Upskilling refers to learning new skills or enhancing existing ones to improve an individual’s capabilities and value in the workplace. According to a recent report by the World Economic Forum, about 50% of all employees will require reskilling by 2025 due to technological advancements and changing job requirements. This calls for critical strategies by industries looking to future-proof their workforce and stay ahead of the curve. 

The United Arab Emirates (UAE) is a prime example of a country that recognizes the need to upskill its workforce. As one of the fastest-growing economies in the world, the UAE has been at the forefront of technological advancements and digital transformation. Companies and the government have been investing heavily in upskilling programs to continue driving economic growth and ensure its workforce stays competitive.

Keep reading to learn more about the importance of upskilling in the UAE and the initiatives being taken to prepare the workforce for the jobs of tomorrow.

The Need for Upskilling in the UAE

There are several reasons behind the growing need for upskilling in the UAE. Some of the most common ones include:

1. The Changing Landscape of Work in the UAE

The UAE has long been recognized as a hub of innovation and economic growth in the Middle East. However, its traditional economic pillars are undergoing significant transformation. While the oil and gas sector is still crucial, it is no longer the sole driver of economic prosperity. Instead, the nation is pivoting towards technology, renewable energy, healthcare, and advanced manufacturing sectors.

This shift is reflected in the UAE’s Vision 2021 and the subsequent UAE Centennial 2071 plan, which outlines ambitious goals for economic diversification and the development of a competitive knowledge economy. These initiatives underscore the government’s commitment to fostering innovation, attracting global talent, and nurturing a highly skilled local workforce.

Another report by the World Economic Forum Future of Jobs Report states that 85 million jobs may be displaced by a shift in the division of labor between humans and machines by 2025, while 97 million new roles may emerge. In the UAE context, this translates to a significant reshaping of the employment landscape.

2. Rising Technological Advancements

Industries such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) are gaining prominence, creating demand for specialized skills that were virtually non-existent a decade ago. For instance, the UAE’s AI Strategy 2031 aims to position the country as a global leader in AI by 2031, which will necessitate a workforce proficient in AI technologies and their applications across various sectors.

3. Mitigating the Impact of the COVID-19 Pandemic

The COVID-19 pandemic has accelerated digital transformation across industries, further emphasizing the need for digital literacy and tech-savvy professionals. This has also forced companies to reevaluate their business models. In the UAE, this has meant an increased reliance on technology and remote work arrangements.

4. Growing Demand for Digital Skills

Digital skills are rapidly becoming a prerequisite for nearly all jobs. In the UAE, this demand is particularly high in sectors such as e-commerce, digital marketing, cybersecurity, and data analytics. As these industries continue to expand, so will the need for specialized digital skills.

Key Skills for the Future of Work

What key skills are critical for the evolving workplace in the UAE? While technical skills may vary based on industry and job roles, some essential skills that are expected to be in high demand include:

1. Digital and Technology Skills

The pervasive nature of technology in modern workplaces necessitates a strong foundation in digital skills. This goes beyond basic computer literacy to include proficiency in areas such as data analysis and interpretation, cybersecurity, artificial intelligence and machine learning, cloud computing, and blockchain technology.

2. Emotional Intelligence and Soft Skills

The human element remains crucial in the workplace of the future. Emotional intelligence and soft skills such as critical thinking, communication, collaboration, adaptability, and leadership will continue to be highly sought after. These skills not only allow individuals to work effectively in teams but also make them more adaptable to changing work environments.

3. Adaptability and Resilience

These two qualities may not occur to most people when thinking about essential skills for the future. However, the rapid pace of change in the modern workplace demands professionals who can adapt quickly to new situations and technologies.

Adaptability includes being open to new ideas and ways of working, continuously upskilling and reskilling, and being comfortable with ambiguity. Resilience, on the other hand, is the ability to bounce back from setbacks and maintain productivity under pressure.

4. Critical Thinking and Problem-Solving

As routine tasks become increasingly automated, higher-order thinking skills become more valuable. A good understanding of logic and analytical thinking, coupled with creativity and innovation, are essential for problem-solving in the workplace of the future.

Systems thinking, the ability to see how various components work together to form a larger system and identify potential issues or improvements, is also becoming increasingly important.

Strategies for Upskilling the UAE Workforce

Recognizing the importance of these skills is only the first step. The real challenge lies in effectively upskilling the UAE workforce to meet the demands of the future job market. Some strategies that can be implemented include:

1. Identifying Skills Gaps and Future Needs

The first step in any effective upskilling initiative is to identify the current skills gaps and anticipate future needs. This requires a collaborative effort between government bodies, educational institutions, and private sector organizations.

The UAE government has taken proactive steps in this direction. The UAE  National Employment Strategy 2031, launched by the Ministry of Human Resources and Emiratisation, aims to create a skills development system that aligns with the country’s economic vision. This strategy involves regular skills forecasting and the development of a national skills database.

Organizations can contribute to this effort by conducting regular skills audits of their workforce and comparing them against projected future needs. This can involve:

• Analyzing industry trends and technological advancements that may impact future skill requirements.
• Conducting surveys and assessments to understand the current skill levels of employees.
• Engaging with industry experts and futurists to anticipate emerging skill needs.
• Collaborating with educational institutions to ensure curriculum alignment with industry needs.

2. Developing Targeted Training and Development Programs

Once skills gaps are identified, the next step is to develop targeted training and development programs. These programs should be tailored to the specific needs of different industries and job roles within the UAE context.

For instance, the Dubai Future Foundation has launched several initiatives aimed at upskilling the UAE workforce. The One Million Arab Coders initiative, which provides free online coding courses, is a prime example of a targeted program addressing the growing demand for programming skills.

Organizations can develop their own in-house training programs or partner with educational institutions to create customized courses. These programs should focus on:

• Practical, hands-on learning experiences that simulate real-world scenarios.
• A mix of technical skills and soft skills development.
• Regular updates to keep pace with evolving industry needs.
• Flexibility in delivery methods to accommodate different learning styles and work schedules.

3. Leveraging Online Learning and MOOCs

The rise of Massive Open Online Courses (MOOCs) and other online learning platforms has democratized access to education and training. These platforms offer a cost-effective and flexible way for individuals to acquire new skills.

The UAE government has recognized the potential of online learning. The Mohammed Bin Rashid Smart Learning Program, for instance, aims to create a new learning environment in schools through the introduction of ‘smart’ classes and digital platforms.

A key advantage of online learning is the ability to access courses from anywhere, at any time. Integrating online learning modules into formal training programs and developing partnerships with leading MOOC providers to create UAE-specific content can greatly enhance the upskilling efforts in the country.

4. Encouraging Continuous Learning and Self-Development

Creating a culture of continuous learning is crucial for long-term success in upskilling efforts. This involves fostering an environment where learning is valued and rewarded.

The UAE’s National Program for Coders, launched in 2021, is an excellent example of encouraging continuous learning. The program aims to train 100,000 coders and establish 1,000 digital companies within five years, fostering a culture of innovation and continuous skill development.

So, how can organizations promote continuous learning and self-development in their workforce? Some strategies include:

• Implementing learning and development KPIs in performance reviews.
• Creating mentorship programs where experienced employees can share knowledge with junior staff.
• Offering learning stipends or paid time off for skill development activities.
• Recognizing and rewarding employees who actively pursue learning opportunities.

Best Practices for Implementing Upskilling Initiatives in UAE Organizations

Taking the old route of skill development and implementation will lead to the same outcomes–disappointing hiring rates, underemployment, and skills shortage. To truly harness the potential of the UAE workforce, organizations must adopt a more skill-driven approach that helps them set themselves up for future success and boost employee retention rates by making upskilling more streamlined, engaging, personalized, and employee-focused. This can be achieved through:

1. Skill Identification

Skill identification involves setting the right goal for the right skill. Identify the skills that are currently lacking in your organization, then set clear and actionable goals for skill acquisition. Once you’ve completed your goal setting, devise a centralized skill repository where you benchmark role-based functional, digital, and leadership skills. Tie these skills into your performance evaluation process and create a clear career path for employees.

Ensure your skill repository is aligned with the changes in your business. As the industry changes, so do your skills–analyze your skill repository regularly to ensure that you are keeping pace with emerging trends.

2. Gauge Employee Proficiency in Each Skill

It’s essential to assess the proficiency level of employees in each skill identified for upskilling. This will help you understand where your organization stands and identify any skills gaps that need to be addressed. Conducting regular skills audits or leveraging assessment tools can aid in this process. You can do it in the following ways:

• Ask the employee to answer a questionnaire
• Conduct interviews with employees, peers, and managers with a rating on a scale of 1 to 5 for a particular skill.
• Create assessment tests with detailed feedback on areas of improvement

3. Foster an Employee Upskilling Roadmap

Once you have identified the skills gaps and assessed employee proficiency levels, it’s time to develop a customized upskilling roadmap. This should include specific training programs, courses, and resources that will help employees acquire the necessary skills. It should also consider individual learning styles and preferences to ensure maximum engagement and effectiveness. Regularly review and update this roadmap as needed to align with changing business needs and industry trends.

4. Evaluate the Upskilling Results

Only creating and assigning Learning and Development (L&D) courses will not help develop the requisite skills. It’s crucial to measure the effectiveness of your upskilling initiatives and track any improvements in employee performance. Hence, dive deep into learning analytics and track how employees are engaging with the upskilling roadmap, monitor skill development progress, and evaluate their impact on overall business efficiency.

5. Partner with Educational Institutions and Industry Experts

Collaborating with leading educational institutions and industry experts can bring valuable expertise, resources, and cutting-edge knowledge to upskilling programs. This also provides a great opportunity for organizations to stay updated on the latest industry trends and practices.

The UAE has been proactive in fostering such partnerships. The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first graduate-level, research-based AI university, is a prime example of such collaboration. The university partners with industry leaders to ensure that its curriculum remains relevant and cutting-edge.

Measuring the ROI of Upskilling Investments

Measuring upskilling initiatives’ return on investment (ROI) is crucial for justifying the resources allocated to these programs. While the benefits of upskilling may not always be immediately quantifiable, several metrics can be used to assess their effectiveness:

• Skill Acquisition: Measure the improvement in specific skills through pre and post-training assessments.
• Employee Productivity: Track changes in employee performance and productivity following upskilling programs.
• Measure Employee Engagement: Engagement serves as a key measure of ROI, especially when you consider that only 23% of the global workforce reports feeling engaged. Employee engagement levels can be effectively assessed through engagement surveys. Innovative tools like enterprise video conferencing solutions can also contribute to this measurement by analyzing the tone and sentiment of employee interactions during training sessions.
• Employee Retention: Measure your retention rates before and after starting your upskilling initiative. As employees’ skills and value to the organization increase, you should see a decrease in turnover.
• Innovation Metrics: Track the number of new ideas or process improvements employees generate post-training. For instance, what a call center’s employees learn about scripting could lead to new scripts that increase customer satisfaction or to some insights using real-time speech analytics.
• Financial Metrics: Evaluate the impact on revenue, cost savings, or other financial indicators attributed to upskilling efforts.

Case Studies: Successful Upskilling Programs in UAE Companies

While most UAE companies have yet to adopt a strategic approach to upskilling, some organizations have set an excellent example of investing in their employees’ development and reaping the rewards.

DP World, a global logistics and supply chain company, has implemented various initiatives to upskill its employees and promote continuous learning.  In early 2024, DP World launched its Global Education Platform, a new resource designed for students, educators, and employees in science and logistics. This launch is part of a broader commitment of $35 million (AED 128.5 million) dedicated to advancing educational initiatives by 2030.

Toward the end of 2023,  the Dubai Centre for Family Businesses (DCFB) which operates under the umbrella of Dubai Chambers launched a new upskilling initiative to assist in empowering next generation managers within family businesses. The upskilling program is designed to enhance the capabilities of family-owned businesses in Dubai, providing participants with the necessary skills and knowledge to take their firms to new heights.

The Long-Term Outlook for Upskilling in the UAE

As the UAE continues its journey towards becoming a knowledge-based economy, the importance of upskilling will only grow. The government’s commitment to fostering innovation and developing human capital, as evidenced by initiatives like the UAE Strategy for Artificial Intelligence 2031 and the National Innovation Strategy, provides a strong foundation for future upskilling efforts.

However, the rapidly evolving nature of technology and the global economy means that upskilling must be viewed as an ongoing process rather than a one-time effort. Organizations and individuals alike must cultivate a mindset of continuous learning and adaptation.

Looking ahead, several trends are likely to shape the future of upskilling in the UAE:

• Increased focus on soft skill
• Rise of micro-credentials
• Virtual and augmented reality in training
• Personalized learning at scale
• Cross-disciplinary skills
• Green skills

With the right approach and continued collaboration between organizations, government entities, and educational institutions, the UAE can continue its upward trajectory as a leader in upskilling and preparing its workforce for the jobs of the future. AI university is just one example of how this collaboration can drive innovation and success on all fronts. The possibilities are endless, but it all starts with investing in people through upskilling initiatives.

Frequently Asked Questions

Q: What is upskilling?

Upskilling is the process of learning new skills or upgrading existing ones to stay relevant in today’s rapidly changing job market.

Q: How can companies measure the success of their upskilling programs?

Companies can measure success through employee engagement surveys, retention rates before and after upskilling initiatives, tracking innovations generated post-training, and evaluating financial indicators such as revenue and cost savings.

Q: What is upskilling for the future of work?

Upskilling for the future of work involves preparing employees with the skills and knowledge needed to thrive in a constantly evolving job market, driven by technological advancements and shifting industry demands.

Q: How will upskilling trends shape the future of workforce development in the UAE?

Trends such as an increased focus on soft skills, the rise of micro-credentials, and personalized learning at scale will play a significant role in shaping the future of workforce development in the UAE.