Nationalisation taking root in Gulf region

• First Bayt.com HR roundtable finds that companies see hiring nationals as essential business objective

• UAE government takes more 'flexible' approach to penalties, says Tanmia

• Need for increased training and education for nationalisation to progress

• Career development is a top priority for UAE nationals

The UAE government, said Abdul Rahim Sultan, Employer Relations Manager at Tanmia (the National Human Resource Development & Employment Authority) is taking a more 'flexible' approach to the issue, while companies are showing more motivation and initiative when it comes to hiring nationals.

'The quota system was not meant to impose [Emiratisation] on companies but to encourage them, because of the benefits of having nationals in certain roles,' Sultan said. Tanmia's main drive today, he added, is not to enforce quotas, but to help young UAE nationals develop their skills and initiate their career.

Participants at the event, which was held in Dubai, explored ongoing efforts to boost the participation of GCC nationals in the private sector. Along with Tanmia, the panel consisted of representatives from private companies across a wide range of sectors, and discussions covered everything from the need for more entrepreneurship in the region to the increasingly important role of the Internet in the recruitment process.

The roundtable featured Tanmia, Zabeel Investments, CISCO Systems Middle East, Easa Saleh Al Gurg group, Medcare Hospital, Al Bayan newspaper and Metito.

'As an employment site, we at Bayt.com feel it is our responsibility to reach a wider and deeper understanding of the regional job market, which will allow us to better serve our clients,' said Akram Assaf, Chief Technology Officer, Bayt.com, during a welcome address. 'Certainly, the region's ongoing nationalisation process is a topic that bears a great deal of exploration.'

Assaf noted that nationalisation is a topic of rising importance. While there was a consensus that nationalisation was a necessary goal for the region and the companies that operate here, participants also agreed that for nationalisation drives to progress, there needs to be greater emphasis on education and training of potential job candidates, rather than a sector- or position-based quota system, particularly where it involves penalties for non-compliance.

'If you limit yourself to quotas and penalties, it becomes a numbers game,' said Tina Mascarenhas, Manager - Human Capital, Metito, the world leader in water and waste water treatment technology. 'Emiratisation must be one of the company's strategic objectives.'

Mascarenhas' words reflected the prevailing sentiment at the roundtable, which saw some spirited debate concerning the pros and cons of enforced nationalisation. 'We should recruit on a need basis rather than quotas,' said Ahmed Al Tenaiji, Marketing Manager, Zabeel Investments, a UAE-based multi-diversified investment firm. 'Penalties don't work.'

Added Ala Atari, Chief Operating Officer, Medcare Hospital, a private hospital in Dubai: 'We should only think of the organisation's benefit and hire on that basis.' He added that this principle is especially important in the healthcare sector. 'We cannot compromise on quality,' he said, adding, 'There are no university hospitals here, so recruiting [nationals] is a challenge.'

Responding to participants' concerns, Abdul Rahim Sultan of Tanmia stressed that enforcement of the quota system-which in the UAE has been restricted to a handful of key industries, such as banking and insurance-has become less of a priority. Indeed, he said, the response to the Emiratisation drive has been so positive that hiring UAE nationals was now seen as an essential business objective by many companies.

'In 2005, the percentage of UAE nationals in the trade sector was 0.019 per cent,' Sultan said. 'It rose to two per cent the year after, because of penalty enforcement. The year after that, it rose to four per cent but without penalties. The rise was due to companies agreeing, after having tried it out, that it's a good idea to hire nationals.'

He added that retention rates among nationals currently stand at around 40 per cent. The main reason for their moving on, he said, was 'because there was no career development plan within the organisation.'

Sultan emphasised the need for strategic planning at the corporate level in order for nationalisation efforts to be successful as opposed to ad hoc unstudied approaches to nationalisation. He stressed that in order to succeed, nationalisation targets should be aligned with the strategic needs of the organisation and that nationalisation programmes should include clear career development paths for hired professionals.

Akram Assaf said he was 'delighted' with the tone of the debate. 'To truly get a grasp of the challenges and opportunities that lie ahead, we must address all of the issues surrounding nationalisation programmes,' he pointed out.

'Bayt.com is committed to providing a clear and compelling picture of the regional job market to our clients and the public and to best facilitating the employment process. We look forward to hosting many more informative roundtables in the future, including roundtables discussing nationalisation in Saudi Arabia, Kuwait and Qatar,' he added.

There were also many individual success stories at the table. Dennis Kight, Human Resources Manager from the Internet networking company Cisco Systems Middle East, revealed that within his company 'we have an Emirati HR intern who has already added tremendous value and impact, not only in the MEA region, but within Cisco's emerging markets.' Tina Mascarenhas told of a talented Emirati PRO 'who is being groomed' to move on to greater things.

C.K. Ravish, Head of HR at the Dubai-based Easa Saleh Al Gurg group of companies, said his organisation has worked hard to find nationals to fill mid-level positions in the company, or what he called the 'belly' of the group, and added he was committed to the nationalisation drive.

Medcare's Ala Atari, meanwhile, said that while the hospital has had difficulty finding suitable national employees so far, 'we are planning a long-term strategy, in which we will coordinate with universities. We are becoming more involved with scholarship programmes to train and develop nationals.'