Challenges of Human Resources in the Middle East countriesWord count: 3397IntroductionThere has been a growing importance on the discussions concerning human resources in the Middle East restructuring and localizing of traditionally experts in the heavy work forces was made. In the past there were problems that were encountered during the relocations of foreign workers since employers did not know the amount of money that could be paid to their tax free salaries (Omran et al, 1993). This problem does not exist any more in the Middle East; however the biggest problem is that, the structures in the Middle East markets are not effective enough to serve the current human resources with capabilities.
There are no enough financial resources to cater for the construction of good market structures at a faster rate in the Middle East. Currently, the main focus in the Middle East is the establishment of learning institutions, specialized universities and training schools. These institutions are being established for the purpose of developing and promoting main skills and proficiency to students. This paper is aimed at identifying various challenges that are experienced by human resources in the Middle East.
It also illustrates the various solutions that have been used to alleviate some of the challenges (United Nations, 1995). ChallengesMiddle East is a high growth regionThe continued growth in the economy in Middle East is not felt by many companies who are found to continue investing in organization systems and developing human resource capabilities. It is evident that, in 2002, the economies grew by 74% with Gulf having a growth in GDP above the world’s average. In 2006, the real GDP increased by regional average of 6.3% which was considered the best performance over the last ten years (ILO, 2000).
The increase in oil prices improved the liquidity of the region. However, the problems that came with the increase in oil prices increased to more spending on the consumer. Companies spend more on investments in organization systems and human resource capabilities. These companies need plenty of local human resources with capabilities as well as expertise from foreign countries in order to compete successfully in the international markets in the long run.
There is a significant growth in human resourceThe growth of human resource in the Middle East has driven businesses to concentrate on strategies. Organizations in the Middle East operate in overlapping sectors like financial services and tourism in emerging markets. Human resource do not operate any longer the background support function, they are only aimed at achieving strategies to compete in the market without realizing that the central goals of the organization needs to be achieved first (Aoyama, 2001). Available jobs in many sectors are no longer open to immigrantsAccording to (UNDP, 2000), There is a falling trend of the immigrants in the private sector of 24% between 2003 and 2005.
Many countries are still reducing the foreign workforce, for example Saudi Arabia have decided to reduce its foreign work force by more than half in the next ten years since 2003. There is also reduction in Asian visas in the United Arab Emirates from 2003 and the ministers of labor and social affairs gave foreigners only six years to live in the countries. They even introduced tougher conditions on recruitment as well expelling excess foreign workers.
Renewal of residence permits were also made more difficult. Hence, the immigrants in the Middle East are facing problems to live in the foreign countries.