This paper outlines crucial issues of employment creation and localization in the states of the Gulf Co-operation Council (GCC) and the factors underlying the issues. Rapid demographic changes, highs and lows of oil prices, inequality of wealth, inadequate education systems and ineffective government policies are creating major human resource challenges for the region. Governments' preference for expediency rather than solutions has contributed to the ‘challenges’ becoming serious problems which could threaten the existence of the GCC states and cause harm to other countries. The private sector has been intent on maximizing short-term gain while creating long-term problems. Governments throughout the region have emphasized the need for the private sector to localize. Even if, however, the private sector is willing to employ many more citizens there will not be enough jobs for all who want employment. Governments have attempted to reduce dependence on foreign labour rather than creating a productive indigenous workforce and worthwhile jobs for their citizens. This paper does not provide academic theory or practical solutions to these crucial issues; however, it does make clear the serious challenges facing this part of the Middle East and suggests some directions for research and practice. The paper seeks to build sufficient understanding for academics to build theory to help governments and employers meet the challenges of creation of sufficient numbers of jobs for the increasing population of nationals while managing the orderly departure of foreign workers.
Wes Harry (2007) studied this question.