UAE rises in 2023 Global Services Index with focus on talent regeneration

The UAE’s global standing continues to improve as it climbs four positions in Kearney’s 2023 Global Services Location Index (GSLI), securing the 21st spot. Additionally, Jordan, KSA, Qatar, Kuwait, Oman, and Lebanon have all entered the list for the first time.

Kearney, a renowned global management consultancy, conducts the GSLI study to identify the key factors that make countries attractive for offshore services. The UAE, home to over 4,000 start-ups in Dubai, Sharjah, and Abu Dhabi, and boasting multiple free zones, is establishing itself as a technology hub for the Middle East and Africa. The country’s focus on technology innovation and digital skill enhancement is paying off, contributing to its talent regeneration, which, combined with its size and regional relations, positions it as an ideal location for nearshoring.

One significant trend observed in this year’s GSLI is the criticality of talent regeneration. As digital technologies continue to evolve and automate processes, cost-centric service locations risk losing competitiveness to more technologically advanced countries. Talent regeneration, therefore, becomes crucial in this shifting landscape.

According to Rob Van Dale, Middle East and Africa Lead, Digital at Kearney, a nation’s true strength lies in its ability to nurture and unleash the potential of its talented people. Countries like the UAE and KSA, despite lacking natural cost advantages, are demonstrating a strong focus on talent regeneration, making them increasingly appealing for high-skilled services in their regions.

The GSLI report highlights India, China, and Malaysia as the leaders in 2023 due to their significant cost advantage, abundant talent pools, and strong skills. Notably, India and China also stand out in talent regeneration capabilities, making them frontrunners in providing a tech-enabled workforce.

The global market for business services, including information technology, business process outsourcing, and engineering, has witnessed substantial growth, reaching $681 billion in 2023 from $624 billion in 2022. As a result, there is an increasing demand for such services, leading to a focus on talent availability and skill development.

In the face of geopolitical, economic, and technological changes, a country’s ability to reskill and redeploy its workforce in response to market demands and disruptions is pivotal in enhancing its attractiveness as an offshore location for business services. Talent regeneration is, therefore, a crucial factor in navigating the effects of Industry 4.0 and shaping the demand for future skills and jobs.