meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region must rethink talent acquisition

28 March 2024

Despite multiple policy reversals over the years, the GCC continues to stand out as one of the leading destinations of cross-border migration globally.

This reflects the long-standing dependence of the regional private sector on imported labour. 

However, the majority of immigration to the Gulf has always involved relatively unskilled labourers engaged in construction, trade, hospitality and household services. While there has always been a segment of skilled migration, the regulatory treatment of the foreign labour force has not meaningfully differentiated people by profession or educational background. The GCC has stood out due to its sharp regulatory demarcation between domestic and foreign human capital. 

In a world that is being disrupted by technological change and an advancing demographic transition, the recognition of the strategic importance of attracting and retaining skilled individuals is growing. This is tempered in some cases by populist anti-immigration impulses but, if anything, this political climate tends to reflect popular frustrations with policies that do not effectively differentiate among migrants. Technological innovation can moderate the need for migration, but will not eliminate it.

Strategic talent attraction is also an increasingly salient issue. The aspirations of creating a diversified, knowledge-based economy underpinned by productivity put a premium on talent attraction in the Gulf region. With appropriate regulations and incentives, the region has an opportunity to move away from its historical labour intensity in many lower-productivity sectors through technology adoption.

Growing the talent pool 

While the impact of technology on jobs can be ambiguous, a more productivity-driven economy requires more skills. Moreover, innovative capacity is linked to talent diversity.

The Gulf countries are exceptionally well positioned for a pivotal position in the emerging global economic order thanks to their connective infrastructure, increasingly competitive regulations and their attractive lifestyle. 

However, the ability to leverage these advantages hinges on multidimensional competitiveness that has to include human capital. The way forward has to combine more effective solutions for educating and training local talent.

These realities mean that the Gulf countries will have to navigate their way from the traditional labour laws based on the idea of temporary residency to something more fit for purpose. 

Efforts to liberalise the traditional labour laws have created opportunities such as self-sponsorship while generally making it far easier for expatriate employees to move between jobs. Such reforms have also made it possible for non-nationals to stay in the region past the age of retirement. 

The introduction of health insurance reforms and the progressive scaling back of subsidies has meant that the growing non-national residency base no longer imposes fiscal costs, which has sometimes been a source of contention in the past. Increasingly, foreign residents have become a source of significant government revenue.

More recently, there have been initiatives to introduce new visa categories to attract entrepreneurs and investors. 

Similarly, more governments now recognise the strategic importance of longer-term residency options that can give expatriates certainty beyond the traditional default option of two-year work visas. These efforts have coincided with initiatives to develop attractive housing options, international private education and steps to improve the quality of life.

In a world that is being disrupted by technological change and an advancing demographic transition, the recognition of the strategic importance of attracting and retaining skilled individuals is growing 

Gradual reform

While these reforms do not yet amount to a holistic immigration policy, they reflect a progressive shift in thinking. Some regional economies now offer a pathway to citizenship for long-term residents, even if the process is seldom formally defined and can involve considerable discretion. 

All these steps recognise that global competitiveness in the race for talent requires the regulatory flexibility to match the conditions available elsewhere. 

Steps to reform long-standing policies typically have to be gradual as their success depends on creating a public buy-in. However, the transition to a sustainable approach to talent attraction is growing in urgency. 

The number of people aged 65 and over is expected to rise from 783 million in 2022 to 1 billion by 2030 and 1.4 billion by 2043. Developing economies are now ageing more quickly than advanced economies historically did.   

As old age dependency ratios increase, more working-age professionals will find employment opportunities closer to home. This will entail a growing premium on foreign talent at a time when the structural need for it is increasing, not least because the GCC population is no less affected by the demographic transition than the rest of the world. The success of the ongoing economic paradigm shift of the Gulf hinges on devising sustainable policies for competing for talent.

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11640002/main.gif

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Masdar and OMV sign 140MW green hydrogen plant deal

    7 November 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) has signed a binding agreement with Austrian energy company OMV to develop and operate a major green hydrogen production plant in Austria.

    The 140MW green hydrogen electrolyser plant will be Europe's fifth-largest hydrogen plant, according to Masdar chairman, Sultan Ahmed Al-Jaber.

    It will be built in Bruck an der Leitha, about 40 kilometres southeast of Vienna.

    The facility will be developed under a newly established joint venture, in which Masdar owns 49% and OMV holds the majority 51% stake.

    The agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), in the presence of Al-Jaber; Austria’s Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer; OMV CEO Alfred Stern; and Masdar CEO Mohamed Jameel Al-Ramahi.

    It is expected that the project will reach financial close in early 2026, subject to final documentation, shareholder consent and regulatory approvals.

    Construction began in September, with operations scheduled to start in 2027.

    OMV, which already operates a 10MW electrolyser in Schwechat, will procure renewable electricity for hydrogen production and retain ownership of the output.

    Several large-scale hydrogen facilities across Europe are currently under construction.

    In 2024, Germany's Siemens Energy signed a deal with German utility EWE to build a 280MW green hydrogen electrolysis plant. This is expected to begin operations in 2027.

    Masdar and OMV previously signed a letter of intent to cooperate on green hydrogen, synthetic sustainable aviation fuels (e-SAF) and synthetic chemicals in both the UAE and central and northern Europe.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040802/main0933.jpg
    Mark Dowdall
  • Firms submit Saudi customs warehouses PPP bids

    7 November 2025

     

    Three Saudi-based firms submitted bids on 29 September for a contract to build new customs warehouses in Saudi Arabia.

    The project is being tendered as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 15 years, including the construction period.

    The bidders include:

    • Al-Drees Petroleum & Transport Services Company
    • Lamar Holding
    • Mada International Holding

    The contract scope covers the development of 13 warehouses – including the design and construction of 12 new facilities and the renovation of one – across 13 different points of entry in the kingdom, along with the maintenance of all sites.

    The contract also includes the supply of equipment, as well as logistical support and cleaning services, for all new and existing warehouses at 38 points of entry across the kingdom.

    In January, the Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), prequalified five companies to bid, MEED reported.

    The client issued the expressions of interest (EOI) and request for qualifications (RFQ) notices for the project in October last year.

    PPP plans

    In April 2023, Saudi Arabia announced a privatisation and public-private partnership (P&PPP) pipeline comprising 200 projects across 16 sectors.

    The P&PPP pipeline aims to attract both local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative supports the kingdom’s efforts to enhance the attractiveness of its economy and increase the private sector’s contribution to GDP.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040496/main.gif
    Yasir Iqbal
  • KBR selected for Iraq gas project

    7 November 2025

    Register for MEED’s 14-day trial access 

    US-based KBR has been selected by Turkiye’s Enka to provide detailed design services for its part of the broader $27bn Gas Growth Integrated Project (GGIP) masterplan.

    KBR was selected to provide the detailed design services after successfully completing the front-end engineering and design (feed) work for Enka’s central processing facility (CPF) package, according to a statement issued by the company.

    The wider GGIP project is being developed by France’s TotalEnergies along with its partners Basra Oil Company (BOC) and Qatar Energy.

    In September, Enka signed a contract to develop a CPF at Iraq’s Ratawi oil field as part of the second phase of the field’s development.

    Enka did not give a value for the contract, but it is believed to be worth more than $1bn.

    The contract covers engineering, procurement, supply, construction and commissioning (EPSCC) of the CPF for the project known as ‘Associated Gas Upstream Project Phase 2 (AGUP2)’.

    The aim of the AGUP2 project, due to start in 2028, is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cubic feet a day of gas.

    GGIP masterplan

    The GGIP programme is being led by TotalEnergies, which is the operator and holds a 45% stake.

    Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.

    The four projects that comprise the GGIP are:

    • The Common Seawater Supply Project (CSSP)
    • The Ratawi gas processing complex
    • A 1GW solar power project for Iraq’s electricity ministry
    • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

    The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

    China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC works to build the gas processing complex at the Ratawi field development.

    CPECC’s project team based in its office in Dubai is performing detailed engineering works on the project.

    In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

    The 1GW Ratawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

    The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

    Separately, in June, TotalEnergies awarded CPPE an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

    Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme.

    The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

    One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040492/main.png
    Wil Crisp
  • Turkish contractor wins Aldar Verdes by Haven project

    7 November 2025

     

    Abu Dhabi-based real estate developer Aldar Properties has appointed Turkish firm Nurol Construction as the main contractor to build its Verdes by Haven residential complex in the Wadi Al-Safa 5 area of Dubai. 

    Aldar is developing the project in partnership with Dubai Holding.

    Verdes by Haven is a multi-building complex featuring 1,050 one-, two- and three-bedroom apartments.

    The broader Haven development will include 2,428 residential units and cover 1 square kilometre. The first phase comprises 462 residential units, including three- and four-bedroom townhouses and three- to six-bedroom villas. 

    Construction of the first phase began last year, and the project is slated for completion in the third quarter of 2027.

    The project is located opposite the Al-Habtoor Polo Resort on the Dubai-Al-Ain road.

    Dubai-based architectural firm Dewan Architects & Engineers is the lead design consultant for the project, working alongside US-based OBM International, the architectural design consultant.

    UK-based data analytics firm GlobalData predicts that the UAE construction sector will grow by 4.2% in real terms in 2025, driven by infrastructure, energy, utilities and residential construction projects. It is also estimated that projects worth more than $323bn are in the execution or planning stages in the UAE.

    The construction industry is expected to register an annual average growth of 3.8% in 2025-28, supported by investments in transport, housing and renewable energy projects. 

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15037432/main.png
    Yasir Iqbal
  • Procurement begins for Abu Dhabi light rail transit

    7 November 2025

     

    Abu Dhabi Transport Company (ADTC) has asked contractors to express interest in a design-and-build contract covering the construction of the first phase of the light rail transit network.

    The project's first phase will span 19 kilometres (km) and include 23 stations, connecting Zayed International airport (AUH) with nearby areas, including Yas Island, Al‑Raha Beach and Khalifa City.

    The key sections of the tram are:

    AUH to Yas Island: The tram will start from Terminal A at AUH and run through the Yas tunnel to Yas Gateway Park. It will serve areas including Yas Bay, Media Zone, Yas Plaza, Yas Drive, Yas Mall, Sea World and Water Edge.

    This section covers 13km and includes 13 at-grade stations and one underground station.

    Al-Raha: This section will stretch for 4.3km and run along Al-Raha Street. It will serve areas including Al-Zeina, Al-Muneera and Al-Bandar, towards the Aldar head office. The section will include seven at-grade stations.

    Etihad Plaza: This section will pass the Etihad Aviation Training Centre and span about 1.7km. It will feature a main depot near the Etihad Airways headquarters, along with two at-grade stations.

    The tender also covers the procurement of 25 trams, each with a capacity of 270 people, along with associated systems.

    The project was officially launched at the GlobalRail exhibition in Abu Dhabi in early October.

    Referred to as Abu Dhabi Tram Line 4, the project will be delivered in three phases.

    Construction of the first phase is expected to start next year. The tram is slated to begin operations by 2030.

    Future phases will extend towards Khalifa City and serve additional destinations across Yas Island.

    The project forms a key part of the recently announced AED170bn ($46bn) package of national transport and road projects to be implemented by 2030.

    The announcement was made by the UAE’s Minister of Energy and Infrastructure, Suhail Al-Mazrouei, while speaking at the UAE Government Annual Meetings in Abu Dhabi on 5 November.

    Al-Mazrouei said the projects are part of a comprehensive national strategy aimed at easing traffic congestion and enhancing mobility across the country.

    The initiatives include expanding major roads, upgrading public transport, and implementing high-speed and light rail projects.

    ADTC was established in 2023 to implement, operate and develop transport systems in rural and urban areas across the emirate.

    The company is responsible for developing rail systems and related services and operations, and providing integrated transport services, including vehicle and bus rental.

    ADTC was established by UAE President Sheikh Mohamed Bin Zayed Al-Nahyan in his capacity as Ruler of Abu Dhabi.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15037199/main0652.jpg
    Yasir Iqbal