Workforce nationalisation policies are strategic government initiatives scattered across the Gulf Cooperation Council (GCC) countries to increase job opportunities for locals and gradually reduce dependence on foreign labour. Omanization(Oman), Emiratization (UAE), and Bahrainization(Bahrain) are three major nationalization agendas that have the same end goals butdifferent modes of implementation and targets.
This article analyses these three policies, compares statistics and results, and illustrates how theyinfluence workforce strategy and talent acquisitionpractices in each country.
What is workforce nationalisation in the GCC?
Workforce nationalisation is basically a set of strategies by the government that aim to increase the share of local employees in both public and private sectors, cut down the use of expatriate workers, and ensure the economic participation of nationals on a sustainable basis.
The policy measures typically include a combination of legal quotas, monetary incentives, education and training offers, and enforcement measures. These are all adjusted to the demographic situation and labour market structure of the country concerned.
Why do these policies exist?
A number of GCC countries have a significant share of expatriates in their population who, in many cases, outnumber nationals in the workforce; thus, the governments are faced with social, economic, and political pressures that require increasing citizen employment. These policies are directed towards:
- creation of job opportunities for nationals
- development of skills and human capital in the country
- solving the problem of youth unemployment
- promoting economic activity and strengthening the nation’s resilience
Omanization
Omanization is basically the Omani government’s initiative to nationalise the workforce by replacing foreign workers with skilled Omani citizens, especially in the private sector.
This policy is consistent with Oman Vision 2040, which, among other things, underlines the importance of sustainable development and private sector growth through national workforce participation.
Major statistics:
- The labour force in Oman was roughly 1.8 million in 2026, out of which more than 413, 000 Omanis were employed in the private sector.
- Numerous sectors have Omanization quotas, for example, 21% in logistics and even higher targets in IT, health, and construction.
- The Labour Ministry of Oman has ordered companies to recruit at least one Omani in their first year of operation to achieve Omanization targets.
- However, the two workforces continue to be unbalanced: over 245, 000 companies do not have any Omani workers at all, and for these companies, the number of expatriates working has exceeded 1.1 million.
Focus & challenges
Omanization emphasizes:
- Primary emphasis on sector, specific quotas
- Provision of technical skills development
- Creation of career pathways for Omanis
However, there are still some stumbling blocks, such as figuring out how to bring the skills of the people up to the level required by the private sector, and at the same time, finding a balance between nationalisation and business competitiveness.
Emiratization
Emiratization is the national workforce program of the UAE designed to raise the number of Emirati nationals in the workforce, especially in the private sector. The policy is a response to the demographic situation in which Emiratis form only a tiny minority of the total workforce.
Key statistics:
- Emiratis make up around 11% of the total population of the UAE, whereas expatriates constitute about 88- 89%.
- In the past, the presence of Emiratis in the private sector was almost non-existent (only about 0.34% in some sectors in 2009), but participation is increasing now as a result of different efforts.
- The government of the UAE has introduced a number of programs and fixed quotas to push the recruitment of Emiratis in various sectors while also employing regulatory measures and workplace policies to ensure compliance.
Focus and challenges
Emiratization policies encompass:
- Requirements for the private sector to hire locals
- Government schemes for training and incentives
- Setting targets in sectors to raise Emirati participation
Challenges consist of the very limited Emirati working-age population and the sectoral dependence on expatriate professionals.
Bahrainization
Bahrainization is the term for Bahrain’s workforce nationalisation strategy, which dates back to the 1980s ‘Ten Thousand Scheme’ and later became a comprehensive national employment plan.
The policy targets the increased participation of Bahrainis in both private and public sector roles through the use of quotas, incentives, and regulation.
Key Stats & Implementation:
- Bahrain has set annual targets for the increase of Bahraini workers in private companies and regularly raised these targets over time.
- Through Tamkeen, wage subsidy schemes provide employers with up to 70% of a Bahraini employee’s wage in Year 1, 50% in Year 2, and 30% in Year 3 to persuade them to recruit locals.
- By the first quarter of 2025, Bahrain revealed that it was on track for its goals after having achieved approximately 24% of its 25, 000 Bahrainis employment target in the private sector.
- Failure to comply could be a cause of barring the company from government contracts, a fine for each foreign worker application, or limiting the company’s foreign hiring.
Focus & Challenges
Bahrainization revolves around:
- Setting legal targets according to the size and sector of firms
- Offering financial incentives through wage subsidies
- Developing human resources and training
The main challenges are the shortage of some technical skills among Bahraini job seekers and the issue of meeting national objectives while giving employers enough flexibility.
How employers can navigate nationalisation policies
- Understand Country Targets & Quotas
Research nationalisation percentages and legal requirements for each market.
- Align Hiring Strategies
Create hiring plans that focus first on local citizens within the quota categories.
- Provide Employee Training & Development
Encourage the growth of the local workforce so they can take over professional-level positions.
- Take Advantage of Government Programs
Submit applications for government grants and subsidies in order to bring down training or salary expenses.
- Maintain constant surveillance on Submitting & Compliance
Periodically, measure the ratio of locals in employment and put together such regulatory documentation as may be needed in order to avoid sanctions.
FAQs
1. Why do Oman, the UAE, and Bahrain implement nationalisation policies?
These policies concentrate on local employment creation, foreign labour dependency reduction, and human capital development aligned with the economic vision of the country.
2. Are these policies backed up with penalties?
Yes, depending on the country and sector, non-compliance may be punished with fines, restrictions on foreign worker permits, or operational limitations.
3. Are there any incentives for employers?
Bahrain is giving wage subsidies through Tamkeen, whereas the UAE and Oman have different training and compliance support programs.
4. What is the main difficulty for employers?
The lack of skills among local talent and the need to reconcile quotas with business aspects are issues that the three nationalisation policies have in common.
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