Job market localisation across the Gulf Cooperation Council (GCC) is progressing faster than ever, driven by clear policy directives and strong government support aimed at broader economic transformation—while staying aligned with national goals and visions.

Whether it’s Saudisation, Emiratisation, Omanisation, or Qatarisation, the regional narrative is converging around a common objective: to rebalance labour markets by reducing reliance on international talent and strengthening the presence of local talent within the private sector. And why not?  Young — and even experienced — regional talent is now better equipped with future-forward skills and deserves better opportunities in the private sector. 

What is Job nationalisation?

Job nationalisation or localisation is a government-led initiative to increase the participation of its nationals in the private sector by creating attractive job opportunities, enhancing skills through training, and reducing reliance on public sector employment. It also aims to build a skilled local workforce, support economic diversification, improve labour market, and strengthen the private sector through incentives, innovation, and sustainable growth. 

Mounir Shaltony, Executive Manager, HR Business Partner Al Hilal Bank explains: "Nationalisation of the private sector workforce is a politically-driven strategy whereby an expatriate workforce is replaced or is joined by a capable and competent local workforce to ensure a sustained economy.

I've developed the above definition to specifically focus on capability, competence and sustainability.

It does not refer to hiring solely based on nationality, because that is also known as "affirmative action", "positive discrimination" or more simply as "recruitment". It does not refer to poaching the same talent from one entity to another without seeking to replicate and add to the skills and knowledge gained from the original source.

Nationalisation, in my view, is essentially a Talent, Knowledge & Change Management activity, and this puts it at odds with what many firms today advertise as "Emiratisation", "Qatarisation", "Saudisation", etc etc.)."

And gulf nations are not the first ones to initiate job localisation efforts, but it is one of the most prominent and structured in its approach today. This practice of replacing foreign workers with national talent is a global phenomenon that has occurred in various forms across many regions.

Countries like Malaysia started localisation policies decades ago, particularly under its Bumiputera policy to increase the workforce participation of native talent. Also, Nigeria and South Africa have also implemented localisation in sectors like oil and gas, banking, and mining to empower local talent and reduce unemployment.

And with the rapid development of Global Capability Centers (GCCs), China and India—though not formally labelling it as localisation—have increasingly focused on self-reliance and prioritising local talent across sectors.

Why job localisation matters now?

For HR and business leaders, the job localisation/ nationalisation isn’t just a matter of policy compliance—it’s about navigating a shifting landscape with agility, foresight, and purpose.

Turning these nationalisation mandates into meaningful outcomes requires more than hitting quotas. It demands cultural shifts, rethinking talent pipelines, and aligning national goals with organisational realities.

The drivers of workforce localisation are multifaceted, stemming from both long-standing demographic pressures and emerging strategic needs.

First, the region’s youth bulge is creating mounting expectations. With a large and growing number of educated young nationals entering the labour market each year, governments face increasing pressure to create employment pathways, particularly in white-collar and high-skill sectors.

Second, there’s the elephant in the room: the Gulf’s heavy reliance on expatriate labour. In many countries, foreign workers dominate not just low-skilled sectors but mid-level and technical roles too. This imbalance risks sidelining nationals from the private sector altogether and has led to a disconnect between citizens and the engines of economic productivity.

Nationalisation is also closely tied to ambitious reform agendas such as Saudi Arabia’s Vision 2030, Qatar National Vision 2030, and UAE Centennial 2071. These strategies aim to diversify economies away from oil dependency, while simultaneously investing in homegrown human capital to drive innovation and resilience.

There are also social considerations. Persistent unemployment among nationals can lead to political and social tension, particularly in welfare states where employment is seen as part of the social contract. Encouraging citizens into private sector roles helps manage public sector wage bills and reduces long-term fiscal pressure.

And finally, it’s a question of identity. With large expatriate populations across the Gulf, workforce nationalisation is a lever for cultural preservation, ensuring that nationals remain at the heart of their countries’ development stories.

Saudi Arabia: Compliance with teeth

Saudi Arabia is setting the pace in the region, embedding localisation deep into the fabric of its Vision 2030 ambitions. By early 2022, Saudis represented 23% of the workforce, with a 30% target by 2025 well within reach.

But it’s not just about targets—it’s about execution. As of August 2024, companies failing to meet localisation thresholds face significant penalties, including restrictions on issuing or renewing work permits for expatriates. Enforcement is vigorous: in the first half of 2024 alone, over 700,000 site inspections were conducted, uncovering more than 100,000 violations.

Sector-specific thresholds are drawing clear lines in the sand. Consulting firms must now ensure that 40% of their staff are Saudi nationals, while engineering firms face a 30% mandate. The healthcare sector will see up to 80% Saudization of specific job roles, while the tourism sector could see up to 100% Saudization for key positions.

"The primary goal of Saudization is to reduce unemployment among Saudi citizens, promote economic growth, and create job opportunities for locals," writes Abdul Aziz Aldarwish, a Riyadh-based HR Leader.

He added, "HR plays a pivotal role in supporting Saudization compliance and talent management efforts within organisations, from recruitment and training to compliance monitoring and reporting," emphasising the role of HR in recruitment, talent development, and compliance of policies and requirements. 

These aligned efforts of employers and the government are clearly leading to a rapid decline in the unemployment rate and a gradual increase in workforce participation among Saudi men and women, achieving Vision 2030 ahead of its timeline. 

Ahmed Boshnak, Partner and Head of KSA at Bain & Company underlined, "Saudization encourages private and public sector collaboration. The initiative requires companies to invest in local talent, promoting policies that support the hiring, training, and retention of Saudi nationals. This not only drives employment but also fosters a culture of inclusivity and sustainability within the workforce, leading to long-term economic stability."

UAE: Targeted and tactical

The UAE is taking a more surgical approach. With Emiratis representing just 10% of the total workforce, authorities are pursuing incremental but strategic interventions. Companies with 20–49 employees are now required to hire at least one Emirati, or face fines up to Dh108,000. In more serious cases, penalties can be eye-watering—one firm was fined Dh10 million for submitting false Emiratisation data.

For larger employers, the expectation is clear: reach 10% Emiratisation by 2026. But the challenge lies not in policy but in perception. Government roles remain more attractive, offering better pay and work-life balance. So the question is: how can the private sector become a magnet for Emirati talent?

As Dr Abdulrahman Al Awar, UAE Minister of Human Resources and Emiratisation, aptly said: “We need to see Emiratis in the private sector as efficient employees contributing to the success of their companies and not to look at Emiratisation just in terms of achieving numbers.”

Echoing this, Tina Mascarenhas of Metito warns: “If you limit yourself to quotas and penalties, it becomes a numbers game. Emiratisation must be one of the company’s strategic objectives.”

Qatar: Matching talent with intent

Qatar is placing its bets on tech-enabled, human-centred reform. A nationalisation target of 20% in the private sector is underpinned by a December 2023 law that introduced AI-driven job matching platforms and standardised contracts. The focus is quality over quantity, ensuring that Qataris land in roles where they can thrive and contribute meaningfully.

Monitoring is real-time, and the consequences for non-compliance are immediate. Yet the real win lies in the system’s transparency and meritocracy—key tenets of the Qatar National Vision 2030.

Athba Al-Thani, a Qatar-based Nationalisation consultant writes, "Qatarization seeds the potential to transform Qatar into a knowledge-based economy by investing in and developing national human capital through a variety of economic incentives and government frameworks that encourage investment in education, learning, innovation, and information technology. The implementation of National Vision 2030 will be a game changer for Qatar and in order to implement the vision, one of the prerequisites is the development of human capital in terms of education, innovation and IT skills," 

She also stressed that without improving education and training, and making private sector jobs more attractive, the success of Qatarization will remain limited.

But the core challenges of Qatar's private sector cannot be ignored. These are: high cost of hiring and retaining Qatari nationals, inability to offer benefits comparable to government jobs, lack of qualified Qatari professionals, fear of losing control of business operations, and lower productivity of some Qatari hires compared to expatriates. 

She urged for a more strategic, inclusive, and coordinated approach to Qatarization, warning that without structural support, proper training, and cultural alignment, the policy may not achieve its intended impact in the private sector.

Oman and Bahrain: Different speeds, same direction

Oman is playing the long game, setting its localisation sights on 2040. A recent decree reserves over 30 job roles, especially in sectors like IT and hospitality, for Omani nationals starting this year. The Sultanate of Oman is also using incentives to sweeten the deal, offering financial perks to companies that make localisation a priority.

Most recently, Oman announced that over 5,000 roles will be reserved for national talent across key sectors, including transport, logistics, IT, and tourism. The initiative aims to empower Omani talent, reduce unemployment, and ensure a fair, future-ready labour market.

Bahrain, meanwhile, is moving at a faster clip. Having already achieved a 55% nationalisation rate by 2021, it’s now targeting 75% by 2030. Proposed legislation to cap expatriate employment at 30% could open the door to 20,000 new jobs for Bahrainis. It’s a bold move from dependence to empowerment.

Recently, Bahrain increased efforts for nationalisation of healthcare job roles, although the percentage is yet to be determined as 50% Bahranisation is too ambitious given the growth, and lack of Bahraini medical workers.

Dr. Jameela Al Salman, the committee chairperson of Supereme Council of Health, Bahrain underlined that Labour Ministry's latest stats revealed that in 2024, "Bahraini graduates in general medical specialisations number 516 out of 1,052 job seekers,.. and the 50% target does not account for specialisations, which could lead hospitals to hire medics in departments where they are not needed just to meet quotas and avoid penalties. This is where the legislation falls short."

Supporting the region's workforce participation by expat workers, the Shura Council of Bahrain has rejected the bill against the conversion of visit-to-work. As the restriction became a barrier for employers to hire expatriates when needed, adding on to the troubles of talent gap.

Khalid Al Maskati, Chairman of Shura Financial and Economic Affairs Committee, also underlined that the amendment would have negatively impacted Bahrain’s labour market. And that foreign investors often hire Bahrainis but may also need expatriates to fill key roles. Restricting visa conversions, could interfere with investors' business setup and operations, increasing hiring costs. 

Kuwait: A workforce transformation in motion

Kuwait faces perhaps the steepest climb, with expatriates still making up nearly 70% of the population. The country’s response is to flip the script entirely, targeting 70% nationalisation by 2035. The oil and gas sector is leading the way: over 1,200 jobs have already transitioned to Kuwaiti nationals, and more than 800 expat contracts were terminated by the end of 2023. Now, it is marching towards 100% Kuwaitization of the sector, and aiming to create over 4,000 new jobs for the local talent. 

The message is loud and clear—national talent is not just welcome; it’s expected.

The human capital equation

Regulations may set the stage, but it’s people who deliver the performance. A 2024 survey by Vialto Partners and LexisNexis revealed a revealing paradox: while 78% of businesses say they’ve met nationalisation quotas, the same % cite rising complexity and costs as major challenges, especially in upskilling and onboarding new hires.

HR leaders today are walking a tightrope. They’re being asked to balance compliance, culture, and capability—all without compromising business continuity. The stakes are high: reputational risk, a strained talent pipeline, and missed growth opportunities all loom large for those who get it wrong.

Sultan Al Hajji, Chairman of Basharia, put it clear: “Nationalisation is a burgeoning issue. An extended process, it requires a restructuring of the economy and a change in mindset.”

Avoiding the ‘ghost employee’ trap

When localisation becomes a tick-box exercise, organisations risk falling into the trap of hiring on paper but not in practice. These so-called “ghost employees”—nationals who are hired to meet quotas but given little to no responsibility—are symptomatic of a deeper issue: a focus on form over function.

Christopher Cornwell, CEO of Mark Williams Recruitment, makes a compelling case: “To truly embrace Emiratisation, we encourage private employers to have a strategic approach to Emiratisation which goes beyond deadlines and regulations.” Without this intent, even the most well-meaning initiatives can backfire.