Essays on Emiratisation at Abu Dhabi National Oil Company Case Study

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The paper "Emiratisation at Abu Dhabi National Oil Company" is a perfect example of a Management Case Study. Abu Dhabi National Oil Company (ADNOC) was established in 1971 with the aim of operating in all areas of the oil and gas industry. Since the establishment, the organization has broadened its activities in the industry establishing subsidiaries leading to an integrated oil and gas industry. The industry main operations are in the field of exploration, production, oil refinery, as processing petrochemicals, transportation in maritime and chemicals. Emiratisation has led to ADNOC changing its recruitment procedures to increase the locals in addition to the immigrants (Gé rard Al-Fil, 2014).

By 2015, the firm had added 7,500 new jobs. This was in line with the Emiratisation strategy and its ability to meet the capacity in oil and gas production. The Emiratisation started in 2009 where UAE started pushing for change in the hiring procedures for the companies. This is through coming up with laws that were aimed at encouraging the firms to hire the local UAE nationals in their expansion (Al-Ali, 2008). Through Emiratisation policies, there is taxation for hiring the immigrants and incentives for hiring the locals.

The policy ensures that the organizations follow the job quotas which are aimed at increasing local employees. This has led to ADNOC coming up with measures to attract local employees (Emiratisationnow. com, 2016). This paper will analyze the ADNOC Emiratisation strategy. The paper will look at the objectives, viability, and achievements of the policy at ADNOC up to date. The paper will then look at ADNOC Emiratisation strategy strengths and weaknesses. Lastly, the paper will come up with a viable strategic plan for ADNOC in implementing Emiratisation for the next 5 years. ADNOC Emiratisation strategy ADNOC has been a strategic partner for the UAE government in its Emiratisation strategy.

This is through offering unique employment opportunities to the talented UAE nationals using incentives, nationalization strategies, and development programs (Gé rard Al-Fil, 2014). Career development has been a very vital part of the ADNOC Emiratisation policy. This has been a valuable strategy for ensuring that the trainees are offered a growth opportunity in the organization. One of the main attainments in line with the Emiratisation strategy was the hiring of 1,000 local employees in the human resource authority (Emiratisationnow. com, 2016). In 2015, ADNOC was able to add 7,500 new job opportunities.

At the moment, ADNOC has over 25,000 people. The firm has set a target of 30% growth in its labor force and production (Emiratisationnow. com, 2016). The firm target new employees who are mainly Emirati. This is through recruiting based on the ADNOC Technical Institute and the Petroleum Institute. This is a vocational college that is focused on meeting the future staff needs for ADNOC.

The college was founded together with academic partners and industry. The firm had set a target to have its Emirati employees increased by 75% in 2014. By the end of 2014, the firm had boosted its total workforce to 32,500 workers. This is through adding about 12,000 new Emirati employees. This was a strategy that led to doubling its local Emirati employees and a reduction of expatriate workers who were replaced by Emirati nationals (Nazzal, 2016). According to Nazzal (2016), the skilled workforce has been embedded in ADNOC vision while at the same time ensuring that they have an increase in Emirati employees.

This is in-line with the firm Emiratisation strategy. The firm has been having plans to increase its oil production to 3.5 million barrels per day (BPD) by 2018. This requires having an increase in the workforce for the firm. There is also a need to replace the leaving employees who according to statistics amounts to 4% annually. The firm has then been forced to be employing about 6,000 new employees to replace them. This requires hiring about 2,800 employees annually where most of the positions are given to the locals.

The firm has been obliged to support the nationalization programs which are spearheaded by the government (Emiratisationnow. com, 2016).

References

ADNOC Distribution Careers. (2016). Emiratisation. [online] Available at: http://careers.adnocdistribution.ae/en/who-we-hire/emiratisation [Accessed 24 Dec. 2016].

Al-Ali, J., (2008). Emiratisation: drawing UAE nationals into their surging economy. International Journal of Sociology and Social Policy, 28(9/10), pp.365-379.

Al-Ali, J., (2008). Structural barriers to Emiratisation: Analysis and policy recommendations (Doctoral dissertation, Victoria University).

Barnett, A., Yandle, B. and Naufal, G., (2013). Regulation, trust, and cronyism in Middle Eastern societies: The simple economics of “wasta”. The Journal of Socio-Economics, 44, pp.41-46.

Emiratisationnow.com. (2016). ADNOC to add 7,500 new jobs. [online] Available at: http://www.emiratisationnow.com/2010/11/adnoc-to-add-7500-new-jobs.html [Accessed 24 Dec. 2016].

Gérard Al-Fil. (2014).Emiratisation: Abu Dhabi National Oil Company (ADNOC) recruits UAE nationals. [video] Available at: https://www.youtube.com/watch?v=9oqrcB8D9zw [Accessed 23 Dec. 2016].

Informa Middle East. (2015). Hessa Al Ghurair Latest Emiratisation Trends. [video] Available at: https://www.youtube.com/watch?v=trviC0IS6kg [Accessed 23 Dec. 2016].

Modarress, B., Ansari, A., & Lockwood, D. L. (2013). Emiratisation: from policy to implementation. International Journal of Human Resources Development and Management, 13(2-3), 188-205.

Nazzal, N. (2016). ‘Emiratisation has its own challenges’. [online] Available at: http://gulfnews.com/news/uae/education/emiratisation-has-its-own-challenges- 1.1500609 [Accessed 24 Dec. 2016].

SitesPower Institute. (2011). CNBC Arabia - Emiratisation Strategy in the UAE. [video] Available at: https://www.youtube.com/watch?v=nb80wiBEyZU [Accessed 23 Dec. 2016].

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