Future of Industry: Industrial regeneration is an all-inclusive solution to the migration problem



Aside from the tragedy of war, the main driver of migration is still a lack of opportunities at home. But when the best and brightest minds leave in search of a better life abroad, their home countries lose the talent they need for their economies to grow and societies to flourish. This vicious cycle entrenches the gap between rich and poor countries and causes further migration.

The migration crisis is arguably the single biggest policy challenge facing governments in the 21st century. The long-term answer to this is economic. Only economic regeneration will create the jobs and opportunities needed to close the gap between the world’s rich and poor, and industry must spearhead that regeneration.

Manufacturing and technological innovation are the lifeblood of modern economies. Across the world, manufacturing industries account for 8 to 10 per cent of all jobs – employing 500 million people – and about 17 per cent of the world’s economic output. Industry creates employment and wealth by converting investment into income.

Addressing the long-term challenge of economic migration is one of the main objectives of the first Global Manufacturing and Industrialisation Summit (GMIS), which is being held this week in Abu Dhabi.

Hosted by the UAE Government and the United Nations Industrial Development Organisation, GMIS was endorsed by the former UN secretary general Ban Ki Moon to be the world’s first global gathering for the manufacturing community, bringing together more than 1,000 leaders in business, government and civil society. The aim is to create a forum that finds solutions to global challenges of stagnant economies, diminishing natural resources and rapid population growth. It is about taking a transformational approach for global manufacturing that enables it to meet the needs of the global economy – and the world’s citizens – over the coming decades. There is a fear that automation could increase the economic divide between rich and poor countries, as computers and machines replace workers across a spectrum of industries. It is our responsibility to ensure that the “creative disruption” of the Fourth Industrial Revolution, led by the Internet of Things, does not entrench the gap between rich and poor. We must ensure that it spurs a new renaissance in manufacturing and job creation across the world by drastically improving the efficiency of business and organisations to spur further growth and development, responsibly and sustainably.

To achieve this, business leaders must begin questioning everything, from rethinking their strategies and business models, to uncovering the right investments in research and development.

Meanwhile, cooperation is needed between government, education and innovative employers to ensure that young people have the training, skills and education they need. Nothing can be more disruptive to any economy than unemployment, especially when the victim is young and educated.

This lack of opportunity is not only a challenge for the poorer south, but also the more affluent north. Long-term unemployment in the UK, US and other wealthy countries has been caused, in large part, by the collapse of industries which have not yet been replaced. This, in turn, has been a cause of political and social volatility on both sides of the Atlantic.

The premise of GMIS is that the Fourth Industrial Revolution will be at the heart of prosperity in all countries. It could enable industrialising countries to accelerate the growth of their manufacturing sectors, and enable the UK, and others, to replace the industries of the past with data and internet-driven manufacturing bases that match the growing pool of internet-savvy graduates.

Unlike the G20 or World Economic Forum, GMIS will bring together the entire spectrum of manufacturing, spanning low-tech and high-tech industries and encompassing both the developed world and fast-emerging economies with nascent manufacturing sectors.

As Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, said last December: “In this era of the Fourth Industrial Revolution, the UAE has chosen to be at the forefront of this revolution. Our role in this is essential, at both regional and global levels.”

Previous waves of technological revolution have concentrated the rewards in the hands of a small elite. Our challenge is to ensure that no country, region or person is left behind.

Badr Al Olama is the Chief executive of Strata Manufacturing

business@thenational.ae

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

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Company name: Namara
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Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices

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Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
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Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

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Company name: Almouneer
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Founders: Dr Noha Khater and Rania Kadry
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Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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WHAT MACRO FACTORS ARE IMPACTING META TECH MARKETS?

• Looming global slowdown and recession in key economies

• Russia-Ukraine war

• Interest rate hikes and the rising cost of debt servicing

• Oil price volatility

• Persisting inflationary pressures

• Exchange rate fluctuations

• Shortage of labour/skills

• A resurgence of Covid?

Checks continue

A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.

Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.

Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.