Young people must continue to update their skills to keep pace with the evolving demands of the workplace, a UAE education expert has said.
Dr Sonia Ben Jaafar, chief executive of Abdulla Al Ghurair Foundation for Education, a privately-funded philanthropic organisation, said it was crucial not to stand still and instead continue on a learning journey.
She delivered the message as World Youth Skills Day was marked on Friday, a United Nations-designated event established in 2014 to raise awareness of the need to ensure the next generation is equipped with the tools to succeed.
Dr Ben Jaafar cited estimates that the “half life” of skills was now just four years. This means that every four years, a person’s skills become half as valuable to employers because the needs of industry change, putting a premium on retraining.
Major challenge to reskill global workforce
“We have one billion people that need to be reskilled by 2030. We have 85 million jobs that could be displaced by shifts in the division of labour. There’s all of these big numbers,” Dr Ben Jaafar said.
Issues are particularly acute in the Middle East and North Africa (Mena) region because of the larger than average number of young people, with about 60 per cent of the region’s population under 30.
“It’s not necessarily just about a gap now, it’s about the growing gap,” she said. “We have a mismatch between the skills demand and the local talent pool, and unless we are very specific about how we help skill and reskill, that will continue to grow.”
Universities have key role to play
Progress in giving young people skills has been made in the region, said Dr Ben Jaafar, particularly in the GCC, through the growth in the number and quality of universities, more of which now perform well in global league tables.
“Now we’re in a position in the UAE where we’re seeing very high quality universities from all over the world attracting people to study here,” she said, adding that the country had also developed a thriving start-up culture of entrepreneurship.
But it is essential that the skills people are learning at university are of the kind needed by employers, according to Dr Ben Jaafar.
“The notion that we can keep graduating young people with credentials that don’t lead to employment is a wealthy person’s privilege, and the vast majority of Arab youth do not have the luxury of education for education’s sake,” she said.
“They are relying on their family for continued financial support.”
The foundation, Dr Ben Jaafar said, acted as a bridge between sectors, such as government, education and the private sector, to help ensure that young people developed industry-relevant skills. It could, for example, fill particular skill gaps that a young graduate may feel he or she has.
Part of this is achieved through short courses or, as she described them, “nano” degrees, which are proving popular with young people who, regardless of whether they go to university or not, may not have the training needed for cutting-edge jobs.
Thousands of Emiratis aim to boost career prospects
The foundation and Zayed University announced this week that, two years on from launching a partnership, more than 2,500 Emiratis had enrolled in online programmes to better equip them for the workplace.
One programme that the foundation offers, and which Zayed University students are now able to enrol in, is TechUp, which aims to improve digital literacy skills.
It is part of the foundation’s efforts to provide what Dr Ben Jaafar described as “market-driven foundational courses and nano degrees”.
In some cases, the majority of young people who have enrolled on the foundation’s courses have been unemployed, so just by signing up they have improved their chances of securing work.
“They’re going to find their way into industry a lot faster because we’re building that bridge and so this is really exciting for the young people who are getting this digital skill they need now,” Dr Ben Jaafar said.
“Wherever you are as a young person, you have an opportunity to find a pathway, to gain full employment or entrepreneurship, but you have to do your job. We’re going to help you find your way.”
Investing in youth
Dr Ayesha Al Dhaheri, associate provost for student affairs at UAE University (UAEU) said young people were being given a platform to thrive in the Emirates.
“In the UAE, young people are most of the population. Our wise government has placed them at the centre of national strategic plans and programmes, giving them direct roles so that they are active in initiatives that form their future,” she said.
“It has given them many opportunities for education and vocational and technical training in all domains, so they are better able to execute their future orientated roles”.
UAE's top universities — in pictures
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MATHC INFO
England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)
New Zealand 7 (Try: Savea; Con: Mo'unga)
Pieces of Her
Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick
Director: Minkie Spiro
Rating:2/5
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
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.”
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