New Rules for Globalization

State capitalism is driving globalization strategies. The playing field has changed and an article from this month's Harvard Business Review says it best--

"Until 2008 going global seemed to make sense for just about every company in the world. Since then, we’ve entered a different phase, one of guarded globalization. Governments of developing nations have become wary of opening more industries to multinational companies. They are defining national security more broadly and perceiving more and more sectors to be of strategic importance, taking active steps to deter foreign companies from entering them and promoting domestic, often state-owned enterprises. Indeed, the rise of state capitalism in some of the world’s most important emerging markets has altered the playing field.

To factor globalization’s new risks into strategy, executives must consider their industry’s strategic importance to the host government and their home government. They can then choose among various approaches: strike alliances with local players, look for new ways to add value abroad, enter multiple sectors, or stay home." Read the full article here:http://hbr.org/2014/01/the-new-rules-of-globalization/ar/1

Emiratisation, A Lift for UAE Energy Sector

During my recent trip to the United Arab Emirates (UAE), I heard a lot of discussion about "emiratising" the workforce there. Most private sector jobs are held by expats, though private companies are required to hire locals. Ninety-five percent of small and medium-sized businesses (SMEs) of a more entrepreneurial bent employ expats, resulting in high unemployment rates for Emeratis. 

In the last year, the government has turned a more focused eye on this problem with two initiatives. First, they are encouraging businesses to hire locals by subsidizing salaries to help compensation equal government sector jobs. Secondly, the government is initiating quotas for hiring of personnel. The hope is, creativity and entrepreneurialism will stay in the country.

Local energy companies, like Al Mansoori Specialised Engineering and the Emirates Nuclear Energy Corporation and multi-national energy companies such as Dolphin Energy, Halliburton, Petrofac, Schlumberger, Total, and Total Tractebel are all trying their best to attract and hire UAE locals with job fairs, recruitment and other ways to connect Emeratis with SMEs. 

Promoting talent from within is critical for any organization, region or country and will be central to the growth and success of the UAE economy. Read more in this article from The National, an Abu Dhabi English language publication.