Employment schemes in the GCC: silver bullet or damp squib?

The recent moves by the countries of the Gulf Cooperation Council (GCC) to increase the participation of their citizens in the private sector jobs market, notably Saudi Arabia’s Nitiqat scheme, are not new. However, these moves are crucial to meeting the challenges of increasing employment and boosting growth. Admittedly, there may be some downside risks for private sector firms in the short-term, including higher staff costs and restricted access to highly-skilled foreign recruits. But we think that employment localisation schemes can work. The crucial point is that these should be carried out alongside other policies, such as enhancing local skills and incentives.