The GCC countries have adopted transformation agenda and they are realizing the importance of building local abilities in order to stimulate sustainable economic growth by shifting from an oil dependent economy. UAE is focusing on transforming to a manufacturing economy and enhancement of human capital development and strengthening the private sector, and provision of quality employment opportunities. Localization has been an area that has attracted attention among the GCC member countries following realization of the dangers of entrusting critical positions to foreigners. This has resulted in the adoption of restrictions measures aimed at reducing domination in sensitive position and reducing the number of posts that are available for foreigners. Most of critical posts such as leadership, managerial, and technical areas are entrusted to nationals.
The government employment a local industries promotion program after the high oil prices in the 1970, which aimed at the procurement of products that were exclusively produced by the local manufacturers, which provided them with a competitive advantage over firms. The policies did not cover the scope and were limited by weak governance and lack of appropriate measures to assess their effectiveness. The government of UAE is adopting more comprehensive and dynamic approaches to promotion of local content policy.
However, the government lately has moved from the preferential treatment of local companies and adopted more dynamic approach of local value creation. Although most localization programs are focused on energy sector, but there is also possibility of expanding these programs to the public sector. However, there is need to focus on the success of this programs in the energy sector adopt the concepts across the diverse entities which have different objectives, visions, mandates.
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