Private sector needs to adopt a more sustainable approach to hiring Gulf nationals, says new study



Regional organisations con­sider job-market nationalisation a liability that encourages some to undertake illegal practices to meet quotas, says a new report.

The study from the management consultancy Booz Allen Hamilton says the “plug-and-play” model of recruiting expat­riates to sustain the private sector is no longer viable.

“It has resulted in organisations treating the hiring of nationals as a necessary and costly burden with very limited benefits,” it says.

Budgetary surpluses are turning into deficits across the region as governments seek to accelerate plans to reduce their reliance on hydrocarbons and provide jobs that help to diversify economies.

Boosting private-sector employment of national citizens is particularly pressing in the UAE and Qatar, which have the highest proportion of expats working in the private sector.

The GCC private sector is expected to create 600,000 new jobs for nationals by 2019, according to the IMF.

But that would absorb just half of the 1.2 million nationals projected to be in the workforce at the time.

Efforts to boost the participation of nationals in the private sector date back to the 1980s, but labour nationalisation has been “modest at best”, says the report, Improving Labour Nationalisation in the Private Sector.

A focus on quotas and exclusions has led the private sector to consider such efforts to be an unwelcome cost, say Fuad Abdelhadi and Rasheed Eltayeb, the report’s authors.

They say that reserving job categories for nationals, restricting companies that do not comply with quotas and the enforcement of salary premiums are in conflict with private-sector needs.

Some corporations have effectively incorporated nationals, including Saudi Aramco, Sabic, Emirates, HSBC and DHL, says Booz.

The consultancy calls for a strategic human resources plan that starts with ensuring the skill sets needed by companies are available within the national labour market through collaborating with colleges.

Compensation should be linked to performance with the same standards applied to all employees.

Policymakers must change how they measure nationalisation in order to tackle tokenistic compliance, said Radhika Punshi, a director at human resources consultancy The Talent Enterprise.

“If policymakers continue to focus on a simple numerical approach … companies will make sure they have the right percentage,” she said. But if they look to complex metrics – nationals in senior management positions, female nationals hired, or retention rates – nationalisation may have better results.

“There are pockets of employers who are making genuine efforts,” Ms Punshi said. But many expat managers remain uncomfortable with diversity, she said. “There’s an us-versus-them dynamic between expats and nationals. Although many workplaces are very diverse, they are not very inclusive.”

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ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

FIVE TRENDS THAT WILL SHAPE UAE BANKING

• The digitisation of financial services will continue

• Managing and using data effectively will become a competitive advantage

• Digitisation will require continued adjustment of operating models

• Banks will expand their role in the customer life through ecosystems

• The structure of the sector will change

FIXTURES

Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)

Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)

Friday, February 1
Final, Zayed Sports City Stadium (6pm)

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

KEY DATES IN AMAZON'S HISTORY

July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.

Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.

Switching sides

Mahika Gaur is the latest Dubai-raised athlete to attain top honours with another country.

Velimir Stjepanovic (Serbia, swimming)
Born in Abu Dhabi and raised in Dubai, he finished sixth in the final of the 2012 Olympic Games in London in the 200m butterfly final.

Jonny Macdonald (Scotland, rugby union)
Brought up in Abu Dhabi and represented the region in international rugby. When the Arabian Gulf team was broken up into its constituent nations, he opted to play for Scotland instead, and went to the Hong Kong Sevens.

Sophie Shams (England, rugby union)
The daughter of an English mother and Emirati father, Shams excelled at rugby in Dubai, then after attending university in the UK played for England at sevens.

Moral education needed in a 'rapidly changing world'

Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.

Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.

"Moral education touches on every aspect and subject that children engage in.

"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.

"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."

EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE

Edinburgh: November 4 (unchanged)

Bahrain: November 15 (from September 15); second daily service from January 1

Kuwait: November 15 (from September 16)

Mumbai: January 1 (from October 27)

Ahmedabad: January 1 (from October 27)

Colombo: January 2 (from January 1)

Muscat: March 1 (from December 1)

Lyon: March 1 (from December 1)

Bologna: March 1 (from December 1)

Source: Emirates