UAE creates more blue collar jobs in 2024

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The UAE job market has seen a significant surge in demand for both blue-collar and entry-level jobs, although white-collar recruitment continues to decline, according to a report by UAE-based recruitment company Innovations Group.

Offering insights workforce trends in the UAE, the study shows that blue-collar jobs have grown by 69% in 2024, primarily due to both residential and industrial construction. Overall, however, blue-collar hirings declined by 21% in 2024, despite the rising number of open positions, which indicates challenges in terms of attracting the right talent.

While the UAE government’s focus on economic diversification and infrastructure development has led to a considerable influx of new businesses, there has also been a simultaneous decline in the white-collar job market in the country.

Recruitment was down by 21% in 2024, driven by companies centralizing their support functions, such as customer service and finance, in offshore global hubs.

However, sales and business development positions remain in high demand due to their crucial role in driving growth for start-ups and new companies entering the UAE market.

Although companies continue to face challenges in sourcing talent for such sales and business development positions, the roles have remained in high demand. Demand for workers at entry-level positions, like receptionists and front-office staff, have also risen, with a specifically increased demand for foundational staff to support new commercial ventures.

“The UAE is a dynamic hub offering a pool of skilled workforce,” said Nikhil Nanda, Director at Innovations Group. “It is important for specialised recruitment agencies to develop strategic approaches to address hiring challenges and skill mismatches.”

In the coming 12 months, some key trends will shape job market in the UAE, the report said. The trend towards remote working is expected to continue in 2025, with more organizations adopting flexible work arrangements, including home and hybrid work models.

The rapidly advancing AI technologies are also poised to transform the recruitment process. AI tools will continue to be leveraged at work, with 74% of professionals in the region agreeing that AI tools can help them do their job better. As such, AI advancements are expected to speed up the entire recruitment process by automating tasks like CV screening and interview scheduling, improving candidate sourcing, and reducing bias through data-driven decision.

UAE issues $790m VAT refunds for citizens

The UAE has granted $790m in tax refunds for nationals building new homes, and also shared details of VAT waivers for tourists, the Federal Tax Authority (FTA) has confirmed

It said its VAT-refund system for UAE nationals for the construction of new residences and the VAT-refund system for tourists had “achieved outstanding results in 2024, due to a continuous development of digitalisation plans”.

According to FTA statistics, the number of applications approved during 2024 for VAT refunds for UAE nationals hit 7,520 applications, worth a total AED704.38m ($192m).

The authority said that, regarding the digital VAT-refund scheme for tourists, the number of retail outlets linked electronically to the system “has witnessed a remarkable expansion across the UAE over the past years”.

It said the number of outlets registered for VAT-refund increased to 17,847 outlets by the end of 2024, compared to 16,357 outlets by the end of 2023 – an increase of 9% year-on-year.

Khalid Ali Al Bustani, Director-General of FTA, said: “The FTA pays great attention to the continuous development and update of its digital systems in accordance with global best practices, in line with the UAE’s digital transformation strategy.

“Indicators show that FTA’s efforts in this field have positively reflected on the quality and performance of its mandate in general, including the digital systems for VAT refunds for eligible categories.”

He added: “This has been achieved by introducing more facilities to streamline and accelerate the procedures related to self-service tax refund systems.

“Building on the positive results of the FTA’s development of digital services, during 2024, in 2025 we will continue to launch various projects and initiatives in the field of digital transformation in the tax sector to keep pace with the smart transformation strategy laid out by our wise leadership, which entails transformation of all services based on seamless and proactive digital procedures, supporting efforts to reduce bureaucracy and maintain high levels of customer happiness.”

UK-India free trade talks gather momentum

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Britain’s Trade Secretary has announced he is to visit India this month to focus on finalising the Free Trade Agreement (FTA) negotiations as part of the UK government’s ambition to elevate the bilateral partnership across all sectors.

Addressing the annual India Global Forum’s (IGF) in London, Jonathan Reynolds, Britain’s Secretary of State for Business and Trade, highlighted the strength of the bilateral trading relationship which stood at £41 billion in the year to September 2024.

However, the minister went on to reaffirm the British government’s commitment to improve trade between India the UK, respectively the fifth and sixth largest economies in the world.

“I want to reaffirm the UK’s commitment to deliver growth for both countries through the trade deal that we’re talking about, through the Comprehensive Strategic Partnership and the Technology Security Initiative,” Reynolds said.

The visit makes good the promise made by UK British Prime Minister Sir Keir Starmer on the early re-start in 2025 of UK-India FTA talks. Starmer made the pledge at a meeting with Prime Minister Narendra Modi at the G20 Summit in Brazil last November.

Reynolds said: “I believe a comprehensive FTA and Bilateral Investment Treaty would be important to the UK, but I also believe it would show the world India is serious about its relationships to global trade, strengthening supply chains with trusted partners and delivering substantial mutual benefits for business and consumers across both countries.

“And the rest of the world would stand up and take notice of an agreement of that kind.”

He added: “India is a top priority partner for the UK, and we want to elevate that ambition across all aspects of our relationship, but also to take it to new heights.”

Reynolds also welcomed the launch of a new report by IGF’s UK-India Future Forum (UKIFF), entitled ‘Sentiment to Success Future-proofing the UK India Partnership’, which reviews the areas of progress along with immediate and actionable strategies to strengthen the bilateral partnership.

IGF Chairman Manoj Ladwa said: “The world is at a tipping point, and sentiment alone won’t sustain relationships in this era of uncertainty. The UK-India partnership must pivot from nostalgia to action, leveraging India’s rising global influence and the UK’s unmatched expertise.”

Co-hosted with the High Commission of India in the UK, the annual event brought together leading figures from the world of politics, business, finance and technology within the India-UK corridor.

Central bank chief flags rise in digital frauds

While acknowledging the important role played by banks in building resilience in the domestic financial system, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has flagged the rise in digital frauds and asked banks to establish robust systems to thwart the criminals.

Malhotra recently held meetings with the managing directors and chief executives of both public sector and private sector banks in Mumbai. These interactions are part of the Reserve Bank’s continuous engagement with the senior management of the entities it supervises.

In a statement, the RBI maintained that the Governor, while highlighting IT risk management and cyber security, urged banks to ensure they have an enhanced oversight over third-party service providers to tackle the risks they present. “The need for RBI and banks to work together closely was emphasized [at the meetings] and suggestions were sought from the banks on enhancing the ease of doing business,” the central bank’s statement continued.

Malhotra urged banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanisms, and continue to invest in technology and digital infrastructure.

And he emphasized the need for RBI and the banks to work together, and he sought suggestions from the banks on enhancing the ease of doing business.

China looks to ASEAN to help boost digital sector

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China is set for closer collaboration on digital projects with ASEAN member countries, with new frameworks and action plans aimed at further strengthening digital infrastructure, promoting cloud computing and enhancing artificial intelligence governance.

Xu Chaofeng, director-general of the Ministry of Industry and Information Technology’s Department of International Cooperation, the country’s top industry regulator, said that the country aims to develop a five-year action plan with ASEAN on building a sustainable and inclusive digital ecosystem.

“The plan will prioritize digital, intelligent and green transformation, with the aim of strengthening policy communication, deepening development consensus and fostering a new digital industry ecosystem,” Xu said.

The comments follow the 5th ASEAN Digital Ministers’ Meeting and the second China-Thailand Ministerial Dialogue on Digital Economy Cooperation, which took place recently. Thailand is also an ASEAN member country.

Zhang Yunming, vice-minister of industry and information technology, who led a delegation to Thailand, outlined the latest digital developments and policies, as well as future co-operation plans between China and Thailand.

He said digital infrastructure remains a cornerstone of the partnership. “China has already made significant strides in enhancing ASEAN’s digital backbone, with over 30 cross-border terrestrial optical cables linking China with various ASEAN markets,” Zhang said.

To advance the collaboration, China is pushing for the establishment of an Asian undersea cable association, alongside a computing power interconnection partnership plan.

And Xu Chaofeng commented: “Digital infrastructure is the foundation for digital development and is essential in bridging the digital divide. More efforts will be made to enhance cooperation with ASEAN members in areas such as 5G, cloud computing, data centres and the internet of things.”

He said that AI was another key area for deeper co-operation between China and ASEAN, and the two sides are also committed to advancing AI technology, industry standards and governance to ensure fair and equitable development across all member states.

To facilitate the collaboration, China and ASEAN members plan to establish a China-ASEAN artificial intelligence cooperation centre, which will host AI projects and drive digital transformation initiatives. “We must ensure that AI development and governance are based on equal rights, opportunities and rules for every nation,” Xu said.

While digital infrastructure and technological advances are crucial, the collaboration also extends to enhancing digital skills and building talent in the region, he added.

Yu Xiaohui, president of the China Academy of Information and Communications Technology, said: “China’s achievements in digital innovation, particularly in 5G and AI, complement ASEAN’s unique needs in industries such as tourism and agriculture, paving the way for broader international cooperation.”

The ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

China’s economy likely to grow around 5% this year and beyond

China is firmly entrenched in a ‘medium growth’ phase as its economy transitions into a more mature state, and its GDP will likely grow around 5% this year and beyond, according to management consultancy McKinsey China.

Despite facing challenges both at home and abroad, including geopolitical tensions and a downturn in the housing sector, McKinsey China chairman Joe Ngai said he was optimistic about China’s long-term economic prospects, emphasizing the country’s continuing role as a key driver of global growth.

“I think that China is solidly in a medium growth phase as we are transitioning into a more mature economy,” Ngai said in a recent interview with China Daily.

Ngai added that China’s growth remains robust relative to the rest of the world, accounting for approximately one-third of global GDP growth.

Ngai also expressed optimism about the country’s emerging technological leadership in fields like electric vehicles, solar energy and artificial intelligence.

“In many technologies right now, China is very competitive globally. We are growing in areas like electric vehicles, solar panels, AI and robotics, and these are areas where we see a lot of upsides.”

A new report released by McKinsey Global Institute has identified 18 potential fast-growing sectors of the future, ranging from AI software and services to robotics that could reshape the global economy.

“The good news is China is very active in those 18 sectors. China actually has quite a number of very good company investments and progress in these areas,” Ngai said.

In addition to technological advancements, Ngai emphasized that China’s economic future will be shaped by its ability to boost domestic consumption, which he described as “underdeveloped”, but possessing significant potential. “Consumption demand is actually in the bank,” Ngai said. “Chinese households have saved up in recent years, creating a reservoir of demand waiting to be unleashed.”

PM: Malaysia must reform to face emerging challenges

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Malaysia cannot rely on outdated legislation to address the challenges posed by rapid technological developments and must pursue reforms to create greater opportunities for international collaboration, Prime Minister Anwar Ibrahim told delegates at the World Economic Forum (WEF).

During a media briefing on ‘Unlocking Asean’s Digital Future: Driving Inclusive Growth and Global Competitiveness’ in Davos, the prime minister underscored the government’s commitment to ensuring that legislation keeps pace with global developments.

“We take all the latest pieces of legislation all over the world and adjust accordingly, and push through,” he said, adding that there was an “array of things that we need to do to give meaning to effective collaboration and clarity of policies, and effective fast-paced implementation”.

When asked about unlocking Asean’s full potential as chairman for this year, Anwar said all member leaders must continue to implement specific policies to address the rapid advancement of new technology.

He said it was important that all parties involved acknowledged the challenges created by these new technologies. “We don’t have all the answers, and therefore, the collaboration must begin with the key players, including companies, and states,” he said. This includes fostering an ecosystem encompassing airports, ports, infrastructure, centres of excellence, research, and partnerships with universities.

He noted that collaboration among Asean leaders must extend to the private sector, as technological progress demands that governments and ruling elites recognise their limitations, and adopt a cooperative approach to succeed.

Anwar led the Malaysian delegation on a three-day working visit to attend the WEF Annual Summit 2025 in Switzerland – his first participation in the WEF since assuming office in 2022.

The theme for this year’s event was ‘Collaboration for the Intelligent Age’, and among the many issues discussed were the role and contribution of emerging technologies, and the latest innovations in addressing global economic issues.

Free trade agreements ‘need to encompass digitalisation’

In a separate session at the WEF, PM Anwar Ibrahim said digitalisation is a “missing component” in all of Malaysia’s previous free trade agreements (FTAs).

Stressing that digital transformation is one of the priorities that Asean is aggressively embarking, he said Malaysia, which is currently looking at upgrading some of the existing free trade agreements (FTAs), is also looking at digitalisation as part of the upgrade.

“We have just signed last week with the United Arab Emirates, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with the United Kingdom. And now we want to have a fast track with the European Union through the Malaysia-EU Free Trade Agreement (MEUFTA).

“A very important component that was missing in all the previous FTAs is of course digitalisation,” he said.

Anwar, who is also Malaysia’s Finance Minister, said that on the digital transformation within Asean, AI driven connectivity needs to take into consideration difference in service standards for those in urban centres compared with less developed areas.

“Our commitment is to make sure that this sort of transmission (Asean Power Grid or APG) and also the transformation of digitalisation would cover all areas and angles.

“If these two priorities are achieved, I think it would be a phenomenal feat for Asean as a region because as, as you know, it is relatively the most peaceful region in the world and the fastest growing economy. But we have not given emphasis to substantive economic or technological collaboration,” he said.

Anwar also expressed confidence that the consensus that have been achieved among Asean leaders, signify a very important radical departure from the conventional view of Asean leaders in the past.

Apart from that, the prime minister also pointed out the importance of private sectors coming together through collaborations in digitalisation to fast forward the initiative among member countries.

India continues strong growth trend for foreign investment

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India’s appeal to global investors remains strong, driven by a young and dynamic workforce and the government’s ongoing emphasis on initiatives like ‘Make in India’, government officials told the World Economic Forum (WEF) in Switzerland.

Speaking at the ‘FDI in India’ event, Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), noted the government’s success in liberalising foreign direct investment (FDI).

“More than 90% of our FDI is coming via the automatic route,” Bhatia said, underscoring the government’s commitment to attracting investments, particularly in manufacturing sectors that cater to both local and export markets.

Key areas for development for India include electronics and renewable energy, and sectors with high employment potential, such as textiles, footwear and pharma.

Neeraj Aggarwal, Asia-Pacific Chair at Boston Consulting Group (BCG), highlighted the growing opportunity for India in global manufacturing, supported by the country’s cutting-edge digital infrastructure, including the Unified Payments Interface (UPI), which has become a global benchmark.

“The other thing which is interesting is this whole shift to AI… India, which has historically had a strength in services, could benefit from this change,” Aggarwal told delegates.

However, while incentives are supporting India’s manufacturing ambitions, challenges remain. Sanjeev Krishan, Chairman of PwC India, pointed out the need for logistics and digital competitiveness improvements. He cited Malaysia and Indonesia as examples of countries excelling in these areas.

A recurring theme among panellists was the need for skill development to leverage India’s demographic advantage fully. “India’s demographic is India’s strength, and we need to harness it, which means there has to be a huge focus on skilling,” Krishan said. The focus on education and skills training is essential to meet the growing demand for a tech-confident workforce to cater to the needs of global companies.

The discussion also touched on India’s rise as a promising market, with Kartikeya Sharma, President of AB InBev India, noting the “exponential scale” of India’s growth potential.

In the real estate sector, Niranjan Hiranandani, Managing Director of Hiranandani Group, highlighted the impact of structural reforms that have made it easier to attract FDI. Hiranandani said the return on investment (ROI) in commercial real estate now surpasses that of the residential sector. He added that if more FDI and internal funds flow into the real estate market, India could see GDP growth accelerate from 6.5% to 10% in the next two years.

Global leader in technological innovation

Delegates at Davos also heard how India is emerging as a global leader in technological innovation and economic growth, recognized for its transformative journey as a start-up and digital innovation hub.

At the Swiss resort, the Centre for the Fourth Industrial Revolution (C4IR) India launched its six-year impact journey report on the inaugural day of the forum.

The report said: “The WEF’s partnership with India spans over four decades. It has fostered collaborative efforts across government, business, academia, and civil society. These partnerships have driven significant initiatives, including AI-driven agricultural programmes, healthcare solutions, and sustainable urban frameworks, resulting in tangible improvements for millions of citizens.

“C4IR India has made notable strides in addressing complex challenges through multi-stakeholder collaboration, improving livelihoods, and providing better access to essential services. With its initiatives now touching the lives of 1.25 million people, it is advancing agriculture, healthcare, and urban development technologies, setting benchmarks for the Fourth Industrial Revolution.

“Looking ahead, the Centre is focusing on cutting-edge areas such as AI, climate technology, and space technologies, with plans to expand its reach to 10 million citizens. Key projects like AI for India 2030, the Space Economy initiative, and the AVIATE (Aviation – Innovation Autonomy and Technology for Everyone) India initiative underscore India’s ambition to leverage technological advancements for societal good and position itself as a digital and innovation space leader.”

According to its Mission Statement, “the World Economic Forum is the International Organization for Public-Private Cooperation. It provides a global, impartial and not-for-profit platform for meaningful connection between stakeholders to establish trust, and build initiatives for cooperation and progress.”