Alexander Tsatsaronis studied for a diploma in hospitality and commercial cookery at Dubai’s International Centre for Culinary Arts. Antonie Robertson / The National
Alexander Tsatsaronis studied for a diploma in hospitality and commercial cookery at Dubai’s International Centre for Culinary Arts. Antonie Robertson / The National
Alexander Tsatsaronis studied for a diploma in hospitality and commercial cookery at Dubai’s International Centre for Culinary Arts. Antonie Robertson / The National
Alexander Tsatsaronis studied for a diploma in hospitality and commercial cookery at Dubai’s International Centre for Culinary Arts. Antonie Robertson / The National

Closing the skills gap in the UAE


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Alexander Tsatsaronis, 19, left Greece in 2012 to study for a diploma in hospitality and commercial cookery at Dubai’s International Centre for Culinary Arts.

Since then, he has had work experience at five-star hotels in Jebel Ali, catered for 900 people at the Grand Hyatt Dubai and landed a job at The Address Dubai Marina as a commis chef.

“Dubai is the biggest place in hospitality at the moment,” he said. “You get a lot of work exposure.”

His story is just one of many illustrating how, as the UAE’s economy grows, demand for skilled workers is increasing rapidly.

“It’s easy to make a capital investment and to build a great hotel, said Sunjeh Raja, the managing director at the International Centre for Culinary Arts (ICCA). “But manning and running it is a big, daunting task. In the hospitality sector, the biggest difficulty has been finding skilled people to work. It’s an absolute challenge in every hotel. Everybody is short-staffed.”

But the problem is not unique to the hospitality sector. Skills shortages are proving a headache for healthcare providers, as booming demand for medical care is generating a dire need for life sciences graduates, according to a recent report by Deloitte and Tecom. It is a pattern that is being replicated in key industries across the economy.

“The Gulf’s unique challenge is the size of demand for labour, and the skill gap. There’s a clear mismatch between [new] graduates and the skills needed,” said Sanjay Modi, the managing director for the Middle East and North Africa at Monster.com, the recruitment website.

This mismatch is “a global issue”, said Markus Weisner, the chief executive of Aon Hewitt Middle East.

But the issue is serious in the Arabian Gulf because some industries face particularly serious staffing crunches, while others are unpopular with regional school leavers.

“There are shortages of health, engineering, mechanical and high-tech skills,” said Mr Weisner. He also highlighted a “cultural issue” where some industries, including building and engineering, are often regarded as less desirable career paths.

“You’re seeing very few carpenters, plumbers, nurses and car mechanics that have been educated here,” he says. As Mr Raha points out, you also see very few Emirati chefs.

As the UAE moves towards its aim of building a knowledge-based economy, the country needs all the skilled graduates it can get.

“The region will throw up a lot of opportunities,” says Rob Melville, who teaches corporate governance at Cass Business School, part of City University London. “The challenge is, how do you get Emiratis and the education system involved?”

For Ayoub Kazim, the managing director of Tecom’s education cluster, which operates Dubai International Academic City and Dubai Knowledge Village, one answer is increased participation in vocational training, with more Emiratis taking courses such as the one Mr Tsatsaronis took.

“We face many challenges when it comes to the mindset of Emiratis when it comes to vocational education,” said Mr Kazim. There’s a stigma affecting vocational training, he said. Although university is not suited to everyone, only 3 per cent of students in the UAE undertake vocational training.

He points to the Government’s establishment of new applied institutes and a new policy that means unsuccessful university applicants will be able to enrol in vocational courses instead.

Career guidance needs to play a bigger role in helping Emiratis make decisions about their futures.

Students “don’t have awareness of market expectations, what the job market is like or expectations for particular sectors. We need to focus on this much more”, said Mr Kazim.

“The selection of education is not driven by what future career prospects exist in specific fields,” he said.

Analysts believe more needs to be done to develop career decisions throughout secondary and tertiary education.

“Career choices are decided at the high school level. After that you’re pretty much on your track,” said Charu Dhingra, a senior consultant at Aon Hewitt.

The government needs “to work with families and schools to encourage choices to be made in the right direction,” she said.

It is also vital to improve collaboration between universities and industry, Mr Weisner argues.

“[It’s] disjointed in terms of expectations, what should be taught and what students should learn,” he said.

“We need to bring business closer to education,” said Mr Modi. “[Universities] need to look at what kind of graduates they’re producing and what kind of curriculum they use.”

“The purpose of education is to get a better livelihood – if you don’t get a job at the end of it, it defeats the purpose,” he said.

Industry should be closely involved with writing course curricula and hiring faculty, said Mr Kazim. “We need to engage ... industries, staff and parents.”

Mr Raha said the ICCA involves hotels and restaurants in deciding what skills new chefs acquire.

Work experience placements are also vitally important to acclimatise students to the world of work – but are less common in the UAE than elsewhere.

“The big nut to crack is going to be internships,” said Mr Melville.

“The very best positions for graduates go to people who have done internships,” he said. “It’s been pretty obvious for a long time that, in some industries, if you don’t get the work experience as a student you’re unlikely to get it afterwards,”

“With internship programmes, you can pick up and invite people into organisations, and you can see how students are changing, adapting, and learning,” adds Mr Modi.

Internships seem to work, if Mr Tsatsaronis is any indication. All of the students in his course who took work placements found employment at five-star hotels in Dubai.

Placements give you “a much more realistic idea about how the industry is”, he said. They “tell you how to behave inside a kitchen, how you should work, the workflow you should have and the attitude you should have in the kitchen”.

But the UAE will not benefit from Mr Tsatsaronis’s skills indefinitely. He plans to open a restaurant in Europe.

“If you to go back to Greece with experience of a five-star hotel in Dubai … well, it’s really nice to have that on your resume,” he said.

abouyamourn@thenational.ae

if you go

The flights

Flydubai flies to Podgorica or nearby Tivat via Sarajevo from Dh2,155 return including taxes. Turkish Airlines flies from Abu Dhabi and Dubai to Podgorica via Istanbul; alternatively, fly with Flydubai from Dubai to Belgrade and take a short flight with Montenegro Air to Podgorica. Etihad flies from Abu Dhabi to Podgorica via Belgrade. Flights cost from about Dh3,000 return including taxes. There are buses from Podgorica to Plav. 

The tour

While you can apply for a permit for the route yourself, it’s best to travel with an agency that will arrange it for you. These include Zbulo in Albania (www.zbulo.org) or Zalaz in Montenegro (www.zalaz.me).

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The biog

Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages

Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”  

Favourite food: “I'm a vegetarian, so I can't get enough of salad.”

Favourite film:  “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”

Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”

Company profile

Name: Oulo.com

Founder: Kamal Nazha

Based: Dubai

Founded: 2020

Number of employees: 5

Sector: Technology

Funding: $450,000

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