A student walks past damaged buildings at the University of Mosul in 2017. AP
A student walks past damaged buildings at the University of Mosul in 2017. AP
A student walks past damaged buildings at the University of Mosul in 2017. AP
A student walks past damaged buildings at the University of Mosul in 2017. AP


Too many Middle East universities are failing their students


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June 10, 2022

Every year, Egypt trains about 7,000 doctors. If they practice in the country, they can expect to be paid on average $200 a month. In Germany, a specialist is paid more than $6,000. In the US, plastic surgeons can earn almost $50,000. The discrepancy between working at home and abroad is a similar story for many other disciplines, particularly technical ones.

In the face of such discrepancies, there is mounting evidence that parts of the Middle East might be training a lot of highly qualified young professionals, only for many of them to leave. In some places, the problem is critical. According to data gathered by Arab Barometer, between 2020 and 2021 almost half of Lebanon's citizens wanted to leave for better prospects abroad. Between ages 18 and 29, it rose to 63 per cent.

Other challenges are adding to the problem. Increasingly, it is not just a lack of jobs but universities themselves that are dissuading the brightest young people from staying in the region. A new study by the Majid Al Futtaim business group and McKinsey found that 8 per cent of the world's university students come from the Middle East, North Africa and Pakistan. However, only 1.5 per cent of the best universities are found there. The report says this has led to many "leaving to study abroad, and in many cases, not returning home”.

A man looks at university degrees placed by Lebanese unemployed graduates on a roadblock. EPA
A man looks at university degrees placed by Lebanese unemployed graduates on a roadblock. EPA

This is not just a problem for technical fields. Yesterday, Egyptian fans of squash, a sport at which Egypt excels on the world stage, were divided after news that one of their country's star champions, Mohamed El Shorbagy, switched allegiance to play for England. “I’m really excited to be representing England. I have lived there for more than half my life and I’ve trained under British coaches since the age of 15,” El Shorbagy, 31, said in an interview. He added that the difficult decision took months of reflection, but he eventually made it based on the years-long support given to him in England. He is particularly grateful for two major scholarships, one to a leading sports private school, the second to a specialist university.

This week has seen more worrying data that brings a whole new angle to the issue of higher education in Mena and the brain drain. Consultancy agency PwC has released a report that argues that increasing the number of women in the workforce in the Middle East could bring its GDP up by 57 per cent. If inadequate higher educations becomes another barrier to the many already in front of the region's women, the economic cost would be huge.

The Middle East is more than capable of improving its institutions. In some parts, particularly the Gulf, there is progress. Abu Dhabi’s Khalifa University of Science and Technology was recently named the third best educational institution in the Arab world in the QS World University Rankings 2022. Five universities in Saudi Arabia were added to the same list. Fourteen of the kingdom’s higher education institutions are now on it.

Whether in antiquity or the Arab renaissance seen between the 19th and early 20th century, there is proof that intellects can be fostered in the region. At many points in history, people from abroad have flocked to the Middle East to learn in its many academic centres. Without action, an increasingly high number of young people from those same countries will do the opposite, perhaps never to return.

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Company%20profile
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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.”

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

Full Party in the Park line-up

2pm – Andreah

3pm – Supernovas

4.30pm – The Boxtones

5.30pm – Lighthouse Family

7pm – Step On DJs

8pm – Richard Ashcroft

9.30pm – Chris Wright

10pm – Fatboy Slim

11pm – Hollaphonic

 

The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

Tickets

Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.

ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

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.

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: June 07, 2023, 12:03 PM