Exploring the Nexus between Transformative Leadership and Employee Empowerment: A Grounded Theory Study of the UAE Banking Sector

Abstract

The research article investigates the impact of transformative leadership on employee empowerment, engagement, and retention among Emirati professionals employed in the UAE banking sector through a grounded theory study. The researchers employed a semi-structured interview guide and conducted 12 in-depth interviews with Emirati banking employees. The collected qualitative data were further analyzed through grounded theory coding (open, axial, and selective) to derive a core theme of effective leadership and its subthemes: organizational well-being, social connectedness, and cultural pragmatism.  The results indicate that trust-driven empathetic leadership boosts innovation, inclusion, and employee engagement by providing mentorship and bias training. Nevertheless, the general issues (poor career mobility, management biases, and transparency) also increase the turnover, and banks are frequently seen as short-term learning organizations. This paper puts emphasis on the need to match leadership practices with the local ideas of socio-cultural values, but in a way that does not undermine global standards. It provides theoretical value in the contextualization of leadership within a non-Western environment, and a practical implication in advising on open career systems, reduction of bias, and strategically employing Emirati talent. By embedding empowerment through equitable policies and social inclusivity, UAE banks can transition into employers of choice, aligning with national visions for sustainable economic growth.