In the context of intensified worldwide competition for highly skilled labour, immigration and mobility are critical components of economic growth. Corporations utilise immigration policies to maximise worker potential while minimising risk, while governments employ immigration policies to battle skills and labour shortages, demographic issues, and ongoing economic hardships to compete on the global stage.
Fragomen’s 2024 Worldwide Immigration Trends Report has emphasised the major elements influencing the workforce and economies of today’s world through an in-depth, data-driven study. The study shows how, by 2024, flexible immigration patterns might stimulate economic growth and make it easier to find the world’s most talented workers.
Many countries are relaxing immigration limits to boost their economies, even if some still adhere to COVID-era immigration laws. Middle Eastern governments are attracting foreign enterprises looking for new opportunities with their attractive destinations, as they recognise their strategic location and ample resources.
In 2020, for example, the United Arab Emirates was among the first nations to open its borders to the outside world. To draw in qualified freelancing workers, the country even introduced a Digital Nomad visa. In addition, the Golden Visa programme, which will enrol over 151,600 people between 2019 and 2022, represents the nation’s dedication to creating an environment that is conducive to business and a strong global talent pool.
Skill Mismatch Attracts Talents
Unresolved talent shortages could lead to 85 million job openings and USD 8.5 trillion in lost income by 2030, according to studies. This has led to a reskilling and upskilling of the workforce, which is changing immigration trends and maybe luring people to nations that aggressively invest in talent.
Owing to its acknowledged economic potential, the United Arab Emirates (UAE) has emerged as a desirable location for those seeking to expand their skill set and prosper in highly competitive global industries such as project management and digital transformation.
In the end, nations that cultivate competitive skills are probably going to support their technological and economic advancement.
Governments Adopt Digitalisation And Innovate
Globally, the speed of digital transformation is increasing as more governments prioritise online system interoperability for efficiency and compliance and invest in advanced technologies like artificial intelligence (AI). With AI-powered services that even extend to border control, the UAE and Saudi Arabia are setting the pace in the area.
Governments need to address crucial challenges, including algorithmic prejudice, potential hacking, and judgement errors resulting from inadequate human oversight to properly manage the increasing use of AI in immigration.
Enforcing strict laws that ensure AI’s accountability, transparency, and justice is vital. Ensuring the privacy and security of citizens’ data, in addition to giving ethical norms top priority during the research and implementation phases, is crucial for the responsible and widespread use of AI.
Even while many labour markets have recovered well from COVID-19, four out of five companies worldwide are still having trouble obtaining the qualified workers they require. Governments and educational institutions must work together to develop talent attraction and retention initiatives to address these shortages.
With more than half of the population under 30, the young MENA region can offer skilled labour to diversify the economy and encourage entrepreneurship, technology adoption, and global competitiveness.
Reputational gain is another advantage for institutions that actively assist governments and employers in closing talent gaps: international students will presumably see them favourably. For example, the Kingdom of Saudi Arabia has just authorised an executive decree allowing foreign universities to build branches within the nation. This might potentially attract new talent to the region’s workforce.
Increases In Nearshoring
Numerous nations are already popular locations for nearshoring, and as more businesses turn to this strategy to protect their supply chains in a turbulent business environment, governments must deal with the numerous ramifications of immigration and consider new programmes to keep up with demand.
In this regard, the Middle East is ahead of the curve; since 2021, Saudi Arabia’s Regional Headquarters Initiative has licenced over 160 locations and drawn in multinational corporations. Concurrently, Dubai’s D33 Agenda seeks to strengthen its standing as a global city by doubling its GDP in ten years. These initiatives present both countries as desirable locations for talent and business.
To attract diverse international talent, foster economic growth, and improve competitiveness, governments, especially those in the Middle East, must take proactive measures in immigration policy and strategic initiatives. This will ultimately pave the way for the region to have an exceptionally open and inviting business landscape in 2024.