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Middle East Edition
28th January 2025
 
THE HOT STORY
Middle East companies prioritising skills rather than job roles
Industry experts have predicted that companies in the Middle East, notably the UAE and Saudi Arabia, will soon prioritise hiring people for specific skills rather focusing solely on job roles. Renee McGowan, CEO for India, Middle East and Africa at Marsh McLennan, explained that employers traditionally pick talent based on qualifications but they are now beginning to look at what skills are needed for their organisation's future. McGowan states: “They might be specific skills in artificial intelligence, technology, people management or different types of analysis. These skills will be moved around different roles and will carry a premium." The rapid growth of GenAI capabilities has increased hopes for workforce productivity, but also raised concerns about staff. A survey by Mercer of 12,000 C-level executives last year found that technology is advancing faster than their companies can retrain workers. Mercer added that three quarters of executives are concerned about their talent's ability to pivot. Moving forward, Waleed Anwar, managing director of Dubai-based recruitment company Upfront HR, says UAE employers need to offer solid perks and packages to attract the best people. He comments: "We’re going to see a big demand for tech-savvy candidates, especially in AI and data science. Plus, Emiratisation will keep gaining momentum in the UAE."
HEALTH & SAFETY
FIFA rejects request for monitoring of migrant workers’ conditions in Saudi Arabia
FIFA has dismissed calls for an independent monitor to assess migrant workers’ conditions in Saudi Arabia in the build-up to the 2034 World Cup. The African Regional Organisation of the International Trade Union Confederation (ITUC-Africa), which represents 18m African workers, had called for increased protections for migrant workers as the Gulf state embarks on the massive construction project required to deliver the tournament. However, in response, FIFA said the measures currently in place are sufficient, claiming it mandates hosts to “uphold their respective duties and responsibilities under international human rights standards in all activities associated with the tournament”. The Guardian notes that an estimated 10m migrant workers are currently resident in Saudi Arabia and they are expected to make up the majority of the workforce needed to construct the World Cup infrastructure. 
OUTLOOK
Middle East CEOs most confident globally about company growth
According to PwC's annual CEO survey, Middle East CEOs are among the most confident globally about revenue growth in the year ahead. In terms of numbers, 71% of CEOs in GCC said that they are optimistic about their own territory’s economic growth – ahead of their peers in the wider region and globally – with 80% of CEOs in the UAE and 77% in Saudi Arabia forecasting economic growth in the next 12 months, followed by Oman (69%) and Qatar (63%). Globally, only 57% of CEOs are confident about growth. PwC also found that 61% of GCC-based CEOs expect to increase their headcount this year, compared to 42% of their global peers. The research also revealed that CEOs worldwide feel their is a continuous need to evolve their business - and even reinvent to survive. Some 60% of regional CEOs now believe their businesses will not survive ‘within the next 10 years or less’ without significant adaptation. 
TECHNOLOGY
Minister wants UAE to be world leader in AI
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Application in the UAE, has outlined how the country is aiming to become the number one nation in AI. Speaking at the Oracle CloudWorld Tour, Al Olama profiled how the UAE has been seamlessly incorporating AI into people's lives. One such example, he noted, was the seamless passage of travellers through Dubai Airport. Passengers can move through the smart tunnel or smart gates, exiting the plane without interacting with a single human or showing their passports. According to a report from PwC, the potential impact of AI for the Middle East is expected to be $320bn by 2030, with the UAE expected to see the largest impact of close to 14% of 2030 GDP.
WORKFORCE
HADAF creates 437,000 new jobs
The Human Resources Development Fund (HADAF) has successfully facilitated the employment of 437,000 Saudi citizens in the private sector during 2024, marking a 17% increase from the previous year. Additionally, HADAF provided training and guidance to 2m beneficiaries, reflecting a 5% rise. Over 179,000 establishments benefited from the Fund's services, with 95% being small and medium enterprises. The total expenditure on these initiatives reached SR 7.74bn. The sustainability index for the national workforce stood at 81%, demonstrating the effectiveness of HADAF's programmes in adapting to labour market needs.
REGULATION
GCC hosts workshop on maternity leave regulations
The Ministry of Labour has hosted a workshop on maternity leave regulations in Muscat in co-operations with the Executive Office of the GCC Council of Labour Ministers. The workshop - “Impact of Maternity Leave Legislation and Regulations on the Labour Market and Prospects for Development in the GCC States" - was aimed to exchange the GCC states’ experiences in implementing maternity leaves, develop flexible work policies for supporting female workers and to provide recommendations on improving labour regulations related to women’s rights. The workshop also included presentations from the International Labour Organization and the Doha International Family Institute.
Council of Ministers approves settlements to regulate workforce conditions
Oman’s Ministry of Labour has announced that the Council of Ministers has approved a package of exemptions and financial settlements as part of ongoing efforts to boost the conditions for workers and secure the rights of individuals and business owners. This includes the cancellation of all fines and financial dues for expired labour cards that were in effect for seven years.
TRAINING & DEVELOPMENT
Saudi youth embrace new opportunities
Saudi Arabia is focusing on its youth as a key driver of economic transformation under Vision 2030. With 63% of the population under 30, the Government is fostering an entrepreneurial mindset and essential skills through public-private partnerships. Riyadh Al-Najjar, PwC Middle East chairman, said: “An entrepreneurial mindset is equally important, as the success of Vision 2030 relies on growing the private sector.” The Middle East Youth Outlook 2024 report reveals that 76% of young Saudis view the Government positively, reflecting their trust in national goals. Initiatives like the RSG Scholarship Program and collaborations with educational institutions aim to bridge the skills gap, ensuring that young Saudis are equipped for emerging industries.
RISK
Red Sea shipping still on hold despite pledge from rebels
Major shipping firms MSC Mediterranean Shipping, A.P. Moller-Maersk and CMA CGM remain wary of sending vessels to the Red Sea amid the ongoing fragile ceasefire in Gaza, with Houthi militants in the region pledging not to attack vessels as long as it holds. Nils Haupt, spokesman for Hapag-Lloyd, remarked: “You don’t want to send a gas carrier that will go up in flames. We don’t know when we will be returning.” Other operators have indicated that Red Sea crossings would resume when the second phase of the ceasefire comes into effect.
INTERNATIONAL
Trump fires Justice Department employees
The Trump Justice Department has dismissed over a dozen employees involved in criminal investigations concerning President Donald Trump. A Justice Department official, speaking anonymously, noted that the terminations are part of a broader effort to reshape the department following the resignation of special counsel Jack Smith earlier this month. Smith had charged President Trump in two criminal cases: in Florida, for mishandling classified documents at his Mar-a-Lago club and defying a subpoena commanding their return; and in Washington, for attempting to overturn the results of the 2020 election. The Department did not name the fired prosecutors. However, a person who worked with some members of Mr Smith's team said many of the dismissals appeared to target career lawyers and most likely violated civil service protections for non-political employees. In a separate development, the Wall Street Journal has reported that a Trump-appointed prosecutor had opened an internal review of the justice department’s decision to charge hundreds of January 6 defendants with felony obstruction offenses in connection with the 2021 attack on the US Capitol.
Diversity initiatives losing ground
Recent trends indicate a significant rollback of diversity, equity, and inclusion (DEI) initiatives among major U.S. corporations, even before President Donald Trump's campaign to dismantle these programmes. Companies like Meta, Walmart, and Target have curtailed their DEI efforts, raising concerns about a return to inequity. Data shows that while women held 39% of managerial roles in 2024, the representation of Hispanic and Black women in mid-level positions remains alarmingly low, averaging around 5%. The shift in corporate attitudes towards DEI is evident, with research from McKinsey showing that only 78% of North American companies prioritising gender diversity, down from 88% in 2017. "Companies are saying diversity is no longer a top priority," said Alexis Krivkovich, a senior partner at McKinsey. "It's the first time we've seen a material step back, and that really concerns me."
AND FINALLY....
Dubai Lynx launches Young Lynx Academy
The Dubai Lynx, a leading creative festival, has announced the Saudi edition of its Young Lynx Academy, in collaboration with Publicis Groupe Middle East. The Riyadh event, scheduled for February 18-19 at Snap Inc.'s office, aims to challenge young professionals through an immersive experience, including mentorship, keynote speeches, and a 24-hour hack challenge. Participants will work on real-world briefs, fostering teamwork and innovative thinking. Winners will be celebrated at the Dubai Lynx Awards on April 9 at the Emirates Golf Club.
 


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