4 December 2024, Wed |
12:19 AM
Aspiring tech hubs must take steps to gain traction quickly while also ensuring long-term growth and development. The United Arab Emirates, where immigrants make up 96% of the tech workforce, exemplifies the benefits of a well-planned, comprehensive strategy for developing a tech hub that employs both short- and long-term levers.
Boston Consulting Group (BCG) studied 11 tech hubs around the world that continue to thrive by attracting digital talent from beyond their borders in a new report titled ‘Turning a Tech Hub into a Talent Magnet.’ BCG examined the strategies and mix of policies Dubai has implemented to attract talent. The firm has fostered strong client relationships across the region since 2019, and has a proven track record of delivering game-changing businesses for leading public and private organizations.
“Successful digital hubs need lots of digital talent—an increasingly scarce commodity. The global shortage of technology workers will reach 4.3 million by 2030. And that was before the onset of the COVID-19 pandemic, which heightened demand for digital services. Dubai recognized this appeal very early on in the game, attracting tech experts from every four corners of the world,” said Faisal Hamady, Managing Director and Partner, BCG.
“A major catalyzer in talent attraction is Dubai’s ongoing visa offerings which are a first in the region and further grounded the hub as one of excellence. These include business visas, under which foreigners can obtain a long-term visa as part of the Golden Visa system but also remote work visas and their assigned virtual working program for start-ups and entrepreneurs wishing to reside in the UAE all the while working outside the UAE.”
According to the survey, by combining short- and long-term levers, Dubai stands out as a leader in three waves. For starters, it has successfully attracted leading technology companies for many years with an aggressive corporate tax rate incentive capped at zero. Smaller tech firms followed suit with UAE operations.
Furthermore, it offers a UAE Golden Visa and a path to citizenship for international investors and top talent from around the world, with visas valid for up to ten years – in addition to a recent work visa scheme that allows employees from all over the world to work remotely from the UAE. The one-year visa, the region’s first of its kind, allows entrepreneurs and talents to innovate in the UAE’s safe and attractive business environment, with access to all necessary services such as world-class utilities and telecoms.
Second, it launched a number of initiatives to attract talent with the skills required by government-targeted industries, such as agriculture technology, as part of the city’s 10-point action plan for Dubai Future District, a new space dedicated to the development of the future economy, as well as an AED 1 billion fund to support new economy companies that can power Dubai’s future growth. Longer term, the government encouraged leading international universities to establish local campuses in order to attract top students and to encourage the children of current workers to continue their education in the UAE.
Juergen Eckel, Managing Director and Partner, and regional Head of BCG Digital Ventures said “The report highlights that a feature of successful hubs is a range of policy tools. To win the digital talent challenge, policymakers need a clear vision of their hub’s current strengths, the key industrial sectors they aim to develop, and the type of workforce they need. And Dubai has done just that. Attracting digital talent requires insight into the factors that motivate skilled tech workers to move to new locations. Armed with this knowledge, policymakers can continue working with stakeholders in the local digital ecosystem to develop and execute strategies to build and nurture dynamic, resilient tech hubs that can spur innovation and economic growth for decades to come.”
BCG Digital Ventures, part of the BCG X tech-build and design business unit, recently opened in the region as part of an established BCG network that has been operating across the Middle East for 15 years, introducing a new hub of corporate venturing talent and cementing its commitment to the GCC.
“In addition to combining short- and long-term levers, we identified three other key lessons that those other cities and nations can learn from the leading tech hubs we studied. These include developing and executing a strategic plan, building on existing strengths, and leveraging anchor companies to build broader hubs. With the right mix of policies that leverage existing strengths and enhance their appeal to digital talent and leading tech companies, cities and nations can nurture dynamic tech hubs that will become vibrant centers of international business,” added, Rami Mourtada, Partner & Director, BCG.
To combat ongoing inflationary pressures, the UAE now provides select startups with two years of free office space, as well as health insurance for employees, while making it easier for incoming talent to obtain work visas. As part of its commitment to serving as a sustainable global center of excellence, it established incubators such as Dubai’s Area 2071 and recruited venture capital firms from around the world to establish local offices.
