Page 230 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

212 Dubai & Co.

center itself, the sectors on which it will focus represent a huge com-
mercial opportunity for the firm. In the energy sector alone, for
example, Qatar is expected to invest $70 billion between 2006 and
31
2011. Having a research center in the country can be a big advan-
tage during a competitive bidding process, demonstrating an
expertise in responding to local needs and a commitment to the
local community. The profits from one multibillion-dollar contract
alone can easily recoup the $50 million cost of the center.
On the announcement of the center, Sheikha Mozah Bint Nasser
Al Missned—head of the Qatar Foundation and wife of Qatar’s ruler—
had high praise for GE. “Transferring the expertise and technology of
leading companies to the Qatar population is an important part of our
strategy,” she said, “and GE is showing that it embraces this vision.” 32
One can only imagine such accolades as being immensely valuable
when seeking to win government business in the country.
Investment in local human capital, when done strategically,
can yield tremendous commercial and public relations benefits. It is
also critical to building a truly “embedded franchise” with genuine
roots in society.

KEY LESSONS

● Expatriate talent, largely out of necessity, has played a
central role in the development of GCC businesses over
the past several decades.
● Demographic shifts, however, have been fueling initiatives
to “localize” the private-sector workforce.
● Multinationals must manage a balancing act in their hiring:
being sensitive to both the need for expatriate talent and
the imperative for local human capital development.
● In the short term, multinationals should recruit and
empower expatriates with expertise and affinity with the
region.
● In the medium term, multinationals should learn from
leading professional services firms and attract GCC
nationals at the early stages of their careers.
● For long-term success, investing in local human capital
makes commercial and public relations sense.