Empowering the GCC digital workforce Building adaptable skills in the digital era

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1 Ideation Center insight Empowering the GCC digital workforce Building adaptable skills in the digital era Strategy& is part of the PwC network

2 To achieve their ambitious national plans such as Saudi Vision 2030 and Abu Dhabi Economic Vision 2030, Gulf Cooperation Council (GCC) 1 countries must increase efficiency in every sector. Digitization, enabled by a skilled and adaptable digital workforce, is a key component of this endeavor. However, an analysis by Strategy& together with LinkedIn revealed fundamental supply and demand issues in the GCC s current digital job market that urgently need to be addressed before the benefits of digitization can be attained. To boost their digital job market, GCC governments should partner with technology players, educational institutions, and corporations to launch initiatives that stimulate demand for digital professionals and secure a reliable local supply. 1 The GCC countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. 2 Strategy&

3 Digital industries can create much needed, highvalue-added jobs GCC countries need to generate more digital jobs 1 because these tend to be sustainable, provide opportunities for self-employment, and give GCC organizations the home-grown skills they need for ICT transformation. There are currently fewer digital jobs in the GCC than in countries benchmarked in the analysis by Strategy& together with LinkedIn. The ratio of digital jobs to the total workforce is 1.7 percent in the GCC compared to 5.4 percent in the EU. Expatriates currently hold most digital jobs in the GCC. Nationals prefer more traditional career options such as in business, economics, and the public sector areas that are at high risk of disruption. 1 Digital jobs refer here to roles in the production, distribution, implementation, or servicing of information and communications technologies (ICT). They include all such roles across sectors that are transforming business models using new technologies. Digital jobs as a percentage of the total workforce (2015) UAE Saudi Arabia Oman Bahrain Kuwait EU average Note: Bahrain figure is for Source: Kingdom of Bahrain Central Informatics Organisation; Dubai Statistics Center; Kuwait Central Statistical Bureau; General Authority for Statistics in Saudi Arabia; National Center for Statistics and Information in Oman; World Bank, World Development Indicators; Eurostat; Strategy& analysis Strategy& 3

4 Digital jobs possess significant advantages over traditional employment Digital jobs are better able to adjust to new technological demands than many other jobs. The growth of such jobs will help nationals move from largely administrative jobs in the government sector to higher-value-added roles in industries with future importance. With the right measures, the GCC can create 1.3 million digital jobs by 2025, of which 700,000 would be in Saudi Arabia. Digital employment involves more flexible work models that can increase labor force participation rates. Based on data from 2015, Strategy& has estimated that 3.9 million inactive women and youth in the GCC could benefit from such opportunities by becoming self-employed in posts that are digital in nature or involve knowledge of digital technology. Finally, digital jobs are critical in the implementation of GCC economies ambitious national digitization plans, as the success of these plans relies on a knowledgeable and skilled workforce. Benefits of creating digital jobs in the GCC 1.3 million digital jobs by 2025 Better able to adjust to technological disruption Offer self-employment opportunities Enable GCC nations digitization aspirations Source: Strategy& 4 Strategy&

5 The availability of required digital skills is limited in the region Digital professionals in the GCC do not yet have the advanced technical skills that are necessary in the digital age. Their skills are mainly soft and managerial (such as project management and team leadership), whereas advanced technical skills are more prevalent in other regions. The analysis by Strategy& together with LinkedIn also showed that those skills most highly prized by employers across all industries and all types of jobs are virtually absent among GCC digital professionals. Digital skills listed on LinkedIn profiles by GCC professionals do not match the skills in demand across sectors Top available skills of GCC digital professionals 1 Management 2 Team management 3 Project management 4 Microsoft Office 5 Team leadership Digital skills most in demand across sectors 1 Statistical analysis and data mining 2 Algorithm design 3 Web architecture and development framework 4 SEO/SEM marketing 5 Middleware and integration of software Note: Top available skills are from 2017, digital skills most in demand across sectors are from the UAE in Source: Analysis by Strategy& together with LinkedIn GCC digital professionals skills tend to be mainly soft and managerial. Digital professionals often lack the advanced technical skills necessary for the digital age. Ali Matar, director of the Middle East & North Africa region, LinkedIn Strategy& 5

6 There is an insufficient regional supply of digital professionals There are three root causes for the skills gap between GCC digital professionals and those in comparable countries: 1) Limited academic preparation for digital skills: There is slow adoption of advanced ICT courses in the education system, a lack of skilled instructors to provide these advanced courses, and limited focus on developing the technical and vocational education and training sector in the region. 2) Inadequate professional development environment: GCC digital professionals have skills that do not meet quality standards required by the global digital job market. Equally, employers do not offer internships/ apprenticeship programs for graduates and do not have on-the-job training to ensure continuing skills upgrade and enhancement among current employees in the field. 3) Limited interest in pursuing digital careers: GCC students prefer mainstream majors (business and economics) and stable publicsector employment. There is also generally low interest in digital careers, especially among women. Supply-side challenges Limited academic preparation for digital skills Inadequate professional development environment Limited interest in pursuing digital careers Supply Source: Strategy& 6 Strategy&

7 Demand for digital professionals is hampered by low ICT uptake Across sectors in the region, there is limited adoption of emerging digital technologies due to insufficient understanding of digitization and lack of strategic direction to lead transformation. Within the digital industry, there is inefficient spending across the value chain because companies primarily engage in sales operations and the provision of services rather than in creating value through research and development. The entrepreneurship ecosystem is underdeveloped due to inadequate regulatory and legal frameworks such as access to finance, registration, and licensing. There is also insufficient entrepreneurship education and limited investment in research and development. This results in having few of these startups at the forefront of innovation. Demand-side challenges Low digitization across sectors Weak digital industry Underdeveloped entrepreneurship ecosystem Demand Source: Strategy& Strategy& 7

8 Initiatives can have a lasting impact GCC countries must address immediate needs in their digital market ecosystem by boosting both supply and demand. Strategy& together with LinkedIn examined initiatives in different countries around the world and designed a comprehensive framework that integrates all the initiatives that best address the GCC s current challenges. GCC governments can lead by example through championing the digitization of public institutions. They can achieve this through promoting digital jobs within the public sector and setting out an accelerated digital career path in government with competitive compensation schemes. GCC governments need to be flexible and stay up to date with the latest technological developments, accounting for them across all initiatives aimed at educational institutions, professional workplaces, and individuals. GCC governments will have to instill a culture of lifelong learning, and encourage professionals to continuously update their skills, to ensure their capabilities remain relevant in a market prone to disruption. Proposed initiatives Boost supply Create demand 1 Build digital capabilities within academia 1 Increase digitization across sectors 2 Prepare digital professionals for digitization 2 Develop the digital industry 3 Increase interest in digitalrelated fields 3 Boost digital entrepreneurship Developed digital job market Source: Strategy& 8 Strategy&

9 Governments must initiate digital job schemes and implement them through multi-stakeholder partnerships GCC governments should partner with technology players, educational institutions, and the corporate sector to boost supply and create demand in the digital job market. Although governments have to start these initiatives, they can succeed only by building partnerships with other stakeholders. It is important to note that every initiative needs to have a clear governance model to properly allocate the roles and responsibilities among the different stakeholders and ensure its successful implementation, avoiding inefficiencies and overlap. Governments must take an adaptive approach in boosting their digital job market, continuously accounting for the latest technological developments. They should also promote a culture of lifelong learning among their citizens. Samer Bohsali, partner, Strategy& Middle East, part of the PwC network Global initiatives with multi-stakeholder partnerships Technology players Education players Government entities Private sector Source: Strategy& 9 Strategy&

10 About the authors Strategy& Samer Bohsali Samer Bohsali is a partner with Strategy& Middle East, part of the PwC network. He is based in Dubai and leads the digital business and technology practice and the digitization platform in the Middle East. He also serves on the leadership team of the firm s global digital services community. He specializes in large-scale digital transformation programs, with a special focus on defining national agendas and reviewing sectoral models as well as key national enablers. Sevag Papazian Sevag Papazian is a principal with Strategy& Middle East, part of the PwC network. He is based in Dubai and is a senior member of the digital business and technology practice in the Middle East, with more than13 years of experience in technology and consulting. He specializes in national digitization strategies, corporate digital strategies, and large-scale technology-enabled business transformations. Melissa Rizk Melissa Rizk is a fellow with the Ideation Center, the leading think tank for Strategy& Middle East. She has worked on thought leadership projects with an emphasis on digital transformation in the GCC. Her previous experience was as an associate within Strategy& Middle East s public sector practice. LinkedIn Ali Matar Ali Matar is the director of the Middle East and North Africa region at LinkedIn. Based in Dubai, he is responsible for the overall growth of LinkedIn enterprise solutions across the region, and for strengthening LinkedIn s brand and presence among various stakeholders. He was recently recognized as one of the top 100 Middle East based regional heads of multinational companies by Forbes Middle East. Rawia Abdel Samad and Alice Klat of Strategy& Middle East, and Shady ElAsra, Leena Abdullah, and Jelle Linsenn of LinkedIn, also contributed to this report. Contacts Strategy& LinkedIn Abu Dhabi Beirut Dubai Dubai Sevag Papazian Principal, Strategy& Middle East Melissa Rizk Fellow, Ideation Center, Strategy& Middle East Samer Bohsali Partner, Strategy& Middle East Ali Matar Director, Middle East and North Africa Strategy&

11 About the Ideation Center The Ideation Center is the leading think tank for Strategy& Middle East, part of the PwC network. We aim to promote sustainable growth in the region by helping leaders across sectors translate socioeconomic trends into actions and better business decisions. Combining innovative research, analysis, and dialogue with hands-on expertise from the professional community in the private and public sectors, the Ideation Center delivers impactful ideas through our publications, website, and forums. The end result is one that inspires, enriches, and rewards. The Ideation Center upholds Strategy& s mission to develop practical strategies and turn ideas into action. At the Ideation Center, we enjoy the full support of all practices in the Middle East. Together we bring unsurpassed commitment to the goal of advancing the interests of the Middle East region. Find out more by visiting About LinkedIn LinkedIn connects the world s professionals to make them more productive and successful and transforms the ways companies hire, market, and sell. Our vision is to create economic opportunity for every member of the global workforce through the ongoing development of the world s first Economic Graph. LinkedIn has more than 500 million members and has offices around the world. Strategy& 11

12 Strategy& is a global team of practical strategists committed to helping you seize essential advantage. We do that by working alongside you to solve your toughest problems and helping you capture your greatest opportunities. These are complex and high-stakes undertakings often game-changing transformations. We bring 100 years of strategy consulting experience and the unrivaled industry and functional capabilities of the PwC network to the task. Whether you re charting your corporate strategy, transforming a function or business unit, or building critical capabilities, we ll help you create the value you re looking for with speed, confidence, and impact. We are a member of the PwC network of firms in 157 countries with more than 223,000 people committed to delivering quality in assurance, tax, and advisory services. Tell us what matters to you and find out more by visiting us at strategyand.pwc.com/me PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details. Mentions of Strategy& refer to the global team of practical strategists that is integrated within the PwC network of firms. For more about Strategy&, see No reproduction is permitted in whole or part without written permission of PwC. Disclaimer: This content is for general purposes only, and should not be used as a substitute for consultation with professional advisors.

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