GCC workforce nationalization: what factors contribute to the comprehensive implementation of Qatarization practices?
| Date | 15 February 2024 |
| Pages | 452-472 |
| DOI | https://doi.org/10.1108/ER-05-2023-0227 |
| Published date | 15 February 2024 |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
| Author | Said Elbanna |
GCC workforce nationalization:
what factors contribute to the
comprehensive implementation
of Qatarization practices?
Said Elbanna
Center for Entrepreneurship & Organizational Excellence,
College of Business and Economics, Qatar University, Doha, Qatar
Abstract
Purpose –Most prior literature on the GCC workforce nationalization has focused on a limited set of themes
(e.g. nationalization challenges), initiatives (e.g. quota system) and methodology (e.g. qualitative)and none has
captured the full range of content associated with its implementation phenomenon resulting in our current
incomplete knowledge on it. As one of the first studies on this phenomenon, our study explores the factors
influencing comprehensive implementation of workforce nationalization in Qatar. We postulate a research
model based on the strategic human resource and strategic management works of literature which containfive
exogenous variables under three perspectives: Qatarization, organizational and environmental.
Design/methodology/approach –The study model was tested by using structural equation modeling
(SEM) to analyze data collected from 300 managers in Qatar.
Findings –The results show that four variables –formal Qatarization planning, top management
commitment, Qatarization experience and stakeholder pressures –positively influence the comprehensive
implementation of Qatarization efforts.
Practical implications –Successfully implementing Qatarization objectives requires a robust synergy
between dedicated planning and unwavering commitment from top management. Further, to effectively
navigate the challenges of nationalization, collaboration with key stakeholdersbecomes pivotal. Our findings
offer actionable insights for public organizations aiming to optimize their Qatarization efforts, emphasizing the
integral role of holistic strategies and committed leadership.
Originality/value –We introduce a novel research model rooted in both strategic human resource and
strategic management theori es. Diverging from traditiona l qualitative approaches, o ur quantitative
methodology provides empirical depth to our findings.
Keywords Qatarization, GCC countries, Comprehensiveness of strategy implementation,
Workforce nationalization, Qatar
Paper type Research paper
Introduction
Workforce nationalization is essential for people, organizations and countries. For countries
in the Gulf Cooperation Council (GCC) countries, namely, Bahrain, Kuwait, Qatar, Saudi
Arabia, the Sultanate of Oman and the United Arab Emirates (UAE), the strategies tied to
nationalization offer avenues to a more diversified and sustainable future. This shift is vital
as these nations historically have been reliant on oil and gas, and reducing dependency on a
foreign workforce ali gns with the broader goal of diversification. T he substantial
investments made by these countries in sectors like education, healthcare and
infrastructure mean that a well-equipped local workforce is ready to take the helm.
Nationalization ensures that these investments are utilized fully, with citizens empowered to
directly influence their nation’s growth. The unique cultural insights and deep-rooted
ER
46,2
452
The author would like to acknowledge the research grant received from Qatar National Research Fund
(grant # NPRP12S-0311-190314).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 5 May 2023
Revised 24 October 2023
29 December 2023
Accepted 22 January 2024
Employee Relations: The
International Journal
Vol. 46 No. 2, 2024
pp. 452-472
© Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-05-2023-0227
understanding of local markets by GCC nationals also serve to enhance industries with
innovative solutions tailored to the regional context. Moreover, localizing the workforce
further solidifies these countries’economic resilience against global shifts, such as economic
downturns or geopolitical tensions.
However, despite these advantages and the political will driving workforce
nationalization over the last two decades (Elbanna et al., 2020;Rees et al., 2007), the GCC
countries face significant challenges. The current nationalization efforts haven’t sufficiently
shifted the balance from an expatriate-dominated private sector and the public sector,
conversely, remains predominantly national, a scenario that has come under scrutiny
(Elsharnouby et al., 2023a). The inefficient use of human and financial resources in some of
these initiatives suggests that they serve more as statistical achievements rather than
effecting genuine change (Bose and Dey, 2018;Younis et al., 2023).
Workforce nationalization in the GCC region is often perceived negatively as a form of
taxation (Abdalla et al., 2010;Al-Waqfi and Forstenlechner, 2012;Elbanna et al., 2023b). This
engenders challenges both in public and private sectors, impacting national and expatriate
employees alike (Moideenkutty et al., 2016). This perception is not merely a superficial
sentiment; it is intrinsically linked to the complexities involved in the implementation of HRM
practices. For example, the availability of public sector employment opportunities in the UAE
has resulted in job seekers having unrealistic expectations regarding compensation and
working conditions, which often exceed prevailing market rates, especially when expertise
and competencies are taken into consideration (Al-Waqfi and Forstenlechner, 2012;Elbanna,
2022). A similar predicament exists in Qatar regarding the driving force behind nationals
seeking employment, a critical factor in the successful implementation of private sector
employment (Gremm et al., 2018). The negative view stems partly from the difficulties
encountered in the practical application of HRM strategies, particularly those related to
workforce nationalization (Brandl et al., 2021;Elbanna, 2022). The effective implementation of
these HRM practices is crucial, yet often overlooked in the HRM literature (Mirfakhar et al.,
2018;Piening et al., 2014;Trullen et al., 2020). There exists a gap between the development of
strategic HRM practices and their actual implementation. This gap is especially evident,
where the assumption that strategies will seamlessly transition into practice often leads to
unanticipated challenges and reinforces the negative perception of these initiatives (Bos-
Nehles and Meijerink, 2018;Garavan et al., 2021;Piening et al., 2014).
Even though many scholars have studied the GCC workforce nationalization over the last
two decades (e.g. Zeffane and Bani Melhem, 2017) and research on HRM implementation is on
the rise (Trullen et al., 2020), there is still a lack of research on the factors influencing the GCC
workforce nationalization implementation (Elbanna et al., 2023b). As a response to this gap
and given the importance of the implementation of HRM initiatives (Brandl et al., 2021) for
minimizing implementation problems and failure cases (Mirfakhar et al., 2018), this study
builds upon and complement the recent work of Elbanna et al. (2023a). While Elbanna and his
colleagues focused on exploring the determinants of quality of implementation and its impact
on the success of the Qatarization strategy, the current study takes a distinct approach and
examines the influence of a set of contextual variables on the comprehensiveness of
implementation. This study, therefore, contributes a fresh perspective, complementing and
expanding upon the insights provided in the literature in the less researched context of Qatar
(Elsharnouby et al., 2023b). This is to explore the influence of various organizational and
environmental factors on comprehensive implementation of workforce Qatarization (hereafter-
referred to as Qatarization implementation).
This goal is particularly important for the realm of HRM implementation given the fact
that a difference is made not only by whether workforce nationalization is implemented or not
but rather by how it is implemented (Mirfakhar et al., 2018;Trullen et al., 2020).
Implementation
of Qatarization
practices
453
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