Over the past decades, Gulf Cooperation Council (GCC) countries have relied on foreign labour to advance their economic growth, leading to a significant migrant population. However, fluctuating oil prices since 2008 have impacted economic performance and migration trends, prompting GCC states to diversify away from hydrocarbons to address declining oil reserves. In this context, countries like Qatar and Saudi Arabia are competing to attract highly skilled labour to support their transition to knowledge-based economies. To facilitate this, GCC states have implemented various reforms to their kafala systems, aiming to achieve desired migration outcomes. The chapter explores the complex relationships between economic shifts, global trends, and evolving skills requirements in these nations, particularly focusing on how oil price fluctuations, policy reforms, and technological advancements shape the labour market. It analyses important policy reforms such as labour market nationalization and visa regulations while highlighting initiatives to attract skilled labour. Additionally, the chapter addresses the challenges of upskilling national workforces and maintaining demographic balance, as well as the impact of technological advancements on employment structures and skill adaptability, recognizing both opportunities and challenges in this transformation.