GUEST COMMENT: Why MBAs in the Gulf can curb the reliance on expat talent
Towards the middle of 2008, the Gulf region was in the unprecedented position of being one of the most attractive financial centres in the world for expatriate talent, and it was able to tempt top individuals from New York and London for the first time.
As more international banks set up regional offices, this 'war for talent' meant firms were willing to pay exorbitant salaries to attract the right people. Sadly, it wasn't to last and as the financial crisis finally caught up with the Middle East this year, businesses across the region started to downsize and demand for staff dropped accordingly.
But while the stellar levels of recruitment may have stopped within the GCC financial sector, a fundamental problem remains - the over-reliance in the region on expatriates caused by the still small number of locals working in senior positions. Despite a general slowdown in the economy, many in the Middle East are looking for a solution to this problem.
With other fast-developing markets such as India and China placing increasing importance on senior business qualifications such as the MBA, it's clear that one way for the Gulf region to up-skill the workforce would be to follow suit.
As well as offering the opportunity for locals to increase their knowledge-base, developing strong ties with international business schools also allows local businesses to provide a steady flow of qualified professionals to the region in the future.
There is no shortage of demand - the number of Middle East citizens taking the business school admissions test, the GMAT, has increased by nearly 28% in the last three years. But all too often these business school applicants head to Europe and North America with the intention of staying. What is needed is stronger management training locally.
A number of major schools have already set up programmes in the region itself. Importantly they are adapting their course content to reflect local market needs. The UK's Cass Business School opened an executive MBA in the DIFC in 2007, and offers business executives in the Middle East the chance to specialise in Islamic Finance. And for those in the region with ambitions to start their own business or innovate within their organisation, one of France's top schools EM Lyon will bring its entrepreneurial expertise to the UAE upon completion of the ambitious Emivest project.
Other international schools have reacted to the potential of the increasingly sophisticated employment markets of Dubai and Abu Dhabi by reaching out to major employers in the region. Leading Spanish business school ESADE has a specialist dedicated to business development in the GCC, working hard to strengthen relationships with recruiters as well as attracting talented MBA students. The efforts of another major European school, Vlerick Leuven, have also led to a sizeable number of its graduates taking up roles in the Gulf. One in ten of the school's MBA graduates from the 2005/6 class now live and work in Dubai or Abu Dhabi.
The Middle East needs the active involvement of more top quality business schools. Business education will certainly not provide any 'quick fix', but over time and with the economy set to stabilise over the next year, it could help to create a new, more mature employment market throughout the Middle East.
The long-term prospects for the region as one of the world's strategic business hubs requires a committed network of professionals with a global business mindset, and with a true understanding of the local market.
By increasing presence in the Gulf - whether through dedicated campuses, MBA and executive education courses, partnerships with local schools, academic research, and corporate recruitment - business schools can help foster a new generation of local talent.
Matt Symonds is founder of SymondsGSB and the QS World MBA Tour. You can follow more of his business education coverage Twitter on and his blog.
