Workforce localization in the GCC: the disjuncture between education, employment and identity
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Date
2025
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Abstract
Purpose - The Gulf Cooperation Council (GCC) countries have unanimously worked toward localizing their workforce, given the imbalanced proportion of locals in the region's workforce and the rising local unemployment levels. To date, current localization initiatives have not resulted in notable improvements in increasing the local workforce participation. This study, thus, sets out to identify the key challenges that the GCC region has faced in its implementation of the workforce localization policies from multiple perspectives. Design/methodology/approach - An exploratory two-stage approach was taken to identify relevant academic literature on localization in the GCC. The study then carried out a thematic analysis of 71 empirical and conceptual studies to discover the underlying challenges faced by the GCC economies in their national strategy of localizing the workforce. Findings - Through a narrative review, six challenges pertaining to the GCC market's labor market configuration, citizen's job preferences, work attitudes, education and skill set, and expats and the private sector's attitudes toward localization were identified. We conclude with a comprehensive plan that considers educational, economic and cultural factors. Practical implications - To improve workforce localization in the GCC, governments should reform education and address socio-cultural barriers, especially those affecting female employment. Private sector firms must implement culturally sensitive strategies to develop and retain local talent. A coordinated effort among governments, employers and society is essential to create a unified labor market and a performance-driven employment culture. Originality/value - In providing a review of the most important obstacles, this study provides a comprehensive overview of the major challenges documented by academic researchers on the localization policies of GCC. Further, the findings enable practitioners to accomplish objectives of localization policies in the GCC region by taking note of the identified challenges and overcoming them through partaking in potential opportunities.