This presentation suggests a roadmap for a workforce development initiative focused on the oil and gas sector in Qatar. Evidence suggests that current large-scale projects and the transition to knowledge-based economic development are compromised by current workforce skills levels in Qatar. Companies in Qatar face both skills shortages as well as skills gaps that limit performance and achievement of business objectives. By focusing on workforce investment and development, this presentation makes the case that current competency assessment approaches need to be localized to be more effective and CSR initiative which target external labor markets should specifically address key areas of market and institutional failure in skills formation.

1. Towards a Qatar Oil and Gas
Sector National Workforce
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A roadmap for a workforce development initiative focused on
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Corporate Responsibility
the oil and gas sector in Qatar
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2. Similar to Qatar in the QNV 2030, many Arab countries have embraced knowledge-based
economic development while stressing similar human capital development goals
Justification for Knowledge-based Specific Human Capital Objectives Identified
Economy as a Goal in National Development Plan in National Development Plan
Country Improving Access Improving Health, Increasing Female
Economic Economic Environmental Social and Quality of Safety, and or Private Sector Increasing
Job Creation Integration Diversification Sustainability Development Education Environment Labor Participation Entrepreneurship
Algeria
Bahrain
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Sudan
Syria
Tunisia
UAE
Explicitly stated as a justification for knowledge-based economic development goals or as a supporting human capital objective
Not stated as a justification for knowledge-based economic development goals or as a supporting human capital objective
Source:Author’s analysis of economic development strategies
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3. However, many of the Arab countries , including Qatar, face workforce skills deficiencies that
slow knowledge-based economic development and negatively impact high skill industries
10
(as proxied by the World Bank Knowledge Economy Index Ranking)
High Skills Equilibrium
United Kingdom Germany
9 How does
Employer Demand for higher, knowledge-intensive skills
Ireland
Estonia • Strong demand for high level skills
High
Spain
Qatar make Czech Republic Hungary
Korea, Rep.
• Skills formulation institutions and the
8 Lithuania
Latvia enabling environment work in tandem
the transition? Slovak Republic
Poland Croatia
Portugal
Greece • Knowledge-based economies with
Chile Bulgaria lower levels of skills gaps
7 United Arab Emirates Qatar
Romania Uruguay
Bahrain Malaysia Costa Rica
Kuwait
6 Serbia
Brazil Russia Turkey • The perception of Arab employers
Medium
Saudi Arabia Jordan Oman Mexico Africa
South
may deter entry into knowledge-
Belarus based industries which are perceived
5 Colombia Lebanon
China to require skills unavailable in the
Egypt Tunisia Sri Lanka Philippines national workforce or too costly to
Morocco Botswana Azerbaijan build internally
4
Bolivia Vietnam
Cape Verde Indonesia
Syria Honduras
India
Guatemala Swaziland
3 Kenya
Algeria
Senegal
Uganda
Pakistan
Ghana Low Skills Equilibrium
Zambia Yemen Tanzania
Lesotho
Burkina
2 Nepal • Employers face few skill gaps in a
Low
Faso Mozambique Cambodia
Bangladesh
Ethiopia Eritrea predominantly low skilled workforce
Rwanda
Guinea
• Little incentive to participate in
1 education and training and raise
qualification levels and aspirations
0
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%
Low Medium High
% of firms with sufficient internal skills levels
Source:Author’s analysis of World Bank Enterprise Survey
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4. Employers, particularly in the GCC, face both “skills shortages” as well as “skills gaps” that
limit performance and achievement of business objectives
Skills Shortages Skills Gaps
Skill Shortage
Skills Gap
Desired
Quantity of
Internal
Workers
Workforce
With a Quantity of Current
Skill Level
Particular Workers Internal
Skill With a Workforce
Required Particular Skill Level
Skill
Available
• Genuine lack of adequately skilled individuals available • Employers feel that their existing workforce has inadequate
in the labor market with the type of skill being sought skill types/levels to meet their business objectives
• Employers unable to recruit staff with the skills they • New entrants to the labor market trained and qualified for
are looking for at the going rate of pay occupations but still lack a variety of the skills required
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5. For O&G companies in Qatar, skills deficiencies have severely negative operational impacts
Internal firm deficiencies
External labor market deficiencies
Skills Well Functioning Labor Markets Employers Require Effective
Formation Require Allocative Efficiency Firm-level Utilization of Workforce Skills
Objective
Workforce skills levels meet the expectations of
Preparation of individuals with the skills, work experience, employers either in terms of full occupational
Description and qualifications in the quantity and quality to meet labor
of Objective proficiency or in the ability to meet business
market needs objectives with current workforce skills levels
Impact on Skills shortages requiring expatriate reliance for Even when employees are hired, many still have skills
firm if skills technical/commercial roles such as gaps requiring remediation through measures such as
formation Technical Roles Commercial Roles
Discipline Engineering Finance • Increased training and trainee programs
system is Geology/Geophysics Business Analysis • More staff appraisals / performance reviews
weak Process Engineering Contracting & Procurement • Implementation of mentoring / buddying schemes
Product/Process Human Resources • More supervision
Research Information Technology • Changing working practices and redefining jobs
Production Engineering Sales & Marketing • Reallocation of work within the company
Production Technology Supply & Distribution • Outsourcing to external providers
Project/Facilities Trading • Using government resources / funding
Engineering • Incentives/rewards/recognition
Reservoir/Petroleum • Sending employees for certification
Engineering • Providing cross functional exposure to the business
Well Engineering
Influence on Medium to severe, but recruiting from outside Severe because skills gaps influence many
business Qatar is a short-term solution to what is a large- aspects of current operations including
operations scale, systemic problem efficiency, service, and profitability
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6. Skills deficiencies can be mitigated when the business community plays an active role in
workforce investment and development
Education and Training System Business Community
• Ensuring Relevancy and Employability • Workforce Investment
• Quality Assurance Qualitative and • Workforce Development
quantitative
• Expanding Access supply-demand
match Facilitate
regular,
on-the-job
National Skills training and
participation
Link
Formation System in skills
economic for Knowledge- formation
based
• Coordination development
with E&T Development
system • Investment
• Aligning
Optimization
Macroeconomic Policy Address policy,
With Skills informational, or
financial sources of • Lifelong-learning
Formation underinvestment
• Broad-based, Critical Government
Coordination Points
Inclusive Skills Formation
Government Individuals
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7. Typical sources of market and institutional failure in skills formation systems may serve as
points of intervention for CSR workforce development initiatives in Qatar
Source of
Market Failure Key Areas of Failure Potential Points of Intervention
Poor
1 • Misalignment of education system with development due to • Upskilling the supply chain through procurement activity
rapid technical and organizational change or industrial policy • Research and Technology Centers
Macroeconomic • Sponsoring symposia and conferences
Policy • Entrepreneurship training
• Energy/Industry Strategic Qatarization Plan
• Involvement in next Qatar National Development Strategy
• Government sponsored training levy-grant scheme
2 • Individuals may not know the future value of skills investments • Training subsidies to ease public private sector transition
Insufficient • Preference for more certain short term returns to available jobs
Individual • Scholarships and Internships
• Lack of certification of skills acquired during training makes it
• Encouraging students to pursue technical fields
Investment less attractive since value to other firms is reduced • Targeted scholarships/internships for females
• Legislation that raises wages above the market level or when
pay and status are not linked to qualifications reduces the
• Campus ambassador program, on campus recruiting,
incentives of workers to invest in training supporting student events , awards and incentives
• Raising awareness of Qatar’s natural resources
Education and
3 • Lack of information on current and future skill trends in industry • Endowed faculty chairs
• Lack of funds, bureaucratic management, poor remuneration, • Research collaboration and funding
Training System and low standards leading to irrelevant curricula, poor teaching, • Participation in university-industry advisory boards
Misalignment and an emphasis on abstract rather than practical training • Funds for new institutions and expansion to fill gaps in
coverage, programs, etc.
• Embed general skill training in university curriculum
Failure of Firms
4 • Lack of specialized institutions to provide appropriate training
(such as Diversity & Inclusiveness, Personal and Business
or lack of interaction between these institutions and enterprises Skills, Leadership Development, HSSE etc.)
to Invest in
• If trainees leave for other jobs after training, a bias towards
Workforce specific, non-transferrable skills or decreased training emerges • Build up capacity of private trainers in O&G fields
• Link significant training investments with minimum
service requirements to avoid poaching
Source: (Acemoglu and Pischke 1996; Research 1996; Lall 1999; Ziderman 2003)
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