Labor
In many areas of the Middle East, the challenge is twofold: a tight supply of workers per se, given the boom in construction and hospitality; and an echo shortage, perhaps more vexing, of work permits for potential employees from other areas. The cost of getting those work visas for foreign hires is steep, and the regulatory complexities are daunting.
Many restaurant employers turn to contract services instead, which hold thousands of work visas and essentially rent out their human charges for extended periods. They also hold considerable leverage over business employers.
When an American attendee with extensive industry experience asked why restaurateurs in the Middle East don’t recruit locally themselves instead of using such services, he drew a burst of laughter. The locals explained that the logistical realities—the regulatory challenges and labor supply in some areas—make that option nearly impossible.