The Middle East is undertaking one of the most ambitious economic transformations of our time. With national agendas such as Saudi Arabia’s Vision 2030 and the UAE’s Vision 2031 accelerating investment into innovation, digitalisation, and mega-scale development, the region is positioning itself as a global centre for economic and technological leadership.
Yet beneath the sweeping ambition lies a complex dual mandate: drive rapid productivity gains through global talent and technology — while simultaneously nationalising the workforce.
At TENTEN Partners, we work closely with executive teams who are navigating this delicate balance every day. The organisations that succeed will be those able to reconcile both priorities:policy expectations on localisation and the productivity required to deliver national transformation at speed.
1. The Productivity Paradox: Policy vs. Performance
Localisation programmes such as Saudisation and Emiratisation are designed to develop a sustainable, skilled national workforce and reduce long-term dependence on expatriates. They are essential to the region’s socio-economic goals.
However, businesses face a genuine tension. Studies consistently show that expatriate talent often delivers higher productivity at lower unit labour cost, due to both experience and wage differentials. For companies under pressure to deliver on Giga-project timelines or digital transformation targets, this creates a structural challenge:how to meet localisation quotas without compromising output or velocity.
Over the long term, GCC economies must continue investing in large-scale upskilling initiatives, closing capability gaps, and creating productive, future-ready roles for nationals.
2. The Digital Imperative — and the Region’s Talent Shortage
Digital transformation is at the centre of every national plan in the GCC, driving unprecedented demand for highly specialised skills in AI/ML, cybersecurity, cloud computing, digital governance, data science, and platform engineering.
Salary projections across the region reflect this demand, with Saudi Arabia expecting 6–8% increases in Technology and Digital Innovation roles in 2025 alone.
Yet the skills gap remains stark:
Digital jobs made up
1.7% of GCC employment (vs.
5.4% in the EU and
6.9% in Singapore).
Nationals occupy only
5% of digital roles in the UAE.
GCC digital professionals trail global peers in advanced technical capabilities — particularly in algorithm design, data mining, product development, and scalable system architecture.
A notable trend is that many fast-growing skills in the local market relate toservicing technology (technical support, networking) rather thancreating it (engineering, product innovation). For the region to shift from consumption to creation, a structural recalibration of capability-building is required.
3. Lessons from Singapore: A Blueprint for “Selective Openness”
Much of the regulatory tightening across the GCC parallels Singapore’s earlier response to domestic pressure over foreign hiring. The Fair Consideration Framework (FCF), introduced in 2014, required employers to demonstrate genuine attempts to hire Singaporeans before applying for foreign Employment Passes.
Crucially, Singapore insisted the process could not become a box-ticking exercise. Companies that attempted to bypass or “game” the framework faced warnings, penalties, and ultimately stricter controls — including extended debarment periods and tighter rules for Intra-Corporate Transferees.
The underlying principle is clear:foreign talent is welcome, but only when it brings skills that are both advanced and scarce within the domestic market.
This philosophy is increasingly evident in the GCC’s policy direction.
4. How GCC Companies Are Managing the Dual Mandate
Across our work with clients in Saudi Arabia, the UAE and Qatar we see three dominant response strategies:
1. Strategic Localisation
At TENTEN Partners, a core pillar of our work involves identifying exceptional Saudi and Emirati nationals for senior leadership positions and high-impact roles across Digital, Data, AI, and Strategy.
Companies are rethinking their workforce planning:
developing local talent pipelines,
front-loading learning and development investment, and
balancing the retention of critical expatriate talent with sustainable nationalisation progress.
2. Differentiated Compensation Models
Localisation policies continue to shape compensation frameworks.
For example:
Saudi nationals often command higher wages in mid–senior roles.
Salaries in Financial Services in Saudi Arabia now exceed UAE benchmarks across many functions.
HR professionals who are Saudi nationals typically earn more than their regional counterparts.
The shift requires companies to adopt flexible, transparent, nationality-aware pay structures.
3. Attracting Global Specialists
To secure global expertise in areas such as AI, cybersecurity, legal compliance, and digital governance, organisations are offering:
internationally competitive remuneration,
long-term incentives (LTIs),
performance-linked structures, and
mobility support.
This approach counters rising living costs and inflationary pressures while ensuring access to the critical capability required for national transformation.
5. The Outlook: Hyper-Selectivity and the Rise of the “Global Specialist”
Will GCC governments continue tightening work permit requirements?
All indicators suggestyes.
As localisation enforcement strengthens, the GCC is moving towards a model where:
local candidates are prioritised by default, and
foreign talent is increasingly limited to roles demanding rare, highly advanced skills.
This mirrors Singapore’s evolution: fewer expatriates overall, but a higher concentration of specialists in mission-critical fields such as AI/ML, cloud engineering, digital law, governance, and advanced infrastructure.
The likely outcome is a high-powered filtration system: only the most technically proficient and commercially impactful global professionals will secure long-term roles in the region.
Conclusion: A Defining Decade for GCC Talent Strategy
The Middle East stands on the brink of becoming a global epicentre for innovation and digital transformation. But realising this ambition requires navigating a dual mandate that is both necessary and complex, scaling national talent while sustaining world-class productivity and global competitiveness.
For companies, the winners will be those who:
embrace localisation strategically,
invest meaningfully in capability-building,
attract and retain global expertise where it matters most, and
build workforces capable of delivering transformation at pace.
At TENTEN Partners, our mission is to help organisations strike this balance — supporting both national development objectives and the region’s bold vision for the future.
Luke Archer is Co-founder & Managing Partner at TENTEN Partners, specialising in executive search and strategic talent solutions across Technology, Digital Transformation, Data & AI, and Strategy Consulting in the GCC. With over 25 years in recruitment across London, the UAE, and Singapore, he advises organisations on building high-performing leadership and technical teams worldwide.
