The solution to Dubai's economic challenges might be right under its nose. The tiny emirate, the most diversified sheikhdom in the Gulf, has been affected like most of the region by low prices for the oil exported mainly by its neighbors. One way to offset that impact might be to address an imbalanced workforce that is too reliant on expatriates. They make up 22 out of every 23 active workers, according to calculations based on official data. Dubai could do worse than to turn some of its skilled foreign workers into actual citizens.

About half of Dubai's $143 billion debt has to be repaid by the end of the decade, according to the IMF. That is almost double the United Arab Emirates' (UAE) forecast revenue from exporting oil this year. One of seven semi-autonomous sheikhdoms in the UAE, Dubai has endured the 53 percent fall in oil prices over the past two years relatively unscathed, but some belt tightening is inevitable. The Financial Times reported on September 12 that Istithmar World - a government investment company - has made most of its staff redundant to save money.

Yet Dubai needs more people working, not fewer. The emirate depends almost entirely on foreign expatriates to make its service-driven economy function. Emiratis account for just one in every 23 workers over the age of 15, 55 percent of whom are bureaucrats, or soldiers, according to official employment survey data for 2015 analyzed by Breakingviews.

Getting citizens to work in a process called "emiratization" has proved difficult. More than half of the estimated total Emirati population over 15 years old were considered economically inactive last year, despite only 2,154 being classed as unemployed. Some may not want to work, while others may not have to because of wealth or government handouts.

Were Dubai to offer citizenship to skilled foreigners, thereby increasing their prospects of upward career mobility, these skilled employees might  lay down roots. They might consume and invest more. The labor market would become more competitive. Current citizens might not like the idea, but without a more vibrant local economy, the lifestyles they take for granted may be harder to sustain.

The author is Andy Critchlow, a Reuters Breakingviews columnist. The article was first published on Reuters Breakingviews. bizopinion@globaltimes.com.cn