What does this mean for recruitment and people applying for jobs in the UAE, Saudi Arabia, and Oman?

While these are undoubtedly important initiatives, the laws have left some companies juggling roles they simply can’t fill in the local market. In some cases, this has led to project descoping. For others, this has led to an increase in hiring employees from third-party sources such as freelancers and contractors or using recruitment providers to help balance the numbers. Another option is outsourcing. Outsourcing is a practice used by organizations to reduce costs by assigning tasks or job functions to a third party rather than hiring someone in-house.

There are many pros and cons to each of these hiring approaches. For recruiters, this can help their organization hire the right people with the right skills while remaining compliant with local laws. However, these approaches can also lead to knowledge drain, fragmentation, culture, and integration issues in the long term. For job-seekers, it’s important that you get clarity on who exactly is hiring you – the benefits, salary, and culture may differ if you are being hired by an outsourcing company versus the in-house company or client.

Research by Deloitte found that leaders believe labor and skills shortages are among the top external threats likely to disrupt their business strategies. A Together 2021 UAE Culture survey found that 88% of the UAE workforce would consider leaving their job due to poor organizational culture. This, combined with the recent challenges of the ‘great resignation’ and ‘quiet quitting’, means that recruiters, HR teams, and businesses must double down on their corporate culture initiatives. Companies now need to invest more in upskilling, commit to long-term training, engage employees, and increase employee retention programmes to stem the loss of skills and the rising cost of recruitment.

For job seekers, it’s good news. Companies are still hungry to find good talent from across the Middle East and the rest of the world. For staff outside the GCC, the shortage of skills means that the region is still a good option for international job hunters. However, it is always advisable to thoroughly research the job, contract, company, and country before you accept a role.