Middle East: 2025 Mid-Year Hospitality Workforce Trends and Challenges

Mid-year 2025 analysis of Middle East hospitality workforce: employment trends, skills gaps, and regional workforce shifts.

The first half of 2025 has seen the Middle East hospitality sector navigating a period of accelerated recovery and strategic expansion. Rising international arrivals, continued investment in hotel and resort infrastructure, and the growth of niche segments such as MICE, eco-tourism, and high-end leisure have created new workforce demands across the GCC countries and Egypt.

This context of growth occurs alongside persistent structural challenges: a heavy reliance on expatriate staff, uneven skill distribution, and the gradual integration of national employees through Saudisation, Emiratisation, Omanisation, and similar programs. Workforce pressures—ranging from skill shortages in managerial, technical, and multilingual roles to turnover in key operational positions—are shaping staffing priorities and operational strategies across the region.

H1 2025 data reveal not only the scale of these trends but also the interplay between policy, investment, and labor market dynamics, providing insight into the challenges and opportunities that define the Middle East hospitality workforce at mid-year.

Sector Size and Structure

– Workforce Scale and Trends

The hospitality workforce across the Middle East continued to expand in H1 2025, reflecting both rising inbound tourism and strategic investments in hotel and leisure infrastructure. GCC countries led this growth, with Saudi Arabia recording the largest absolute increase. According to GASTAT and the Ministry of Tourism Q2 2025, direct employment in accommodation and food-service activities rose by 8.7 % year-on-year, driven by openings in Riyadh, Jeddah, and emerging tourism zones under Vision 2030. The UAE maintained robust mid-year growth as well; FCSC and DET mid-year reports indicate a 5.5 % increase in workforce numbers, with high occupancy in Dubai and Abu Dhabi sustaining demand for both front-line and managerial staff. Qatar’s hospitality sector also expanded, with employment in hotels and F&B outlets rising in line with its MICE and convention-driven tourism, although exact mid-year figures are consolidated at the national planning level. Oman reflected similar upward trends, with the Ministry of Heritage and Tourism reporting growth in licensed hospitality establishments, translating into an estimated increase in operational staff.

Bahrain and Kuwait exhibited moderate but steady employment gains. LMRA Q1 2025 shows roughly 56,000 hospitality workers in Bahrain, while Kuwait’s Ministry of Commerce reports a rising number of licensed hotels and restaurants contributing to incremental workforce demand. Egypt, as a non-GCC anchor market, benefited from strong international arrivals during H1 2025, with CAPMAS and the Ministry of Tourism noting a measurable increase in hotel employment, particularly in coastal and heritage destinations such as Sharm El Sheikh, Hurghada, and Luxor. Across these countries, the workforce remains heavily expatriate, particularly in technical and operational roles, while nationalization initiatives—Saudisation, Emiratisation, and Omanisation—gradually increase the share of local employees, particularly in front-office and administrative positions.

Overall, H1 2025 reflects a region-wide expansion of the hospitality workforce, both in scale and scope. GCC countries and Egypt collectively exhibit rising employment numbers, yet with differentiated patterns: Saudi Arabia and the UAE lead in absolute growth, Qatar and Oman show targeted expansion in niche segments, and Bahrain, Kuwait, and Egypt contribute smaller but steady increments. The interplay of high expatriate reliance, nationalization programs, and sector-specific demand underpins both the opportunity and the challenge for workforce planning in the remainder of 2025, setting a foundation for the subsequent analysis of enterprise composition and economic contribution.

– Enterprise Composition

The Middle East hospitality sector continues to be dominated by private operators, which collectively account for the majority of hotels, resorts, and food-service establishments across the GCC and Egypt. In Saudi Arabia, new Vision 2030 tourism zones have seen both international hotel chains and local operators increase their presence, with private enterprises driving the bulk of accommodation capacity, while government-backed projects remain focused on flagship resorts and heritage developments. The UAE presents a similar structure, with private companies operating across luxury, mid-tier, and economy segments, and government-linked entities primarily managing high-profile resorts and convention centers in Dubai and Abu Dhabi.

Qatar and Oman have pursued targeted investment strategies that emphasize niche tourism segments. In Qatar, MICE-focused hotels and high-end leisure properties are predominantly private, with selective government facilitation to attract international conferences. Oman’s Ministry of Heritage and Tourism reports that licensed private establishments account for the majority of operational rooms, reflecting a market where government entities intervene mainly through regulatory oversight and infrastructure support rather than direct operations.

Bahrain and Kuwait maintain smaller hospitality markets but show a similar private-sector predominance. LMRA H1 2025 data indicate that Bahrain’s workforce is largely concentrated in privately run hotels and restaurants, while Kuwait’s Ministry of Commerce reports an increase in privately managed mid-range hotels catering to both business and leisure travel. In Egypt, tourism growth has been driven by private operators along coastal resorts and heritage sites, though the Ministry of Tourism continues to coordinate major restoration projects and high-profile destination hotels.

Across the region, enterprise composition reflects not only ownership structures but also functional specialization. Luxury and MICE segments are typically led by international chains, while domestic and regional operators dominate mid-tier and economy offerings. Government involvement generally targets strategic, high-visibility properties, aligning with broader economic diversification and branding objectives. This mix of private and public influence shapes workforce needs, investment flows, and operational priorities, establishing the foundation for the sector’s economic contribution in H1 2025.

– Economic Contribution

Hospitality and tourism continue to make a measurable contribution to the Middle East’s economies, both in GDP terms and employment impact. According to the WTTC 2025 Economic Impact Report, travel and tourism accounted for 10.3 % of regional GDP in H1 2025, up from 9.6 % in H1 2024, reflecting strong recovery across core markets. Saudi Arabia posted the largest absolute increase, with tourism GDP rising 11.5 % year-on-year, supported by newly opened hotels, resort zones, and cultural destinations under Vision 2030 (GASTAT and Ministry of Tourism Q2 2025).

The UAE’s contribution remains significant, with accommodation and food-service activities representing 6.7 % of total employment (FCSC/DET H1 2025) and high occupancy levels sustaining strong revenue flows. Qatar’s hospitality segment benefits from MICE and high-end leisure tourism, while Oman has increased its economic footprint through growth in licensed establishments and expanded capacity in Muscat and coastal resorts. Bahrain and Kuwait contribute smaller but proportionate shares, with workforce expansion and hotel openings translating directly into economic value, particularly in urban centers.

Egypt, as a major non-GCC market, reflects the impact of inbound international tourism on coastal and heritage destinations. CAPMAS and the Ministry of Tourism H1 2025 report rising hotel occupancy and increased employment, contributing to broader service-sector GDP and foreign exchange inflows. Across all seven countries, the combined effect of growing arrivals, new hotel capacity, and workforce expansion underscores the sector’s role as a driver of economic diversification, non-oil growth, and employment generation in H1 2025.

These patterns establish a mid-year baseline for the Middle East hospitality sector: a workforce of growing scale, dominated by private enterprises, concentrated in high-value segments, and generating measurable economic contribution. Together, these structural and economic indicators provide the context for examining workforce dynamics, skill requirements, and vacancy pressures in the following chapters.

Employment Trends and Dynamics

– Employment Levels and Distribution

The hospitality sector workforce across the Middle East demonstrated steady growth in H1 2025, with employment levels reflecting the region’s ongoing tourism recovery and capacity expansion. Saudi Arabia registered the largest absolute workforce increase, with GASTAT and the Ministry of Tourism Q2 2025 reporting an 8.7 % year-on-year rise in accommodation and food-service employment, driven by openings in Riyadh, Jeddah, and emerging tourism zones under Vision 2030. The UAE followed with a 5.5 % increase (FCSC/DET mid-year report), where high occupancy rates in Dubai and Abu Dhabi maintained demand across luxury, mid-tier, and resort segments. Qatar and Oman exhibited moderate growth, linked to MICE tourism and resort development, although national mid-year figures consolidate sector-wide estimates rather than precise establishment-level counts.

Bahrain and Kuwait contributed smaller but measurable increments, with LMRA Q1 2025 indicating roughly 56,000 hospitality employees in Bahrain, while Kuwait’s Ministry of Commerce reports workforce expansion associated with new licensed hotels and restaurants. Egypt, reflecting strong international arrivals in coastal and heritage destinations, experienced workforce increases, particularly in front-office, food-service, and housekeeping roles (CAPMAS and Ministry of Tourism H1 2025).

Distribution across sectors remains relatively consistent. Accommodation and food-service activities employ the bulk of staff, while ancillary services such as event management, tourism support, and hospitality training programs account for smaller shares. Regional averages suggest that accommodation roles typically represent 55–60 % of total hospitality employment, with F&B staff making up 35–40 %, although country-specific variations occur due to product mix, occupancy levels, and service segmentation.

Overall, H1 2025 highlights not only rising employment levels but also the structural distribution of roles across the sector. Growth is concentrated in high-demand urban centers and tourist hotspots, while smaller markets experience incremental increases, establishing a baseline for examining labor pressures and workforce evolution in the next subcategories.

– Labor Market Pressures

Despite overall workforce growth, hospitality operators in the Middle East faced notable labor market pressures during H1 2025. Skill shortages were evident across several countries, particularly in mid-level managerial, technical, and multilingual front-office roles. In Saudi Arabia, GASTAT and Ministry of Tourism Q2 2025 indicate that while employment increased, high-demand positions such as certified chefs, supervisors, and front-office managers remained difficult to fill, reflecting the pace of sector expansion outstripping the available skilled labor pool.

The UAE experienced similar challenges, with FCSC/DET mid-year reports noting a continued reliance on expatriate staff for operational and specialist positions, despite ongoing Emiratisation initiatives. Vacancy rates in certain luxury and MICE-focused hotels were reported to range between 3–5 %, concentrated in technical and managerial roles, indicating a tight labor market. Bahrain’s LMRA H1 2025 data corroborate this trend, highlighting shortages in culinary and supervisory positions, while Qatar’s MICE-driven hotel sector also reported intermittent vacancies for multilingual staff, though precise figures are consolidated at the national level.

Oman and Kuwait showed moderate labor pressures, primarily in technical and mid-level supervisory roles, linked to ongoing hotel openings and resort expansions. In Egypt, workforce pressure was most pronounced in coastal resorts, where peak-season preparation created temporary demand spikes in housekeeping, F&B, and front-office staff. Overall, H1 2025 patterns reveal that while total employment is rising, skill gaps and targeted vacancies continue to challenge operational continuity, particularly in specialized and high-value segments.

These pressures underscore the importance of strategic recruitment, targeted training programs, and regional labor mobility, establishing the context for examining the sector’s workforce evolution in the next subcategory.

– Workforce Evolution

The composition of the hospitality workforce across the Middle East continued to evolve during H1 2025, reflecting nationalization policies, gender participation trends, and reliance on expatriate labor. Saudi Arabia demonstrated measurable progress in Saudisation, with GASTAT Q2 2025 reporting that roughly 27 % of accommodation and food-service employees were Saudi nationals, up from 25 % in H1 2024. Similarly, the UAE’s Emiratisation programs resulted in modest increases in local employment, particularly in mid-tier hotels and administrative roles, although expatriates continue to account for the majority of technical and operational positions (FCSC/DET H1 2025). Oman saw incremental gains under Omanisation initiatives, largely concentrated in supervisory and front-office functions, while Bahrain and Kuwait maintained high expatriate ratios, reflecting the limited local talent pool in hospitality.

Female workforce participation remains limited but gradually increasing across the region. H1 2025 data indicate participation rates of 18–22 % in GCC countries, with most women employed in front-office, administrative, or guest relations roles. In Egypt, female participation is slightly higher in urban resorts and tourist hubs, particularly in administrative, housekeeping, and service roles (CAPMAS and Ministry of Tourism H1 2025).

Overall, H1 2025 illustrates a workforce that is both expanding and slowly diversifying. The interplay between nationalization efforts, expatriate dependency, and gender inclusion reflects broader structural and policy-driven changes, shaping labor dynamics for the remainder of 2025. These evolving patterns inform strategic workforce planning, recruitment, and training priorities across all seven countries in the region.

Skills, Vacancy Rates, and Workforce Composition

– Training and Upskilling Challenges

The Middle East hospitality sector in H1 2025 faced persistent pressures to upskill and certify its workforce in line with rapid sector expansion. Across the GCC, skill gaps remain particularly pronounced in mid-level managerial roles, culinary operations, and multilingual front-office positions. In Saudi Arabia, GASTAT and the Ministry of Tourism Q2 2025 highlight that while workforce numbers increased by 8.7 % YoY, certified culinary staff and supervisors remain limited, creating operational bottlenecks in newly opened hotels and resort zones under Vision 2030.

The UAE also experienced similar pressures. FCSC/DET H1 2025 reports indicate a rising need for specialized training programs in both luxury and mid-tier properties, particularly for front-office staff, culinary teams, and technical positions in resort and convention segments. Qatar’s MICE-focused hotels face intermittent skill shortages, especially among staff fluent in multiple languages, while Oman and Bahrain are expanding vocational and hospitality training initiatives to close gaps in supervisory and operational roles. Bahrain’s LMRA H1 2025 data reflect targeted upskilling programs for culinary and management tracks, though coverage remains limited relative to market demand.

Egypt, as a significant non-GCC market, mirrors these pressures, with CAPMAS and the Ministry of Tourism H1 2025 reporting workforce upskilling focused on high-season resort operations, front-office efficiency, and F&B technical standards. Across all seven countries, training and certification initiatives are increasing, but mid-year data suggest that the pace of skill development continues to lag behind sector growth, highlighting an urgent need for structured programs and partnerships with vocational institutions.

In summary, H1 2025 underscores that workforce expansion alone is insufficient without parallel investments in skills and certifications. Training and upskilling pressures are a cross-cutting challenge for operators in Saudi Arabia, UAE, Qatar, Oman, Bahrain, Kuwait, and Egypt, directly affecting service quality, operational efficiency, and workforce resilience for the remainder of 2025.

– Retention and Turnover Dynamics

Hospitality operators across the Middle East continue to face retention challenges, particularly in high-demand roles where skill shortages coincide with competitive labor markets. Saudi Arabia’s GASTAT and Ministry of Tourism Q2 2025 reports highlight that turnover remains highest among mid-level supervisory staff and culinary teams, with many employees moving between hotels within urban centers or resort zones to capitalize on better compensation or career development opportunities.

The UAE exhibits similar dynamics. FCSC/DET H1 2025 data indicate that expatriate staff in luxury and MICE-focused hotels account for a significant portion of annual turnover, while Emiratisation programs have led to slightly improved retention among local employees in administrative and front-office roles. Qatar’s sector shows intermittent turnover pressures, particularly in hotels servicing conventions and international events, though data are aggregated at the national level. Oman, Bahrain, and Kuwait report moderate turnover, primarily concentrated in operational and mid-tier F&B roles, with LMRA H1 2025 noting that retention programs are still developing and often tied to training or contract benefits.

In Egypt, workforce retention challenges are influenced by seasonal peaks in coastal resorts and heritage destinations, with turnover concentrated in housekeeping, F&B, and front-office roles. CAPMAS and Ministry of Tourism H1 2025 emphasize that retention strategies, including skill development, structured career paths, and incentive programs, remain critical to sustaining workforce stability.

Overall, mid-year 2025 data suggest that while employment levels are rising, turnover and retention pressures are a persistent operational challenge across the GCC and Egypt. Operators must balance competitive recruitment, training investments, and nationalization initiatives to maintain workforce continuity and service quality in an expanding hospitality sector.

– Forward View

Mid-year 2025 trends in the Middle East hospitality sector provide insight into the evolving composition, skill requirements, and operational pressures of the workforce. Across GCC countries and Egypt, the combination of rising employment levels, targeted nationalization programs, and persistent skill gaps suggests that operators will need to continue prioritizing structured training, upskilling, and retention measures to maintain service quality and operational efficiency.

The H1 2025 data reveal a sector increasingly dependent on expatriates for technical, operational, and multilingual roles, while local workforce integration is gradually progressing under Saudisation, Emiratisation, Omanisation, and similar programs. Countries such as Saudi Arabia and the UAE show measurable increases in local employment, particularly in administrative and mid-tier hotel roles, while Qatar, Oman, Bahrain, Kuwait, and Egypt rely heavily on expatriates for front-line and specialized functions.

Skill shortages, mid-level supervisory vacancies, and turnover remain salient pressures. Upskilling programs, vocational partnerships, and workforce planning strategies are therefore central to addressing these gaps, particularly in high-demand segments such as culinary, front-office, and MICE-focused operations. Seasonal fluctuations in Egypt and selected GCC resort markets further highlight the need for flexible workforce management approaches.

While H1 2025 provides only a mid-year snapshot, the observable patterns point to a workforce landscape that is simultaneously expanding, diversifying, and under pressure in key skill areas. These trends frame operational priorities for the remainder of 2025, emphasizing areas for monitoring, structured intervention, and policy alignment across all seven countries without assuming outcomes beyond the available data.

Conclusion

By mid-2025, the Middle East hospitality sector—including GCC countries and Egypt—has continued to expand in both capacity and workforce, though growth patterns vary depending on national labor policies, investment flows, and market specialization. Expatriates remain central to operations, while integration of local employees progresses gradually under programs such as Saudisation, Emiratisation, and Omanisation. Skill gaps persist in managerial, technical, and multilingual roles, and vacancy pressures in specific segments suggest that workforce readiness may not yet fully match sector growth.

Several questions arise for operators, policymakers, and training institutions. Will current national workforce integration programs keep pace with rising demand in mid- to high-tier hotels? Can training initiatives in culinary, supervisory, and digital skills scale effectively across countries with differing labor supply structures? How will specialized segments, such as MICE tourism in Qatar or eco-tourism in Oman, shape staffing and skill priorities?

The H1 2025 data also point to broader structural considerations. To what extent can regional collaboration, knowledge transfer, and shared best practices address common challenges, including high turnover, expatriate dependency, and uneven skill distribution? How might labor policy changes in one country influence neighboring markets with similar workforce compositions?

These questions frame the sector’s mid-year landscape, inviting stakeholders to observe, evaluate, and adapt without assuming a fixed trajectory. The patterns identified in H1 2025 provide a reference point for the second half of the year, highlighting areas where monitoring and proactive planning may be most valuable, while acknowledging the limits of what can be inferred from available data.