Localisation in an emerging Gulf economy. Understanding the role of education, job attributes and analysing the barriers in its process

• Date: 14 March 2018
• DOI: https://doi.org/10.1108/EDI-02-2017-0045
• Published date: 14 March 2018
• Pages: 151-166
• Author: Fauzia Jabeen,Mohd Nishat Faisal,Marios Katsioloudes

Localisation in an emerging

Gulf economy

Understanding the role of education,

job attributes and analysing the

barriers in its process

Fauzia Jabeen

College of Business Administration, Abu Dhabi University, Abu Dhabi, UAE, and

Mohd Nishat Faisal and Marios Katsioloudes

College of Business and Economics, Qatar University, Doha, Qatar

Abstract

Purpose –The purpose of this paper is twofold: first, to understand Emirati nationals’perceptions of the role

of workforce localisation policies in their professional aspirations and growth and, second, to determine the

role of higher education and job attributes in the achievement of their goals. The study uses a hierarchy-based

model/road map to improve localisation efforts by attempting to aid understanding of the relationships and

barriers hindering these processes.

Design/methodology /approach –The study foll ows a two-stage proce ss. In the first stage,

a questionnaire-based survey was administered to 207 Emirati postgraduate students from public and

private universities based in two major Emirates: Abu Dhabi and Dubai. The sample data were analysed by

basic descriptive statistics in the form of cross-relationships and rank correlation tests. In the second stage, an

interpretive structural modelling approach was used to develop a hierarchy-based structural model of the

barriers to localisation.

Findings –Emiratisyounger than 30 years old consider localisation as an enablingfactor in their professional

successin contrast to those older than30 years old. The results alsoindicate that working femaleEmiratis have

significantly more positive attitudes regarding the contribution of localisation towards their professional

success than that oftheir male counterparts. However, bothgenders see a mismatch in efforts beingmade to

betterequip themselves for theworkplace. The hierarchy-basedmodel delineatesvariables that couldcontribute

to making localisationa successful employment programme in the United ArabEmirates (UAE).

Research limitations –The findings of this study relate to the UAE. However, there are similar localisation

programmes that have been implemented in other Gulf Cooperation Council states. Hence, while the results of

this study are relevant to the UAE, they may not be generalisable to the entire Gulf region.

Practical implications –It is proposed that the research findings and the structural model of relationships

may help policy makers develop suitable strategies to strengthen the Emirati localisation programme.

Originality/value –This study makes a contribution to the literature and can serve as a guide to policy

makers for localisation programmes. This is achieved by analysing the attitude of UAE nationals studying at

higher education institutions. Furthermore, the study presents a hierarchy-based model of the barriers to

localisation that explains the root causes of the problem.

Keywords United Arab Emirates, Higher education, Localization, Emiratization, Job attributes

Paper type Research paper

1. Introduction

Currently, most Middle Eastern countries are focusing on localisation policies, i.e., the

substitution of expatriate workers with skilled and qualified local labour, due to low rates of

native employment in the private sector (Forstenlechner and Rutledge, 2011; Forstenlechner

et al., 2012). Localisation strategies in the Gulf Cooperation Council (GCC) region are

inevitable given the context of its rising population, increasing unemployment, improving

general levels of health, and expanding education systems (Swailes et al., 2012).

Confronted with high unemployment, the fast developing United Arab Emirates (UAE)

initiated its localisation programme, which is also known as “Emiratisation”, in the 1990s.

Emiratisation is the workforce localisation policy adopted by the UAE and is typical of

Equality, Diversity and Inclusion:

An International Journal

Vol. 37 No. 2, 2018

pp. 151-166

© Emerald PublishingLimited

2040-7149

DOI 10.1108/EDI-02-2017-0045

Received 27 February 2017

Revised 27 May 2017

Accepted 19 October 2017

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/2040-7149.htm

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Localisation in

an emerging

Gulf economy

countries in the GCC (Barnett et al., 2015). It recognises the need to place local workers at the

heart of the workforce and decision making to ensure the endogenous social and economic

development of the country (Goby et al., 2015). However, the population and labour market

imbalance between UAE nationals and non-nationals in private and public sector

organisations is one of the impediments in its implementation. Despite being in place for

several decades, localisation policies in the UAE have had little success in practice

(Forstenlechner, 2010). Emiratis hold only 0.5 per cent of private sector jobs and 60 per cent

of public sector jobs, and the unemployment rate among Emiratis is 15 per cent (Salem and

Dajani, 2013). Emirati youth face an unemployment rate of 21.4 per cent and make up nearly

78 per cent of all unemployed Emiratis (Sayre and Yousef, 2016). Low private sector pay and

long hours remain one of the major obstacles (Al-Waqfi and Forstenlechner, 2012; Arnold,

2013; AlDhaheri et al., 2017). Therefore, the purpose of this study is to understand the

perceptions of Emiratis according to the following questions:

•Is workforce localisation an enabling factor in their professional growth and success?

•What job attributes matter most to Emirati students when making career decisions?

•How important is formal education and how well does the current education system

prepare them for achieving their professional objectives?

•Can a hierarchy-based model help to understand the relationships among the various

barriers to effective localisation?

2. Literature review

Workforce localisation in the GCC

To tackle the unemployment problems and reduce the number of expatriates in the GCC,

nationalisation strategies are categorically embedded in GCC countries (Harry, 2007;

Forstenlechner, 2010) and share a universal approach of imposing quotas of local employees

onto employers in various sectors. Several economic mechanisms affecting national labour

markets and promoting the employment of nationals were designed by GCC countries,

which includes the UAE. These mechanisms include remuneration subsidies, educating and

training of nationals, control on foreign labour, and employment goals for UAE nationals

(Al-Lamki, 2000). The UAE’s localisation efforts rely on Emiratisation councils, such as the

Abu Dhabi Tawteen Council, which is one of the leading authorities involved in providing

jobs for UAE nationals (Al-Mutawa, 2010). The objective of these government councils is to

increase career opportunities for Emiratis to work in the private sector and to give them the

chance to train in large local institutions (Raven, 2011).

Specific literature has emerged on Saudisation (Al-Asfour and Khan, 2014; Sadi and

Al Buraey, 2009), Emiratisation (Al-Ali, 2008; Rees et al., 2007; Muysken and Nour, 2006;

Al-Waqfi and Forstenlechner, 2012; Al-Waqfi and Forstenlechner, 2014; Goby et al., 2015,

2017), Kuwaitisation (Salih, 2010); Omanisation (Al-Lamki, 2005; Al-Hamadi et al., 2007;

Swailes et al., 2012); Bahrainisation (Metcalfe, 2007), and Qatarisation (Williams et al., 2011).

Bahrain, Oman, and Saudi Arabia have seen the most intensive efforts to localise, which are

ahead of Qatar, the UAE, and Kuwait. Regardless of numerous government efforts to

strengthen the national labour market by offering job opportunities in both the public and

private sectors, localisation efforts have been hindered by several obstacles.

Barriers to workforce localisation in the UAE public and private sectors

Although the year 2013 was designated by the UAE Government as the year of localisation,

barriers are still holding back its success. One of the most perplexing and persistent trends in

youth andemployment is the preponderanceof youth preferencefor public sectoremployment.

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