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                                           Enforcing 
                                            Nationalization in the GCC: Private 
                                            sector progress, strategy and policy 
                                            for sustainable nationalization 
                                             
                                             
                                              
                                             
                                            Sasha Hodgson (1) 
                                            Darren Hanson (2) 
                                           
                                           
                                            (1) Assistant Professor of Management, 
                                            Zayed University 
                                            (2) Associate Professor of Management, 
                                            National University of Singapore 
                                             
                                           
                                          Correspondence: 
                                             
                                            Sasha Hodgson 
                                            Assistant Professor of Management, 
                                            Zayed University  
                                            P.O. Box 144534, Abu Dhabi, 
                                            United Arab Emirates 
                                            Email: Sasha.Hodgson@zu.ac.ae 
                                            
                                             
                                            Introduction/Background of Problem 
                                            The Gulf Cooperation Council (GCC) 
                                            countries have been continuously struggling 
                                            to develop effective Nationalization 
                                            strategies that will provide adequate 
                                            government enforcement, training programs 
                                            and employment opportunities for Nationals 
                                            in the private sector industries. 
                                            Yousef (2010) states one of the main 
                                            problems related to this topic is 
                                            that the GCC nations have many Nationals 
                                            who are university graduates with 
                                            BA, MBA or PhD degrees, yet they have 
                                            little actual workplace knowledge 
                                            and no job skills or work experience. 
                                            Henderson (2011) states another problem 
                                            is the GCC governments do not want 
                                            to alienate multinational corporations 
                                            by forcing them to hire Nationals 
                                            who may not be qualified enough to 
                                            fill their job vacancies. 
                                             
                                            This paper examines qualitative and 
                                            quantitative data. A literature review 
                                            of published academic materials related 
                                            to GCC Nationalization made up the 
                                            secondary research, while the primary 
                                            research involved interviews with 
                                            three questions distributed by email 
                                            to 350 GCC University students seeking 
                                            jobs. 279 of those responded. The 
                                            theoretical frameworks were then applied 
                                            to the survey results to develop analysis, 
                                            conclusions and proper recommendations 
                                            for how GCC governments can improve 
                                            their strategies to become knowledge 
                                            economies where Nationals will gradually 
                                            become proficient, experienced and 
                                            qualified knowledge workers. The GCC 
                                            countries have recently been developing 
                                            more suitable Nationalization enforcement 
                                            strategies that they hope will compel 
                                            private sector companies to hire Nationals 
                                            in order to train them and give them 
                                            work experience in all private sector 
                                            markets. GCC governments can enforce 
                                            Nationalization by upgrading knowledge, 
                                            education and job skills training 
                                            for Nationals to prepare them for 
                                            working in the private sector (Carson, 
                                            2013, 1-24) 
                                             
                                            Research Question 
                                            "How can GCC governments enforce 
                                            Nationalization to upgrade knowledge, 
                                            education and skills training for 
                                            Nationals to prepare them for working 
                                            in the private sector?" 
                                             
                                            Background of GCC  
                                            According to the GCC Council (2013), 
                                            the Gulf region is a regional economic 
                                            trade agreement established in November 
                                            1981 that consists of six nations, 
                                            including the UAE, Saudi Arabia, Qatar, 
                                            Kuwait, Bahrain and Oman. According 
                                            to the CIA World Factbook, the GCC 
                                            has over 42 million people and an 
                                            annual Gross Domestic Product (GDP) 
                                            of over $1.4 trillion with an average 
                                            GDP per capita of $33,000 per person. 
                                            According to the World Economic Forum 
                                            (2013), the GCC economies will earn 
                                            over $2 trillion by 2020, and the 
                                            population will increase by 30% to 
                                            reach almost 53.5 million people (Fahad, 
                                            2013, 1-5) (Carson, 2013, 1-24) (Al-Makahleh, 
                                            2013, 1-9).  
                                            The Economist Intelligence Unit stated 
                                            this will be mainly due to the many 
                                            global strategic alliances of government 
                                            and private company partnerships in 
                                            industries like alternative energy, 
                                            construction and tourism. Davis (2013) 
                                            states this increase in population 
                                            will provide many problems for GCC 
                                            Nationals needing jobs since the developing 
                                            economies will attract even more experienced 
                                            qualified foreign workers to the region. 
                                            According to the Saudi Arabia Central 
                                            Bank Governor Muhammad Al-Jasser, 
                                            as of March 2012, the GCC has finalized 
                                            preparations for developing the regional 
                                            trading bloc into an official confederation 
                                            that will eventually have a single 
                                            universal Khaleeji currency and Arab 
                                            Common Market to encourage and facilitate 
                                            more commercial business activity 
                                            between these nations. 'The economic 
                                            conditions in the Gulf are excellent 
                                            for forming a monetary union and that 
                                            a plan to launch a Gulf single currency 
                                            was on track", stated Al Jasser 
                                            (John, 2011, 1-6) (Martin, 2013, 1-4). 
                                             
                                            According to UAE Central Bank Governor 
                                            Sultan bin Nasser Al-Suweidi, the 
                                            main objectives of the GCC include 
                                            establishing governmental regulations 
                                            for trade, finance, legislation, tourism, 
                                            customs and administration and to 
                                            develop regional joint ventures. In 
                                            the majority of the GCC nations such 
                                            as the UAE, there are up to 88% foreign 
                                            expatriate workers who have overtaken 
                                            the private sector markets. International 
                                            Monetary Fund (IMF) liaison Kent Larson 
                                            (2012) states this has created problems 
                                            for the GCC Nationals who are often 
                                            overlooked due to being less qualified 
                                            than many global expatriates for various 
                                            private sector positions. Fasano (2013) 
                                            states the GCC governments have begun 
                                            to realize that Human Resource Management 
                                            (HRM) job skills training programs 
                                            and private sector on the job work 
                                            experience are needed to coordinate 
                                            with university education institutions 
                                            to provide a proper knowledge and 
                                            skills foundation for all GCC Nationals 
                                            (Anderson, 2012, 1-8) (Al-Khouri, 
                                            2010, 1-25). 
                                             
                                            GCC Country Socio-Economic Profiles 
                                            According to the CIA World Factbook, 
                                            the GCC country economic profiles 
                                            can be broken down by population, 
                                            Gross Domestic Product (GDP), GDP 
                                            per capita (per person), and real 
                                            growth rate or similar traits for 
                                            comparison:  
                                             
                                            o Bahrain-1.2 million people; 
                                            $32 billion GDP; GDP per capita of 
                                            $28,200; 2% growth rate 
                                            o Kuwait-2.6 million people; 
                                            $166 billion GDP; GDP per capita of 
                                            $43,800; 6% growth rate; 9% of world's 
                                            oil reserves 
                                            o Oman-3 million people; $91 
                                            billion GDP; GDP per capita of $28,500; 
                                            5% growth rate 
                                            o Qatar-1.95 million people; 
                                            $189 billion GDP; GDP per capita of 
                                            $103,000; 6% growth rate; 13% of world's 
                                            gas reserves; 3rd worldwide for natural 
                                            gas provision 
                                            o Saudi Arabia-26.5 million 
                                            people; $741 billion GDP; GDP per 
                                            capita of $25,700; 6% growth rate; 
                                            9% of world's oil reserves 
                                            o UAE-5.3 million people; $271 
                                            billion GDP; GDP of $49,000; 4% growth 
                                            rate (Newman, 2013, 1-9). 
                                          The chart below explains how the 
                                            GCC countries differ greatly in population 
                                            and National participation in the 
                                            private sector workforce for diverse 
                                            socio-economic and cultural reasons. 
                                            Saudi Arabia has the largest National 
                                            population by far and an almost equal 
                                            and the only majority workforce (51%) 
                                            of Nationals and non-Nationals in 
                                            the private sector. This is mainly 
                                            due to Saudi's limited freedom, conservative 
                                            laws for women like not being able 
                                            to drive, and lack of recreational 
                                            activities for foreigners involving 
                                            alcohol, nightclubs and bars (Carson, 
                                            2013, 1-9). 
                                             
                                            Bahrain has the most equal National 
                                            and non-National population and the 
                                            second highest National workforce 
                                            in the private sector at 36% due to 
                                            not being as wealthy and Bahrainis 
                                            having an almost equal population 
                                            to foreigners in the country. Oman 
                                            has the fourth highest National workforce 
                                            in the private sector at 29% since 
                                            many Omanis work in lower social class 
                                            jobs like as taxi drivers due to the 
                                            country not being as wealthy as the 
                                            other GCC nations. Kuwait has the 
                                            fourth highest National workforce 
                                            in the private sector at 17% due to 
                                            having many private sector partnerships 
                                            and options for Kuwaitis (Gernal, 
                                            2013, 1-7). 
                                             
                                            UAE has only 6% Nationals in the workforce, 
                                            mainly to the combination of being 
                                            one of the wealthiest and most westernized 
                                            countries that has all the major attractions 
                                            for foreigners, such as high salaries, 
                                            low competition for jobs, and many 
                                            recreational freedoms. UAE has the 
                                            second largest difference between 
                                            foreigners and Nationals in the entire 
                                            population after Saudi, yet with all 
                                            the appeal that many of the other 
                                            nations lack, including the oil wealth, 
                                            westernization and many job opportunities 
                                            with the fun lifestyle for foreigners, 
                                            making it the most attractive of all 
                                            the GCC countries (Fasano, 2013, 1-6). 
                                             
                                            Qatar as the wealthiest country worldwide 
                                            is similar to UAE for the many benefits, 
                                            high salaries and freedoms, yet it 
                                            lacks the many diverse recreational 
                                            fun activities because it is such 
                                            a small country. For UAE and Qatar, 
                                            the GCC Nationalization strategies 
                                            are most important since the governments 
                                            have the oil wealth, foreign private 
                                            sector partnerships, innovation and 
                                            new technologies, highly educated 
                                            Nationals, and other necessary resources, 
                                            but the Nationals still lack the practical 
                                            knowledge, job skills and work experience 
                                            needed to be efficient performers 
                                            in the private companies (Faizy, 2012, 
                                            1-6) (Forstenlechner, 2013, 1-17) 
                                          
                                          GCC Profile Chart 
                                           
                                            
                                            Table 1: Source - Forstenlechner, 
                                            2013 
                                          The GCC country workforce comparisons 
                                            from the past are shown in the chart 
                                            below to display the changes over 
                                            time in the region from 1975, 1985, 
                                            1990, 1999 and 2008. The chart shows 
                                            since 1985 there has always been oil 
                                            wealth resulting in a fairly consistent 
                                            ratio of foreigners in the GCC due 
                                            to small National populations who 
                                            were not qualified enough to work 
                                            in the private sector jobs (Saudi 
                                            is the exception since it has such 
                                            a huge National population) (Al-Khouri, 
                                            2010, 1-9). 
                                             
                                            GCC Country Workforce Comparisons: 
                                            1975, 1985, 1990, 1999 & 2008 
                                             
                                            (Click 
                                            here to view) 
                                           GCC Governmental 
                                            Responsibilities 
                                            According to the GCC Council (2013), 
                                            the GCC governments' main functions 
                                            are the development of the country 
                                            and provision of adequate education, 
                                            employment, healthcare and other relevant 
                                            services for the people. The GCC governments' 
                                            main services must coordinate strategies 
                                            between federal and local official 
                                            authorities to improve the city's 
                                            economic and social development. The 
                                            United Nations (2012) states the emphasis 
                                            in GCC is now on upgrading the enforcement 
                                            of Emiratization governmental initiatives 
                                            related to education and the economic 
                                            development of the countries for the 
                                            future using their oil revenues for 
                                            improving their human capital job 
                                            skills. Qatar Ministry of Labor official 
                                            Al-Hassan (2012) stated the GCC governments' 
                                            past focus was mainly on the public 
                                            sector development, especially the 
                                            infrastructure, transportation, telecommunications, 
                                            justice and safety programs during 
                                            the expansion phase. However, the 
                                            current and future focus is on support 
                                            and expansion of the Emiratization 
                                            initiatives as one of the many ways 
                                            the government hopes to help GCC Nationals 
                                            obtain good jobs in all industries 
                                            (Abu Baker, 2013, 1-4) (Al-Kuwari, 
                                            2012, 1-15) (Mendoza, 2013, 1-7). 
                                             
                                            According to Shehadi (2011), GCC Nationalization 
                                            requires a comprehensive strategic 
                                            approach to resolve the many issues 
                                            related to preparing Nationals for 
                                            Human Resource Management (HRM) recruitment 
                                            in the private sector. "Addressing 
                                            this challenge will require companies 
                                            to overcome significant cultural, 
                                            social, and legal issues. Booz & 
                                            Company has developed a framework 
                                            to help companies in this effort, 
                                            consisting of three key elements: 
                                            defining a company's strategic vision 
                                            in employing more GCC women, developing 
                                            strategies to attract, develop, evaluate, 
                                            and promote the right Nationals for 
                                            their workforce needs, and implementing 
                                            a change management strategy to ensure 
                                            success during the transition", 
                                            stated Booz & Company manager 
                                            Tom Richardson (Shehadi, 2011, 1-24). 
                                             
                                            Bashar (2012) states that to aid Nationals 
                                            in earning competitive salaries that 
                                            will help them cope with the rising 
                                            inflation costs, some GCC governments 
                                            like the UAE have given all public 
                                            sector employees raises of between 
                                            70%-100% within the past few years. 
                                            This included the UAE National police, 
                                            immigration, military and governmental 
                                            ministry employees. According to the 
                                            United Nations Human Development Report 
                                            2012, the GCC governments have been 
                                            gradually increasing their social 
                                            services sector allowances in accordance 
                                            with the federal budgets to improve 
                                            the education and training services 
                                            provided to Nationals from the Ministries 
                                            of Health, Education, Social Affairs 
                                            and Culture and Youth and Community 
                                            Development (Bartridge, 2005, 51-67) 
                                            (Abu Baker, 2013, 1-4). 
                                             
                                            GCC Nationalization Strategies 
                                            According to the Ideas Group (2013), 
                                            an international Human Capital Development 
                                            and Learning Company based in the 
                                            GCC that specializes in teamwork and 
                                            leadership development to develop 
                                            organizations into high performance 
                                            firms showing sustainable growth, 
                                            due to the immense wealth of the GCC 
                                            oil sector, the region has attracted 
                                            millions of highly-qualified expatriate 
                                            workers seeking employment with high 
                                            tax-free salaries. Peterson (2011) 
                                            states to respond to the huge amount 
                                            of foreign workers in the GCC region 
                                            that has caused high unemployment 
                                            rates for Nationals, the governments 
                                            have launched many Nationalization 
                                            strategies (Atallah, 2011, 1-8) (Ghafour, 
                                            2012, 1-8). 
                                             
                                            Al-Lamki (2010) states the main purpose 
                                            of these GCC workforce Nationalization 
                                            programs is supposed to be increasing 
                                            employment opportunities within the 
                                            private sectors. Each individual GCC 
                                            government has launched their own 
                                            Nationalization initiatives called 
                                            Emiratization in the United Arab Emirates 
                                            (UAE), Saudization in Saudi Arabia, 
                                            Qatarization in Qatar, Kuwaitization 
                                            in Kuwait, Bahrainization in Bahrain, 
                                            and Omanization in Oman. However, 
                                            there has been limited success in 
                                            enforcing these strategies in the 
                                            past due to the private sector companies 
                                            refusing to comply with governmental 
                                            initiatives. Megarbane (2001) states 
                                            stronger enforcement with benefits 
                                            for adherence and penalties for private 
                                            sector companies who refuse compliance 
                                            to Nationalization initiatives must 
                                            be developed in order to adequately 
                                            implement these strategies for the 
                                            future. The GCC strategies are explained 
                                            by country in order of their future 
                                            potential effectiveness (Anderson, 
                                            2012, 1-4) (Fasano, 2012, 1-5). 
                                             
                                            The Saudi Arabian government recently 
                                            launched one of the most effective 
                                            Nationalization programs referred 
                                            to as Nitaqat which allowed the Ministry 
                                            of Labor to categorize private sector 
                                            companies into various color-coded 
                                            classes. Firms who have refused to 
                                            hire any Saudi Nationals are considered 
                                            Red Class, while Yellow class relates 
                                            to companies who have employed a few 
                                            Nationals. The Green class refers 
                                            to companies who have adhered to the 
                                            minimum requirements the Saudi government 
                                            have proposed from the Ministry of 
                                            Labor in the past. The Excellent class 
                                            is set aside for the private companies 
                                            who have a majority of Saudi National 
                                            employees in their workforce. This 
                                            system is now the center of all Saudi 
                                            Ministry of Labor services, and there 
                                            are many benefits that are included 
                                            for companies who comply with the 
                                            highest Nationalization standards 
                                            (Faizy, 2012, 1-6) (Carson, 2013, 
                                            1-9). 
                                             
                                            If a firm has an Excellent Nationalization 
                                            rating, then they are fast-tracked 
                                            through the Ministry of Labor processing, 
                                            they get more employee visas allowed, 
                                            and they can hire expatriates from 
                                            the other categories without the need 
                                            for sponsor company approval. This 
                                            means the companies that adhere to 
                                            the Excellent class will be able to 
                                            hire the most qualified expatriate 
                                            workers from all over the country 
                                            without having to worry about any 
                                            restrictions from stealing them away 
                                            from lower category firms. This strategy 
                                            shows how the companies that hire 
                                            the most Saudi Nationals will be allowed 
                                            to have the most skilled and experienced 
                                            expatriates to help them train them. 
                                            They will become the market leaders 
                                            with the most capable employees who 
                                            have the capacity to train Saudi Nationals 
                                            and enjoy more efficiency and productivity 
                                            resulting in higher market share and 
                                            profitability in the long term as 
                                            their reward (Faizy, 2012, 1-6). 
                                             
                                            The UAE has shown gradual success 
                                            in their Emiratization program over 
                                            time due to new Ministry of Labor 
                                            penalties for non-compliance and governmental 
                                            strategic alliances, personal contacts 
                                            and business networking shown as benefits 
                                            to private firms who comply with the 
                                            program. Many UAE firms have also 
                                            started realizing the long-term advantages 
                                            of Emiratization privatized training 
                                            programs since the Nationals remain 
                                            in their companies longer than many 
                                            other expatriates who often leave 
                                            after about three years. By 2012, 
                                            72% of the UAE banking sector had 
                                            complied with the 20% Emiratization 
                                            quota due to partnerships with the 
                                            government. By 2006, 88% of all private 
                                            firms employed 2% of Emiratis, totaling 
                                            3700 employees (Verma, 2011, 1-7). 
                                             
                                            In Kuwait by 2008 the Ministerial 
                                            Decree 1104 stated 15% Kuwaitization 
                                            was needed for real estate firms and 
                                            2% in manufacturing sectors. The Kuwait 
                                            National Assembly then passed a law 
                                            stipulating extra government subsidiaries 
                                            would be paid to private companies 
                                            and additional employee salary allowances 
                                            would be paid to Kuwait Nationals 
                                            who took private sector jobs. This 
                                            helped Kuwait National unemployment 
                                            rates decrease from 8.5% in 2000 to 
                                            2010's rate of less than 4.9%. Since 
                                            Qatar's rapid expansion over the past 
                                            several years has made them the wealthiest 
                                            country in the world attracting hundreds 
                                            of global firms, their 25% population 
                                            is made up of Qatari Nationals. The 
                                            Qatar government has launched a National 
                                            Qualification Framework to increase 
                                            English skills and vocational educational 
                                            opportunities for Qataris. Both the 
                                            Bahrain and Omani governments have 
                                            similar Nationalization strategies 
                                            and Oman now issues Green Cards to 
                                            firms that reach their Omanization 
                                            quotas so they receive preferential 
                                            treatment in government processes 
                                            (Randeree, 2012, 1-20) (Beaugrand, 
                                            2012, 1-6).  
                                             
                                            Epistemology Approach 
                                            Everest (2012) states the study of 
                                            epistemology is the division of philosophy 
                                            that researches knowledge in order 
                                            to answer the basic question of "what 
                                            distinguishes true (adequate) knowledge 
                                            from false (inadequate) knowledge?" 
                                            This concept relates to scientific 
                                            methodology because it studies how 
                                            scientists can develop theories or 
                                            models that are superior to those 
                                            that already exist. This idea also 
                                            refers to the study of cognition, 
                                            which developed from artificial intelligence 
                                            studies and the data processing approach 
                                            to psychology. It is used to create 
                                            computer programs that copy people's 
                                            ability to use knowledge intellectually 
                                            (Heylighen, 2008, 116-139). 
                                             
                                            Cochran (2000) feels the original 
                                            theories of epistemology involve how 
                                            knowledge emphasized its total, enduring 
                                            nature. However, more current concepts 
                                            relate to its reliance of specific 
                                            situations, how knowledge changes 
                                            over time, and how it interacts with 
                                            the world around it. Knowledge is 
                                            adaptable to different circumstances, 
                                            and according to ancient Greek philosophers 
                                            like Plato, "knowledge is merely 
                                            an awareness of absolute, universal 
                                            ideas or forms, existing independent 
                                            of any subject trying to apprehend 
                                            them". Aristotle stresses more 
                                            logical and empirical processes for 
                                            obtaining knowledge, and he believes 
                                            that "knowledge is an apprehension 
                                            of necessary and universal principles" 
                                            (Heylighen, 2008, 116-139) (Cooper, 
                                            2012, 61-84) (Johnson, 2011, 61-93). 
                                             
                                            Research Methodology/Research Methods 
                                            This paper includes both primary and 
                                            secondary research methods using qualitative 
                                            and quantitative analysis. A literature 
                                            review of published academic materials 
                                            related to GCC Nationalization makes 
                                            up the secondary research, while the 
                                            primary research involved interviews 
                                            distributed to 350 GCC University 
                                            students seeking jobs. 279 responses 
                                            was an excellent response and clearly 
                                            showed the topic is of keen interest 
                                            to students.  
                                             
                                            This project also includes information 
                                            about how the GCC governments are 
                                            developing new Nationalization initiatives 
                                            to replace their outdated or ineffective 
                                            strategies from the past. The data 
                                            gathered was compiled on related Nationalization 
                                            strategies that are proving to be 
                                            most effective in the GCC countries. 
                                            The examination of the secondary research 
                                            method results will be analyzed to 
                                            provide useful insight into the GCC 
                                            governments' future Nationalization 
                                            strategies to enforce the initiatives 
                                            throughout the countries in all private 
                                            sector industries. The qualitative 
                                            research will involve providing an 
                                            overall analysis of how the theoretical 
                                            frameworks and models from the literature 
                                            review could be applied to real-world 
                                            scenarios for the GCC governments. 
                                            Suitable conclusions and recommendations 
                                            will be formed to develop effective 
                                            strategies that could be implemented 
                                            into the GCC government to enforce 
                                            Nationalization for the future. This 
                                            project will use the ontological epistemology 
                                            positivist approach and deductive 
                                            reasoning to test the assumptions 
                                            about GCC governments enforcing Emiratization 
                                            to provide more jobs for Emiratis 
                                            in the private sector. This positivist 
                                            approach will use empirical evidence 
                                            gained from the research methods and 
                                            qualitative research analysis to provide 
                                            an overall perspective on the GCC 
                                            government Nationalization programs 
                                            (Zikmund, 2012, 173-185). 
                                             
                                            Overall Interview Results & 
                                            Analysis 
                                            An overall analysis of the interview 
                                            results shows many valuable insights 
                                            from National perspectives related 
                                            to the topic of how to enforce GCC 
                                            Nationalization. The interviewees 
                                            stated some of the problems relating 
                                            to GCC Nationalization being fully 
                                            integrated and successful for the 
                                            long run deal with Nationals' attitudes 
                                            about longer working hours, increased 
                                            duties, commitment to the companies 
                                            and feelings of entitlement due to 
                                            their past cultural experiences. Although 
                                            the GCC governments have tried to 
                                            request Nationalization strategies 
                                            to be accepted, they need to create 
                                            stricter guidelines and punishments 
                                            for private sector companies that 
                                            do not adhere to these policies if 
                                            they want them to be properly implemented. 
                                            The interviewees stated all of the 
                                            GCC nations have strived to create 
                                            more enforcement for their individual 
                                            Nationalization strategies to help 
                                            locals get jobs in private sector 
                                            companies. Although many governmental 
                                            initiatives have been passed, enforcing 
                                            them has been difficult due to the 
                                            governments in each country not wanting 
                                            to alienate multinational corporations 
                                            by forcing them to hire Nationals 
                                            who may not be qualified enough to 
                                            fill their job vacancies. 
                                             
                                            The interviewees explained how many 
                                            GCC nations are formulating innovative 
                                            approaches to coping with this ongoing 
                                            problem. The UAE has continuously 
                                            faced the challenges of promoting 
                                            Emiratization in order to compel private 
                                            companies to at least hire Emiratis 
                                            for one year as part of probation 
                                            training programs with government 
                                            subsidiaries contributing to their 
                                            monthly salaries. This has led to 
                                            partial acceptance on the part of 
                                            some private firms who are willing 
                                            to participate in the Emiratization 
                                            training programs as long as the government 
                                            continues to subsidize their salaries. 
                                            However, other GCC nations have not 
                                            always been so successful in persuading 
                                            private sector companies to accept 
                                            the changes being proposed.  
                                             
                                            The interviewees described how when 
                                            they have gone on job interviews they 
                                            have seen how employers are reluctant 
                                            to hire them because they feel they 
                                            lack the work experience and may not 
                                            perform well or be efficient in their 
                                            jobs. They stated there has been major 
                                            resistance to these Nationalization 
                                            strategies by some foreign private 
                                            companies that feel it may jeopardize 
                                            their overall efficiency and profitability 
                                            if they spend so much time and effort 
                                            training new unqualified employees. 
                                            The interviewees stated some firms 
                                            said that with so many global recruitment 
                                            possibilities providing specialists 
                                            with exceptional qualifications to 
                                            hire, it is not fair that they should 
                                            sacrifice their potential profitability 
                                            by being forced to hire unskilled 
                                            or unknowledgeable employees. The 
                                            interviewees stated that on the other 
                                            side of the issue, the GCC governments 
                                            explain that without their ongoing 
                                            financial support and reforms that 
                                            keep expanding the countries and providing 
                                            new economic opportunities and projects 
                                            for foreign companies, they would 
                                            not even be able to operate in the 
                                            region. 
                                             
                                            Conclusion  
                                            The topic of enforcing GCC Nationalization 
                                            strategies and implementing them properly 
                                            into the private sector industries 
                                            to provide more job opportunities 
                                            for Nationals has created many problems 
                                            within the region. For foreign companies 
                                            wanting to control their employee 
                                            HRM recruitment and selection processes, 
                                            the issue of compliance with governmental 
                                            Nationalization quotas of up to 20% 
                                            has been described as difficult for 
                                            them to maintain their current efficiency 
                                            standards. There has been a lot of 
                                            change resistance by GCC private sector 
                                            companies to hire Nationals due to 
                                            their lack of skills, qualifications 
                                            and experience in different sectors. 
                                            However, 'by 2025, nearly 95 million 
                                            people living in the MENA region will 
                                            be between the ages of 15 and 24. 
                                            This represents an approximately 8% 
                                            increase from 2005 and it will peak 
                                            at 100 million in 2035' (Hodgson, 
                                            S., & Clausen, T. 2012) so with 
                                            many GCC National college graduates 
                                            seeking employment yearly and not 
                                            enough available public sector jobs 
                                            in government positions, it is essential 
                                            that they enter the private sector 
                                            to reduce unemployment rates.  
                                             
                                            The key to coordinating an effective 
                                            solution to this complicated problem 
                                            is for GCC governments to take a strategic 
                                            approach to HRM recruitment by making 
                                            Nationals much more appealing to private 
                                            firms through extensive job skills 
                                            training programs. This will require 
                                            private companies to be included in 
                                            this long-term strategy to help provide 
                                            work experience and on the job skills 
                                            training, so the GCC governments need 
                                            to provide administration discounts 
                                            and benefits like salary subsidies 
                                            for it to be an attractive option 
                                            for them. All the GCC governments 
                                            are asking is for private sector companies 
                                            to spend short periods of time helping 
                                            them provide on the job skills training 
                                            to assist in upgrading the qualifications 
                                            and work experience of Nationals with 
                                            sufficient subsidiaries to compensate 
                                            their time and effort. This controversial 
                                            issue has been ongoing for many years 
                                            with only a few small successes being 
                                            recorded. 
                                             
                                            However, now that all of the GCC countries 
                                            have strong governmental enforcement 
                                            policies in place, there should be 
                                            many more effective enforcement strategies 
                                            being implemented in the near future. 
                                            Developing effective Nationalization 
                                            strategies to enforce private company 
                                            participation in GCC governmental 
                                            programs is a complex and challenging 
                                            issue that is currently underway in 
                                            the Gulf region. However, the key 
                                            to long-term success is government-supported 
                                            National knowledge-sharing and job 
                                            skills training programs. These programs 
                                            will involve coaching and mentoring 
                                            by private sector firms to help improve 
                                            Nationals' qualifications and provide 
                                            more employment opportunities for 
                                            them in the private industries. Many 
                                            experts believe that as the GCC Nationals 
                                            gain job skills and work experience 
                                            in the private sector, the negative 
                                            stereotypes and resistant attitudes 
                                            toward Nationals will also change. 
                                            As more GCC Nationals enter the private 
                                            sector and improve their skills and 
                                            experience, they will prove their 
                                            capabilities and that will result 
                                            in making it easier to enforce Nationalization 
                                            quotas in the future. 
                                             
                                            Recommendations 
                                            Due to the GCC labor market challenges 
                                            and how they differ by country, the 
                                            implementation of governmental strategies 
                                            and policies must focus on creating 
                                            new job opportunities for Nationals. 
                                            This will involve altering the workforce 
                                            to suit market requirements.  
                                            It will also involve encouraging GCC 
                                            Nationalization in the private sector 
                                            with motivational incentives like 
                                            foreign partnerships with governments 
                                            and fast-tracked trade license processes 
                                            for firms who comply with set quotas. 
                                            Some of the recommendation policies 
                                            that will help the GCC governments 
                                            upgrade their Nationalization strategies 
                                            to make them more effective include: 
                                             
                                            o Create job opportunities 
                                            in private sector by forcing companies 
                                            to offer positions specifically made 
                                            for Nationals to meet their Nationalization 
                                            quotas 
                                            o GCC governments must launch 
                                            new educational and economic reform 
                                            policies and HRM job skills training 
                                            programs for Nationals to better prepare 
                                            them for the private sector workforce 
                                            o Barriers to entering the 
                                            private sector workforce must be removed 
                                            for Nationals, including cultural 
                                            prejudices and a lack of qualifications 
                                            o Nationals should have job 
                                            search assistance coordinated with 
                                            local GCC recruitment agencies supported 
                                            by governments 
                                            o GCC governments should launch 
                                            educational awareness programs on 
                                            new Nationalization initiative enforcement 
                                            to motivate private firms to meet 
                                            their quotas and to encourage Nationals 
                                            to improve their job skills training 
                                            and pursue higher educational opportunities 
                                            or IT and computer institute training 
                                            programs 
                                            o GCC governments should subsidize 
                                            National salaries to help private 
                                            firms afford them as employees and 
                                            to encourage National applications 
                                            for recruitment 
                                            o Enforce Nationalization strategies 
                                            with appropriate governmental administrative 
                                            measures, like private sector firm 
                                            trade license registration and renewal 
                                            involving compliance checks to ensure 
                                            they have hired the minimum number 
                                            of Nationals 
                                            o Enhance private sector benefits 
                                            like reduced governmental fees for 
                                            compliance with Nationalization initiatives 
                                            o Stricter regulations for 
                                            monitoring private firm recruitment 
                                            of Nationals 
                                            o Allow for Nationals to be 
                                            dismissed like expats if their performance 
                                            is not up to private sector managerial 
                                            expectations 
                                            o Develop HR employee relations 
                                            program for addressing possible future 
                                            equity issues related to GCC Nationals 
                                            earning higher salaries than expatriates 
                                            for the same job 
                                             
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