Globalization presents Gulf Cooperation Council (GCC) countries with opportunities for economic growth and transformation, as many of these nations face economic challenges such as the need for a diversified knowledge-based economy because of the finite resource of hydrocarbons. This requires the development of human capital providing workers with new and advanced skills and competencies. Education has become increasingly important on national agendas in the GCC, leading to an increase in transferring educational reforms often founded on Human Capital Theory (HCT). This article examines how HCT is embedded in the development of knowledge economies and reforms in many GCC countries and identifies the possible differences between western understandings of Human Capital Development (HCD) and GCC nations. In particular, the article addresses cultural preservation, specifically identity and language, against the backdrop of HCD in the GCC nations. Discussion centers on HCD from a local perspective raising concerns about HCT as a guiding educational theory in the GCC. This is followed by several suggestions for policymakers to consider when developing an education system that includes the skills deemed necessary for economic development while simultaneously preserving national identity and the Arabic language.