In the Levant, 71 per cent of youth say their country is going in the wrong direction. AFP
In the Levant, 71 per cent of youth say their country is going in the wrong direction. AFP
In the Levant, 71 per cent of youth say their country is going in the wrong direction. AFP
In the Levant, 71 per cent of youth say their country is going in the wrong direction. AFP


Arab Youth Survey 2023: What is behind the gap in optimism across the region?


Afshin Molavi
Afshin Molavi
  • English
  • Arabic

July 19, 2023

As the sun washed over the River Nile, a young Egyptian graduate student told me of his dream: “I want to go to Dubai or Abu Dhabi, or somewhere in the Gulf, and find a job with decent pay and just live a normal life away from all of the troubles I have at home.”

I had this conversation with the student a few years before the Arab uprisings of 2011 that rocked Egypt and the region, but a version of this conversation had been taking place elsewhere in North Africa and the Levant at the time and has spread ever since.

The most recent Arab Youth Survey paints a stark picture of a divide in the Arab world, one that separates the relatively hopeful youth of the GCC region and the largely frustrated and anxious youth from North Africa and the Levant regions.

On several key issues, it seems as if the two sets of youth – GCC on one side and North Africa and Levant on the other – are living in entirely different worlds.

Let us consider this basic polling question asked by the surveyors: “Thinking about the last five years, in general, do you think things in your country of residence are going in the right direction or in the wrong direction?”

In the Levant, 71 per cent of youth say their country is going in the wrong direction. North African youth are similarly pessimistic, with 61 per cent pointing to the “wrong direction” category. By contrast, only 16 per cent of GCC youth fear their country is moving in the wrong direction, reflecting a far more hopeful population.

What emerges from these results are a deeply restive, anxious and frustrated youth population in North Africa and the Levant

Perhaps part of the reason that Arabs in North Africa and Levant have grown increasingly concerned about the direction of their countries owes a great deal to their lack of faith in government.

When asked if their governments have the right policies to address their concerns, only a third of youth in North Africa and the Levant responded positively. When GCC youth were asked the same question, a resounding 83 per cent felt confidence in their governments.

What’s more, the youth of North Africa and the Levant feel voiceless when it comes to their governments, with only about a third agreeing with the idea that their voice matters to government decision-making. As for GCC youth, 78 per cent felt their voices mattered.

What emerges from these results are a deeply restive, anxious and frustrated youth population in North Africa and the Levant with little hope for the future. More than a decade after the Arab uprisings that represented an explosion of years – even decades – of mounting frustration, we have not seen much progress. On the eve of these events, youth unemployment stood at about 25 per cent across the region. Today’s youth unemployment? Roughly the same.

Going back to the 2008-10 Arab Youth Surveys, one can detect the seeds of the uprisings in the anxious voices of youth. Digging deep into those findings, one sees repeated themes of uncertainty and frustration around kitchen-table issues, such as the rising cost of living and unemployment. Even back then, the dividing line of perceptions and hopes between GCC youth and non-GCC youth was noticeable. Those lines seem to keep widening.

The 2023 survey results show that when it comes to paying their expenses, finding a job, or facing debt, GCC youth once again fare better than the rest of the region – though the gap is much smaller when it comes to debt loads.

According to the OECD, some 55 per cent of the population of the Middle East and North Africa region are under the age of 30, with nearly a quarter of those falling into the critical years of 15-29. In so many ways, the success of nations and regions owes to what kind of platform they provide for young people to thrive. In the right circumstances, young populations can be a boon, a driver of innovation and change, rocket fuel for a growing economy.

There is no one-size-fits-all approach, but clearly a combination of strong educational systems, a robust private sector, basic security, an entrepreneur-friendly legal system, and advanced infrastructure are key ingredients. Few countries possess all of those ingredients, but there is one intangible ingredient that is difficult to measure, but vital to a nation’s future: hope.

The 2023 ASDA’A BCW Arab Youth Survey, at bottom, depicts a glaring hope gap between GCC youth and the rest of the region. There is nothing more tragic – or damaging to the future of a country – than a hopeless generation with squandered potential, seeking to leave their country. And yet, this is the stark reality across many regional countries.

Still, there are gems of hope across the survey. For the first time in five years, more young people expressed their desire to work in the private sector than for government. More young people also expressed a desire to start their own business (42 per cent). Though the gap between the perceived difficulty of starting a business between GCC youth (more hopeful) and the rest was fairly wide, the fact that more than a third of North Africans and those from the Levant are eager to take the entrepreneur’s leap is promising.

Anyone who has travelled widely across the Arab world would have seen immediately the promise and resilience and dynamism of its young people. With just a modest boost, those young people will take their countries to new heights.

After 15 years of surveys, the message of young Arabs is loud and clear. They simply want a decent opportunity to thrive, a level playing field where they can utilise their talents and energy at home. These are not unreasonable demands. They deserve to be heard.

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TV: BeIN Sports

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Name: Akeed

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Launch year: 2018

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Marathon results

Men:

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2. Alphonce Simbu(TAN) 2:07:50 

3. Reuben Kipyego(KEN) 2:08:25 

4. Abel Kirui(KEN) 2:08:46 

5. Felix Kemutai(KEN) 2:10:48  

Women:

1. Judith Korir(KEN) 2:22:30 

2. Eunice Chumba(BHR) 2:26:01 

3. Immaculate Chemutai(UGA) 2:28:30 

4. Abebech Bekele(ETH) 2:29:43 

5. Aleksandra Morozova(RUS) 2:33:01  

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March 12-16: Second Test, Karachi

March 21-25: Third Test, Lahore

March 29: First ODI, Rawalpindi

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April 2: Third ODI, Rawalpindi

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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SPECS
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Updated: July 21, 2023, 11:34 AM