The ambition to create a strong non-local Gulf workforce in the region's private sector still has many obstacles to overcome.
The private sector in the Gulf places a worker from other Gulf countries at a third level, behind their own citizens and even foreign workers originating from non-Gulf countries. The Research and Studies Center at the Riyadh Chamber of Commerce and Industry concluded this in their study "The Role of Gulf Private Sector in supporting Gulf Joint work market".
The study indicated that the role of the Gulf private sector in creating a non-local Gulf work market is still minimal. There are not more than 20,000 workers from the Gulf, versus the 8.9 million foreign workers, representing 80 percent of the workforce in the Gulf market. The study also said that freedom of movement for the workers between the Gulf private sectors did not fulfill what was expected of it.
According to the report, the workforce in the Gulf private sector still depends largely on non-skilled workers with low wages in jobs that are unacceptable to the Gulf manpower. This conclusion indicates that the competitive ability for the private sector relies mainly on low wages more than on the quality of the products.
This, the study reveals, is clearly noted with the GCC joining the World Trade Organization, which opened the Gulf markets for foreign products, placing them in an open competition with products of other countries, and stressing the need to rely on low wages to face up to products created with higher skills and stronger abilities.
There are fewer GCC workers than expected in GCC countries despite the principle of equality practiced between the workers in the Gulf private sector. This is a challenge in itself, according to the Riyadh Chamber study, in the face of the increasing numbers of foreign recruitments.
The Gulf workers enjoy the privileges of both the locals as well as foreign workers, making them less appealing to the private sector. The need to realize the required quota of national recruits, leaving no place to recruit from other Gulf countries, is also a reason that stands between the private sector and its role in supporting a strong Gulf workforce.
The study reveals that the private sector, in light of the existing legislation, is not prepared to favor Gulf workers, and recommends the drafting of new and clear legislation for the recruitment of Gulf workers in other region states.
The endorsement of equality is not enough, calling also for the need to consider incentives for establishments that recruit Gulf workers. The report also recommends a quota for large Gulf companies in recruiting workers from the region, especially calling those with strong Gulf commercial relations to activate recruitment among Gulf states. Recruitment in the Gulf, the study points out, still relies on emotional decisions, especially for small and medium-sized enterprises, as local and regional workers tend to demand their full rights that the enterprises often cannot afford to meet.
More than 80 percent of citizens in the Gulf countries work in the government sector, which the report identifies as a threat. The public sector will not be able to continue to provide the same level of jobs due to economic factors.
The Gulf workforce market, the study concludes, suffers a number of setbacks and requires immediate and combined remedies to provide job opportunities for Gulf citizens, to better their acceptance chances in the private sector of the GCC states and accommodate the growing numbers of fresh graduates.
The private sector in the Gulf places a worker from other Gulf countries at a third level, behind their own citizens and even foreign workers originating from non-Gulf countries. The Research and Studies Center at the Riyadh Chamber of Commerce and Industry concluded this in their study "The Role of Gulf Private Sector in supporting Gulf Joint work market".
The study indicated that the role of the Gulf private sector in creating a non-local Gulf work market is still minimal. There are not more than 20,000 workers from the Gulf, versus the 8.9 million foreign workers, representing 80 percent of the workforce in the Gulf market. The study also said that freedom of movement for the workers between the Gulf private sectors did not fulfill what was expected of it.
According to the report, the workforce in the Gulf private sector still depends largely on non-skilled workers with low wages in jobs that are unacceptable to the Gulf manpower. This conclusion indicates that the competitive ability for the private sector relies mainly on low wages more than on the quality of the products.
This, the study reveals, is clearly noted with the GCC joining the World Trade Organization, which opened the Gulf markets for foreign products, placing them in an open competition with products of other countries, and stressing the need to rely on low wages to face up to products created with higher skills and stronger abilities.
There are fewer GCC workers than expected in GCC countries despite the principle of equality practiced between the workers in the Gulf private sector. This is a challenge in itself, according to the Riyadh Chamber study, in the face of the increasing numbers of foreign recruitments.
The Gulf workers enjoy the privileges of both the locals as well as foreign workers, making them less appealing to the private sector. The need to realize the required quota of national recruits, leaving no place to recruit from other Gulf countries, is also a reason that stands between the private sector and its role in supporting a strong Gulf workforce.
The study reveals that the private sector, in light of the existing legislation, is not prepared to favor Gulf workers, and recommends the drafting of new and clear legislation for the recruitment of Gulf workers in other region states.
The endorsement of equality is not enough, calling also for the need to consider incentives for establishments that recruit Gulf workers. The report also recommends a quota for large Gulf companies in recruiting workers from the region, especially calling those with strong Gulf commercial relations to activate recruitment among Gulf states. Recruitment in the Gulf, the study points out, still relies on emotional decisions, especially for small and medium-sized enterprises, as local and regional workers tend to demand their full rights that the enterprises often cannot afford to meet.
More than 80 percent of citizens in the Gulf countries work in the government sector, which the report identifies as a threat. The public sector will not be able to continue to provide the same level of jobs due to economic factors.
The Gulf workforce market, the study concludes, suffers a number of setbacks and requires immediate and combined remedies to provide job opportunities for Gulf citizens, to better their acceptance chances in the private sector of the GCC states and accommodate the growing numbers of fresh graduates.
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