For the Middle East, Closing the Digital Skills Gap is Vital to Organizational Growth

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There has never been a better time for companies to accelerate growth, with an extensive range of general and industry-specific digital tools readily available. The market is overflowing with solutions designed to enhance efficiency and sharpen competitive advantage, offering organizations unprecedented opportunities to streamline operations and innovate. 

However, while these tools are at everyone’s fingertips, the lack of trained experts to optimize their implementation remains a persistent problem. 

The Empowering the GCC Digital Workforce report, a joint analysis by Strategy& and LinkedIn, underscores how a skilled digital workforce is crucial for realizing the ambitious plans of GCC economies. 

The report reveals that digital professionals in the GCC predominantly possess soft and managerial skills—such as project management and leadership—while lacking the advanced technical expertise that is more prevalent in developed countries. 

The education system in the GCC is struggling to keep pace with technological advancements. Digital courses at universities are often generic and outdated, and teachers lack sufficient technological expertise. Low enrolment rates in technical and vocational education further the issue, and as a result, 93% of GCC digital professionals are graduates of foreign universities.

Assess, Identify, and Address

The responsibility to bridge this gap falls largely on organizations, as it is critical to unlocking the effective integration of tools within their operations. Sergey Yakimenko, Principal at Strategy& Middle East, stresses the importance of a multi-faceted approach that involves collaboration with leaders and managers across various functional areas to identify the specific digital skills needed for each job family. He suggests key actions such as:

• Conducting frequent assessments to identify current gaps and future needs in emerging technologies like machine learning, blockchain, and cybersecurity. 
• Staying updated on industry trends to determine critical digital skills for maintaining competitiveness. 
• Collecting employee input through surveys and feedback sessions to identify skill gaps and training preferences.

“To upskill employees, business leaders should offer access to online learning platforms, provide on-the-job training, develop custom learning programs, and partner with educational institutions for tailored courses,” explains Yakimenko. 

Skill development should be tied to career advancement opportunities to encourage continuous learning. He says that fostering a learning culture, encouraging leadership to support training initiatives, and providing resources for ongoing development is essential, as is promoting collaboration and knowledge-sharing through forums, mentorship programs, and joint projects.

Public and Private Sector Collaboration

The urgency for organizations to invest in digital literacy is growing, particularly for those operating or planning to operate in the region. The 2022-2023 Dubai Digital Skills Survey highlights that the most significant digital skill gaps will be in software and applications, data and AI, and cybersecurity over the next two years. 

“Countries in the Middle East have clearly outlined their plans to transition into knowledge-based economies,” says Nicola Buonanno, VP of Southern EMEA at Chainalysis. 

“This transformation is underpinned by digital literacy, not just in common technologies but also in new and emerging tech.” Buonanno points to the UAE’s ambition to become a global crypto hub as an example, emphasizing the need for a higher-than-average level of proficiency.

“Digital transformation—especially in the age of generative AI—requires a talent transformation,” says Mark Ackerman, Area VP for Middle East & Africa at ServiceNow. Regional governments, recognizing this, have already laid the groundwork for developing digital skills through programs like the UAE’s National Program for Coders. The private sector must also play its part, as being “job-ready” involves more than technical skills. “Soft skills and purpose-driven values will be critical for both candidates and employers,” Ackerman adds.

Initiatives to enhance digital skills are already underway. Ackerman says that in Saudi Arabia, The Garage, a startup district in Riyadh, is leveraging the ServiceNow platform to support local and international startups. The Garage will offer a Post-Accelerator Graduate Program, providing top startup graduates access to the ServiceNow platform, tools, training, and mentorship. ServiceNow and the Saudi Digital Academy also plan to launch the ServiceNow Academy to train thousands of Saudis. 

Companies must also consider AI’s impact on jobs, says Yakimenko. Roles with high exposure to AI, such as financial analysts, customer service agents, software developers, and administrative managers, will require significant reskilling to keep up with evolving skill demands. 

Yakimenko advises prioritizing skill gaps based on their impact on performance, innovation, and the cost of training, ensuring that critical skills are addressed first.

Commendably, the government recognizes the vital role of private sector organizations—pioneering new frontiers—in developing digital skills. Buonanno says that together with the UAE’s Ministry of Artificial Intelligence, Digital Economy and Remote Work Applications, Chainalysis has been supporting training programs for the country’s government entities and up-leveling their skills around the economic opportunities and risks in the blockchain sector, virtual assets in the UAE and the Middle East and the challenges facing them, the regulatory and political perspective of virtual assets, and other related topics.

Analyzing the Benefits 

Understandably, such efforts require investment in time, money, and resources, and it can be difficult for organizations to make the necessary allocations, which is why analyzing the benefits of digital upskilling is crucial. Yakimenko suggests measuring the ROI of upskilling initiatives through various metrics, such as error rates, task completion time, quality of work, and sales conversion rates, using control groups to assess effectiveness. Other methods include pre- and post-training skills assessments, career progression outcomes, and employee retention rates. These metrics help organizations align their digital upskilling efforts with business objectives.

Buonanno points to benefits outside the bottom line, highlighting that digital upskilling is vital for immediate financial returns and ensuring that significant technology investments—estimated at over $193 billion in the MENA region this year alone—are fully utilized. Without the necessary skills, employees may avoid using even the most feature-rich digital applications.

Lastly, as a digitally dependent society, we are increasingly vulnerable to cyber threats, says Buonanno. With AI enabling more sophisticated social engineering attacks, digital savviness is critical for protecting individuals and organizations. This digital upskilling strengthens security and supports the advancement of emerging sectors, fostering consumer confidence.