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EMPLOYMENT IN THE PRIVATE SECTOR IN OMAN: SECTOR-BASED APPROACH FOR LOCALIZATION
Corresponding Author(s) : Yasir Y Ali
Humanities & Social Sciences Reviews,
Vol. 5 No. 1 (2017)
Abstract
Purpose
The objective of the study is to analyze the factors impeding Omanization policies in the selected sectors - Construction, Retail and Tourism of Oman economy and to find out the cause for the disparity created between the graduates and the jobs availability.
Design/methodology/approach
The study adopted both qualitative and quantitative analysis. The interview approach was administered to collect the data from the Government officials, employers of expats in the private sector, Omani youth seeking employment and employees from Muscat, Sohar, and Salalah.
Findings
Lack of coordination between government and the private sector in the formulation of Omanization policies contributing to sustained high level expatriate workers in Oman’s private sector leaving a large gap between the Omani job seekers and job availability in the selected sectors.
Practical Implications
Every year, the number of graduates is exceeding the number of jobs available in the economy and this paper draws attention to align this alarming issue through proper suggestions.
Social Implications
There is an urgent need to improve the alignment between the qualification and skills bestowed on nationals by education systems and the needs of the market through devising proper mechanisms.
Originality/value
Very few studies have examined the harmony of Higher Education and market requirements in Oman. This is first hand study of its kind.
Keywords
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- Al-Lamki, S.M., (2000), “Omanization: A Three Tier Strategic Framework for Human Resource Management and Training in the Sultanate of Omanâ€, Journal of Comparative International Management, Vol.3, iss.1, Jun.2000, ISSN 1718-0864, Available at: https://journals.lib.unb.ca/index.php/JCIM/article/view/462/772, [Accessed: 22 Dec. 2016].
- Albayrakoglu, E. P. (2010), “Global economic factors on Gulf labor dynamics: Localization versus Immigrationâ€, International Journal of economic and finance studies, Vol 2, No 2, 2010 p.43.
- Al-Sawai, A. and Al-Shishtawy, M.M. (2015), “Health Workforce Planning:An Overview and suggested approach in Omanâ€, Sultan Qaboos University Medical Journal, Vol.15, iss.1, pp.e27-e33.
- Al-Waqfi, M. A. and Forstenlechner. I. (2013), "Barriers to Emiratization: the role of policy design and institutional environment in determining the effectiveness of Emiratization", The International Journal of Human Resource Management ahead-of-print, pp.1-23.
- Fargues, P. (2011), “Immigration without Inclusion NonÂNationals in Nation Building in the Gulf Statesâ€, Asian and Pacific Migration Journal, Vol. 20, pp. 273-292.
- Forstenlechner, I. (2008), “Workforce nationalization in the UAE: image versus integration", Education, Business and Society: Contemporary Middle Eastern Issues, Vol.1, Iss.2, pp.82-91.
- Forstenlechner, I. (2009), “Workforce localization in emerging Gulf economies: the need to fine-tune HRMâ€, Personnel Review, Vol. 39, Iss.1, pp.135-152.
- Forstenlechner, I. and Rutledge E. (2010), “Unemployment in the Gulf: time to update the social contractâ€, Middle East Policy, Vol.17, iss.2, pp.38-51.
- Forstenlechner, I., Lettice, F. and Ozbilgin, M.F. (2012a), “Emiratisation: determining the factors that influence the recruitment decisions of employers in the UAEâ€, The International Journal of Human Resource Management, Vol.23, iss.2, pp.406-421.
- Forstenlechner, I., Lettice, F. & Ozbilgin, M. F. (2012b), "Questioning Quotas: applying a relational framework for diversity management practices in the United Arab Emirates", Human Resource Management Journal, Vol. 22, iss.3, pp.299-315.
- Hertog, S. (2012), “A comparative assessment of labor market nationalization policies in the GCCâ€, Volume 4. Gerlach Press.
- Hertog, S. (2013), "The private sector and reform in the Gulf Cooperation Council", Research Paper, Kuwait Programme on Development, Governance and Globalisation in the Gulf States, Available at: http://eprints.lse.ac.uk/54398/1/Hertog_2013.pdf [Accessed 14/11/13]
- ILO and UNDP (2012), “Rethinking Economic Growth: Towards Productive and Inclusive Arab Societiesâ€, International Labour Organisation, Geneva.
- Kamoonpuri, H. (2013), “Building Omani workforce for hospitality sectorâ€, Oman Observer, 13 Nov.2013, Available at: http://main.omanobserver.om/?p=29562 [Accessed 14/11/13]
- Lim, H. L. (2013), "Generation Y workforce expectations: implications for the UAE", Education, Business and Society: Contemporary Middle Eastern Issues, Vol.5, iss.4, pp.281-293.
- Mashood, N., Verhoeven, H. A. L. and Chansarkar, B. (2009), “Emiratisation, Omanisation and Saudisation – Common Causes: Common Solutions?â€, In Proceedings of the 10th International Business Research Conference, pp.1-36. Available online at http://www.wbiconpro.com/
- McWilliam, T. P. E. (2011), "Made in Oman: Promoting Manufacturing and Export in the Sultanate of Oman", Independent Study Project (ISP) Collection, Paper 1038.
- Ramady, M. (2013), "Gulf unemployment and government policies: prospects for the Saudi labour quota or Nitaqat system", International Journal of Economics and Business Research, Vol.5, Iss.4, pp.476-498.
- Randeree, K. (2009), "Strategy, policy and practice in the nationalisation of human capital: Project emiratisationâ€, Research and Practice in Human Resource Management, Vol.17, iss.1, pp.71-91.
- Randeree, K. (2012), “Workforce nationalization in the Gulf Cooperation Council statesâ€, Occasional paper no. 9, Centre for International and Regional Studies, Georgetown University, Doha, Qatar.
- Sadi, M. A. (2013), "The Implementation Process of Nationalization of Workforce in Saudi Arabian Private Sector: A Review of Nitaqat Schemeâ€, American Journal of Business and Management, Vol.2, iss.1, pp.37-45.
- Salih, A. (2010), “Localizing the Private Sector Workforce in the Gulf Cooperation Council Countries: A Study of Kuwait,†International Journal of Public Administration, Vol. 33, iss.4, pp.169-181.
- Sfakianakis, J. (2011), “New Employment Rules to Shake up Saudi Private Sectorâ€, Arab News.com, 15 Jun. 2011, Available at: http://arabnews.com/economy/article454902.ece , [Accessed 08/12/13]
- Shediac, R. and Samman, H. (2010), "Meeting the Employment Challenge in the GCC The Need for a Holistic Strategy", Booz & Co.
- Tropp, L.R. and Pettigrew, T.F. (2005), ‘Relationship between Intergroup contact and prejudice among minority and majority status groups, Psychological Science, Vol. 16, iss.12, pp. 951-957.
References
Al-Lamki, S.M., (2000), “Omanization: A Three Tier Strategic Framework for Human Resource Management and Training in the Sultanate of Omanâ€, Journal of Comparative International Management, Vol.3, iss.1, Jun.2000, ISSN 1718-0864, Available at: https://journals.lib.unb.ca/index.php/JCIM/article/view/462/772, [Accessed: 22 Dec. 2016].
Albayrakoglu, E. P. (2010), “Global economic factors on Gulf labor dynamics: Localization versus Immigrationâ€, International Journal of economic and finance studies, Vol 2, No 2, 2010 p.43.
Al-Sawai, A. and Al-Shishtawy, M.M. (2015), “Health Workforce Planning:An Overview and suggested approach in Omanâ€, Sultan Qaboos University Medical Journal, Vol.15, iss.1, pp.e27-e33.
Al-Waqfi, M. A. and Forstenlechner. I. (2013), "Barriers to Emiratization: the role of policy design and institutional environment in determining the effectiveness of Emiratization", The International Journal of Human Resource Management ahead-of-print, pp.1-23.
Fargues, P. (2011), “Immigration without Inclusion NonÂNationals in Nation Building in the Gulf Statesâ€, Asian and Pacific Migration Journal, Vol. 20, pp. 273-292.
Forstenlechner, I. (2008), “Workforce nationalization in the UAE: image versus integration", Education, Business and Society: Contemporary Middle Eastern Issues, Vol.1, Iss.2, pp.82-91.
Forstenlechner, I. (2009), “Workforce localization in emerging Gulf economies: the need to fine-tune HRMâ€, Personnel Review, Vol. 39, Iss.1, pp.135-152.
Forstenlechner, I. and Rutledge E. (2010), “Unemployment in the Gulf: time to update the social contractâ€, Middle East Policy, Vol.17, iss.2, pp.38-51.
Forstenlechner, I., Lettice, F. and Ozbilgin, M.F. (2012a), “Emiratisation: determining the factors that influence the recruitment decisions of employers in the UAEâ€, The International Journal of Human Resource Management, Vol.23, iss.2, pp.406-421.
Forstenlechner, I., Lettice, F. & Ozbilgin, M. F. (2012b), "Questioning Quotas: applying a relational framework for diversity management practices in the United Arab Emirates", Human Resource Management Journal, Vol. 22, iss.3, pp.299-315.
Hertog, S. (2012), “A comparative assessment of labor market nationalization policies in the GCCâ€, Volume 4. Gerlach Press.
Hertog, S. (2013), "The private sector and reform in the Gulf Cooperation Council", Research Paper, Kuwait Programme on Development, Governance and Globalisation in the Gulf States, Available at: http://eprints.lse.ac.uk/54398/1/Hertog_2013.pdf [Accessed 14/11/13]
ILO and UNDP (2012), “Rethinking Economic Growth: Towards Productive and Inclusive Arab Societiesâ€, International Labour Organisation, Geneva.
Kamoonpuri, H. (2013), “Building Omani workforce for hospitality sectorâ€, Oman Observer, 13 Nov.2013, Available at: http://main.omanobserver.om/?p=29562 [Accessed 14/11/13]
Lim, H. L. (2013), "Generation Y workforce expectations: implications for the UAE", Education, Business and Society: Contemporary Middle Eastern Issues, Vol.5, iss.4, pp.281-293.
Mashood, N., Verhoeven, H. A. L. and Chansarkar, B. (2009), “Emiratisation, Omanisation and Saudisation – Common Causes: Common Solutions?â€, In Proceedings of the 10th International Business Research Conference, pp.1-36. Available online at http://www.wbiconpro.com/
McWilliam, T. P. E. (2011), "Made in Oman: Promoting Manufacturing and Export in the Sultanate of Oman", Independent Study Project (ISP) Collection, Paper 1038.
Ramady, M. (2013), "Gulf unemployment and government policies: prospects for the Saudi labour quota or Nitaqat system", International Journal of Economics and Business Research, Vol.5, Iss.4, pp.476-498.
Randeree, K. (2009), "Strategy, policy and practice in the nationalisation of human capital: Project emiratisationâ€, Research and Practice in Human Resource Management, Vol.17, iss.1, pp.71-91.
Randeree, K. (2012), “Workforce nationalization in the Gulf Cooperation Council statesâ€, Occasional paper no. 9, Centre for International and Regional Studies, Georgetown University, Doha, Qatar.
Sadi, M. A. (2013), "The Implementation Process of Nationalization of Workforce in Saudi Arabian Private Sector: A Review of Nitaqat Schemeâ€, American Journal of Business and Management, Vol.2, iss.1, pp.37-45.
Salih, A. (2010), “Localizing the Private Sector Workforce in the Gulf Cooperation Council Countries: A Study of Kuwait,†International Journal of Public Administration, Vol. 33, iss.4, pp.169-181.
Sfakianakis, J. (2011), “New Employment Rules to Shake up Saudi Private Sectorâ€, Arab News.com, 15 Jun. 2011, Available at: http://arabnews.com/economy/article454902.ece , [Accessed 08/12/13]
Shediac, R. and Samman, H. (2010), "Meeting the Employment Challenge in the GCC The Need for a Holistic Strategy", Booz & Co.
Tropp, L.R. and Pettigrew, T.F. (2005), ‘Relationship between Intergroup contact and prejudice among minority and majority status groups, Psychological Science, Vol. 16, iss.12, pp. 951-957.