‘ MANAGING HUMAN CAPITAL IN ARAB COUNTRIES ’ THE LEADERSHIP AND CULTURAL CHALLENGES

This study explores state of human capital in the Arab business environment and discusses its obstacles and futuristic stance. It adopts an analytical approach and presents an investigation of Leaders ’ role in creating a supporting culture for human capital in which they share the management's vision and being aware of their role in achieving it. The study sets a proposed framework on how to transform Arab bureaucracies into knowledge creating organizations by means of a transformational leadership that has the ability to create the right culture in which information sharing, learning and knowledge formation should be part of the organizational norm. The topic merits investigation because it takes place at a time when Arab youths are emphasizing democratic change in Arab leadership styles and political systems. Hence, a fundamental transformation, which creates an acceptance and eagerness to do things differently, is required in Arab management and leadership styles to keep pace with the rapidly developing societal and cultural environment