Countries across the GCC have intensified workforce nationalisation policies in recent years as part of broader efforts to reduce reliance on expatriate labour and create sustainable employment opportunities for expanding national populations. These localisation initiatives are increasingly connected to broader economic diversification strategies, as governments seek to better align labour market outcomes with productivity growth, fiscal sustainability and long-term competitiveness.
Expansion
In Saudi Arabia, workforce nationalisation remains a central pillar of Vision 2030 and a key mechanism for expanding private sector employment among nationals. By the first quarter of 2022 the Kingdom had achieved a localisation rate of 23%, with a stated target of 30% by 2025. Progress has been supported by targeted quotas and strengthened compliance measures. In late 2025 and early 2026 policymakers further intensified requirements, introducing minimum localisation rates of 30% for designated engineering professions – with a SR8000 ($2130) wage floor – and 70% for procurement-related roles in private firms, alongside grace periods for compliance. These enhancements signal a continued shift towards structured, sector-specific localisation rather than broad headline targets.
Other GCC countries are refining their localisation frameworks. In Qatar, the workforce nationalisation rate stood at about 19% in 2022, with a target of 20% under the Qatarisation strategy. Momentum accelerated in December 2023 when new legislation was approved to enhance Qatari employment in the private sector, aligning recruitment strategies more closely with national human capital goals.
In the UAE, where nationals account for around 10% of the workforce, authorities have tightened Emiratisation requirements through regulatory enforcement rather than headline quotas. Mainland private companies with 50 or more employees were obliged to increase Emiratisation rates by an additional 1 percentage point by end-2025, targeting at least an 8% Emirati share in eligible firms. Financial penalties, including fines for misaligned hiring, have been implemented to reinforce compliance.
Oman has also expanded its Omanisation drive as part of Vision 2040. Historically its nationalisation rate has been moderate, but recent policy moves show a more assertive approach to reducing reliance on expatriate labour. In January 2026 the government banned expatriates from working in over 200 professions — particularly roles traditionally filled by foreign workers — as part of a broader labour reform aimed at boosting job opportunities for Omani nationals. This shift underscores a tougher regulatory posture, though concerns have been raised about potential short-term disruptions in services and private sector operations.
Upskilling
Across the GCC, localisation policies are reshaping corporate behaviour and cost structures. Many firms have responded by expanding training programmes, redesigning career pathways and increasing investment in local talent development. A 2024 regional survey found that while most firms were able to meet localisation requirements, a minority reported challenges related to skills availability and higher labour costs, particularly among small and medium-sized enterprises.
Workforce nationalisation has implications beyond employment metrics. Higher national participation in the labour market can support household incomes, domestic consumption and social stability, while reducing longer-term pressures on public sector employment. At the same time, tighter localisation requirements may affect labour flexibility and operating costs in the short term. As a result, policymakers across the region are increasingly focused on pairing enforcement with incentives, education reform and private sector engagement.
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