Young Arabs recognise their own potential; they are focused on completing their education and training to establish successful careers. Alamy
Young Arabs recognise their own potential; they are focused on completing their education and training to establish successful careers. Alamy
Young Arabs recognise their own potential; they are focused on completing their education and training to establish successful careers. Alamy
Young Arabs recognise their own potential; they are focused on completing their education and training to establish successful careers. Alamy


Arab youth unemployment is staggering - but there is a way forward


Sonia Ben Jaafar
Sonia Ben Jaafar
  • English
  • Arabic

April 24, 2023

In the Middle East and North Africa, a paradox emerges: a young and vibrant population faces daunting unemployment rates but remains hopeful of a brighter future.

With more than 65 per cent of people in the region being under the age of 30, according to the last year’s Arab Barometer survey, it is home to one of the world’s largest youth populations. Unfortunately, in 2022, a staggering one third of 15 to 24-year-olds not involved in education or training found themselves jobless, exceeding the global average by 10 per cent.

Despite this disheartening reality and these sobering statistics, young Arabs remain hopeful. The 2022 Arab Youth Survey revealed their belief in more-promising times ahead, anticipating a better life than their parents. They remain optimistic even as they acknowledge the trials, and in some cases, the decline, of their national economies.

So, how can we harness this hope and potential to address the Arab youth-unemployment challenge? The answer lies in leveraging education and training to pave the way for a prosperous future.

Current policy discussions regarding unemployment among young Arabs mainly focus on creating work opportunities, promoting economic development, fostering entrepreneurship and empowering youth. These are undoubtedly important factors that must be addressed. However, it is equally important to recognise the power of education and training in creating more prosperous futures for these young minds. Interestingly, young people themselves recognise this, leading them to be remain optimistic about their prospects.

It is incumbent on society to provide the necessary pathways and opportunities for young Arabs. Sammy Dallal / The National
It is incumbent on society to provide the necessary pathways and opportunities for young Arabs. Sammy Dallal / The National

When asked about their aspirations for the next 10 years, Arab youth gave finishing their education and establishing a successful career as their top priorities. Given that young people are wilfully optimistic and eager to learn and work, it is incumbent on society to provide the necessary pathways and opportunities for them. There are several key elements to consider.

Firstly, technology can revolutionise education, making it accessible, personalised and engaging. Imagine a world where every young person has access to first-class education and training right at their fingertips. Fortunately, in the Mena region, there are several initiatives aimed at supporting this evolution in education.

The TechUp programme, for example, attempts to bridge the digital skills gap that exists between education and the industry’s talent needs by leveraging a “train to hire” framework to develop local human capital for a competitive economy. This programme was launched by the Abdulla Al Ghurair Foundation in collaboration with the private sector to create a pool of talented and job-ready professionals in the region using a fully online platform for learning from Udacity, a US-based education organisation.

Secondly, the future of work demands practical skills and adaptability. This means education must align with the job market's needs, equipping graduates with technical and transferable skills essential for industries like artificial intelligence and renewable energy. Educational institutions must go beyond merely ensuring that students have foundational habits and focus on preparing them for the jobs of the future.

In today's fast-paced world, continuous learning is key to remaining relevant and adaptable

It has always been this way, but now, everyone knows it — degrees are no longer the endpoint of education. A degree may show that you have the grit, stamina and discipline to learn and deliver on that knowledge in a structured and timely manner. In other words, you have the foundations of a professional mindset.

However, in today's fast-paced world, continuous learning is key to remaining relevant and adaptable, knowing that the half-life of new skills has been declining over the past decade. It is important to develop a culture of lifelong learning that allows everyone to progress and advance in their careers, fostering a growth mindset that encourages those who might otherwise feel intimidated by what they do not know.

Global partnerships are vital for growth. The evolution of learning requires enhancing authentic collaborations with institutions across all sectors worldwide. Education should be integrated with businesses, governments, philanthropies, research and development centres, think tanks and more.

By purposefully creating a strong international network that promotes innovation and growth, learners and countries alike can benefit significantly. Together, we can build a more prosperous future not just for the Middle East, but for the world.

Educated, skilled women are also catalysts for economic development. By ensuring equal access to education and training, the region can tap into its full talent pool and drive sustainable growth. According to PricewaterhouseCoopers, increasing the number of women who are employed in the Mena region could increase its gross domestic product by up to $2 trillion. This demonstrates, once again, that genuine inclusion of all members of society benefits everyone.

It is crucial to prioritise education and training for women, especially given that literacy varies within the region. While Jordan and the UAE have above 95 per cent literacy, according to research presented to the US Congress in 2021, Yemen's literacy rate is 55 per cent and Egypt’s is at 65 per cent.

Supporting this vulnerable yet important group requires careful consideration, as the benefits of doing so are impressive.

Investing in education and training that pave the way for opportunities must be the primary focus in finding solutions for both economic empowerment and national development in the region.

Young Arabs recognise their own potential; they are focused on completing their education and training to establish successful careers. Let us work together to transform the region’s youth bulge into a tidal wave of opportunity towards a brighter future for generations to come.

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.”

Fixtures

Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am

Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am

Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am

Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight

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Updated: April 24, 2023, 5:00 AM