With the rapid integration of technologies like artificial intelligence in the labour market, the Arab region is at a critical turning point that requires a shift towards economic diversification. At the heart of this shift is the need for a diversified skill set that sets the foundation for economic resilience, competitiveness and inclusive growth. The present report addresses the issues hindering economic diversification in the Arab region and the challenges that the region faces in the process of skills diversification. It showcases the most recent findings of the ESCWA Skills Monitor, highlighting the skills that are most in demand and those that are becoming obsolete while analysing whether the type of skills and jobs demanded in the region address the needs of the fourth industrial revolution and the new era. The report also introduces the Skill Demand Diversity Scores, which consist of four components that are used to assess the diversity of skill demand. [ESCWA website].

72 p. : ill., graphs, tables