A recent report by Source Global Research highlights a skills shortage across various tax specializations in the Middle East. According to the report, the tax market in the Middle East is expected to grow by 13% to $758 million, surpassing the 3% growth forecast for North America and Europe. This expansion reflects increased demand for tax advisory services as Gulf nations introduce new taxes to diversify their economies.
In recent years, the UAE implemented a 9% corporate tax and introduced a 5% value-added tax in 2018, along with excise taxes on tobacco and sugary beverages. Oman is planning to introduce personal income tax, marking a first for Gulf countries, which have traditionally avoided individual income taxes.
Tony Maroulis, principal consultant at Source Global Research, remarked on the robust growth potential for tax advisory services in the region. “In addition to strong growth in the Middle East, we expect to see a bounce back in tax advisory growth across all regions in 2025,” he said. “The plethora of crises over recent years has been challenging for companies, but we expect investment to return by 2025, with tax advisory services growing around 6%.”
The increasing tax requirements in the GCC are fueling demand for tax consultancy services, with executives suggesting this trend will continue as more tax measures are rolled out in the region.
However, skill shortages in critical tax areas pose a challenge. The report found that 41% of companies cited a shortage of in-house and external skills in global employer/mobility tax services. Firms also reported skill gaps in emerging tax areas, such as environmental taxes, with only 25% of companies not highlighting a shortage in this field.
“As the global tax environment becomes more complex, multinational organizations want to ensure they minimize the risk of missing key regulations,” Maroulis explained. “Whether or not companies are directly affected by environmental taxes now, tax advisors will need expertise in this area to provide a full suite of services. Demand for tax advisory is unlikely to slow down for the next three years.”
To address the skill shortage, companies are likely to invest in training staff or leveraging in-house resources to meet rising tax advisory needs, ensuring they remain competitive in the evolving market.
