The Politics of Employment Policy Reform in the Gulf State
During the first decade of the 21st century the Gulf States undertook reforms of their social policies based on the generous redistribution of hydrocarbon profits. One of the elements of the redistribution was to guarantee of employment. Beginning in the 1990s rising unemployment indicated that the traditional employment policies were ineffective, generating social tensions as evidenced in the "Arab spring". The goal of the reforms is to move nationals into salaried jobs in the private sector, currently held largely by foreign workers. The change is strongly opposed by business executives and local entrepreneurs. Having become accustomed to inexpensive foreign workers they object to the increased costs entailed by the reforms. The royal families are thus obliged to negotiate between the interests of the private sector, often aligned with their own, and the dissatisfaction of the young, the group most impacted by unemployment and the key players in the protests that erupted in 2011 in Bahrain, Saudi-Arabia and Oman.