Understanding the Skills Gap Middle East: An Analysis of the Digital Talent Ecosystem’s Challenges and Learning Opportunities

Digital Dialogue April 18, 2024 Uncategorized

The skills gap in the Middle East region is widening as digital transformation disrupts traditional job roles, displacing an estimated 152 million jobs globally in the next 5 years. Countries like the UAE struggle with skills shortages, hindering growth and competitiveness, while youth unemployment remains high across the MENA region amidst a dearth of specialized skills.

To bridge this divide, governments are launching initiatives focused on upskilling the workforce through digital skills training, data-driven learning systems and professional development programs tailored to in-demand technical skills like artificial intelligence, coding, and leadership capabilities. This article analyzes the evolving tech talent landscape, challenges hindering talent development , strategies being implemented, economic benefits of closing the skills gap, and continuous learning opportunities for a future-ready Middle East workforce.

Evolving tech talent landscape in the Middle East Region

The Middle East region is grappling with a widening skills gap, with nearly half (46%) of respondents in a PwC Middle East survey believing their country suffers from a dearth of specialized skills. In the UAE, 50% of companies face skills shortages in crucial areas. The main drivers of this gap are:

The relentless march of technology
The economic pivot from oil dependence to diversifying into knowledge-based sectors
An education-industry disconnect

The GCC countries are actively pursuing digital transformation strategies that account for digital inclusion. However, challenges persist in including low-income groups and the elderly. Middle-income and lower-income MENA countries face larger challenges of limited access, affordability, skills gaps, cultural barriers, and lack of digital trust.

To address this skills gap, the World Bank collaborated with LinkedIn to study the labor markets in the Middle East and North Africa (MENA) region, including Saudi Arabia, Qatar, UAE, Lebanon, Jordan, Iraq, Morocco, Tunisia, and Egypt. The analysis focused on:

Global Skill Genome by Occupation
LinkedIn Hiring Rate by Country and Sub-Industry
Skill Genome by Country and Industry

Key findings included:

Specific programming languages like Bootstrap, Git, JavaScript, and Object-Oriented Programming are the most characteristic skills in the Software & IT Services industry in countries like Morocco, Lebanon, Jordan, and Egypt
Qatar and the United Arab Emirates ranked Microsoft Azure as the top skill
Tunisia displayed the steepest increase in hiring rates in the IT services and IT consulting sub-industries across the MENA region

The MENA region is facing a shortage of digital human capital, with only 1.7% of the workforce considered ‘digital talent’ according to a 2017 McKinsey study. IT jobs are among the top open positions in the region, indicating an acute talent and skills shortage. Gulf Cooperation Council (GCC) countries have a significant digital skills gap, with 70% of CEOs in the Middle East citing the availability of key digital skills as a business threat.

Challenges Hindering Talent Development

The consequences of inaction are severe, including young people facing crippling unemployment and underemployment, businesses struggling to compete in the global market, and the untapped potential of the region’s youthful demographic remaining unrealized. The main reasons for this talent gap include:

Shortage of qualified professionals with the required technical expertise: The rapid pace of technological advancements has created a demand for professionals with specialized skills in areas like artificial intelligence, data science, and cybersecurity, which the region’s education systems have been slow to address.
Lack of diversity in the tech industry, with a significant gender gap: The tech industry in the Middle East is heavily male dominated, with women facing various cultural and societal barriers to entry and advancement. This limits the talent pool and hinders innovation and creativity.
Difficulty in retaining tech talent, as many skilled professionals leave the region for better opportunities abroad: The Middle East region often struggles to retain its homegrown tech talent as many skilled professionals seek better career prospects, higher salaries, and more advanced work environments in other parts of the world.

Governments across the Middle East region have recognized the importance of addressing the digital skills gap and have launched various initiatives to upskill and reskill their workforce. For instance:

The UAE has launched the “National Program for Coders” to train and certify 100,000 coders by 2028, as well as the “One Million Arab Coders” initiative to empower the region’s youth with coding skills.
Saudi Arabia’s “Vision 2030” plan includes a focus on developing digital skills and promoting entrepreneurship in the technology sector.
Qatar has established the “Digital Talent Cluster” to attract and retain tech talent, while also investing in STEM education and vocational training programs.
Oman’s “Oman Digital Strategy” aims to develop a digitally skilled workforce through partnerships with academia and industry.
Kuwait’s “National Digital Transformation Strategy” includes initiatives to enhance digital literacy and promote digital entrepreneurship.
Jordan’s “National Strategy for Human Resources Development” emphasizes the development of digital skills and the integration of technology in education.
Bahrain’s “Digital Transformation Strategy” includes plans for upskilling and reskilling the workforce, as well as attracting and retaining tech talent.

Initiatives and Strategies

To address the widening digital skills gap in the Middle East, governments and businesses are implementing various initiatives and strategies:

Government-led Initiatives:

Governments are investing in STEM education, promoting vocational training programs, and supporting reskilling initiatives to develop a digitally skilled workforce.
Public-private partnerships are being fostered to align education with industry needs and bridge the skills gap collaboratively.
A culture of lifelong learning and continuous upskilling is being embraced to empower individuals to adapt to the ever-changing job market.
Initiatives like Saudi Arabia’s Vision 2030 include significant investments in education and training to develop the country’s human capital.
The UAE’s Skills Development Fund provides financial support for upskilling and reskilling programs.
The UAE has launched the “National Program for Coders” to train and certify 100,000 coders by 2028, as well as the “One Million Arab Coders” initiative to empower the region’s youth with coding skills.
Saudi Arabia’s “Vision 2030” plan includes a focus on developing digital skills and promoting entrepreneurship in the technology sector.
Qatar has established the “Digital Talent Cluster” to attract and retain tech talent while also investing in STEM education and vocational training programs.
Oman’s “Oman Digital Strategy” aims to develop a digitally skilled workforce through partnerships with academia and industry.
Kuwait’s “National Digital Transformation Strategy” includes initiatives to enhance digital literacy and promote digital entrepreneurship
Jordan’s “National Strategy for Human Resources Development” emphasizes the development of digital skills and the integration of technology in education
Bahrain’s “Digital Transformation Strategy” includes plans for upskilling and reskilling the workforce, as well as attracting and retaining tech talent

Opportunities and Benefits

Bridging the digital skills gap in the Middle East region presents numerous opportunities and benefits:

Economic Growth and Diversification: A digitally skilled workforce can drive innovation, entrepreneurship, and the growth of knowledge-based industries , reducing the region’s reliance on oil and gas exports. This can lead to economic diversification, job creation, and increased competitiveness in the global market.
Youth Employment: By equipping the region’s large youth population with in-demand digital skills, governments can address the high rates of youth unemployment and underemployment, unlocking the potential of this demographic dividend.
Attracting Foreign Investment: Countries with a strong pool of digital talent are more attractive to foreign companies and investors, as they can provide the skilled workforce needed for technology-driven businesses to thrive.
Improved Public Services: Digitally skilled professionals can contribute to the development and implementation of e-government services enhancing the efficiency and accessibility of public services for citizens.
Social Inclusion and Empowerment: Developing digital skills can empower marginalized groups, such as women and low-income communities, by providing them with opportunities for economic participation and social mobility.
Fostering Innovation: A digitally literate population can drive innovation and the development of new technologies , positioning the Middle East as a hub for technological advancements and contributing to the global digital economy.

To capitalize on these opportunities, a multi-stakeholder approach involving governments, educational institutions, and the private sector is crucial. Collaborative efforts can ensure that digital skills development initiatives are aligned with industry needs and provide individuals with the necessary skills to thrive in the digital age.

Conclusion

The rapid pace of digital transformation has created an urgent need for a skilled workforce capable of navigating the technological landscape. The Middle East region faces a significant skills gap, hindering economic growth, innovation, and competitiveness. Bridging this divide requires a concerted effort from governments, educational institutions, and the private sector. By fostering a culture of continuous learning, investing in STEM education, and aligning training programs with industry needs, countries in the region can develop a future-ready workforce equipped with the necessary digital skills.

Closing the skills gap presents numerous opportunities, from driving economic diversification and attracting foreign investment to empowering marginalized communities and positioning the Middle East as a hub for technological advancements. Subscribe today to be part of the #dtecosystem community and join the renowned “Digital Talent Ecosystem Dialogue” series by Crafting Dialogue, now in its third year. Don’t miss out on the opportunity to convene with industry leaders, government institutions, tech innovators, HR professionals, and educators as we delve into the dynamic realm of digital talent/skills and its impact on the national economy and organizations.