Dubai has stood out as a leader globally in attracting digital talents, which is primarily driven by its strategies and mix of policies that fostered strong client relationships across the region, according to a recent industry study.
In a new report titled ‘Turning a Tech Hub into a Talent Magnet’, Boston Consulting Group (BCG) revealed that the UAE – which has 96 percent of its tech workforce composed of immigrants – exemplifies the benefits of a well-planned, comprehensive strategy for developing a tech hub that deploys both short- and long-term levers.
“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 recognised 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.
Hamady also identified Dubai’s ongoing visa offerings to be a major catalyser in attracting talents in the emirates. “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 programme for start-ups and entrepreneurs wishing to reside in the UAE all the while working outside the UAE,” he explained.
Driving short-term goals and fueling long-term growth
The survey further noted that Dubai stands out as a leader in three waves by combining short- and long-term levers.
First, for many years it successfully attracted leading technology companies with an aggressive corporate tax rate incentive capped at zero. Smaller tech companies followed with UAE operations. Moreover, it boasts a UAE’s Golden Visa and a pathway to citizenship for international investors and top talent from around the world, providing them with visas for up to 10 years – next to a recent work visa scheme which enable employees from all over the world to work remotely from the UAE. The one-year visa, considered first of its kind in the region, provides the opportunity for entrepreneurs and talents to innovate in the UAE’s safe and attractive business environment, with access to all the necessary services including world-class utilities and telecoms.
Second, it launched several initiatives to attract talent with the skills needed by industries targeted by the government, such as agriculture technology within 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 who can power Dubai’s future growth. For the longer term, the government encouraged leading international universities to establish local campuses to attract top students and encourage the children of the current workers to remain in the UAE for their higher education.
Further into the report, BCG underscored that having a comprehensive range of policy tools is a key feature of successful hubs.
“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,” said Juergen Eckel, Managing Director and Partner, and regional Head of BCG Digital Ventures.
“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.”
Dubai techies among the highest earners in the global tech sector
Rami Mourtada, Partner & Director, BCG, added, “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.”
In response to current inflationary pressures, the UAE now offers select startups office space with two years of free rent, providing health insurance for employees all the while making it easier for incoming talent to attain work visas. Among other initiatives, it established incubators such as Dubai’s Area 2071 and recruited venture capital firms from around the world to establish local offices as a testament to Dubai’s commitment to act as a sustainable global center of excellence.
