As the world heads towards knowledge-based economies, the GCC region is shifting away from its usual dependence on natural resources, such as oil and gas, to welcome innovation and talent as a stepping stone for future growth. Saudi Arabia’s vision 2023 and UAE’s Centennial 2071 strategy highlight this by the ambitious economic plans for diversification in the GCC nations. The development of human capital in the region plays a crucial role in the economic shift since it impacts the long-term success and continuity of the region’s initiatives and endeavours to expand economic diversity.


The World Bank indicates that GDP growth can be increased by 1.4% per year in the MENA region by upskilling the workforce alone. GCC consultants are heavily involved in this effort, by leading initiatives to equip the workforce with the required capabilities to excel in such an environment.

The Growing Importance of Human Capital Development As the region shifts towards innovative industries, such as technology and renewable energy in Gulf countries like Saudi Arabia, stepping up efforts to ensure developing a workforce that can adapt to evolving demands in these fields through enhanced training and educational initiatives is crucial. This investment is a top priority for various governments in the area with Saudi Arabia leading the way by allocating a substantial portion of its 2023 annual budget. Approximately $50 billion accounting for 17% marking the highest investment in education, among Gulf nations. This investment demonstrates the Kingdom’s dedication to developing a knowledge driven economy and reaching its ambitious goals of Vision 2030.

In addition, a study by PricewaterhouseCoopers (PwC) predicts that the implementation of AI alone could result in a boost of around $320 billion to the economy of the Middle East by 2030—an indication of the importance of having a workforce that is competent in the digital space. In the United Arab Emirates (UAE), authorities have introduced the "National Strategy, for Advanced Innovation." This initiative is part of the effort aimed at positioning the nation as a leading innovator globally by the year 2071. The approach outlined in conjunction with the National Advanced Sciences Agenda 2031 aims to cultivate skills for the future and leverage technology to address upcoming challenges effectively – putting a strong emphasis on improving STEM education (Science, technology, engineering and mathematics) and cultivating a workforce well equipped for the tech realm. These endeavours emphasize the role of nurturing human potential as a key driver for economic expansion and diversification in the GCC.


The Role of Consultants in Upskilling Initiatives

In the Gulf region, consultants are instrumental in creating and executing initiatives to enhance skills that support the area’s ambitious economic goals. By leveraging their knowledge of top practices and a solid grasp of local circumstances, they can customize strategies that address the distinct requirements of the GCC nations. The Middle East’s consulting sector is estimated to be worth around $3.6 billion per year, with an emphasis placed on enhancing human capital and skills through various initiatives as noted by Source Global Research.

Strategic Workforce Planning:

By analysing the future requirements of the job market and outlining areas where skills are lacking efficiently helps in designing specific programs to enhance capability development for individuals in demand sectors such as technology and innovation. Deloitte’s research highlights the significance of having a solid plan for managing human resources strategically in the United Arab Emirates (UAE) particularly with the increasing role of automation on the horizon. For instance, Dubai’s Autonomous Transportation Strategy goals, to have 25% of transportation systems fully automated by 2030, will lead to a surge in job opportunities that require skills in booming fields.

Designing Effective Training Programs:

Consultants bring innovative methods to enhance training programs and align them to industry requirements while also being user friendly for learners’ benefit. PricewaterhouseCoopers predicts a 15% increase in the adoption of digital education platforms in the GCC region due to the rising demand for high technical skills and creativity. This rise aligns with the shift towards digital modernization, which involves substantial efforts to advance skills in anticipation of future economic demands.

Leadership Development:

Further to technical skills, consultants stress the significance of fostering leadership qualities. According to a study by McKinsey & Company, businesses in the GCC region that dedicate resources to enhancing leadership capabilities have a higher chance of realizing their strategic objectives. In particular, companies that give importance to leadership development are 2.4 times more likely to achieve their goals. Consultants are instrumental in developing leaders who possess soft skills like critical thinking and effective communication alongside emotional intelligence needed for organizational success.

Success Stories in the Gulf

The influence of consulting-driven upskilling initiatives is clearly apparent throughout the Gulf region. A significant impact was noticed in the UAE, thanks to the "National Program for Artificial Intelligence ", which stands out as an illustration of how purposeful investment in human capital can equip a nation for what lies ahead economically. This initiative was rolled out as a component of the UAE’s Centennial 2071 objectives. This initiative, backed by consultants, provides an array of training courses designed to cultivate proficiency in AI. The initiative collaborates with educational institutions such as the University of Birmingham and the University of Oxford to enhance expertise in data strategies and machine learning towards generative AI advancements.

Saudi Arabia’s Vision 2030 also highlights the significance of education. Enhancing the workforce through various initiatives focused on industries such as technology, healthcare, and renewable energy. The Human Resources Development Fund (HRDF), in Saudi Arabia has worked closely with consultants to design training programs that support the country's economic diversification objectives by cultivating an adaptable workforce. Implementing these programs is essential to realizing the goals outlined in Vision 2030. Ensuring that workforce is ready to tackle the changing landscape with its challenges and opportunities.

As the Gulf region progresses towards building a varied economy in the future ahead, human capital development is crucially important and cannot be emphasized enough. The prosperity of the region in the coming years relies heavily upon its capacity to nurture a workforce that possesses not only skills but also the flexibility to adapt to the swiftly evolving global economy. Consultants will play a key role in leading these initiatives by offering essential strategic advice to guarantee that efforts to advance skills are successful and sustainable.

At Riverhead, we understand the important role consultants play in this journey! By linking businesses with human capital development specialists in the region, we help companies make big strides towards creating a workforce ready for the future! Working together, we can help advance diversification in the Gulf region and ensure that its people is most valuable asset.