A digital divide and employment crisis in the world's poorest nations could force eight in 10 young people to become entrepreneurs, the UN's children fund said.
Unicef executive director Henrietta Fore told the 75 Minutes for Global Collaboration, an online event hosted by the World Government Summit, that young people face an uncertain future in a world ravaged by Covid-19.
“Closing the digital divide is the number one area that would allow us to reimagine our world, particularly for young people, as it is the ladder out of poverty,” she said.
“We want every young person and child to have a future.”
She said young people wanted a modern education with new ideas to equip them with the skills they need for the future.
“We believe that eight out of 10 young people in low- and middle-income countries will need to make their own jobs,” said Ms Fore.
“They will need to be entrepreneurs, to learn everything from how to put up solar panels, to be an electrician or plumber.
“They will need to learn how to be a teacher, doctor or nurse to be able to have a livelihood.”
Some 600 million new jobs are needed in the next decade
Ms Fore referred to the UN-backed Generation Unlimited programme, a public private platform to deliver modern education to young people and connect them to skills and jobs.
Under the initiative, India has a programme allowing young people to see their future lives, so they understand the skills they may need.
It shows what kind of courses they need to get into that profession.
“Children in Vietnam have been connected with mentorships and other apprentice programmes,” said Ms Fore.
“It is exciting and appealing, it shows if you can do productive things with the internet young people are drawn to it.
“The best way to arm children and protect them is to educate them so they know to go to authentic sources for information.”
Also speaking at the conference, Mohammed Al Gergawi, the UAE Minister of Cabinet Affairs, said more jobs would be desperately needed in a redefined world created by Covid-19.
“Some 600 million new jobs are needed in the next decade,” Mr Al Gergawi said,
“We see new opportunities and investment in renewable energy that could add up to 12 million jobs in that time.
“It has all been disrupted by a microscopic virus and the world has reached a turning point.
“Complementing our vision for the future is only beginning now through youth engagement, but we must work together to correct the course of action for the future.”
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Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
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Warn others to prevent further harm
Courtesy: Crystal Intelligence
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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.”
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