1 International Peer Reviewed Journal The Changing Landscape of Human Resource Management in a Qatarization Environment: A Literature Review RICHELLE BALBOA ARUGAY https://orcid.org/0000-0001-6845-9764 richelle.arugay@aspire.qa Aspire Academy-Doha, Qatar Originality: 100% • Grammar Check: 98% • Plagiarism: 0% ABSTRACT Qatarization is Qatar’s long-term human development strategy. From this agenda, the research covers public policies and reports to review how Qatarization is derived as a development strategy. The study attempts to answer the research question: “what is the role of Qatarization in facilitating human development?” The author posits that understanding the concept of Qatarization at an organizational level is significant in the implementation to support Qatar’s human development strategies. Following an integrative literature review, the paper scans literature on Qatarization practices in the country with a relatively high proportion of migrant workers due to its small native population. Although the current practices of workforce localization vary in general and the implementation is relatively inadequate, it is asserted that Qatarization has immense potential in facilitating the human capital development of the country. Therefore, Qatar needs to strategize upon institutionalization of Qatarization to realize the goals of building a knowledgeable and motivated workforce through HRD. Conceding that research on Qatarization in the context of HRM is less explored. This study is a significant contribution to the existing literature pertaining to the roll-out of workforce localization in developing countries. Vol. 43 · January 2021 DOI: https://doi.org/10.7719/jpair.v43i1.713 Print ISSN 2012-3981 Online ISSN 2244-0445 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. https://orcid.org/0000-0001-6845-9764?lang=en mailto:richelle.arugay@aspire.qa http://creativecommons.org/licenses/by-nc/4.0/ http://creativecommons.org/licenses/by-nc/4.0/ 2 JPAIR Multidisciplinary Research Keywords — Qatarization, human resource, HRD, workforce localization, human capital, migrant workers, literature review, Middle East INTRODUCTION In most developing countries, the terms “nationalization,” “localization,” or “workforce localization,” which are used interchangeably, is primarily referred to in the literature as a strategy of a host country to develop its labor force to increase the participation of the citizens and to replace migrant or expatriate workers with host country staff. Workforce localization in GCC has raised interests to scholars considering the proportion of the workforce where there is an extremely high number of expatriates than the minority local citizens in terms of population (Waxin, Lindsay, Belkhodja & Zhaol, 2018)a key emerging market, where, in many cases, local citizens are the minority in terms of population, and compete with high numbers of expatriate employees for jobs and positions. The purposes of this paper are to empirically explore recruitment and selection (R&S. In Qatar, workforce localization is termed as “Qatarization.” The localization concept was first introduced about two decades ago to the GCC member countries, which includes Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar (Waxin & Bateman, 2015). It involved the initial proposition of implementing workforce localization to large organizations, particularly in the oil and gas sector that is considered the economies of scale for the oil-rich region (Al-Horr, 2011). It was further employed during the inception of new businesses within GCC, where workforce localization or nationalization plan formation is necessitated (Waxin & Bateman, 2015). As Haak-Saheem, Festing, & Darwish (2017) described, the existing literature on institutions suggests that MNEs are under influence and pressure to adopt HR practices that are viewed as appropriate for the context and situation. However, the implementation of localization had complicated the staffing in the region due to some techniques and organizational practices that were utilized, which were mostly believed to be deficient (Waxin et al., 2018a key emerging market, where, in many cases, local citizens are the minority in terms of population, and compete with high numbers of expatriate employees for jobs and positions. The purposes of this paper are to empirically explore recruitment and selection (R&S). For example, quotas, generous government incentives, and other organizational measures like policy immunities and a special allocation of allowances and benefits were placed to retain the national employees, which help employers achieve or maintain a target percentage of employed nationals at any given time to comply with the government directives on localization. With 3 International Peer Reviewed Journal this context, it is considered, therefore, that the substantial definition which constitutes the effectiveness of workforce localization was lacking at the onset to distinguish its prime objective as a country’s strategy for human development (Al-Homsi, 2016; Williams, Bhanugopan, & Fish, 2011). Qatar is one of the world’s most important oil and gas producers, which is the main reason for the country’s ranking as one of the highest incomes per capita in the world. Since the discovery of Qatar’s richness in natural gas resources in 1973, the country has continuously attracted job-seekers worldwide for its robust economy. The annual growth rate of population in the country was recorded at 10% in the last decade, and in recent years Qatar has offered more than 1.5 million jobs to expatriates, which resulted in an increase of up to 16% growth annually that is mostly accredited to the preparations for the 2022 Football World Cup and other major projects. The country is then confronted with the challenge of rapid population growth due to the continued influx of migrant workers. Qatar statistics show that in 2019 Qataris are taking only 30% of the 2.7 million total population, while migrants comprise the majority at 70%. A significant fraction is also presented in terms of the labor force, where there is a relatively high proportion of expatriate workers at 90% and the remaining 10% of the Qatari workforce asserting a very low record of the unemployment rate at 0.1% in 2019. With the small size of the indigenous human capital, the extreme dependence on migrant workers, therefore, cannot be avoided (Al-Horr, 2011). In 2008, the Qatar National Vision (QNV2030) was launched, and the country’s General Secretariat for Development Planning (GSDP) was tasked to coordinate all programs relative to the implementation and achievement of the national vision. As published by GSDP, QNV2030 is described as “a comprehensive development agenda with the central aim of transforming Qatar into an advanced country by 2030 capable of sustaining its own development and providing for a high standard of living for all of its people for generations to come.” QNV2030 rests on four pillars which they have to work collectively with the Qatari people: Human Development, Social Development, Economic Development, and Environmental Development. ‘Human Development’ refers to the development of all its people to enable them to sustain a prosperous society; ‘Social Development’ pillar refers to the development of a just and caring society based on high moral standards and capable of playing a significant role in the global partnership for development; ‘Economic Development’ pillar refers to the development of a competitive and diversified economy capable of meeting the needs of and securing a high standard of living for all its people for the present and future generations; and, ‘Environmental Development’ which involves the 4 JPAIR Multidisciplinary Research management of the environment such that there is harmony between economic growth, social development, and environmental protection. Through the four pillars of development, the government tackles the five major challenges that Qatar is facing with the rapid economic growth, which includes: (1) modernization and preservation of traditions; (2) the needs of the existing generation and the needs of future generations; (3) managed growth and uncontrolled expansion; (4) the size and the quality of the expatriate labor force and the selected path of development; and, (5) economic growth, social development, and environmental management (as published by GSDP in 2008). Of the five major challenges, the resolution for the first four major issues is directed under the Human Development pillar by providing a comprehensive and integrated healthcare system, quality education and training, and an efficient and committed workforce. Focusing on this agenda, the research discussed public policies and government reports to review how Qatarization is derived as a strategic human development investment of the country in line with the national vision. QNV2030 provides a framework to which Qatar’s national strategies and implementation plans can be developed through the National Development Strategy (NDS) that essentially addresses the interactive relationship between population and development to pursue its main outcome of “…a competitive labor market that enables Qatar’s population to participate in the development, build a prosperous society and meet the needs of the current generation without compromising those of future generations through effective participation in the labor force, achieving high productivity, attracting and maintaining highly skilled labor, and a modern and transparent information system that provides data on both the supply and demand sides of recruitment and training” (NDS). Figure 1. Conceptual Framework for Human Development through NDS 5 International Peer Reviewed Journal Qatar’s vision to transform into a knowledge-based society is already in the process of implementing its plans (Gremm, Barth, Fietkiewicz, & Stock, 2018). These plans are being supervised by the Ministry of Development Planning and Statistics (MDPS) through NDS to achieve the main outcome of a knowledge economy and to foster education and training among Qataris to ensure their active participation to the objective of Qatarization. Among the organizations that support the development of the knowledge economy is the Qatar Foundation (QF), a non-profit organization that has established many different programs with cutting-edge facilities in education, research, and community development that is in line with the objectives of the national strategy (Gremm et al., 2018). Furthermore, to achieve the transformation, the NDS pursues to further develop and improve the educational services to meet the needs of the labor market by providing educational opportunities, developing curricula to keep up with global scientific and technical developments that are aligned with the requirements of the local labor market, and enhancing the productivity of the national labor force in conjunction with the highly qualified expatriate workers. The energy sector is one of the biggest employers of nationals with an overall goal of 50% Qatarization in permanent established positions where they offer educational sponsorships, excellent development programs, provide great rewards for good contributors, and develop talented and competent Qataris into leadership roles to meet their desired goals which translate to a capable and motivated workforce. In summary, the outcome will be a labor market that encourages investment in human capital development. This labor market that provides skilled expatriate labor with high labor productivity, and a labor market governance that ensures meeting current and future needs. OBJECTIVES OF THE STUDY To answer the research question: “what is the role of Qatarization in facilitating human resource development?,” the study aims to understand the framework that confers the critical role of the country’s human capital and HRM to achieve Qatar’s vision through Qatarization and to present a comprehensive review of literature on the concept of Qatarization and the complexity of implementing a localization program in a developing country through organizational human resource development (HRD). The research is anchored on human capital investment theory. It reflects similar principles with Qatar’s national vision, confirming that economic and social development performance depends heavily on human capital (Matei & 6 JPAIR Multidisciplinary Research Ceche, 2018). With the rapid growth of its economy, the reliable supply and strategic use of high-quality talent are critical considering that the national vision aspires to a greater economic role of Qataris and talents of the highly-skilled expatriates, which will lead to better and more active workforce participation (Forstenlechner, 2009). Scholars define human capital with similar fundamental principles of education and training from which knowledge, skills, and abilities derive (Table 1), and the principles of a human capital theory, which present an important insight where higher education relates to higher earnings (Gonzalez, 2008). Several related opinions were aggregated by Nafukho, Hairston, and Brooks (2004), which conveyed that the main outcome from investment in people is the change that is manifested at the individual level in the form of improved performance, at the organizational level in the form of improved productivity and profitability, or at the societal level in the form of returns that benefit the entire society. Table 1. Definitions of Human Capital Author Year Definition Schultz 1982 All human abilities to be either innate or acquired. At- tributes that are valuable and can be augmented by appro- priate investment will be human capital Bontis & Fitz‐enz 2002 The human factor in the organization; the combined in- telligence, skills, and expertise that gives the organization its distinctive character. Matei & Ceche 2018 consists of educational capital (skills acquired by individu- als in the process of schooling, but also outside it) and biological capital (physical abilities of individuals, synthe- sized, most often through the state of health) Pegram et al. 2018 embodied knowledge, skills, abilities, and other attributes of employees that can be put to productive use Researchers highlight human capital as a strategic resource that could help achieve a competitive advantage and high-performance (Boon, Eckardt, Lepak, & Boselie, 2018). The notion of net economic benefits relates to the difference between the economic value created from human capital and the cost of the human capital resources (Chadwick, 2017). According to Bae & Patterson (2014), the relationship of education to earnings can result in the classification of the implications of human capital theory at the individual, organization, and country levels wherein the individual level refers to the basic supply-side which represents the individual data that comprise the supply of labor market, the 7 International Peer Reviewed Journal organization level which refers to the demand-side which takes into account the analysis of firm related phenomena such as productivity, investment, turnover, etc., and a more comprehensive perspective at the country level which refers to both supply- and demand-side that are essential considerations in national policymaking (Table 2). Moreover, Bae & Patterson (2014) emphasize that to benefit from human capital, individuals should increase learning to elevate their value in the labor market, for the organizational level where human resource development professionals have the control in the process to implement a more efficient utilization of training and development with improved job performance that realizes the outcome of the investment activities, and at the country level for the government policymakers to provide a wider scope for considering the extent to which policies can provide more efficient and equitable use of human resources, such as education reform, government training policy, equal employment opportunity legislation, affirmative action, and pay equity arrangements. Table 2. Comparison of Human Capital by Each Level of Analysis Level Investment Decision Considerations HRD Role Type of HC Costs Returns Risks Perspectives Country Schooling ↔ Training Subsidy, Loans Economic Development (GDP, etc.) Under- or Over-invest- ment Policy Coordi- nation, Equal- ity (EEO, AA, etc.) Organization General ↔Specific Training Training Costs Organization- al Productiv- ity, Financial Returns, etc. Turnover Performance, Profit Maxi- mization Individual Schooling ↔ Training Direct Costs, Opportu- nity Costs Pay Increase, Employabil- ity, Job Satis- faction, etc. Unemploy- ment Self- develop- ment, Self- actualization Source: Bae, S., & Patterson, L. (2014). Comparison and Implications of Human Capital Theory at the Individual, Organization, and Country Levels METHODOLOGY The study adopts an integrative literature review as its research approach wherein available primary and secondary sources relative to Qatarization are identified, analyzed, and synthesized into a model that offers the perspective on Qatarization as 8 JPAIR Multidisciplinary Research a human resource development strategy. Public policies and government reports were reviewed to examine how Qatarization is derived as a strategic human development investment of the State of Qatar and a review of literature on HRM and HRD related studies within Qatar and the GCC region were selected to examine the various workforce localization practices in countries with a relatively high proportion of migrant workers due to its small indigenous population. The author utilized research databases available through Google Scholar and several on-line resources utilizing the following criteria that helped define and narrow the search: (1) studies on Qatarization and workforce localization (2) country-specific and cross-national studies relating to workforce localization practices as integrated within the HRD functions. To filter the search, specific strings or keywords were used, such as “Qatarization,” “HRD,” and “workforce localization,” utilizing Boolean words “AND” and “OR” to further narrow the result. Selected journal articles on international HRD, business, and management were tapped and retrieved from various publications such as Proquest, SAGE, Emerald, Wiley, Elsevier, etc., to provide the desired rigor to the literature analysis. Zotero was used as Bibliographic Database Manager (BDM) to electronically organize and keep track of the references and manage citations and automated bibliography processing. RESULTS AND DISCUSSION Although varying definitions of workforce localization is present in the literature (Table 3), the phenomenon derives from the process of replacing non- nationals or expatriates with host country staff to increase the national workforce’s participation. Table 3. Definitions of Workforce Localization Author Year Definition Potter 1989 when a local national is filling a required job sufficiently competently to fulfill organizational needs Bhanugopan & Fish 2007 a program to replace expatriates with host country staff following a period of staff development Forstenlechner 2009 a program designed to foster the participation of citizens in the workforce Hickey 2017 getting local citizens to do the jobs that are held by many foreign expatriates in a host country Pegram et al. 2018 process of replacing expatriate workers with locals of the host country 9 International Peer Reviewed Journal Al-Horr, (2011) suggests that the two major external aspects that affect strategic planning and policy formulation regarding localizing the workforce at the macro-level are the population’s growth and structure and the other the educational system. According to his findings, the demographic elements of the population and the low participation of Qatari nationals in the labor force (about 10%), especially in the non-government sector, seem to be correlated to the fact that there is only a small indigenous population and, therefore, a significant non-national population, with 30% Qataris and 70% non-Qataris based on 2019 statistics report. Therefore, with the given data, Al-Horr (2011) concludes that it would not be possible to implement a social and economic development plan without foreign labor. With regards to the educational system, it has a direct and negative influence on the efficiency and effectiveness of such a process. Furthermore, the overall formation of the Qatari human capital might not be well utilized in the country if the government will fail to provide the different sectors of the economy with a qualified national workforce in terms of an ‘adequate’ level of general or technical skills that are in line with the demand of the labor market. To avoid this, the NDS is transforming the country into a diversified knowledge economy by re-balancing the labor market structure, increasing work efficiency in different sectors, developing the capacities of Qataris, especially highly-educated women, attracting and retaining skilled and highly experienced workers, developing labor legislation, and improving the labor market information system. Each country is unique, with varying socio-economic status and rate of progression and development. The perspective of localization at the country- level comprehensively approaches individuals and organizations to support the government policies in the interest of developing its human capital (Hickey, 2017). Although workforce localization strategies vary from country to country, they all involve key HRM activities, such as recruitment and selection, training and development, career management, performance, and compensation policies for local employees (Waxin et al., 2018)a key emerging market, where, in many cases, local citizens are the minority in terms of population, and compete with high numbers of expatriate employees for jobs and positions. The purposes of this paper are to empirically explore recruitment and selection (R&S. In the study of Storberg-Walker, (2004), the human capital transformation findings were the result of creating the theory of human capital transformation through HRD of which he suggested that the transformation is embedded in the organizational processes. 10 JPAIR Multidisciplinary Research HRM and Qatarization The international HR management (IHRM) encompasses the design and organizational HR practices in a cross-cultural context (Waxin et al., 2018; Vance & Paik, 2014; Björkman & Stahl, 2006), and it describes that mainstream HR varies in different countries and regions (Budhwar, Pereira, Mellahi, & Singh, 2019; Haak-Saheem et al., 2017) depending on the socio-economic, cultural and political factors that shape the organization to where it is geographically situated (Bratton & Gold, 2017). Qatarization is Qatar’s strategy of long-term investment in human capital that primarily aims to develop and motivate its nationals to occupy responsible and key positions (Riaz & Ishaq, 2016) within the public and private sectors through education and training pathways (QNV2030). The concerted effort of Qatarization in the energy sector with an overall goal of 50% Qatarization in permanent established positions contributes to the concentration of the Qatari employment in the public sector, engaging about 90% of economically active nationals. Strategies for managing human resources, therefore, have a vital role to play in ensuring that public sector agencies have the capacity to address the needs of the communities they serve and to consistently achieve high standards of service, and the effectiveness of these services rests heavily on the knowledge, skill, and drive of the national employees (Burke, Allisey, & Noblet, 2013). The evaluation of the implementation of localization strategy shows that there are three approaches toward what may be called ‘Qatarization,’ namely, strategic adaptation, pragmatic acceptance, and implicit avoidance, wherein such approaches are strongly associated with understanding the policy aims and linking the policy to HR practices (Al-Horr, 2011). Human Resource Development To put it into perspective, HRD is complementary to HRM, which focuses on putting the right person for the job, whereas HRD emphasizes developing both the employees and their organizational context (Poell, 2007). Storberg- Walker (2004) also affirms in his study that the human capital transformation is represented by HRD, which is embedded within the organizational process, and it further recognizes that the human capital needs of countries change over time with the increasing global competitiveness and the advent of new technology which emphasizes the importance of continues learning among individuals. While individuals may derive their own motivation to pursue education and learning (Riaz & Ishaq, 2016), organizations in the context of HRM sustain the development through employment and retention of the national workforce, 11 International Peer Reviewed Journal which are effectively resolved through HRD interventions that facilitate attractive remuneration package, further education, and continuous learning or on-the-job- training and progressive career development. Conversely, the same factors were perceived to hinder workforce localization practices according to Bhanugopan and Fish (2007a) since results in their study suggest that a significant number of managers identify the mainstream HRD functions as prevailing obstacles, including recruitment and selection, local staff performance, lack of training and development, and compensation. HRD encompasses a longer-term effort to prepare individuals to succeed at work, and it essentially fills the performance gaps in knowledge, skills, and attitudes to get to internationally accepted human performance standards (Hickey, 2017). The existing literature establishes strong links between HRD and human capital since Human Capital Theory argues that investing in people makes them productive, while HRD also advocates improved workforce development through investment in education and training. As such, Nafukho et al. (2004) believe that both education and training are key contributors to the knowledge economy and that HRM practices such as selective staffing, training, and high-compensation systems are positively related to a firm’s level of human capital, and in turn, human capital mediates the relationship between high- level HRM practices and the organization’s innovative capabilities. However, according to Storberg-Walker (2004), organizations are still facing the challenge of developing and managing their talent for sustained performance during times of constant change. In her study, both training and development and organization development are considered the transformative motors fueled by human capital that generate sustained organizational success to a knowledge economy. Therefore, HRM, management scholars, sociology, public policy, and political science are some of the disciplines interested in understanding how organizations create new ideas and build a sustainable human resource that performs and learn together over time to reach common goals, with labor policies and practices that are aligned to government strategies which can impact the attitudes, behaviors, and performance of the workforce. According to Nair and Laurencin (2007), the concept and definition of HRD in developing countries are still evolving as the economy grows. They suggest that in the State of Qatar, HRD is viewed as a process of preparing and developing the workforce congruent to organizational and governmental goals and objectives. HRD is about human development towards achieving smarter and more innovative people who can work efficiently and effectively in any job 12 JPAIR Multidisciplinary Research or organizational setting in a given society through training cycles, succession planning, career planning, work competencies, and coaching/mentoring (Hickey, 2017). With Qatarization, the principle of localization puts more weight on attracting, developing, motivating, and retaining a competent and high caliber Qatari workforce to perform better and achieve leadership roles in the future. Human capital resources are characterized by the knowledge, skills, abilities, and other characteristics of resources that could be developed and enhanced through training and other developmental programs using either the training cycle or competency-development methods to achieve results. Recruitment & Selection. The unique characteristic of Qatar is the demographic setting where the national population comprises only about 30% of the total 2.7M populace and only 5% share of the Qatari workforce out of the 2.11M total size of the nation’s labor force. By the numbers, the 2019 Statistics from PSA shows that the unemployment population consists of 225 Qataris who are fresh graduates coupled with 60 Qatari unemployed individuals who are seeking employment, thereby recording a very low unemployment rate of less than 0.1%, which is one of the lowest unemployment rating recorded globally. With the energy sector like Qatar Petroleum and its associate subsidiaries leading the implementation of Qatarization with a target of hiring and retaining at least 50% Qataris within their workforce, it would mean that the other sectors and industries can only rely on hiring mostly expatriates to fill the job demands. It is clear, therefore, that the general concept of localization wherein the local workforce is filling the jobs is not applicable with Qatarization (Potter, 1989). Furthermore, the challenge of recruiting nationals is twofold: first, the companies will be sourcing for Qatari candidates for job placement out from the limited pool of inexperienced fresh graduates and Qatari job seekers (unemployed), and from Qataris who are employed however exploring for better opportunities. Secondly, attracting Qatari potentials who are currently employed by offering better opportunities could possibly alter the organizational commitment of the individual resulting from the decision to transfer from one government company to another in which case does not contribute to the objective of increasing workforce participation and would have a negative impact in the case of disrupting an established training plan in a specified industry except if the new appointment is intended for a higher-level post with more responsibility that stays in line to the career development plan or succession plan. Since the context of implementing Qatarization within the framework of HRD is underexplored, the author extends to reflect in the available literature 13 International Peer Reviewed Journal that focuses on another GCC country (Forstenlechner, 2009), the United Arab Emirates (UAE), which mirrors the demographic characteristics of Qatar closer than other GCC countries. Similarly, UAE is in the quest of localizing the job market through its own workforce localization program called Emiratization since the localization concept was first introduced to GCC in the year 2000. In his study, Forstenlechner (2009) discusses the practical implications of localization relative to the mainstream HR functions within the oil and gas companies in the UAE. Since there is no existing standard to operationalize workforce localization process, the HR practice in recruitment and selection follows the rationale of prioritizing the local citizens during recruitment and selection and put forth hiring strategies and programs that would attract local candidates to respond to job vacancy advertisements or to participate in job fairs that are intended to offer opportunities to nationals only (Al-Emadi & Marquardt, 2007). However, Potter (1989) emphasizes that “Effective localization has occurred when a local national is filling a required job sufficiently competently to fulfill organizational needs “such that successful recruitment and selection exercises depend on hiring the right candidate with the proper match to the job vacancy and there is suitability on his or her qualifications, experience, ability, and personal attributes or competencies. Compensation & Benefits. The implementation of workforce localization in GCC countries entails higher costs, unlike with other developing countries such as China because the compensation packages for local workers in GCC are typically much higher than the compensation packages offered to expatriates (Wong & Law, 1999). With over 90% of Qataris that are directly and indirectly engaged with the public sector, the compensation package for Qataris as it is linked to pay levels across government companies are generally higher than the salaries of expatriates in addition to cost benefits such as housing and education allowances, social allowance for pension benefits, with full expense paid travel entitlements during leave vacation depending on the civil status of the Qatari employee. Therefore, Qataris prefer the public sector in almost all cases because the work is less stressful and less challenging, with higher pay and flexible working times, which are more comfortable and highly convenient (Gremm et al., 2018). Training & Development. The principle of human capital investment theory considers human resources as valued assets and not merely a commoditized labor cost. In the economic context of human capital, higher education/skill is related to higher income (Schultz, 1982). Therefore, investing in the development of human capital in terms of increasing knowledge and enhancing skills and 14 JPAIR Multidisciplinary Research attributes of the workforce through various training and development methods are acceptable essential investments (Hickey, 2017). The T&D process involves assessing and identifying knowledge and skills gaps in technical and behavioral aspects in terms of job competencies with the benchmark of best practice standard and resolving to close any gap to perform and deliver the desired level of job performance through the remedy of education (i.e., scholarship, internship) and training (i.e., on-the-job, job shadowing). According to Hailey (1993), a key element in the localization process as with Qatarization is the increased investment in accelerated programs of management training for a new generation of managers and leaders, including the potential high-performing individuals as exemplified during their academic attendance in schools and universities. A training evaluation system should be in place to validate the usefulness of the training since the success of a career development plan is dependent on the effectiveness of training intervention along the process (Khan, Rajasekar, & Al-Asfour, 2015). Human capital investment allocation should be appropriately provided to promote and stimulate life-long learning among these high potential performers that could be designated the next or second generation of local managers. During the process, expatriates and (expatriate knowledge experts) consultants continue to play a significant role in both the public and private sectors of many developing countries (Hailey, 1993). Career Development. The organizational career development practices gather more attention in HR literature with the significant role it plays in the workforce localization initiatives, especially in GCC countries (Khan et al., 2015). Hickey (2017) argues that HRD is merely a mechanism or a tool to succeed with any localization effort. In his study, he emphasizes the importance of empowerment and available opportunity for career growth when people are trained for and can do the job to acceptable international standards, which is the core of effectiveness in work performance. Therefore, an effective organizational career development program needs to reflect the organizational realities and needs to be perceived as appropriate by employees to provide them a genuine opportunity to learn and grow (Khan et al., 2015). Companies must recognize their long-term career aspirations to satisfy their development needs in managing the local human resource. Attractive compensation packages may not be necessary and not sufficient to retain them; however, training and development opportunities, internal promotion, and career prospects, in the long run, could be the key factors (Wong & Law, 1999). 15 International Peer Reviewed Journal Career development must add value to the firm’s organizational resources and form a substantial part of the HR strategy and talent management initiative. Talent management has taken center stage in human resource management, and it has become highly relevant in the context of workforce localization, especially in organizations in GCC countries that aim to retain talent and fill high-level and critical roles from the internal talents to open promotion opportunities. An active localization program provides good prospects for advancement since professional growth and career advancement are important concerns, especially for young Qatari workers at entry-level or fresh graduates, and dissatisfaction with opportunities to advance is one of the most frequently cited reasons for turnover (Budhwar et al., 2019; Al-Asfour & Khan, 2014). Succession Planning. According to Aldulaimi (2017), the essential objectives of succession planning and leadership development supports the designation of the right person for the job. Aldulaimi (2017) further suggests that technical skills training alone is not enough to develop future leaders. Knowing when positions could possibly become vacant allows internal candidates to plan their career path development and avail themselves of better opportunities in the future. In some companies, upon the nomination of a local to assume a position of an expatriate, a succession plan normally takes place within a three to five year period (Hailey, 1993). As Potter (1989) emphasizes, “Effective localization has occurred when a local national is filling a required job sufficiently competently to fulfill organizational needs.” CONCLUSIONS The study sought to address the role of Qatarization in facilitating human development. Qatarization as a long-term human development strategy is derived from the framework of human capital, which is, on the one hand, transformed through HRM as it primarily controls the labor market conditions through the organizational factors (such as HR practices and policies) and individual factors (such as personality traits and abilities), and on the other hand, strategically related to labor markets which have important implications on the country’s performance (Figure 2). Qatarization, as it relates to human capital, carries the challenge to fully utilize the talents of its workforce, both Qataris and expatriates. Beyond numbers, Qatarization is capitalizing on the full utilization and enhancement of Qatari human capital while taking full advantage of acquiring the knowledge and capabilities of the highly-skilled expatriates (Forstenlechner, 2009). 16 JPAIR Multidisciplinary Research Figure 2. Qatarization Process It is critical to continuously and strategically address the human capital constraints brought about by the limited number of Qatar’s population. According to Gonzalez (2008), education, training, and labor market indicators are important factors in diagnosing the nature of a country’s human resource as can be described by specific demographics of the population, including labor market indicators such as labor force participation, unemployment rates and the sectoral composition of employment. The interrelationship among education, training, and employment requires that sectoral policies and decisions be coordinated, coherent, and integrated into the context of appropriate institutional arrangements that would not only lead to human capital development and a more efficient labor market but achieve the goals of QNV 2030 as a result of the many inter-sectoral relations and efficient workforce sector strategy. 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