In recent years, the United Arab Emirates (UAE), particularly cities like Dubai and Abu Dhabi, have become synonymous with rapid technological advancement, ambitious economic agendas, and a desire to become a global innovation hub. 

Initiatives such as Dubai’s Economic Agenda ‘D33’ aim to transform the city into one of the world's top three cities for living, investing, and working. However, as the digital economy takes center stage in reshaping the UAE’s industrial and social landscapes, a critical question remains: does the local tech talent pool have the capacity to drive and sustain this vision?

A recent report, UAE Future Tech Talent, published by the UAE Ministry of Economy, provides an in-depth analysis of the country's current tech talent ecosystem. It identifies both the strengths and challenges the UAE faces in meeting the demands of a rapidly evolving digital economy. 

This report draws attention to critical themes, such as the high demand for specialised talent, the role of government policy, and the potential of UAE youth. The research’s findings underscore that while the UAE is making strides in attracting and retaining tech talent, structural improvements are essential to keep up with its ambitious goals.

Talent scarcity amidst rapid transformation

In an effort to create a knowledge-driven economy, the UAE has positioned itself as a gateway for international companies and investors, supported by factors such as economic stability, a safe business environment, and ease of operations. However, the local tech ecosystem remains predominantly “thin,” with a lack of specialised expertise.

While there is a general abundance of tech talent within the UAE, most of these roles are non-specialised, junior-level positions, which can be readily filled. Filling specialised roles in fields such as data science, cybersecurity, and artificial intelligence (AI), however, is significantly more challenging.

Over 95 per cent of UAE companies actively source talent from outside the region, a trend further exacerbated by a 52 per cent shortage of specialised tech roles, as noted in a previous study. The scarcity of locally-trained tech specialists in blockchain, AI, and machine learning underscores a gap that impacts the UAE’s ability to foster homegrown innovation. The reliance on imported solutions rather than developing indigenous technologies not only slows down innovation but also prevents the UAE from fully capitalising on its potential as a tech leader.

To address this, the report emphasizes the importance of developing strategic programs that directly attract highly-skilled professionals to the UAE. Nearly 30 per cent of employers support the idea of a dedicated database of specialised talent as a resource to support immediate business needs. Additionally, the government is encouraged to offer programs that facilitate mobility for tech employees, providing a simplified transition between jobs within the UAE. Such initiatives could reduce administrative hurdles and increase job satisfaction, which is crucial for retaining skilled professionals in the region.

Youth as a strategic asset

The UAE’s youth, representing almost half of the population, hold immense potential as the next generation of innovators. Both Emirati nationals and expatriates between the ages of 15 and 35 are a largely untapped resource that could help fill the tech talent gap. 

Despite this, the UAE faces a distinct challenge in converting its youthful population into a technically-skilled workforce. The absence of a seamless transition between academia and professional environments remains a barrier. Employers in the region often struggle to provide adequate entry-level roles or internships that offer young talent the practical experience necessary to complement their academic education.

To tackle these issues, the report recommends the creation of an internship toolkit that would guide companies through establishing effective, compliant, and resource-efficient internship programs. By collaborating with educational institutions to align academic cycles with industry needs, the UAE could foster an environment in which young professionals gain hands-on experience early in their careers, effectively narrowing the skills gap.

The role of government in supporting tech talent

The UAE government plays a pivotal role in fostering an environment conducive to tech talent development. Programs such as the Golden Visa, designed to attract and retain top global talent, have set a foundation for the UAE to position itself as a leading destination for professionals in technology. These programs offer long-term residency to specialized talent, entrepreneurs, and digital nomads, making the UAE more attractive to global professionals. As Julia Onslow-Cole, Partner and Head of Global Government Consulting and Strategy, notes, “The UAE’s evolving immigration landscape is key in supporting growth in technology and innovation. Initiatives like the Golden Visa are part of the broader strategy positioning the UAE as a global leader in technology.”

However, the high cost of living remains a significant hurdle for many prospective residents, with housing, healthcare, and education expenses creating challenges for individuals and companies alike. Some employers express caution over the sustainability of financial incentive programs and suggest that talent attraction efforts should focus on long-term strategies such as the establishment of retirement or savings plans for expatriates, ensuring they can build a stable future in the UAE.

Additionally, the UAE’s recent Emiratisation regulations mandate that private sector companies with a workforce over 20 employees hire a minimum number of Emiratis. While these regulations are a positive step towards greater local employment, they also highlight the importance of upskilling Emirati nationals in specialised tech fields to meet industry demands.

Building a robust future model for the UAE’s tech ecosystem

The report’s “aspirational model” envisions a UAE that emerges as a global tech hub, distinguished by its ability to attract, retain, and nurture specialised talent. This model suggests a more collaborative approach, wherein academia, industry, and government work together to build a specialised tech talent ecosystem. One proposed solution is the development of a tech talent portal, which would include a “digital economy reserve” — a pool of professionals available to meet urgent needs within the UAE’s digital economy.

Further recommendations include a focus on R&D-specific grant programs, similar to those offered in the European Union, which could foster academic-industry partnerships to drive research in niche technologies. By establishing a dedicated ecosystem for tech professionals, the UAE could transform itself into a central hub for innovation across various sectors, from finance to healthcare and beyond.

Offshoring has also become a key strategy among UAE companies, especially given the limited availability of local specialised talent. This approach involves building dedicated teams in markets where talent is more accessible and cost-effective, such as Turkey, Eastern Europe, and India, which work in close collaboration with teams based in the UAE. This practice allows UAE-based companies to maintain operational control while tapping into global talent pools, thus enhancing their competitive edge.

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The journey toward a fully-developed tech ecosystem in the UAE is a work in progress, with promising momentum but important challenges. The UAE’s commitment to being a leader in technology and innovation is clear, but achieving this goal requires concerted efforts from all stakeholders — the government, educational institutions, and private companies. As the report highlights, with strategic initiatives in place, the UAE can chart a pathway toward a future model where local tech talent not only supports but also drives the nation’s digital economy.

Creating a cohesive ecosystem for specialised tech talent will ensure that the UAE’s innovation landscape continues to thrive. Through policies that balance the influx of international expertise with the nurturing of local talent, the UAE can establish itself as a global leader in technology.