Labour Market Overview
GCC labour markets share a defining structural feature: heavy dependence on expatriate workers combined with national populations concentrated in public sector employment. Every GCC state operates workforce nationalisation programmes, but their design, enforcement, and outcomes vary significantly.
Workforce Composition
| Country | Total Workforce (mn) | Nationals (% of workforce) | Expatriates (% of workforce) | National Unemployment (%) |
|---|---|---|---|---|
| UAE | 6.8 | 11 | 89 | 2.8 |
| Saudi Arabia | 15.4 | 42 | 58 | 11.2 |
| Qatar | 2.1 | 6 | 94 | 0.1 |
| Kuwait | 2.8 | 18 | 82 | 3.4 |
| Bahrain | 0.8 | 26 | 74 | 4.2 |
| Oman | 2.6 | 36 | 64 | 3.8 |
Nationalisation Programme Performance
| Country | Programme Name | Private Sector National Share (%) | Target (%) | Penalty Mechanism |
|---|---|---|---|---|
| UAE | Emiratisation | 4.8 | 10 by 2026 | Fines per missing hire |
| Saudi Arabia | Saudisation (Nitaqat) | 22.6 | Sector-specific bands | Visa restrictions |
| Qatar | Qatarisation | 3.2 | Sector-specific | Limited enforcement |
| Kuwait | Kuwaitisation | 8.4 | 70 (banking) | Operating licence risk |
| Bahrain | Bahrainisation | 18.2 | Sector-specific | Labour market fees |
| Oman | Omanisation | 28.4 | Sector-specific bands | Visa and licence restrictions |
Public vs Private Sector Employment (Nationals)
| Country | Nationals in Public Sector (%) | Nationals in Private Sector (%) | Avg Public Sector Salary (USD/month) | Avg Private Sector Salary (USD/month) |
|---|---|---|---|---|
| UAE | 86 | 14 | 8,200 | 4,800 |
| Saudi Arabia | 62 | 38 | 4,600 | 3,200 |
| Qatar | 92 | 8 | 12,400 | 6,800 |
| Kuwait | 84 | 16 | 6,200 | 3,400 |
| Bahrain | 48 | 52 | 3,200 | 2,800 |
| Oman | 68 | 32 | 3,400 | 2,200 |
Youth Employment and Female Participation
| Country | Youth Unemployment (15-24, %) | Female Labour Participation (%) | Women in Senior Roles (%) | NEET Rate (%) |
|---|---|---|---|---|
| UAE | 6.4 | 52 | 28 | 8 |
| Saudi Arabia | 24.8 | 34 | 12 | 18 |
| Qatar | 0.8 | 58 | 18 | 4 |
| Kuwait | 14.2 | 48 | 16 | 12 |
| Bahrain | 12.6 | 44 | 22 | 10 |
| Oman | 16.8 | 32 | 14 | 14 |
Relative Positioning Analysis
The UAE’s labour market is characterised by the highest expatriate concentration in the GCC at 89 percent, creating both economic dynamism and structural vulnerability. The Emiratisation programme has intensified since 2022, with mandatory private sector hiring quotas enforced through financial penalties. However, the national private sector share of 4.8 percent remains the second lowest in the GCC after Qatar.
Saudi Arabia has achieved the most significant labour market transformation among GCC states. Saudisation has increased the private sector national share to 22.6 percent, driven by aggressive sector-specific quotas and visa restrictions. The kingdom’s challenge remains youth unemployment at 24.8 percent, reflecting the lag between policy enforcement and labour demand.
Bahrain is the only GCC state where nationals are more likely to work in the private sector than the public sector, with 52 percent of national workers in private employment. This reflects the country’s smaller public sector spending capacity and earlier labour market liberalisation.
Trend Analysis
The dominant trend is the intensification of nationalisation enforcement across all GCC states. The UAE’s penalty-based Emiratisation model represents a shift from voluntary compliance to regulatory mandate. Saudi Arabia’s success in private sector nationalisation is creating competitive pressure on the UAE to demonstrate comparable progress. The public-private salary gap remains the fundamental structural challenge across the region, with public sector premiums ranging from 44 percent in Bahrain to 82 percent in Qatar.
Strategic Implications
The UAE must accelerate Emiratisation while managing the economic implications of higher labour costs in sectors historically dependent on expatriate workers. The most effective approach combines quota enforcement with productivity-enhancing investments in automation, upskilling, and sectoral upgrading. Learning from Bahrain’s success in normalising private sector employment for nationals and from Saudi Arabia’s scale in quota implementation can inform policy refinement.