention was not an issue until recently as employees would usually stay with their employers until retirement. Mellahi (2006) notes that traditionally in the private sector retention was not a problem. Employers had much power due to traditional life-long employment practices. However, recently the balance has tipped in favor of employees. Bayt.com (2008) notes that fairly large levels of churn are apparent, with 71 percent of respondents to their survey saying they have held two or more jobs within the past five years. Young people expect to get much responsibility and pay right away, but often the value of what they can contribute is not aligned with reality. Learning and Development is popular with local workers, but often to recruit or retain local workers firms will make errors by promoting employees without developing them for management first or making empty promises around management development and promotion. These actions only have poor results that end up frustrating employees, causing a vicious cycle where employees leave their employers, go to another employer, receive more empty promises, and then look for employment elsewhere. Therefore, managing expectations and having a clear employment value proposition is been vital. However, it has been difficult for some more traditional firms in the region to adjust to having to articulate a clear and competitive employer value proposition to employees, and so retention remains a large issue. What Can Companies Do to Make Localization Successful? Governments in the region have taken various measures to help the employment and education situation of local nationals (see Exhibit 3), but the executives we talked with said that they have not been effective yet, especially in helping them recruit experienced local nationals. Harry (2007) states that governments have been too focused on a quick-fix of replacing expatriates, most of whom have jobs that are undesirable to locals, and instead should be focused on encouraging education and entrepreneurship to create jobs that local nationals will want to do. Fasano et. al. (2003) believe that GCC governments are aware of the drawbacks of a quick localization of the labor force and so are appropriately focusing on long-term structural solutions while implementing ambitious programs for retraining and educational reforms to meet medium and long-term skill demands. The foreign and domestic firms that stand out in their localization efforts have been successful at having a clear employment value proposition, corporate rules and cultures that stress development and learning based on international standards while taking into account local conditions, and display a commitment from firms to the success of the people of the GCC for the long-run. These firms are sure to use various media channels, extensively talking about their measures in these areas on company websites and publications as well as in the local press, and measures to monitor the learning and development progress of local employees.

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Regional Firms There are a few firms headquartered in the GCC that standout due to their effective practices at recruiting and retaining local hires. One such effective firm is Saudi Aramco. The firm is 75 years old and is the single largest employer in Saudi Arabia outside of the government, with 51,000 employees from 66 countries. Saudization has been active at Saudi Aramco for a longer period of time than most other firms in the region, and the results are impressive. Currently 87 percent of employees are Saudi, with 99 percent of managers being citizens. Saudi Aramco’s development of those local national managers has been quite effective with retention as well, as 95 percent of managers were developed internally. A key Saudi Aramco development tactic has been identifying promising individuals during high school and sponsoring undergraduate or graduate education. The firm identifies promising students at the secondary school level then funds their education at university or college. Saudi Aramco emphasizes employee learning and development opportunities clearly on their websites (http://www.saudiaramco.com) and internal publications like Saudi Aramco World magazine. The firm’s Training and Career Development (T&CD) organization was established in the 1970’s to oversee the firm’s efforts in training and development. In 2004, the firm established the Training Partnership Project to partner with universities and vocational and industrial colleges as well as private sector institutes to coordinate what is taught with the company’s needs so that graduates will be qualified for immediate hire (Saudi Aramco Launches 2004, Aramco reinforces policy 2004). Saudi Aramco sees itself as a role model for Saudization (Haider, 2004) and the development of the Saudi economy. It strongly encourages Saudization amongst its contractors through the use of quotas at levels based on industry segment (Looney, 2004) and forums and committees such as the Contractor Saudization Committee (Brundage, 2007). This committee is comprised of contractors and Saudi Aramco executives who meet to discuss policies, emphasizing the long-run relationship between the firm, contractors, and the country. Saudi Aramco’s work with contractors on the Hawiyah Natural Gas Liquids Recovery project will put a total of 2000 Saudis to work eventually, in a variety of skilled and unskilled positions (Brundage, 2007). In 2002, the firm established a training center for contractors to teach specific oil-industry skills. Since January, 2003 the firm has had to include in its annual performance reports the Saudization level of contractors (Looney, 2004). To help develop local businesses, Saudi Aramco presents awards to successful local small and medium sized businesses. These efforts are well publicized, as are its efforts building schools and helping the environment. Diversified chemicals and manufacturing firm SABIC (Saudi Arabia Basic Industries Corporation) is another GCC company that has excelled in localization. SABIC proudly boasts on its website that 81 percent of its 13,816 employees are Saudi nationals, most of whom are skilled workers (http://www.sabic.com). It also notes that Saudis occupy 99 percent of management positions in the firm and its affiliates. The firm places training and development as important parts of its value proposition to employees. Through its Training and Development Department, they offer traditional training, scholarships for further education, and their Cooperation Program with Universities and Colleges (Coop), where they have specifically tailored programs for final-year university and college students, including on the job training at headquarters and affiliates in the Kingdom. Outside of Saudi Arabia, firms in the UAE have found success in localization using much of the same formula. Nakheel provides employees with ample development and progression opportunities, ensuring that managers play a large role in providing clear expectations and motivations to shape employee performance. The Emirates Group (which includes Emirates Airlines) has many defined training

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programs for local nationals displayed on its career website. For example, the National Graduate Trainee Programme offers up to 3.5 years of on/off job training for national degree holders from 21 to 27 years of age in disciplines such as general management, IT, HR, and finance, with the end objective of the participant reaching the position of Assistant Manager or Area/Station Manager. Abu Dhabi Gas Industries Ltd. (GASCO) assigned and trained young high-potential Emirati employees to act as change champions in implementing a nationalization program that emphasized developing the right people to be able to accomplish business objectives (Bartridge, 2005). Al Qudra Holding has been praised publicly for its Emiratization efforts (Al Qudra Holding's Emiratization, 2008) and du, the Dubai telecom firm, has achieved 22 percent Emiratization in less than one year of operations (du Achieves, 2008). In Oman, Petroleum Development Oman (PDO) uses its website (http://www.pdo.co.om) to display the firm’s value proposition to experienced local candidates as well as new local hires, providing testimonials from local experienced and new staff regarding the learning and development opportunities available and the some of the benefits of working for PDO like excellent heath care, sports and leisure facilities. Sohar Aluminum in Oman has integrated itself well in the region in which it operates (Batinah), seeing the hiring of locals as a commitment to being a part of the community. The firm hires local, unskilled people and trains them using its global Bechtel-Sohar Aluminum construction training program, with experienced ex-pat staff provide mentoring and on-the-job training (De, 2008). Foreign Firms The oil and gas industry has been in the region for a long time, so foreign firms in this field have the most established and successful processes for hiring and developing locals. The banking sector has been successful as well, with local banks seen as a model for localization. However, foreign firms face great challenges in hiring and retaining local employees. Many locals look first to government jobs, and so local, government-affiliated companies would be the choice of many who cannot get pure government jobs. Interviewees say banks are very popular, other less-glamorous and lower paying industries are not as popular. Some are new to the region, others have been there a long time, so building an employment brand and reputation without a heavy marketing campaign is difficult. Locals look to family advice for what firm to work for, so getting ones company known by elders and respected public figures is important to publicize ones employment brand and value proposition. Foreign firms can offer more interesting, work with a global outlook and latest technology. Students can succeed/fail on their own merits, so is attractive to those of modest backgrounds and women who have traditionally have not had much opportunity due to the value of connections and traditional thoughts about the place of women in work. Foreign employers often have mature, world-class development schemes that can provide the development that locals are looking for. Shell has shown that using internally-tested learning and development processes and building ties to the local community can bring success with employing nationals. Shell’s GCC localization efforts are based on investment in recruiting and holistic HR development. Shell has focused on recruiting a decent number of GCC-national graduates from schools in the Gulf and abroad (Australia, UK, USA). It sponsors the Gourami business challenge to raise Shell’s profile and find good young, local talent. Shell also has an established development program globally that it uses in the Gulf. Employees make development plans for their career, and employees gain skills and experience through on-the-job training and coaching, as well as technical classroom training. Particular attention is paid to on-boarding-related training. There are opportunities to transfer locations as part of development as well. The development process contributes to Shell’s efforts in building a successful employer brand as the firm’s reputation is important. There is much competition from the governments as an employer with good pay, benefits, and work/life balance. However, Shell sees itself as having a good position because it

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is a place where people can work and develop their skills at a global company. It also is a good corporate citizen, encouraging local business creation through the extension of its global LiveWire program, Intilaaqah, in Abu Dhabi, Oman, and Qatar. The firm publicizes its efforts well through its global, regional, and local websites as well as its regional company magazine, Shell in the Middle East. Shell uses typical HR measures in determining the progress of their development of locals, numbers of staff at what grade vs. targets, retention, attraction, career progression over time. The management of the Middle East region meets quarterly to review localization key performance indicators. HSBC is one firm that many interviewees pointed to as a model of foreign company HR success in the region. The financial services industry has been a focus of localization efforts, especially in the UAE (Rees et. al., 2007), as they have jobs that have the pay and conditions preferred by local citizens, so foreign banks are under close scrutiny for their localization practices. Being in the region for over 60 years and branding as “The world’s local bank,” HSBC sees localization as important to their business. In 2008, the firm won a special award from the Crown Prince of Dubai for its successful Emiratization program and ongoing commitment to the recruitment and development of UAE nationals (HSBC wins award, 2008). They also have been active in local charities, such as helping local individuals with special needs (HSBC backs special needs, 2007). To get to this level of accomplishment, HSBC has worked hard at attracting and screening the right people, recruiting good talent early at secondary school and diploma levels and university graduates. They have a summer intern program for students, with the award for Best Intern possible for high achievers, and offer part-time work. They strive to be an employer of choice for local nationals by having leadership that is fair and objective, competitive rewards, and, most importantly, opportunities for learning and development as well as career advancement that takes place both in the region and abroad. HSBC manages employee expectations by being open, clear, and realistic in communicating what it takes for local employees to succeed and making employees take responsibility for their careers. They measure success as part of their usual HR metrics going beyond the government-mandated percentages, looking specifically at local employee progression, international assignments, learning & development achievement. Other foreign firms have successful efforts in the region. DHL has been recognized by the government of Bahrain for its training and development excellence of local nationals, particularly youth (DHL wins Bahrainisation awards, 2007). The firm has been able to achieve 70 percent Bahrainization, deepen its commitment to working in Bahrain by providing training in technical skills, developmental training, and management development. DHL increased its investment in training during 2007 by 58 percent and will increase this spending further in 2008 with further plans for Bahraini management development and the introduction of new training to develop local skills. Japanese engineering firm Yokogawa contributes to Saudization by providing training to new Saudi graduates, starting in Japan and then using on- and off-the-job training (Yokogawa, 2008). They have established new facilities on the Dhahran Techno-Valley campus of King Fahd University (KFUPM) and have plans to cooperate with the university on R&D. Conclusion: Future Challenges and Opportunities For firms to succeed at localization in the current economic environment of rapid economic growth requires HR in the region to work and think differently. As Weir (2008) notes, “It is imperative for the region’s human resource departments to work differently. They need to think as marketers and to create a powerful and persuasive talent value proposition.” HR executives need to think of what makes their target talent markets choose the employers that they do and what their needs are, then tailor their messages and offerings appropriately. They need to keep a close eye on what their competitors are doing and analyze that information with a rational mind to keep their thinking long-term.

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As localization is a political, economic, and demographic process, sound HR practice as mentioned above is not enough to ensure success. Rees et. al (2007) note that localization is change, and so requires traditional change management, with commitment to its success required from key stakeholders, including the expatriates who are supposed to be replaced by some of the initiatives, and demonstrated senior management leadership to ensure success. Managers should not only use quantitative measures to gauge localization success, but also qualitative methods that show attitudinal and motivational states of localization processes. It is when most can buy-in to the benefits of localization that true sustainable localization can be attained.

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Exhibit 1: GCC Population Statistics

Country Total 2007 population ‘000

Population growth rate 1960-2000, % pa

Population growth rate 2007, %

Population under 15 years % of total

Non-citizens % of total

Expatriates as % of workforce

Bahrain 708 3.6 1.4 28.8 40 64 Kuwait 2,505 4.9 3.6 33.5 64 81 Oman 3,205 3.9 3.2 44.5 26 55 Qatar 907 6.5 2.4 26.8 80 90 Saudi Arabia

27,601 4.1 43.4 27 55

UAE 4,444 8.8 3.9 26.7 82 90 Source: Economist (2002) data quoted in Harry (2007); CIA World Factbook 2007 estimates

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Exhibit 2:

Top 5 Destinations for Tertiary Education for Individual GCC Country Students – Basis Year 2006

GCC Member

Rank

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

1 UK (964) US (1796) Jordan (1310) UK (509) US (3170) UK (1803)

2 US (394) Jordan (1507) UK (1152) US (303) UK (2438) US (1209)

3 Jordan (371) UK (885) Australia (470)

Australia (148)

Jordan (2314)

Australia (976)

4 Australia (187)

Canada (351) US (370) Jordan (143) Canada

(921) Canada (430)

5 Canada (163)

Ireland (244) India (179) Canada (46) Australia

(446) India (232)

Outbound mobility ratios in % (percent tertiary students abroad), 2003: Bahrain, 10.2; Kuwait, 12.8; Oman, 12.2; Qatar, 13.5; Saudi Arabia, 1.8; UAE, 6.8. Source: UNESCO Institute for Statistics; prepared with the assistance of Bharathwaj Jayaraman

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Exhibit 3:

Selected GCC Labor Market Reform

Bahrain Recently developed a new National Employment Strategy that includes providing

fiscal subsidies for training nationals in the private sector and financial aid for the

unemployed. Introduced measures to improve general education standards, and

vocational and technical training programs, and increased employment quota of

Bahrainis in small and medium-sized companies while abolishing the "free visa"

system to expatriate labor force.

Kuwait Established Manpower and Government Restructuring Program (MGRP) in July 2001

to implement the labor law, provide unemployment benefits to unemployed Kuwaiti

nationals, and provide training and facilitate employment of Kuwaiti nationals in the

private sector. Approved, in September 2002, quotas for the proportion of Kuwaitis

that private companies must employ; companies that fail to meet this target would be

subject to a fine and sanctions such as exclusion from bidding for government

contracts.

Oman Introduced measures to improve vocational and technical training programs, and set a

uniform minimum wage for Omanis at RO 100 (plus RO 20 as transportation

allowance) instead of the previous two-tiered (skilled/unskilled) minimum wage. The

authorities are also modernizing the educational system at all levels. A new ministry

of manpower was created in 2002 and a new labor law adopted in May 2003.

Qatar Formally ended the policy of automatic employment for Qatari graduates. Now assists

job seekers by maintaining information on job openings and by counseling and

training. Established a department in the ministry of civil service with responsibility

for this function.

Saudi

Arabia

Created the Human Resources Development Fund (HRDF)—with financial

participation of the private sector—to provide training of Saudi labor force in skills

required by the private sector, and development of a database for matching and

placement of Saudi workers in the private sector. In 2004, the Soura Council

announced that foreigners, after meeting certain language and residency requirements,

could apply for Saudi Citizenship.

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United

Arab

Emirates

Established the National Human Resource Development and Employment Authority

(Tanmia) in 1999 to help improve skills of UAE nationals looking for jobs; and

established a national labor market database to facilitate nationals' job searches. The

Government of Dubai created the Dubai Institute for Human Resource Development

(DIHRD) to prepare locals for professional careers.

Source: Fasano et. al. (2003), Pakkiasamy (2004).

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Brundage, S.L. (2007, March 30). We Are Proud to See Young Saudis Taking Charge. Arab News.

Retrieved April 2, 2008, from http://www.arabnews.com Budhwar, P.S. and Mellahi, K. (Eds.). (2006). Managing Human Resources in the Middle East. New

York: Routledge. De. S. (2008, March). Considerable upward pressure on remuneration. Oman Economic Review.

Retrieved March 31, 2008, from http://www.oeronline.com/php/2008_march/cover2.php DHL wins Bahrainisation awards. (2007, December 27). TradeArabia News Service. Retrieved March 29,

2008, from http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=136287 du Achieves 22 percent Emiratization in Less than One Year of Operations. (2008, February 17). Al

Bawaba. Retrieved February 28, 2008, from ABI/INFORM Trade & Industry database. Dyer, P. (2006, November). Will the Oil Boom Solve the Middle East Employment Crisis?. Dubai

School of Government Policy Brief No. 1. Fasano, U. & Iqbal, Z. (2003). GCC Countries: From Oil Dependence to Diversification. IMF. Retrieved

March 27, 2008, from: http://www.imf.org/external/pubs/ft/med/2003/eng/fasano/index.htm Ghafour, P.K.A. (2005, February 15). Cabinet adopts measures to boost Saudization drive. Arab News.

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Harry, W. (2007). Employment creation and localization: the crucial human resource issues for the GCC. The International Journal of Human Resource Management, 18:1, 132 – 146

Haider, S. (2004, January 26). Adhere to Saudization Rules, Aramco Tells Contractors. Arab News.

Retrieved March 27, 2008, from: http://www.arabnews.com/?page=1&section=0&article=38634&d=26&m=1&y=2004

Heidrick & Struggles survey shows Middle East must do more to bridge talent gap. (2007). Heidrick &

Struggles press release. HSBC backs Special Needs conference. (2007, October 24). TradeArabia News Service. Retrieved

March 30, 2008, from: http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=132607

HSBC wins award for Emiratisation scheme. (2008, February 23). TradeArabia News Service. Retrieved

March 29, 2008, from: http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=139102

Looney, R. (2004, February). Saudization and Sound Economic Reforms: Are the Two Compatible?

Strategic Insights, 3 (2). Mellahi, K., Human resource management in Saudi Arabia. In P.S. Budhwar & K. Mellahi (Eds.),

Managing Human Resources in the Middle East. New York: Routledge. Pakkiasamy, D. (2004, November). Saudi Arabia's Plan for Changing Its Workforce. Migration Policy

Institute. Rees, C.J., Mamman, A. & Braik, A. B. (2007) Emiratization as a strategic HRM change initiative: case

study evidence from a UAE petroleum company. The International Journal of Human Resource Management, 18:1, 33 – 53.

Saffarini, R. (2007, July 12). Companies keen to hit Emiratisation targets. Gulfnews.com. Retrieved

March 31, 2008, from http://archive.gulfnews.com/articles/07/03/16/10111442.html Saudi Aramco Launches New Initiative for Saudization. (2004, September 2). Arab News. Retrieved

March 31, 2008 at http://www.arabnews.com/?page=1&section=0&article=50870&d=2&m=9&y=2004

Skyrocketing Salaries, Talent Shortage: Companies under pressure. (2008, March). Oman Economic

Review. Retrieved March 31, 2008, from http://www.oeronline.com/php/2008_march/cover.php Suliman, A.M.T. (2006). Human resource management in the United Arab Emirates. In P.S. Budhwar &

K. Mellahi (Eds.), Managing Human Resources in the Middle East. New York: Routledge. UAE nationals ordered to replace expat secretaries and HR managers./ Unemployment bill planned. (2006, October 24). Bahrain Tribune. Retrieved April 2, 2008, from

http://www.mol.gov.bh/MOL/En/News+and+Events/Ministrys+News/24-10-2006.htm Unemployment Drives GCC Reforms. (2007, November 22). AME Info. Retrieved April 2, 2008, from

http://www.ameinfo.com/news/Detailed/139517.html

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Weir, T. (2008, April). HR challenges for the region’s re developers. Dubai Business Review, TBD. Yokogawa Takes a Further Step Toward Saudization, with Local Engineering and Maintenance Services

(2008, March 5). Yokogawa press release. Retrieved March 29, 2008, from http://www.yokogawa.com/pr/Corporate/News/2008/pr-news-2008-06-en.htm

General company web sites cited (Retrieved April 2, 2008): Saudi Aramco http://www.saudiaramco.comSABIC http://www.sabic.comPetroleum Development Oman (PDO) http://www.pdo.co.om Emirates Group http://www.emiratesgroupcareers.com/

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Annotated Bibliography Abdalla, I., (2006). Human resource management in Qatar. In P.S. Budhwar & K. Mellahi (Eds.),

Managing Human Resources in the Middle East. New York: Routledge. Abstract: This chapter examines the past, present, and future of HRM in the UAE. It discusses the key challenges and prospects that confront organizations in HRM and human resource development (HRD), analyzing the political background of the country, looking at the social and cultural background and historical developments in HRM, and concluding with a look toward the future. Al Qudra Holding's Emiratization initiatives praised. (2008, February 14). Middle East Company

News,1. Retrieved February 28, 2008, from ProQuest Newsstand database. Abstract: Al Qudra Holding is the leading private joint stock investment company based in the United Arab Emirates. Established in May 2005 with a capital of AED 550 Millions increased subsequently to AED 600 Million, the company has focused on contributing to the development of the Emirates and has quickly become one of the fastest growing companies in terms of performance, as well as market capitalization. The article tells about how the firm’s Emiratization efforts were praised. Aramco reinforces policy of Saudization (2004, September 2). ). Saudi Embassy, 2004 Education &

Human Resources News Stories. Retrieved March 27, 2008 from, http://www.saudiembassy.net/2004News/News/EduDetail.asp?cIndex=4610

Abstract: Saudi Aramco has announced a new initiative in its Saudization efforts involving partnerships with vocational colleges and private-sector institutes in the Kingdom, with the aim of coordinating what is taught there with the company’s needs so that graduates will be qualified for immediate hire. The first group of students in this initiative will begin a one-year apprenticeship program in November. Initially, the focus will be on four majors - electrical, electronics, telecommunications, and air conditioning and refrigeration – with more added after evaluation. Aramco's existing two-year apprenticeship program will continue to be available to eligible graduates of high schools and colleges. Aramco seeks engineers as projects grow. (2007, April 20). MEED: Middle East Economic Digest,

51 (16). Abstract: Saudi Aramco has revealed that its demand for engineers has more than quadrupled in the past five years as the kingdom struggles to keep pace with a raft of mega energy projects. Background Note: Saudi Arabia. (2008, February). US Dept. of State, Bureau of Near Eastern

Affairs. Retrieved March 27, 2008, from http://www.state.gov/r/pa/ei/bgn/3584.htm Abstract: Through 5-year development plans, the government has sought to allocate its petroleum income to transform its relatively undeveloped, oil-based economy into that of a modern industrial state while maintaining the kingdom's traditional Islamic values and customs. Although economic planners have not achieved all their goals, the economy has progressed rapidly. Oil wealth has increased the standard of living of most Saudis. However, significant population growth has strained the government's ability to finance further improvements in the country's standard of living. Heavy dependence on petroleum revenue continues, but industry and agriculture now account for a larger share of economic activity. The mismatch between the job skills of Saudi graduates and the needs of the private job market at all levels remains the principal obstacle to economic diversification and development; about 4.6 million non-Saudis are employed in the economy.

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Background Note: United Arab Emirates. (2007, June) US Dept. of State, Bureau of Near Eastern Affairs. Retrieved March 27, 2008, from http://www.state.gov/r/pa/ei/bgn/5444.htm

Abstract: Prior to the first exports of oil in 1962, the U.A.E. economy was dominated by pearl production, fishing, agriculture, and herding. Since the rise of oil prices in 1973, however, petroleum has dominated the economy, accounting for most of its export earnings and providing significant opportunities for investment. The U.A.E. has huge proven oil reserves, estimated at 98.8 billion barrels in 2003, with gas reserves estimated at (212 trillion cubic feet); at present production rates, these supplies would last well over 150 years. In 2006, the U.A.E. produced about 2.8 million barrels of oil per day. Except in the free trade zone, the U.A.E. requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions. Bartridge, T., Al Runaithi, A., Al Muhairi, F., Al Busaeedi, N., Al Braik, S. Localisation:

GASCO21 Success Story. Human Assets Middle East. Issue 13, Winter 2005. Abstract: The authors present the view of effective Nationalisation at Abu Dhabi Gas Industries Ltd. (GASCO) from the point of view of HR specialists and the UAE national employees themselves. Bayt.com (2008, January). Regional Human Resource Overview: A Stakeholder’s Reference.

Retrieved April 2, 2008, from http://img.bayt.com/images/uploads/article_docs/salary_20080224154403.pdf

Abstract: The Middle East region is developing at a rapid pace outstripping growth in most developed nations. One of the key challenges faced by businesses in the face of competition is not only maintaining but engaging and developing their most vital asset – their personnel. As businesses struggle to maintain profitability and employees struggle to cope with cost of living increases, the falling dollar has added fresh stress on already strained regional economies. It is against this backdrop that Bayt.com and YouGovSiraj conducted their second Regional Human Resource Overview, with a view to helping employees and businesses better understand the ever changing market dynamics. Brundage, S.L. (2007, March 30). We Are Proud to See Young Saudis Taking Charge. Arab News.

Retrieved April 2, 2008, from http://www.arabnews.com Abstract: Saudi Aramco’s Hawiyah Natural Gas Liquids Recovery Project is profiled as a an example of successful Saudization. Saudi Aramco has had great success in Saudizing the company work force. Now it is partnering with its many contractors to achieve unparalleled levels of success in several company mega projects designed to increase the Kingdom’s energy stream — not only in cost savings and project schedules but in energizing a young generation to gather the skills needed to take part in the Kingdom’s economic development efforts. Budhwar, P.S. and Mellahi, K. (Eds.). (2006). Managing Human Resources in the Middle East.

New York: Routledge. Abstract: This text provides the reader with an understanding of the dynamics of HRM in the Middle East. Systematic analysis highlights the main factors and variables dictating HRM policies and practices within each country. Further, diverse and unique configurations of the cultural, institutional and business environments play a significant role in determining HRM systems in the regions that are elaborated. The volume has chapters for all of the GCC countries except Bahrain.

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De. S. (2008, March). Considerable upward pressure on remuneration. Oman Economic Review. Retrieved March 31, 2008, from http://www.oeronline.com/php/2008_march/cover2.php

Abstract: Tony Kinsman, Chief Executive Officer, Sohar Alumunium talks about the steps taken up by the company on the HR front to ensure the successful development and operations of the US$2.4 billion greenfield aluminium smelter in Sohar. DHL wins Bahrainisation awards. (2007, December 27). TradeArabia News Service. Retrieved

March 29, 2008, from http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=136287

Abstract: DHL has been recognised for its training and development excellence and commitment to Bahrainisation with two national awards. In a recent ceremony held under the patronage of Labour Minister Dr Majeed Al Alawi and organised by the Specific Council for Vocational Training, DHL was commended for its training programmes aimed at grass roots, vocational development of Bahraini nationals, particularly youth, as well as for its overall employee development programmes. du Achieves 22 percent Emiratization in Less than One Year of Operations. (2008, February 17). Al

Bawaba. Retrieved February 28, 2008, from ABI/INFORM Trade & Industry database. Abstract: UAE telecommunications firm participates at Abu Dhabi Career Fair 2008 (Tawdheef) as part of its continuous Emiratization efforts, which have seen them achieve 22 percent Emiratization in less than one year. Dyer, P. (2006, November). Will the Oil Boom Solve the Middle East Employment Crisis? Dubai

School of Government Policy Brief No. 1. Abstract: During the recent oil boom, the MENA region has seen job creation accelerate. Given favorable economic prospects going forward, the region could see unemployment decline to nearly 7 percent by 2010. But this positive forecast depends on the region’s ability to continue creating jobs at current rates. Fasano, U. & Iqbal, Z. (2003). GCC Countries: From Oil Dependence to Diversification. IMF.

Retrieved March 27, 2008, from: http://www.imf.org/external/pubs/ft/med/2003/eng/fasano/index.htm

Abstract: Over the past three decades the member countries of the Cooperation Council of the Arab States of the Gulf (GCC) have witnessed an unprecedented economic and social transformation. Oil proceeds have been used to modernize infrastructure, create employment, and improve social indicators, while the countries have been able to accumulate official reserves, maintain relatively low external debt, and remain important donors to poor countries. The GCC area has become an important center for regional economic growth. The labor market challenges differ across GCC countries. The rapid expansion in the number of young nationals in the labor market, particularly in Bahrain, Oman, and Saudi Arabia, combined with downward rigidities in reservation wages—while expatriate workers are available at internationally competitive and flexible wages—has created the potential for strong unemployment pressures. The authorities are aware of the pitfalls of a quick "nationalization" of the labor force and are appropriately focusing on long-term structural solutions while taking interim steps to ease the transition to a market-based system in which wages reflect labor productivity. In fact, all GCC countries have initiated ambitious programs for retraining and educational reforms to meet the medium- and long-term skill demands, particularly in the private sector. More concerted steps to reorient local labor toward the private sector, including by abandoning the de facto policy of government-guaranteed employment, would be

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welcome. Similarly, an appropriately targeted social safety net would be a better tool to ensure equity than generalized differentiated wages for the public sector employment. A combination of price and institutional measures will be needed to reduce high wage expectations to market levels, raise output, and increase employment. However, for this strategy to be effective, national and expatriate workers have to be made more fungible. Ghafour, P.K.A. (2005, February 15). Cabinet adopts measures to boost Saudization drive. Arab

News. Abstract: The Council of Ministers yesterday adopted a number of decisions to intensify the country’s Saudization drive and urged government agencies, universities and media organizations to support measures taken by the government to reduce dependence on foreign labor. The Cabinet said companies which fail to comply with Saudization regulations will not be awarded government contracts. “All relevant government agencies, universities and media organizations must support the measures taken by the Labor Ministry to cut the number of labor visas, train Saudis and activate the private sector’s role in the employment of Saudis,” Culture and Information Minister Iyad Madani said quoting a Cabinet statement. Harry, W. (2007). Employment creation and localization: the crucial human resource issues for the

GCC. The International Journal of Human Resource Management, 18:1, 132 – 146 Abstract: This paper provides a summary of the problems and possible solutions for the localization of human resources in the GCC countries. Harry writes that major obstacles to further localization of the GCC workforce are low levels of education and easy the preference of local nationals for government jobs rather than private sector employment. While getting more locals involved in the workforce is necessary for economic development, governments are out of touch with the reality of the challenges that it takes to hire nationals. He advocates more government spending on education to bring local national workforce skills up to the level necessary, as well as changes that will encourage the growth of the local private sector and shrinking the public sector to encourage locals to seek private employment. Haider, S. (2004, January 26). Adhere to Saudization Rules, Aramco Tells Contractors. Arab

News. Retrieved March 27, 2008, from: http://www.arabnews.com/?page=1&section=0&article=38634&d=26&m=1&y=2004

Abstract: Saudi Aramco has now told its contractors to Saudize and has taken steps to guarantee that the process is carried out. The oil company has always been considered a role-model for the Saudization program and in order to achieve its target within the company, it has launched hundreds of programs. Although Saudi Aramco has not fixed any quota of Saudi employees for its contractors, it strongly encourages Saudization, and has done so by organizing a forum on Contractor Employee Saudization and a group, the Saudization Steering Committee to help resolve the challenges Saudization presents and also to contribute to the creation of new policies and initiatives by Saudi Aramco. Heidrick & Struggles survey shows Middle East must do more to bridge talent gap. (2007).

Heidrick & Struggles press release. Abstract: Hedrick & Struggles, in collaboration with the Economist Intelligence Unit, present the Mapping Global Talent: Essays and Insights report, a 30-country survey measuring the current state of global talent and its future configuration, measuring each country's potential for producing talent and the conditions necessary to realize this potential. Seven separate measures were used in assessing each country: demographics, quality of compulsory education systems, quality of universities and business schools, quality of the environment to nurture talent, mobility and relative openness of the labor market,

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trends in foreign direct investment and proclivity to attract talent. The report suggests that the Middle East countries surveyed (Saudi Arabia, Iran and Egypt) are not expected to make big improvements in their ranking over the next five years. Full report can be accessed from here: http://www.heidrick.com/NR/rdonlyres/0F2C2980-80DB-4F75-8A30-D3C6FDDAD6B1/0/Heidrick_GTI_booklet.pdf HSBC backs Special Needs conference. (2007, October 24). TradeArabia News Service. Retrieved

March 30, 2008, from: http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=132607

Abstract: HSBC will be sponsoring the first International Conference for Special Needs Dubai 2007 to be held under the patronage of Shaikh Juma bin Maktoum Al Maktoum. The sponsorship is part of the bank's commitment to support people with special needs and promote diversity. HSBC had announced earlier a strategic partnership with Takamul, the Government of Dubai's Special Needs initiative to develop the Equal Opportunity Project which aims to enable and empower all persons with special needs, making them fully participatory members of society. As an equal opportunity employer the bank is offering employment opportunities in its workforce in the UAE and the Middle Eastern region for people with special needs. HSBC wins award for Emiratisation scheme. (2008, February 23). TradeArabia News Service.

Retrieved March 29, 2008, from: http://www.tradearabia.com/news/newsdetails.asp?Sn=EDU&artid=139102

Abstract: Crown Prince of Dubai and chairman of the Dubai Executive Council Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum presented HSBC yesterday with a special award for its successful Emiratisation programme and ongoing commitment to the recruitment and development of UAE Nationals. HSBC had partnered with ENDP and the Dubai Institute for Human Resource Development earlier to ensure the highest standards for the development of UAE national talent. Through this partnership, over 100 UAE nationals had joined HSBC’s first specialised training programme entitled the ‘HSBC Emiratee Development Programme’. Looney, R. (2004, February). Saudization and Sound Economic Reforms: Are the Two

Compatible? Strategic Insights, 3 (2). Abstract: Saudi Arabia and the other Gulf Cooperation Council (GCC) countries face a challenging set of problems that must be addressed to maintain political and military stability in the region. The country's three main challenges—restoring rates of growth above that of the population, expanding job creation, and implementing a comprehensive reform package—appear to be relatively compatible with one another. Good progress in the reform area should assure higher rates of economic growth and through that more jobs. But will they be jobs for Saudis? The government is not confident this will be the case as it simultaneously broadens and expands its Saudization program. Mellahi, K., Human resource management in Saudi Arabia. In P.S. Budhwar & K. Mellahi (Eds.),

Managing Human Resources in the Middle East. New York: Routledge. Abstract: Given its strategic geo-political position and energy resources, Saudi Arabia is a major player in the stability of the global economy. This chapter examines the human resource management (HRM) function in the country and the macro-context within which it operates.

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Pakkiasamy, D. (2004, November). Saudi Arabia's Plan for Changing Its Workforce. Migration Policy Institute.

Abstract: Foreign workers compose a large portion of the Saudi workforce, a reality the Saudi government is seriously addressing. Over the last decade, the government has prioritized "Saudiization," an initiative aiming to increase employment of Saudi nationals across all sectors of the domestic economy, reduce dependence on foreign workers, and recapture and reinvest income that would have otherwise flowed overseas as remittances. Despite Saudiization efforts, the country continues to depend on foreign labor to fill both high- and low-skilled jobs. The ambitious goals set in some sectors are unlikely to be met in the short-term. Nonetheless, the government's early initiatives ensure that the indigenization of the workforce will continue, if not on the fast-track schedule envisioned. Rees, C.J., Mamman, A. & Braik, A. B. (2007) Emiratization as a strategic HRM change initiative:

case study evidence from a UAE petroleum company. The International Journal of Human Resource Management, 18:1, 33 - 53

Abstract: Nationalization programmes that are designed to encourage and support the employment of nationals in preference to expatriates have become a key feature of HRM throughout the Middle East, with countries such as Oman, Saudi Arabia and the United Arab Emirates adopting politically led nationalization initiatives. A literature review is presented that identifies a dearth of academic research relating to these initiatives within the context of the Middle East. The paper argues that this weakness in international HRM literature has implications both within the Middle East and in terms of more general international theory building in relation to issues such as the transferability of HRM systems and practices. In later sections of the paper, a case study of Emiratization in practice is presented with a view to identifying and exploring issues surrounding the implementation and evaluation of organizationally based Emiratization programmes. The case study findings demonstrate some of the complexities surrounding issues such as management commitment, quantitative evaluation methods, resistance to change and the role of expatriates in implementing Emiratization programmes. A number of implications and subjects for future research into Emiratization are identified. These implications relate to: the reasons underlying the scarcity of HRM literature on nationalization initiatives; emotional perspectives on nationalization methodologies; strategies for dealing with resistance to nationalization within organizations; issues surrounding the design of Emiratization programmes; and the role of expatriates as key stakeholders in nationalization programmes. Saffarini, R. (2007, July 12). Companies keen to hit Emiratisation targets. Gulfnews.com.

Retrieved March 31, 2008, from http://archive.gulfnews.com/articles/07/03/16/10111442.html

Abstract: Companies at the Careers UAE 2007 job fair report that they are keen on hiring Emiratis and training them for the job market. More than 179 companies took part in the seventh annual career event and attendance was estimated as over 17,000. Firms such as Tecom Investments, Al Futtaim Group, Dubal Aluminium Company Limited, and Emirates Airlines discuss what percentage of their workforce is Emirati, their plans for hiring for the year, and what they do to develop and retain top Emirati talent. Saudi Aramco Launches New Initiative for Saudization. (2004, September 2). Arab News.

Retrieved March 31, 2008, from http://www.arabnews.com/?page=1&section=0&article=50870&d=2&m=9&y=2004

Abstract: Saudization efforts have taken an important step forward through a new initiative by Saudi Aramco to partner with vocational and industrial colleges and private-sector institutes in the Kingdom.

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The efforts are aimed at aligning the skills of graduates with the needs of the company and its contractors so that future members of the work force will have the qualifications to be directly hired. Skyrocketing Salaries, Talent Shortage: Companies under pressure. (2008, March). Oman

Economic Review. Retrieved March 31, 2008, from http://www.oeronline.com/php/2008_march/cover.php

Abstract: Though there have been talks of scarce human resources and the challenge of retaining the star performers for the last few years in the corporate circles but in the last two years the situation has become more challenging for the companies. OER takes stock of what’s going on in the mind of employees and what actions employers are taking to manage the talent crunch to safeguard their business interests. Suliman, A.M.T. (2006). Human resource management in the United Arab Emirates. In P.S.

Budhwar & K. Mellahi (Eds.), Managing Human Resources in the Middle East. New York: Routledge.

Abstract: This chapter examines the past, present, and future of HRM in the UAE. It discusses the key challenges and prospects that confront organizations in HRM and human resource development (HRD), analyzing the political background of the country, looking at the social and cultural background and historical developments in HRM, and concluding with a look toward the future. Unemployment bill planned. (2006, October 24). Bahrain Tribune. Retrieved April 2, 2008. from

http://www.mol.gov.bh/MOL/En/News+and+Events/Ministrys+News/24-10-2006.htm Abstract: The government of Bahrain has promised to introduce unemployment benefits. The bill would provide BD150 per month to about 18,000 jobless Bahrainis, most of whom are women. All unemployed will be required to attend job centres administered by the Ministry of Labour, and will be interviewed to check their eligibility and preparedness to accept job offers. First-time job seekers will also be eligible for the benefits as long as they are 18 years or older. Unemployment Drives GCC Reforms. (2007, November 22). AME Info. Retrieved April 2, 2008,

from http://www.ameinfo.com/news/Detailed/139517.html Abstract: Oil revenues are creating unprecedented wealth in the Gulf, but high unemployment rates among young workers are forcing these countries to implement reforms to their financial and educational systems, according to Kito de Boer, a Director in McKinsey & Company's Dubai office. Weir, T. (2008, April). HR challenges for the region’s re developers. Dubai Business Review, TBD. Abstract: The human resource challenge for the GCC region’s real estate developers comes down to two words – keeping pace. Throughout the GCC, the real estate industry is in a phase that can only be described as “hyper-growth.” It is being pushed to go further and harder than it ever has before and to make the impossible possible while accomplishing what others do not attempt. The only way for hyper-growth to take place for a real estate developer is through its people. Having economic capital like money and land is not enough. Human resources must keep pace in the areas of talent, human capability, market pressures, speed of growth, and the multi-cultural nature of the work force.

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Yokogawa Takes a Further Step Toward Saudization, with Local Engineering and Maintenance Services (2008, March 5). Yokogawa press release. Retrieved March 29, 2008, from http://www.yokogawa.com/pr/Corporate/News/2008/pr-news-2008-06-en.htm

Abstract: On March 4, 2008 the new building housing the headquarters of Yokogawa Saudi Arabia Company and Yokogawa Services Saudi Arabia Company was formally inaugurated. This center of excellence staffed by a professional engineering team made up of an increasing number of Saudi engineers shows Yokogawa's commitment to providing a full range of services to its customers in the region. These new facilities are located on the Dhahran Techno-Valley campus of the King Fahd University of Petroleum and Minerals (KFUPM). The Yokogawa companies look forward to the possibility of cooperating with KFUPM's R&D resources and technology exchanges. As such, Yokogawa anticipates that it will contribute to the society of Saudi Arabia. Regarding the contribution to the society of Saudi Arabia, Yokogawa has committed to provide technical training to new graduates of Saudi universities. This month, the first two groups of engineers will undergo training in Japan, following on- and off-the-job training in Singapore, Bahrain, and Saudi Arabia. General company web sites cited (Retrieved April 2, 2008): Saudi Aramco http://www.saudiaramco.comSABIC http://www.sabic.comPetroleum Development Oman (PDO) http://www.pdo.co.om Emirates Group http://www.emiratesgroupcareers.com/

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