When Arab-expatriate relations work well Diversity and discourse in the Gulf Arab workplace Mark Neal Eastern Institute of Technology, Hawke’s Bay, New Zealand Abstract Purpose – The purpose of this paper is to document and analyze the case of a public sector organization in the Gulf region, in which Arab-expatriate relations worked well and sustained a positive and high-performing organizational climate. Design/methodology/approach – The research employed an embedded ethnographic approach to produce a case analysis of expatriate-local work relations. Findings – The study found that although there may be multiple sources of difference and potential conflict between Arab locals and expatriates in the workplace, there are circumstances where the effects of such divisions are neutralized, and a positive work environment is sustained. The paper identifies the key sources of division, and social cohesion, and shows how – in this case – these factors interacted so that the negative impact of cultural difference was neutralized, and good working relations were achieved. Originality/value – The paper is new in two respects. It is the first ethnographic study of Arab-expatriate work relations in a public sector organization in Oman. It is also the first paper to identify, and distinguish between, the factors emphasizing alterity between Arab and expatriate workers, and those encouraging social cohesion. Keywords Expatriates, Team working, Equal opportunities, Localization, Oman Paper type Research paper Introduction How can we improve local-expatriate work relations in the Arab Gulf states? This is a pressing question, as the state-sanctioned localization policies in the Gulf countries are leading to increasing numbers of local Arabs working alongside expatriate employees (Alserhan et al., 2010). In order to manage such economically important work relations effectively, we need a better understanding of the dynamics of diversity among and between the different national cultural groupings in the Gulf Arab workplace. In particular, we need examples of good practice in the region – case studies of effective work relations between Arab and expatriate, which highlight the conditions and activities that encourage happy, high-performing organizations. An improvement of Arab-expatriate work relations requires that organizations improve the management of diversity in their workplaces. Managing diversity has grown into a field in its own right (Brief, 2008). In the 1990s, writers such as Cox (1993), Cox and Blake (1991) and Higgs (1996) discussed the need for organizations to value differences in the workplace; and, since then, the various types of diversity, and their effects on teams and organizations, have been the subject of intense research. Much of the attention has centred on management issues. McCuiston et al. (2004) highlighted the importance of skilled and sensitive leadership in harnessing and promoting The current issue and full text archive of this journal is available at www.emeraldinsight.com/1352-7592.htm TPM 16,5/6 242 Received December 2009 Revised April 2010 Accepted May 2010 Team Performance Management Vol. 16 No. 5/6, 2010 pp. 242-266 q Emerald Group Publishing Limited 1352-7592 DOI 10.1108/13527591011071331