Skills Gap and Training Needs by Industry in the Gulf Region

The Gulf Cooperation Council (GCC) economies are changing fast. We need to ask: Are we ready for the new skills needed in the region? The answer is tied to how the public and private sectors work together and education prepares the workforce¹.

Did you know only 35% of public sector workers in the Middle East have the right skills¹? This shows we really need better training and upskilling. Also, 61% of people in the Middle East think their jobs will change a lot in the next five years. They will need new skills for these changes¹.

The Gulf region’s economy is changing a lot. We must tackle the skills gap now. How can we make sure the local workforce can help grow and innovate in areas like oil and gas, construction, finance, healthcare, and tourism²?

Key Takeaways

• The Gulf region faces a significant skills gap, with only 35% of public sector employees possessing the right skills for their jobs¹.
• 61% of Middle Eastern workers expect their jobs to undergo major changes in the next five years, requiring new skills and capabilities¹.
• Specialized knowledge and skills are in high demand across key industries in the GCC, including oil and gas, construction, finance, healthcare, and tourism².
• The GCC training industry is experiencing growth and transformation, with both public and private institutes offering a wide range of training courses and certifications².
• Challenges in the GCC training industry include a lack of skilled trainers, language barriers, limited access to technology, and high training costs².

Current State of Gulf Region’s Labor Market

The Gulf labor market is facing big challenges. Locals want government jobs because they offer good pay and benefits. But, expatriate workers fill most private sector jobs³.

This setup worked when the population was small and oil money was plentiful. But now, it’s putting too much strain on government budgets³.

This imbalance affects the economy a lot. It makes it hard to diversify and creates a skills gap. Saudi Arabia has spent about $15 billion on tech since 2017 to help with remote work⁴.

But, the region needs to change education, training, and labor policies. This is to better match public and private sector jobs.

Expatriate Workforce Dominance

Expatriate workers are a big part of the Gulf’s private sector. The region’s population grew by over 18% from 2012 to 2022. This has led to a big need for skilled project managers⁴.

This reliance on expats affects economic growth and sustainability. The region struggles to keep local talent and meet industry needs.

Economic Impact of the Current Employment Model

The current job model has big economic effects. The UAE’s tech spending is growing fast, expected to hit $23 billion by 2024³. This shows the region’s push to modernize and diversify.

But, relying too much on expats in the private sector is a problem. It makes it hard to build a skilled local workforce and achieve sustainable growth.

To move forward, the Gulf needs to find a balance between public and private jobs. Using both local and expatriate talent is key for lasting economic success and diversification³⁴.

Educational System Challenges in GCC Countries

The Gulf Cooperation Council (GCC) countries have big educational challenges. Qatar is 4th in education quality globally⁵, but Kuwait is 106th⁵. Many kids in the area struggle to learn basic skills, with 70% of Kuwaiti students failing primary school math tests⁵.

Their curriculums are often old-fashioned, focusing on memorization. They don’t teach important skills for today’s world⁵.

Now, GCC governments are working to fix their schools. They’re changing curriculums, improving vocational training, and training teachers better⁵. In the last 10 years, they’ve teamed up with the private sector for research and curriculum making⁵. But, most college education in the GCC is still classroom-based, not connected to real jobs⁵.

The UK’s vocational learning system is a good example for the GCC⁵. The UK’s ‘Leitch Report’ in 2008 also talked about matching skills with employer needs for better global competition⁵. Studies show that work-based learning boosts job market success⁵.

The GCC needs more tech experts, especially in Cybersecurity, Machine Learning, AI, and Data Analytics⁵. Apprenticeships and work-based learning are seen as ways to fill this gap, especially in tech jobs⁵. Etio (formerly Tribal Education Services) has helped with work-based learning in the GCC for over 15 years⁵.

This review didn’t find studies on generic skills in the GCC⁶. It aims to find and summarize studies on generic skills in the GCC⁶.

Studies show generic skills are key for success in school and work. They help in getting jobs, improving health, and social well-being⁶. The review highlights the need for these skills in today’s job market⁶.

Even though GCC graduates know the value of generic skills, they’re not taught enough in school⁶. More focus on these skills in higher education could lead to better job outcomes for GCC students⁶.

Generic skills help in getting jobs, improving health, and social well-being⁶.

Skills Gap and Training Needs by Industry in the Gulf Region

The Gulf region has big skill shortages in many areas, especially in new industries. There’s a big need for digital skills and special knowledge in fields like oil and gas, construction, finance, healthcare, and tourism⁷. Training needs are changing fast, so workers must keep learning new skills⁷. This gap makes it hard to diversify the economy because many locals don’t have the right skills for jobs outside of oil⁷.

Critical Skill Shortages by Sector

In oil and gas, there’s a shortage of skilled techs, engineers, and data analysts for digital changes⁷. Construction is missing project managers, BIM experts, and sustainable building pros⁷. Finance needs people skilled in financial tech, risk management, and data analysis⁷. Healthcare is short on nurses, IT experts, and medical researchers⁷. Tourism is looking for hospitality managers, digital marketers, and language experts⁷.

Industry-Specific Training Requirements

To fix these skill gaps, special training programs are needed⁷. These programs should teach both technical and soft skills like problem-solving and adaptability⁷. Working together between schools, industry groups, and governments is key to making sure training meets job market needs⁷.

Impact on Economic Diversification

The skills gap is a big problem for economic diversification in the Gulf region⁷. Many young locals don’t have the skills to move from public to private jobs, especially in new fields⁷. To solve this, targeted training and development programs are vital for diversifying the economy and reducing oil dependence⁷.

Sector	Critical Skill Shortages	Training Requirements
Oil and Gas	Skilled technicians, engineers, data analysts	Digital skills, technical expertise, data analytics
Construction	Project managers, BIM specialists, sustainable building experts	Project management, BIM, sustainable construction
Finance	Financial technology, risk management, data analytics	FinTech, risk management, data analytics
Healthcare	Nurses, healthcare IT specialists, medical researchers	Nursing, healthcare IT, medical research
Tourism	Hospitality managers, digital marketers, language specialists	Hospitality management, digital marketing, language skills

Government Initiatives for Workforce Development

In the Gulf Cooperation Council (GCC) region, governments are working hard to solve workforce development problems⁸. They want to fill skill gaps, get more locals working in private jobs, and match people’s skills with the economy’s needs.

One big strategy is setting rules for hiring locals in different jobs. For example, Saudi Arabia’s Ninth Development Plan put SR731.5bn ($195bn) towards improving people’s skills⁸. Plans like Abu Dhabi’s Economic Vision 2030 and Qatar’s National Vision 2030 also focus on education and skills for economic growth⁸.

To encourage private companies to hire locals, GCC governments offer money help and other perks. But, getting more locals in private jobs is tough. In the UAE, for instance, expats made up 80% of private sector jobs in 2004, and by 2009, it was 99.57%⁹.

Despite these hurdles, GCC governments keep pushing to improve their national workforce. They invest in education, create special training programs, and work with private companies. Their goal is to have a skilled workforce that helps the economy grow and thrive.

Indicator	Value
Average percentage of digital jobs in GCC (2015)	1.7%
Average percentage of digital jobs in EU (2015)	5.4%
Job gap for GCC nationals by 2025	3.1 million
Proportion of digital jobs held by nationals in Qatar	13%
Proportion of digital jobs held by nationals in UAE	5%
Percentage of digital jobs in UAE	2.9%

The GCC region has a big problem with digital skills, with only 1.7% of jobs being digital in 2015. This is much lower than the European Union’s 5.4%⁸. Also, very few locals work in digital jobs, with Qataris holding 13% and Emiratis holding 5%⁸.

To fix these issues, GCC governments are starting many projects. They are investing in education, creating special training, and working with private companies. Their goal is to make sure the local workforce has the skills needed for the digital economy⁸⁹.

Digital Transformation and Skills Requirements

The Gulf Cooperation Council (GCC) region is moving fast into digital transformation. This means they need more tech skills quickly¹⁰. But, they face a big problem because they don’t have enough digital talent yet¹¹.

Only 1.7% of jobs in the GCC are digital, compared to 5.4% in the European Union. This shows a big gap in technology adoption and digital skills¹¹.

Technology Adoption Challenges

The Gulf region’s digital journey has many obstacles. Change resistance and lack of infrastructure slow things down¹⁰. But, governments are trying hard to overcome these issues.

Bahrain, Kuwait, Oman, and Saudi Arabia are working on digital strategies. They aim to boost digital progress and adoption¹⁰.

Digital Literacy Needs

The GCC countries need to close the digital skills gap to stay competitive¹¹. Most digital workers in the GCC are foreign graduates. But, they must focus on local talent for long-term success¹¹.

Programs like One Million Arab Coders and Microsoft Cloud Society’s training are helping. Yet, more efforts are needed to upskill the local workforce¹².

Future Technology Skills Demand

The GCC’s economy is changing, and so are the tech skills needed¹². By 2025, the MENA region might see a big shift in job demands. Egypt, Turkey, and Saudi Arabia could gain thousands of new jobs¹².

Skills like artificial intelligence, data analytics, and cybersecurity will be in high demand. The workforce must keep learning to stay ahead¹⁰.

The Gulf region’s digital journey is speeding up. But, the workforce must adapt fast to keep up with technology. Closing the digital skills gap and investing in future skills are key for GCC countries’ success¹⁰¹¹¹².

Role of Private Sector in Training Development

The private sector is key in solving skills gaps in the Gulf. Companies are now investing more in training their employees¹³. The GCC Soft Skills Training market was worth US$ 570.5 million in 2023. It’s expected to hit US$ 1,566.9 million by 2032, growing at 11.88% annually¹³.

Soft skills training boosts skills like communication and teamwork. It also improves problem-solving and time management¹³.

There’s a rise in partnerships between industries and schools to make learning relevant¹³. The market grows because companies focus on employee growth, governments support it, and industries adopt these trainings¹³. Key sectors like hospitality and healthcare benefit from these trainings¹³.

Economic growth and improving human skills drive the GCC’s soft skills market¹³.

Saudi Aramco has a College Preparatory Programme to link secondary and tertiary education¹³. Private universities in Saudi Arabia focus on skills like IT and management¹³. The need for better employability and career growth boosts soft skills training¹³.

Communication and productivity are top soft skills in demand. Corporate providers lead in soft skills training¹³.

Metric	Value
GCC Soft Skills Training Market Size (2023)	US$ 570.5 million
Projected GCC Soft Skills Training Market Size (2032)	US$ 1,566.9 million
Projected Growth Rate (CAGR 2024-2032)	11.88%

The private sector’s role in training is vital. It helps bridge skills gaps and prepares the Gulf’s workforce for the future¹³¹⁴².

Vocational Education and Technical Training

In the Gulf Cooperation Council (GCC) region, vocational education and technical training are becoming more important. This is because there’s a big need for a skilled workforce¹⁵. With a global youth unemployment rate of 16 percent in 2022¹⁵, GCC countries are investing in better vocational training.

Current Infrastructure

The state of vocational education in the GCC countries is different. Some have invested in top-notch training facilities. Others are working to improve the quality and reach of their programs¹⁶. Governments are focusing on making vocational training match the needs of the job market.

Industry Partnerships

Strong partnerships between the public and private sectors are key for vocational education in the GCC¹⁶. Working together, schools and companies make sure training meets job needs. These partnerships also offer practical training and help graduates find jobs.

Success Metrics

Measuring success in vocational education in the GCC is complex¹⁶. It looks at how many graduates get jobs, if training meets industry needs, and its impact on the economy¹⁵. Governments aim to improve the quality and image of vocational education to attract more students.

By investing in better training, building strong partnerships, and tracking success, the GCC is on the right path. They aim to create a skilled workforce that drives economic growth and diversification¹⁵¹⁶.

Higher Education’s Response to Market Needs

In the Gulf Cooperation Council (GCC) region, schools are changing to meet labor market needs¹⁷. They are working with industries to create curricula that match job requirements, especially in STEM fields¹⁷.

Many international universities have opened branches in places like Qatar and the United Arab Emirates¹⁷. This helps share knowledge and gives students a global view¹⁷.

But, the quality of education in the GCC is a worry, with only two Saudi universities in the top rankings¹⁷. Schools are trying harder to work with industries to make sure students have the right skills¹⁷.

Governments are pushing for a change in how people see education¹⁷. They want to move away from thinking a bachelor’s degree is the only way to get a job¹⁷. Now, there’s a focus on showing employers that you have the skills, through smaller, skills-based credentials¹⁷.

The GCC countries are working to make their economies more diverse and less dependent on foreign workers¹⁷. Higher education is key in providing a skilled workforce¹⁷. By working closely with industries and creating curricula that match the job market, schools are helping to fill the skills gap and build a better future¹⁷.

Impact of International Partnerships and Training Centers

The Gulf Cooperation Council (GCC) countries are working hard to make their economies better¹⁸. They are using international partnerships and training centers to fill skills gaps. This helps improve education and workforce development¹⁸.

Knowledge Transfer Programs

Knowledge transfer programs help share skills and ideas between the GCC and top global institutions¹⁸. These programs bring new knowledge and teaching methods. They help update the education system and meet labor market needs¹⁸.

Cross-Border Educational Initiatives

Places like Qatar’s Education City bring top universities to the region¹⁸. They offer GCC nationals and expats access to world-class education. But, keeping quality high across all campuses is a big challenge¹⁸.

The GCC wants to move away from oil and gas by diversifying their economy¹⁸. They aim to improve education and training in key sectors. International partnerships and training centers can help with this¹⁸.

Indicator	GCC Average	Global Average
Population Growth	1.2 – 1.6 million by 201814	N/A
Private Sector Employment of Nationals	About 600,000 jobs by 201814	N/A
Unemployment Rate among Nationals	Over 80% of private sector jobs held by expatriates14	N/A
FDI Inflows	1.1% of GDP19	2.5% of GDP19

The Ministries of Education in the GCC countries are working hard to create a skilled workforce¹⁸. But, there are still challenges in the education sector¹⁸. Improving student readiness, teacher quality, and curriculum relevance is key¹⁸.

The World Bank has a lot of experience in the GCC and is a key partner for education¹⁸.

Youth Employment and Skills Development

In the Gulf Cooperation Council (GCC) region, finding jobs for young people is a big challenge. There’s a huge number of young people, and they need skills for the job market²⁰. Governments and businesses are working together to help. They focus on teaching entrepreneurship, digital skills, and soft skills²¹.

A survey by Booz & Co showed that only 19% of GCC youth felt ready for the job market²⁰. This shows a big gap between what schools teach and what employers want. To fix this, governments and businesses are starting new programs and partnerships.

• Entrepreneurship initiatives: Programs that provide training, mentorship, and funding to support young entrepreneurs in launching their own businesses.
• Digital skills development: Courses and workshops aimed at equipping youth with in-demand technological skills, such as coding, data analysis, and digital marketing.
• Soft skills enhancement: Workshops and training sessions focused on developing essential skills like communication, critical thinking, and problem-solving.

These efforts aim to bridge the skills gap and improve GCC youth’s job chances. This will help the region grow and diversify its economy²⁰. Investing in youth skills is key for the GCC’s future success.

Country	Youth Unemployment Rate
Palestine	44%
Saudi Arabia	28.7%
Jordan	36.6%
Tunisia	35.8%

Even in countries like Qatar, young people face job challenges²¹. High youth unemployment in the MENA region is due to many reasons. These include a big demographic wave, weak education, and a lack of job information²¹.

Future Workforce Trends and Requirements

The Gulf Cooperation Council (GCC) region is changing fast. The GCC future workforce will need new skills by 2030. These skills will shape the region’s economy.

Emerging Industries

The GCC is growing in fields like renewable energy, AI, and biotechnology. These emerging industries will boost the region’s growth and jobs²². More people will work remotely, needing skills in AI, cybersecurity, data analytics, and cloud computing²².

Required Skill Sets for 2030

The 2030 skill requirements in the GCC will mix technical and soft skills. Skills like adaptability, critical thinking, and lifelong learning will be key²³. In the Gulf Region, 52% of workers think their jobs will change a lot in 5 years²³.

Green skills and digital competencies are also important for future jobs²³. 62% of Gulf Region workers see green skills as crucial, more than the global average²³. Also, 75% of Gulf Region workers focus on digital skills for their careers in 5 years, more than globally²³.

As the GCC looks to the future, investing in a skilled and adaptable workforce is vital. This will help diversify the economy and ensure prosperity for years to come.

Training Industry Challenges and Opportunities

The Gulf Cooperation Council (GCC) training industry has big challenges. These include a lack of skilled trainers, language barriers, and limited tech access in some places. Despite these obstacles, it’s full of chances, especially in e-learning and online training¹³.

The GCC Soft Skills Training market size was US$ 570.5 million in 2023. IMARC Group says it will hit US$ 1,566.9 million by 2032, growing 11.88% yearly¹³. This growth comes from the need for economic diversification and better human capital¹³. New tech has made learning more personal, helping workers learn better and remember more.

The industry is also seeing a big rise in e-learning. This makes learning flexible, affordable, and available to more people in the GCC. Working with global training providers is becoming more common, bringing in new ideas and methods¹³. As jobs change, the training industry is changing too, offering programs that meet new skill needs¹³.

Source Links

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21. PDF – https://www.brookings.edu/wp-content/uploads/2019/02/Youth_Unemployment_MENA_English_Web.pdf
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