Remote work is actively transforming workplaces in the Middle East. Once a solution to the pandemic, companies are now adopting this work model as a strategy to attract a global workforce at a lower cost.

In the UAE, Saudi Arabia, and Qatar, companies are reshaping talent acquisition and workforce models centered on flexibility, digital-first practices and access to global talent pools.

A Gulf Talent survey shows that approximately 18% of employees across the GCC now work remotely or in hybrid arrangements, with the UAE leading at around 21%.

This strategic shift has also been reflected in employee expectations. A recent Bayt.com analysis found that 98% of employers in the UAE are exploring or adopting flexible work models, while 72% of professionals across the MENA region say flexibility is a decisive factor when evaluating job offers.

Regional governments are reinforcing this momentum through national strategies focused on economic diversification, digital transformation, and more adaptable labour markets.

A COST-EFFECTIVE STRATEGY

The regional job market is already changing, with companies realizing they can achieve the same results for a fraction of the cost, leading to restructuring efforts to widen their talent pool, says Zeta Yarwood, Founder of Zeta Yarwood Coaching. This causes multiple problems, including driving down salaries for local talent and increasing competition for once-secure roles. It also forces local talent to level up, because “average” isn’t enough anymore.   

“The people who will survive this shift are the ones who can do what a cheaper remote worker can’t do: manage stakeholders, navigate local culture, drive strategy, and influence internally. Technical skills alone won’t keep you competitive.”

While the region is still largely traditional in its approach, with a mix of remote and in-office models, Raza Adil, a C-level advisor, digitalization strategist, and career coach, says that post-pandemic structures have undergone significant shifts, with many major organizations now allowing one work-from-home day per week. He also says that remote work is often more widespread in sectors like IT. 

“The demand for low-cost remote labor is reshaping the job market. Companies are cutting costs by remote jobs, gaining cost-efficiency and access to global talent,” Adil says. “However, this trend also fundamentally alters the workforce by introducing ethical questions around wage disparity and risking talent drain from other regions.”

COMPENSATION FAIRNESS

Zeina Ahmed, a marketing specialist who has worked remotely for three years, says she is being underpaid compared with her peers on the same team, and that’s not because of differences in workload or responsibilities. While some of her coworkers have more on-ground tasks, she says the disparity does not justify the wide pay gap.

When Ahmed raised the issue and requested a substantial salary adjustment, she was told that the cost of living and average salary levels in her country of residence did not warrant a higher raise.

“It feels unfair. I’m doing the same amount of work as my peers, but I’m paid less just because I work remotely. It doesn’t help that HR employees who live abroad don’t truly understand the economic reality of where you live.”

Ahmed says she feels stuck “between a rock and a hard place”: undercompensated, yet facing a competitive job market with limited alternatives and little leverage in salary discussions.

Yarwood says this organizational strategy raises ethical questions. 

“Paying someone significantly less simply because they live somewhere cheaper doesn’t sit well with most people, especially when they’re doing the same job,” she says, adding that many companies are plagued with pressure to not think about fairness but about budget cuts and keeping shareholders happy. 

“The danger is when businesses use ‘cost of living differences’ as a blanket excuse to undervalue skill,” she adds. “If someone is delivering the same output and carrying the same responsibility, paying them one-third of the salary purely based on geography is hard to justify morally, even if it’s legal.”

Adopting a cost-cutting approach to hiring remote workers creates a significant risk related to fairness and wage disparity, ultimately leaving a negative impact on an organization’s long-term brand image, says Adil.

“This system essentially creates an unwinnable salary war for local talent, making it impossible for them to build sustainable careers. The Middle East cost of living is already increasing exponentially,” he adds. “Once employers start benchmarking salaries for roles based on what they pay for remote workers, the locally based talent will be paid much lower than what they need to meet their living expenses, hence causing lots of financial and mental stress for the local workforce.”

He adds that organizations must pivot away from merely cost-cutting and invest in the strategic upskilling and reskilling of their existing local workforce to secure long-term success.

THE RISK OF BRAIN DRAIN

Although the new strategy provides access to a global talent pool with diverse skills and perspectives, experts say that if people feel undervalued or easily replaceable, they leave. “It’s that simple,” says Yarwood. “High-performing talent won’t stay in a market where their salaries are being squeezed, and career progression slows.”

Employees are increasingly seeking global remote roles that offer higher pay and better growth opportunities. However, if this trend continues, Yarwood warns that the region risks losing the very people needed to drive leadership and innovation.

“Companies save money now, but they pay for it later when they can’t attract or retain strong talent.”

On the other hand, Adil believes that significant brain drain is unlikely to happen, pointing out that a large portion of the region’s expatriate workforce has already left their home countries. Instead, he suggests that many will attempt to return home or move to markets that offer different advantages.

“While the Middle East has been generally a better-paying market comparatively, it doesn’t offer any long-term immigration or residency options, and it’s already becoming expensive enough for expats to not be able to save much.”

He notes that once the perception of the Middle East as a reliable destination for substantial salaries and manageable costs fades, potential candidates may stop considering the region altogether. This could disrupt the workforce, he warns, since most countries, apart from Saudi Arabia, rely heavily on expatriate labor, with nationals accounting for 15% or less of the total population.

TRANSPARENCY IS CRUCIAL

Ahmed says that transparency is more crucial than organizations realize. “Companies don’t realize that salary-sharing is now more common, especially among younger workers. People no longer believe it’s taboo to disclose what they make, instead, they find it to be a tool to feel more empowered and knowledgeable when breaching compensation discussions with HR.”

Similarly, Yarwood emphasizes that companies should be upfront about how salaries are calculated across regions. She also highlights the need for reasonable pay alignment, where identical pay is not required, but fairer ranges for equal roles should be ensured.

Adil states that ensuring ethical remote work practices across borders requires the implementation of strategic and governance frameworks focused on sustainability and local market health. This framework must specifically address the social component of cross-border labor practices. “A Wage Parity Policy must be established to address the ethical questions around wage disparity and prevent companies from incurring long-term brand damage.“

He adds that policies must also prioritize the financial stability of the local workforce. A strict fair benchmarking policy is needed to prevent employers from benchmarking local salaries against what they pay remote workers.

“This is crucial to avoid causing financial and mental stress for local talent due to the exponentially increasing Middle East cost of living. To protect the domestic talent pool, localization alignment policies must prioritize locally available talent.”

For secure long-term success, experts say talent retention and development must be taken seriously. To further support stability and strengthen long-term retention, a visible career succession plan would encourage more employees to stay. Adil adds that policies should be aligned with localization targets, demonstrating a commitment to the region’s broader human capital strategy.