Enticing nationals to move within GCC

Ministers of labour in the Gulf Cooperation Council have been making serious efforts to integrate the Gulf job markets, and utilise available possibilities and human resources in these countries by encouraging the transfer of qualified Gulf worker to fill in existing gaps.

So far, the results have been poor due to several reasons in the nature of these decisions as well as in the job market's structure.

Decisions need additional procedures encouraging the Gulf workers to move among the Gulf's six countries.

In this context, we find that salaries are similar throughout the GCC.

For example, wages of GCC nationals working in the banking sector are almost uniform in all the region, which does not pose much of an incentive, especially with the lack of other encouraging options.

Additional issues

Unskilled Gulf labour movement is limited. The wages available in GCC counties are hardly enough for rent and services. Additionally, housing is sometimes available to workers in their home countries, either with their families or through their state. This fact plays a big role in limiting the movement among the GCC countries.

Then there is the the structure of the job market. There is a difference between what the job market requires and the qualifications produced for it. There are also jobs that Gulf nationals refuse to take because of social and financial considerations.

Laws and regulations alone may not lead to mobilising the workforce.

Qatar and Oman, for example, signed an agreement five years ago allowing Omani workers to work in Qatar.

But this agreement has brought about very little change.

It is also unlikely that the bridge to be constructed between Bahrain and Qatar will lead to a dense transfer of Bahraini workers to Qatar. And the reasons for this are the same.

Law and regulations have to be coupled with incentives to liberate the job market.

If we take social security and pension regulations as an example, we will find that the application mechanism needs long and tedious procedures which lower its effectiveness.

Statistics published in early 2007 throughout the GCC have revealed that a limited number of the Gulf work force is working outside their countries.

The drive to move does not necessarily have to be limited to job openings in their home countries because knowledge transfer is necessary for the GCC development given that the Gulf work environment is identical.

Oil factor

The increase in oil prices during the last three years has led to an improvement in the economies of all the GCC countries.

Unemployment decreased from 11 per cent to 3.5 per cent in Bahrain, which in itself is low in comparison to European countries.

Nationals of all GCC countries enjoy privileges in educational facilities, healthcare, house loans, and job promotions.

These benefits may be lost in moving from one country to another.

The ministries of labour make their utmost efforts, but the new circumstances need new basis to link decisions, and unify regulations to integrate the Gulf labour markets and benefit of nationals' qualifications through their movement among he GCC countries. This will be positively reflected on the Gulf economy as a whole.

The writer is a UAE economic expert.