To enhance global talent flows, governments are offering tailored visa schemes and encouraging firms to support upskilling and reskilling efforts.
The Middle East is experiencing a manufacturing renaissance, with the sector showing remarkable growth despite facing significant workforce challenges. Numerous causes, including increased investment, technical breakthroughs, and an increasing need for locally made items, are contributing to this manufacturing boom. However, this rapid expansion has also highlighted the region’s shortage of skilled workers, particularly in high-tech industries.
Ahmed Salem, a manufacturer of automotive pistons in Ajman, exemplifies this trend. Despite facing challenges in recruiting skilled machinists, Salem’s business is expanding rapidly, reflecting the overall growth of the manufacturing sector in the region. This growth is driven by a combination of factors, including increased investment in the sector and a growing demand for locally produced goods.
Saudi Arabia is at the forefront of this manufacturing boom, with the establishment of the tech company Alat poised to attract both domestic and foreign manufacturers. Alat aims to have 39,000 skilled workers by 2030 and is collaborating with multinational corporations to provide industrial robots, electronics, and semiconductors for advanced industries. Similarly, Abu Dhabi has launched a $2.7 billion investment plan to support its industrial sector, marking the beginning of an economic revolution in the emirate.
Available Talent And Business Needs
A $2.7 billion investment plan to support its industrial sector marked the start of Abu Dhabi’s economic revolution last year. Towards the end of June 2023, the aggregate capital expenditures made by manufacturers functioning within the emirate surpassed $100 billion.
Though workers in cutting-edge industries need new skills in cutting-edge technologies, the Middle East, especially the UAE and Saudi Arabia, aim to become manufacturing hubs. According to the Chief People Officer of GMG, these abilities are in short supply not just in the Gulf but around the world.
Global firms and regional companies pledge to invest billions of dollars in more than 100 projects, creating jobs for thousands of people and leveraging the area’s connections, resources, and infrastructure.
It’s a workers’ market for the time being.
According to a senior partner in charge of McKinsey’s Middle Eastern Operations Practice, “the gap between growing business needs and available talent has become more acute over the past three years.” The difficult operations-related challenges that many CEOs are now confronted with spark conversations about how businesses can acquire the knowledgeable, tech-savvy personnel that will be required in the upcoming years.
With nations refocusing their attention on certain sectors, the growth marks a paradigm shift. If the region’s economy is to grow at a rapid pace in the coming months, that expansion will be essential.
Yet, the industry has a talent shortage.
A partner at Kearney Middle East & Africa—Public Sector Practice states that companies in the area are experiencing a personnel shortage, especially in the high-skilled sector.
He further stated, “These nations are investing in developing their domestic human capital and making efforts to attract global talent in order to achieve their economic ambitions.”
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The Impact Of Integrating AI
AI integration is impacting industries in the Middle East. Most experts in Saudi Arabia and the United Arab Emirates use AI in their daily work. Given that 84% of professionals in the United Arab Emirates and 82% of those in Saudi Arabia believe AI will have a big impact on their work in the next five years, it is anticipated that the industries will see a growth in its use.
In addition, upskilling and reskilling have become essential to prepare the workforce for the workforce shortage and rising demand. To make sure that employees are prepared to meet the changing needs of the industries, it is imperative to give them the skills they need through training programmes and educational activities.
Companies’ difficulties in finding suitable people are partly due to the fact that the required occupations require very different abilities from those in the traditional manufacturing industry.
Can Automation Fix The Gap?
Automation plays an important role in addressing talent shortages and the need to streamline operations as the sector enters such a massively revolutionary period. Businesses also report difficulty locating personnel with the expertise needed to run sophisticated facilities.
Innovative technologies are successfully incorporated into a variety of capacity-building initiatives. It is also anticipated that by altering the nature of labour’s tasks, automation can contribute to a rise in worker efficiency. The emergence of GenAI is amplifying its impact. By using intelligent automation technology, robotic automation helps human workers by handling repetitive jobs.
Automation may have different effects depending on the specific industry. It also presents certain difficulties, such as the need to invest a large amount of money in automated systems and tools and the human skills necessary to use them.
Also, in an effort to promote global talent flows, governments are offering incentives to corporations that support initiatives to upskill and reskill workers and implement targeted visa systems. As seen by their policies and outreach initiatives, Qatar and the UAE are aggressively courting international specialists despite their current naturalisation process.
Engineers and other highly qualified workers are eligible to apply for special residency status in the UAE thanks to the Golden Visa programme, which was introduced in 2022. Possibly the biggest electronics exporter in the Middle East, Saudi Arabia has introduced a series of specialised visas in an effort to draw in highly qualified workers.
Despite the growth, the region faces a shortage of skilled workers, particularly in cutting-edge industries. According to the Chief People Officer of GMG, these workers are in short supply not just in the Gulf but around the world. This shortage poses a significant challenge to the continued growth of the region’s sectors.
In conclusion, the manufacturing industry in the Middle East is experiencing significant growth despite facing workforce challenges. As the demand for skilled workers increases, it becomes essential to partner with a reliable recruitment agency that can assist in sourcing the best talent for your organisation. At Dynamic Staffing Services, we specialise in providing customised workforce solutions to businesses in the Middle East and beyond.
With decades of experience in the industry, we have the expertise and networks necessary to help you find the right candidates for your organisation. Contact us today at enquiry@dss-hr.com or +91-11-40410000 to learn how we can help you navigate the challenges of the manufacturing industry and recruit the talent you need to drive your business forward.
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