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= How Technology is Reshaping Human Resources in the Middle East = //Jessica Aranda, Nichole Naoum, Melanie Ehrenkranz, Ara Ortiz, Jennifer Meram //

**// History //**
// by Jessica Aranda //

With approximately 70 percent of the world’s oil reserves, the Middle East’s economy has relied heavily on the production and exportation of oil for some time. But because the reality is that one day this natural resource will be depleted, countries in this region are taking steps to broaden their economies by reshaping human resources infrastructures.

Technology is perhaps the most critical means to move these countries from Point A to Point B. Prior to 2003, the Middle East’s technological level was diminutive, and communist regimes kept a tight reign on existing mediums, but the fall of communism and strict authoritarian regimes opened avenues to new advancements. According to the [|Arab Advisor's Group], by 2008, the number of broadband users in the Arab world surged to more than 24 million (2009). While this number is low in comparison to those of industrial nations, it is evidence of a technological boom that is penetrating traditional cultural and economical boundaries in this region.

The boom of technology has initiated a change on the human resource element in businesses throughout the Middle East. According to [|Quantec], when the Middle East was solely focused on oil, its wealth per capita of human resources was slightly more than 41 percent, the lowest in the world (2009). In all other countries, human resources was the largest generator of national wealth.



The key for the Middle East's economic diversification goals is targeting human resources. [|Quantec] suggests that "the citizens of a country are its most valuable assets. They constitute the human resource base, which is the only factor of production with the ability to reason, motivate, organize and control the other factors of production. Labor is usually also the factor of production that receives the largest share of a country's national income...It stands to reason that labor resources, being a country's most valuable asset, must be optimally utilized" (2009). It only makes sense that the "optimal utilization" of human resources stem from knowledge and skills gained through technological innovations, an increased digital population, increased open communication mediums, and the encouragement of further learning.

Described below are some of the effects of using technology to reshape human resources, a description of current trends, some of the pioneer, or mentionable, locations that are leading the way with change for the Middle East, as well a a list of challenges.

//Effects//
// by Jennifer Meram //

Due to the large rate of unemployment in the Middle East, HR has a new responsibility of finding job opportunities for workers. Although some Gulf States are implementing workforce policies, allowing workers to find jobs with the help of HR, the private sector fails to continue offering employment during a tough economic period.

As a result of these workforce programs, the Middle East has seen a large influence from the government sector within the economy. E-government projects are becoming increasingly more popular within the Middle East, digitalizing these societies and economies and increasingly creating more job opportunities. As seen in the [|chart] below, most government entities within the Middle East employ up to three quarters of the workforce.



Since the Middle East is globalizing into other industries besides oil, HR has seen a change as a competency-based system. Traditionally, HR has served within a payroll based system—however, the development of new industries as affected the infrastructure of HR in the Middle East.

Additionally, new technologies have modified the way HR’s system ran. The Internet, for example, is now becoming a staple for HR within the Middle East. Since 2000, [|Internet usage] in the Middle East has grown 1,825.3%. The growing power, usefulness and globalization of the Internet allows HR to run its system more efficiently and helps move the Middle East into a new digital age.

The development of new technology allows the Middle East to use different automated software specifically for the duties and responsibilities of HR. This affects the old system, allowing HR to rapidly move into a more technological advanced system. configuration feed sufficient local talent into the talent supply linefeed sufficient local talent into the talent supply linefeed sufficient local talent into the talent suppStoring employee-records, computerized payroll systems and streamline operations have become more cost-efficient and valuable with the use of technology.

**//Current Trends//**
// by Nichole Naoum //

Although the Middle East is abundant in sought-after resources like crude oil, historic monuments, and religious landmarks, it’s rapidly evolving technological landscape is reshaping their approach in expanding their [|Human Resources (HR) Management Systems]. With wealth being largely undistributed in this region, countries strategically situated in the Arabian Gulf, as well as Saudi Arabia and Iraq are thriving economically, while others like Egypt and Jordan are facing financial hardships. Due to their staggering increase in oil revenue, the more well-off Arab countries have been fortunate enough to undergo large infrastructure projects that require the importing of labor from neighboring Egypt, Jordan, and Lebanon.

While most professional, managerial, and administrative positions are held by Arab workers, the current trend features the expanding of their workforce and hiring foreign employees, primarily South Asians and East Asians. The majority of them hold mid level management, clerical, and technical positions. However, with unemployment rates of Middle Eastern natives on the rise, the [|Gulf States]have enacted a workforce nationalization policy in which HR organizations are required to make a certain number of positions available for nationals and “favorite” them during the hiring process.

Another trend that seems to be taking the HR development process by storm is the melding of old and new techniques. In the non-oil-producing countries, the focus of HR tends to be more on payroll and long-established personnel management issues. Due to high unemployment rates, downsizing a massive workforce is a precarious option and large workforce management with high personnel disbursement is common. In wealthier oil-producing countries, the emphasis is shifting towards a more calculated management style of HR as a result of top-notch companies' efforts to match the levels of technological efficiency and execution to that of their competitors worldwide. One such example of how HR companies in the Middle East are making technological headway is [|The Advanced Technology Investment Company (ATIC),]which is a specialist investment company created by the Government of Abu Dhabi to focus on investments in the advanced technology sector. It seems that the Middle East is well on its way to making a name for themselves in the new age of globalization and technology.



//** Mentionable locations ** //
// by Melanie Ehrenkranz //

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<span style="font-family: Arial,Helvetica,sans-serif;">The Middle East is known for having an economy heavily based on sought after resources. However, with the advents of new technology as well as implementing existing technological endeavors, economies in particular locations are being swayed towards management-based positions as well. These specific locations are utilizing modern technological advances to promote more opportunities within the economies and business world. I will discuss two mentionable locations more specifically within the Middle East that are displaying such moves towards advances in human resources through technological innovation. =====

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<span style="font-family: Arial,Helvetica,sans-serif;">One of the seven emirates of the United Arab Emirates, Dubai has exhibited advances in human resources through advances within the education system. "His excellency Sheikh Nahayan Mabarak Al Nahayan, Minister of Higher Education and Scientific Research, will inaugurate the European Foundation for Managemtn Development (EFMD) Conference for the Mena region, being hosted by the University of Dubai (UD) between November 28-30, 2010 in Al Bustan Rotana Hotel, Dubai" (University of Dubai 1). This conference is targeted towards students, to enable them to have the opportunities to keep up with advances in their fields. Specifically, it is aimed at improving faculty research and also improving the region's education foundation to better its chances in a competitive global market. Also, in 2008, Dow Chemical in Dubai received a very prestigious honor at the Middle East HR Summit Excellence Awards. "Dow topped the 'HR Initiative of the Year' category having met the strenuous criteria set by an independent committee of adjudicators appointed by the Institute for International Research (IIR) Middle East, the event's organizer" (Dow Chemical 1). The campaign for this diversified chemical company is to encourage its employees to utilize their time and intelligence to aid in critical global issues. Dow Chemical is recognized by the Summit Excellence Awards as putting its best practices in human resources and development. =====

<span style="font-family: Arial,Helvetica,sans-serif;">Jordan
<span style="font-family: Arial,Helvetica,sans-serif;">The Kingdom on the East Bank has also seen improvements in human resources in regards to technology. Less than a decade ago, in 2001, Jordan saw an increase in 27 percent of Internet users alone. This can reflect the movement towards a more technologically based region. Every day, advances are being seen within the Internet realm. Online services and web hosting providers are continuously being created, as well as other advances. Also, "in May 2000, the Information Technology Association-Jordan — "int@j" — was launched to represent, promote and advance the Jordanian software and technology services industry in the global market" (USAID 1). With the help of USAID, it is now one of the most successful business associations in Jordan. It offers a variety of services, which includes specialized training for members. It is said to have been very valuable for technology firms in Jordan, and also aiding in international and government affairs.

//** Challenges Faced **//
// by Ara Ortiz //

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Most of the Arab Gulf States are near the top of in highest illiteracy rate. For example, Kuwait, Palestine and Qatar have over 89% illiteracy rate (El-Kahky, 2007).=====

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The workers from the non-oil rich countries are brought to work because they are educated in the fields. In some cases, more qualified jobseekers are brought from Asia and Europe to work on the technical aspects.=====

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Also, the number of users from the Middle East on the Internet is still relatively low. According to InternetWorldStats, about 212,000 or 3% of the world’s population comes from the Middle East with the United Arab Emirates having the largest number of users online.=====

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In the United Arab Emirates, the number of jobseekers is expected to reach the hundreds of thousands in a country with a population of about 3 million (AmeInfo, 2004). As of 2007, the unemployment rate has risen to 14%.=====

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The reason the rate is high is because the oil-rich countries bring in workers from non-rich countries because it’s cheaper. The governments in the Gulf States give nationals better working conditions and higher salaries which is the reason the companies seek out foreigners for the cheaper pay (AmeInfo, 2004).=====

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The government of the United Arab Emirates created a department that would help match job seekers with openings. Furthermore, governments implemented a policy in which companies we're persuaded to take into consideration/giving preference to nationals.=====

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As previously stated, the lack of required skills possessed by the nationals leads to companies limited jobs for them and hiring workers from a different nation (AmeInfo, 2004)=====

// References //
1. Arab Advisors Group. []. Retrieved November 10, 2010. 2. Quantec. []. Retrieved Nov.1, 2010. 3. Ameinfo.com. <span style="background-attachment: initial; background-color: initial; background-position: 100% 50%; background-repeat: no-repeat; cursor: pointer; padding-right: 10px;">[]. Retrieved Nov. 13, 2010. 4. Jazarah!.com. <span style="background-attachment: initial; background-color: initial; background-position: 100% 50%; background-repeat: no-repeat; cursor: pointer; padding-right: 10px;">[]. Retrieved Nov. 1, 2010. 5. GehryTechnologies. <span style="background-attachment: initial; background-color: initial; background-position: 100% 50%; background-repeat: no-repeat; cursor: pointer; padding-right: 10px;">[]. Retrieved Oct. 30, 2010. 6. Internet World Stats. <span style="background-attachment: initial; background-color: initial; background-position: 100% 50%; background-repeat: no-repeat; cursor: pointer; padding-right: 10px;">[]. Retrieved Nov. 14, 2010. 7. <span style="font-family: Arial,helvetica,sans-serif; font-size: 11px; line-height: normal;">**<span style="font-family: arial,helvetica,sans-serif; font-size: 13px; font-weight: normal; line-height: 19px;">A. Aljazeera.net. []. Retrieved Nov 3, 2010. ** 8. CSRwire.com. <span style="font-family: Arial,Helvetica,sans-serif;">[]. Retrieved Nov. 20, 2010. 9. <span style="font-family: Arial,Helvetica,sans-serif;">U.S. Agency for International Development. []. Retrieved Sept. 30, 2010.