The regulation of the job market in the Gulf Cooperation Council (GCC) states is one of the most important measures which would contribute effectively to the creation of appropriate conditions for healthy relations between workers and employers — a move that would reflect positively on productivity and growth in general.

Recently, the GCC job market has seen many reforms that were not confined to Gulf citizens but also expatriate workers — who constitute the majority of the workforce — in line with international standards and International Labour Organisation’s rules.

The reform procedures began more than 20 years ago when a decision was issued to ban the transport of uncovered vehicles, and oblige companies, especially contracting corporations to transport workers in busses that protect them against the danger of roads and harsh climate conditions.

In 2012, more decisions were taken regarding imposition of additional fines on companies violating rules related to labourers’ wages and working conditions, which will have a significant positive impact on the regulation of the job market and protection of workers’ rights.

Although many of these fines fall within the administrative and professional regulation of the job market, such as those related to fines imposed on companies that fail to renew labour cards and provide appropriate housing and a healthy work environment, some violations are related to international standards determined by international organisations, while some others are related to development and social aspects of importance to the future of the labour market in the GCC countries.

As for international standards, there are fines totalling $1,400 on companies that delay the payment of their workers’ salaries and wages for more than 60 days, and also a fine of $2,800 on those who fail to subscribe and use the Wages Protection System (WPS).

The system, which was widely welcomed by other GCC countries and worldwide, has prompted some GCC countries, such as Saudi Arabia, to implement it completely after its success in the UAE.

It can be referred here to a fine of $5,500 related to bogus Emiratisation, as well as a fine of $5,500 for each company that fail to abide by the rules and procedures required for recruitment of Emiratis. These two fines are expected to have positive effects on the Emiratisation process and the restructuring of the job market in general.

It has been noticed that there are cases of bogus nationalisation in all GCC countries that affected the productivity of Gulf citizens and gave false impressions and data about the actual rates of nationalisation. This phenomenon has also affected the job market negatively due to the creation of a large number of economically ineffective and dependent citizens.

This is simply because those citizens depend on fixed income without making a real effort or participation in the development process or contribution to solving the dilemma of demographic imbalance in their countries.

This happened at a time when those who are involved in the bogus Emiratisation do not realise its danger and impact on their living conditions and professional life in future.

Apart from the job market stability and gradual change in the market’s structure necessary to create the required balance between national and expatriate manpower, which will be needed by the GCC countries for many years to come, due to their important role in the development process, these decisions will lead to an increase in the number of economically active and well trained citizens, who will also gain professional skills needed for the local economy.

The Gulf nations have made great efforts to offer education and training opportunities for their citizens, and thus this approach continues to give more attention to education in response to the requirements of development in these countries.

Therefore, the present and future generations need to consider work as a human value and a duty, in order to boost the foundations of sustainable development in the GCC countries.

However, the regulation and restructuring of the job market still need more procedures to be discussed by the GCC Labour Ministries to help overcome obstacles facing them.

In fact, these decisions mark a major milestone in the GCC’s quest towards the further integration of GCC citizens into the job market and ensuring better conditions for expatriate workers.

Undoubtedly, this will have significant and positive influence on the development of job market, preservation of national resources and increasing domestic savings, as well as on the development process in the GCC nations on the other hand.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.