The United Arab Emirates [UAE] has been recognised as one of the top destinations in the Arab world for investing in Human Capital, according to a report by the World Bank. The report also ranks Bahrain and UAE as the top Arab nations for human capital. The UAE has been focusing on developing its human capital through education, research and development and other initiatives. The below article is an analysis of their roadmap and the current status of becoming the global hub.

According to the UAE Government’s Official portal, the country has charted a roadmap for itself that indicates sustainability and progress in various fields such as health, education, infrastructure, tourism, science, environment and achievement of the UN’s Sustainable Development Goals. The UAE aims to enhance its position as a global partner and an attractive and influential economic hub through its We the UAE 2031 and UAE Vision 2030, presenting a national plan through which the UAE will continue its development path for the next 10 years, with a focus on social, economic, investment and development aspects. The plan seeks to double the country's gross domestic product [GDP] from AED 1.49 Trillion to AED 3 trillion [a 100% increase], generate AED 800 billion in non-oil exports, raise the contribution of the tourism sector to the GDP to AED 450 billion and raise the value of the UAE's foreign trade to AED 4 trillion.

The country has also set several other goals for itself including developing a 100% Emirati-made Lunar Rover and sending it to the moon by 2024 Launching an interplanetary mission in 2028, and generating 75%of Dubai's energy from clean sources by 2030.


What are the Human Capital Development Initiative of UAE

Human Capital Development is a critical component of economic growth and prosperity. The UAE has been investing heavily in education and training programmes to develop its human capital since 2012. The country has established several Universities such as the Higher Colleges of Technology, which attract top talent and Research Centers to promote innovation and research. Nevertheless, the government has also invested heavily in primary and secondary education enabling a high-quality education system leading to skill development for the nation's youth, and ensuring that the youth are sufficiently capable to face future challenges.

It has also been focusing on developing its workforce through training and development programmes. The UAE has taken workforce development a serious aspect and its National Agenda 2021 and Vision 2030 emphasize the need for a highly skilled workforce to drive economic growth. Vocational and Technical Training institutions were implemented to upskill the Emiratis to address the upcoming skills requirement. The UAE has established CERT The Centre of Excellence for Applied Research & Training to bridge the skills gap between the skills and the job market. In addition, The National Qualifications Authority will be responsible for developing and implementing a national qualifications framework.

Innovation, as another critical aspect of the UAE has launched multiple initiatives to foster a culture of innovation, free zones to attract international businesses and talent, spurring innovation in the technology, renewable energy, and finance sectors. UAE aims to promote a knowledge-based culture and thus has established several innovation centres and incubators to support UAE startups. Furthermore, the country has focused on promoting entrepreneurship to create more employment opportunities that simulate the UAE's economic growth and diversified economy. The initiative opens avenues for SMEs with monetary and non-monetary assistance enabling them to contribute significantly to the country's GDP.


Where is the UAE in its Human Capital Development journey?

Although it is difficult to assess the impact of the We the UAE 2031 vision and UAE Vision 2030 plan at the moment, however, the UAE has made significant progress in various fields already. The country's HDI value has risen from 0.728 to 0.911, with an increment of 25.1%. The life expectancy has risen by 6.8 years This means years of schooling by 6.9 years and expected years of schooling by 5.2 years.

The effort of the UAE to develop human capital has been successful, as is now evident by the country's high ranking in the World Bank Report. The report highlights the impact of the initiatives and the importance of investing in human capital to promote economic growth and development in promoting economic diversification by reducing reliance on a single sector or industry, increasing productivity through a skilled and educated workforce and creating more employment opportunities through innovation and entrepreneurship that leads to a decrement of unemployment.
Can the UAE become the global hub of Human Capital Development in the near future?

In considering the above, it is evident that the UAE is on the path towards a global positioning on Human Capital Development competing with the existing hubs in several industries. Investment in Human Capital Development opens the avenue for the UAE to be in a better position for its economy to withstand economic shocks leading to higher GDP growth and improved living standards.

The initiatives on a skilled workforce, a business-friendly environment and a focus on innovation make countries attractive destinations for foreign direct investments further boosting their economies.