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Second Great Recession highly unlikely: Report

Second Great Recession highly unlikely: Report


At its December 2019 12th edition in Dubai, the Arab Strategy Forum affirmed that a Second Great Recession highly unlikely: Report. This gathering run under the theme of ‘Forecasting the Next Decade 2020-2030’ concluded that after all, it’s business as usual with no ad-hoc surprises at all.


DUBAI — The global economy is not likely to witness another Great Recession-style collapse, despite several indicators to the contrary in recent months, according to a newly-published report by the Arab Strategy Forum in partnership with Good Judgement Inc., the world’s leading geopolitical and economic forecasting institution.

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Titled ‘11 Questions for the Next Decade’, the wide-ranging and far-reaching findings and themes of the report, will be discussed in depth by former ministers, decision-makers and politico-economic thought leaders, including former US Vice President Dick Cheney, at the 12th edition of the annual Arab Strategy Forum in Dubai on Dec. 9 at the Ritz Carlton, Dubai International Financial Centre.

The ‘state of the world’ style report– tackles 11 vital mega-trends and questions that will define the global social, political and economic landscape in the 10 years ahead. Unlike previous editions, this year’s report looks to predict the future leading up to 2030 – a crucial time for many Middle Eastern economies whose visions are set to come to fruition by that year.

‘11 Questions for the Next Decade’ analyses 11 major political and macro-economic situations – or ‘mega-trends’ as the report terms them – and their likely consequences to determine where the world is headed, come 2030. Topics covered range from the global recession to the fragmentation of superpowers and Brexit to the Iranian regime and America’s anticipated fall from dominance, to the emerging US-China tech war and the prospective ‘splinternet’, water scarcity in the region and the growing crop of gas fields in the East Mediterranean region.

Qualitative and quantitative feedback and data was garnered for the report’s 11 sections following rounds of discussions on Good Judgement’s online platform, with a series of ‘ignition questions’ posed to ‘Superforecasters’ – 150 experts from diverse backgrounds, such as political scientists, economics researchers, scholars, and subject-matter experts in professions ranging from finance to intelligence, to management and medicine. The ignition questions for each topic seek answers to the issues at the heart of major economic change in the years ahead. The Superforecasters’ answers serve as indicators and monitors of predicted change based on the outlined global mega-trends.

Mohammad Abdullah Al Gergawi, President of the Arab Strategy Forum, said: “The report provides answers to the most pressing questions today, these outcomes will have a significant impact on regional and global policies. It explores a range of scenarios that will support the decision-makers of today and tomorrow to guide progress and prosperity for generations to come.

“Unlike previous years, this year’s reports predict the future of the region and the world over the next decade in the context of the current events that will have a major impact. They provide an up-to-date analysis of the increasing need for decision-makers to understand future scenarios on which to base their plans.”

As the world’s first platform for forecasting geopolitical and economic events, both regionally and globally, and targeting the most influential leaders and decision-makers in the Arab world and beyond, the Arab Strategy Forum will provide invaluable insights from the world’s foremost thought leaders on the crucial topics addressed in the report and elsewhere. Below is a list of the mega-trends, their related ignition questions, and a brief summary of the findings from the ‘11 Questions for the Next Decade’ report.

• Will the world avoid another Great Recession through 2030?

Based on current global economic performance records and data from the last 100 years of economic cycles, the report sought to find out whether the next recession will be a repeat of the Global Financial Crisis / Great Recession (2007-2009) or whether we are likely to see a return to an earlier pattern of a brief economic downturn followed by resurgent and steady growth.

The report’s Superforecasters said there is a 76 per cent chance that the world will not undergo another global financial crisis similar to the one in 2007 in the next decade, citing central banks’ improved technological ability to adapt and steer skidding economies out of difficulty. In their analysis of the last 100 years’ of business cycles, the Superforecasters concluded that the Great Recession was an outlier rather than the expected norm.

• Will China, Russia, or a G7 country leave the World Trade Organization by 2030?

Considering the emerging tendency of two, or a group of countries, setting out to establish new regional trading systems, such as the US-backed Trans-Pacific Partnership or the Russian-backed European-Asian Economic Union, the report noted that such new trading entities pose a populist threat to long-established global trading systems.

It goes on to rule out the possibility of China, Russia or one of the G7 countries withdrawing from the World Trade Organization by 2030, as doing so would cost more than the gains are likely to be worth in the long run. However, considering the relentless pressure on the WTO in the face of populism, the post-World War II trading body faces a big challenge in maintaining its status and platform in the next 10 years.

• Will China, Russia, the US, or the EU lose 0.5% or more of its territory or population before 2030?

After the fall of empires in the 20th century, the question lingers over whether countries and blocs will fragment in the 21st century. The Superforecasters anticipate a 5% likelihood that the EU will lose 0.5% or more of its territory or population before 2030, a 2% likelihood that Russia or China will, and 1% likelihood that the United States will. Though the uncertainties and problems hanging over the United Kingdom are mainly considered ‘peaceful’, market volatility and decreased consumer confidence could have an impact on the EU’s territory and population in the next decade. The Superforecasters also said that a split or fragmentation in China or Russia, will only occur through a violent disruption.

• Will the US economy be ranked 1st, 2nd or 3rd in 2030?

Despite being the largest economy in the world since the beginning of the 20th century, the US’s position as the world’s number one is under threat from the formation of a multipolar system and the emergence of several countries and regions that contribute today to the international community.

The report claims that there is a 65 per cent chance that the US will still be the world’s largest economy a decade from now, and a 33 per cent likelihood it will be second, after China.

The most prominent countries competing with the United States, in terms of nominal GDP, the report adds, are China, the European Union bloc, and India. And, as the US economy shrinks to the size of other countries, it will be less able to influence other nations of the world.

• Will OPEC’s share of global crude oil production remain above 33% in 2030?

The Organization of Petroleum Exporting Countries (OPEC) currently holds a share of about 40 per cent of the world’s crude oil production. But the future of the organization and its domination is likely to be called into question, with the emergence of hydraulic fracturing and new oil discoveries outside the Middle East and North Africa.

There is a 90 per cent chance that OPEC will supply more than a third of the world’s crude oil supply in 2030. However, its fiscal revenue is likely to result in a decline in its production. Given its resilience and adaptation to multiple challenges in past decades, including wars, revolutions and global recessions, the organization is viable in a carbon-free world, but new and innovative adaptation measures are needed later, the report pointed out.

Cyberattacks

• Will a cyberattack shut down a major infrastructure system in a G7 country for 1+ days before 2030?

The Superforecasters see a 66 per cent likelihood of a cyberattack shutting down a major infrastructure system in a G7 country for at least one day before 2030. Outside of the G7, there are countries perhaps more vulnerable. “It will be worth monitoring these situations as harbingers of larger-scale attacks elsewhere. For instance, in the Philippines, government hearings recently raised concerns that China could remotely ‘turn off power’ in the country,” the report noted.

• Will Lebanon be involved in a major military conflict by 2030?

After the discovery of the East Mediterranean gas fields off the coast of Cyprus, Lebanon and Egypt, questions have arisen over whether the East Mediterranean gas fields will enhance the stability of the region or pose a security risk. The report said there’s a risk that offshore gas fields could escalate tensions between nations over disputed drilling rights, but potential energy revenues are worthwhile, and will lead to a strengthening of the region’s economic stability, as well as the internal stability of the concerned countries and reduce risks of war.

• Will water scarcity cause a deadly conflict between Jordan & Israel, Egypt & Ethiopia, or Turkey & Iraq before 2030?

Water scarcity is unlikely to drive any regional conflict in the MENA region over the next decade, the report stated. There is a small, 1 per cent chance of a conflict on the flow of water between Jordan and Israel, according to the Superforecasters. Meanwhile, the chance of a conflict between Egypt and Ethiopia or Turkey and Iraq during the next decade will reach 3per cent.

• China-US tech war and peace

Will a ‘splinternet’ – with one Internet led by the US and one led by China – be avoided as of 2030?

The Superforecasters offer an 80 per cent chance that a ‘splinternet’ – one Internet led by the United States and one led by China — will not be in place by 2030. “Information will continue to flow across global networks, even as other types of political or ideological information will be blocked,” the report pointed out.

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MENA has $100bln of clean energy projects in pipeline

MENA has $100bln of clean energy projects in pipeline

ZAWYA through its ALTERNATIVE ENERGY‘s post dated December 11, 2019, informs that MENA has $100bln of clean energy projects in pipeline and that a Total investment in clean energy is forecasted to exceed $300bln by 2050.


Image for illustrative purpose. Solar rooftops in Dubai.
Image for illustrative purpose. Solar rooftops in Dubai.

The MENA region has $100 billion worth of clean energy projects currently in the pipeline, according to a report by Energy & Utilities.

The report estimates total investment in clean energy to exceed $300 bn by 2050 if the region’s utilities are to meet their ambitious targets.

Middle East Energy said that the sharp drop in the cost of solar and wind power technologies is driving clean energy, with the cost of installing photovoltaic (PV) solar and wind having fallen by 73 percent and 80 per cent respectively since 2010.

The commissioning of the world’s largest single-site photovoltaic (PV) solar plant in 2019, the 1.17GW Sweihan independent power project (IPP) in Abu Dhabi, is one of the milestones reached this year in the push for clean energy, the report noted.

Dubai also reached financial close for a $4.3 billion concentrated solar power (CSP) project, Noor Energy 1, which is the largest single-site power investment project in the world.

The report estimates that installed power generation capacity will be required to increase 35 percent by 2025 just to meet rising demand in the Middle East. Rapid population growth combined with ambitious industrial and economic expansion programmes is resulting in the growing need for power, as demand for electricity is expected to triple by 2050.

“Driven by well-designed auctions, favourable financing conditions and declining technology costs, renewables are being brought into the mainstream. Based on the renewables targets already in place, the region, led by the UAE, could save 354 million barrels of oil which is equivalent to a 23 per cent reduction, cut the power sector’s carbon dioxide emissions by 22 percent, and slash water withdrawal in the power sector by 17 percent by 2030,” Gareth Rapley, Group Director, Industrial, at Informa Markets said.

The report was published as a preview to an event in Dubai, The Middle East Energy 2020, which will be organised by Informa Markets in March 2020.

(Writing by Gerard Aoun; Editing by Seban Scaria)

gerard.aoun@refinitiv.com

Arab leaders: Fix the economy, stem corruption, create jobs

Arab leaders: Fix the economy, stem corruption, create jobs

ZAWYA’s ECONOMY on December 9, 2019, posted this Message for Arab leaders: Fix the economy, stem corruption, create jobs by Chris Doyle.

Religion is not seen as some great threat, but what clearly keeps people awake is the state of the economy.

Arab leaders: Fix the economy, stem corruption, create jobs

Opinion polls that contribute meaningfully to our collective understanding of the Middle East and opinions of Arabs across the region are vital. For too long, commentators and analysts, many in the West but elsewhere too, have presumed to know what Arabs think, to discuss the mind of the Arabs, or to buy into the group-think mirage of the region. It is ludicrous, of course, and as the latest Arab News poll highlights, opinions and views vary widely.

Just how significant a role religion does and should play in the lives and politics of the region is one of the great debates of the day. It matters in particular in two of the countries engulfed in serious protests at present: Iraq and Lebanon.

The headlines from this poll back up previous studies indicating that more people in the Arab world, whilst still seeing religion as an essential part of their lives, want to see a greater separation of religion and politics. They are less willing to support any extremist agenda.

Younger people are also veering away from religion more than previous generations. A BBC poll in 2018 indicated that Arabs were perhaps less religious than before, borne out by comparing it to a 2013 poll. This applies to many other areas of the world. Polls show that American Christians are also becoming less religious.

Such views figure highly in Iraq and Lebanon, where protesters over the last two months have been pushing for an end to sectarian models of government in an attempt to weaken divisive and counterproductive identity-driven politics.

Iraqis and Lebanese agree by 74 percent and 63 percent respectively that religion affects political decision-making by their government. And more than two-thirds of those polled in both countries do not dispute the statement that separation of religion and politics would lead to fewer wars.

Will they get their wish to rewrite their political systems? At present, despite the widespread and powerful nature of these protests, it would appear not. The existing elites in Iraq and Lebanon do not appear to be budging, and neither country looks like it is heading to a post- sectarian future anytime soon.

Strangely, however, the only politically significant leader in Iraq to be backing the protesters is Ayatollah Ali Al-Sistani, the pre-eminent Shiite cleric from Najaf, but many other clerics do not back this position. In Lebanon, Hezbollah has unambiguously opposed the protests. Its leader Hassan Nasrallah has accused the protesters of being foreign agents.

None of these polls will make much impact perhaps in Europe and North America. How many will take note and believe that the Arab world is changing and becoming more opposed to extremism? It runs counter to the well-oiled narrative common in the media.

Yet the Arab News poll is also revealing of what other challenges Arabs see as relevant to their future. Religion is not seen as some great threat, but what clearly keeps people awake is the state of the economy. Iraqis and Lebanese strongly agree (57 percent and 61 percent, respectively) that the future would be better if economic matters were prioritized above everything else.

It has been a core feature of the protests, of which corruption — seen as the top problem in both countries, where it is endemic — and youth unemployment have been among the primary drivers. One wonders why the figures are not even higher when you consider how resource-rich Iraq is, but how poor public services are, and how frequently useless the flabby institutions of state are.

Iraq and Lebanon face multiple challenges, but the study’s message is clear: Fixing the economy, stemming corruption and creating jobs should be the primary focus. How that will be done, particularly in a country as indebted as Lebanon, is at the heart of the current crisis.

The poll does reveal a perhaps surprisingly optimistic outlook. Most of those polled foresaw that extremism in the region was in decline, envisaging a drop in terrorism in the coming years. Only 28 percent saw radical Islam as having a negative impact on society in the Arab world, and just 15 percent saw extremism as the main cause of conflict in the region.

Western policymakers and media moguls should take note. Everyone must hope that they are right, even if the risks remain high. Increasingly, polling shows — as this one does — rising support for inclusiveness (especially women’s rights) and less aversion to women having a prominent role in political life. Both Iraq and Lebanon have a poor record on female involvement at the upper echelons of their politics.

Arabs polled also seem to be clear on the way forward. That matters. The economy must come first. To achieve that, they desire improved governance, with systems they can trust and where religion plays a part in daily life but less so in politics.

• Chris Doyle is director of the London-based Council for Arab-British Understanding (CAABU). He has worked with the council since 1993 after graduating with a first-class honors degree in Arabic and Islamic Studies at Exeter University. He has organized and accompanied numerous British parliamentary delegations to Arab countries. Twitter: @DoylechDisclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News’ point-of-view

Worldwide Shipments of IoT Enterprise Drones take off

Worldwide Shipments of IoT Enterprise Drones take off


Flying drone shipments to grow 50pc in 2020: Gartner predicts, after worldwide shipments of IoT enterprise drones take off, as these flying electronic-mechanical eyes are increasingly in demand in all field industries such as those mainly related to the built and non-built environment.


Worldwide shipments of Internet of Things (IoT) enterprise drones (defined as flying drones) will total 526,000 units in 2020, an increase of 50 per cent from 2019, said Gartner, a leading research and advisory firm in a new report.

Global shipments are forecast to reach 1.3 million units by 2023, it added.

“The construction sector is an early adopter of drones, which causes construction monitoring to be the largest use case by shipments worldwide across the forecast,” said Kay Sharpington, principal analyst at Gartner.

“Shipments are estimated to reach 210,000 drones in 2020, and more than double by 2023. Drones are taking over tasks such as site surveying and earthworks management as they are faster and safer to carry out with a drone than on foot.”

To save costs when surveying sites, the number of global construction employees per drone will decrease from 2,400 to 640 between 2018 and 2020.

In the short term, most use cases will be based around surveillance and monitoring due to the technical complexity of other applications. In 2020, the second and third use cases by drone shipments will be fire services monitoring and insurance investigation.

The insurance industry is the second largest use case by shipments with 46,000 drone shipments forecast for 2020. Shipments are expected to nearly triple by 2023, to reach 136,000 that year.

“Drones are used to carry out inspections on buildings and structures after a claim has been made, to assess the extent and cause of the damage. They can also be used to evaluate the type and condition of the building when providing an insurance quote,” said Sharpington.

“Their benefits are valuable. For example, they reduce the cost of scaffolding, ladders and employee time and provide a comprehensive photographic record of the building condition.”

To survey claim areas at a lower cost, Gartner expects insurance drones will grow from one per 152,000 people in 2018 to one per 72,000 people worldwide in 2020.

Police and firefighting agencies globally are deploying drones in public safety operations, wildfire management, crime scene investigation, and search and rescue operations. Gartner estimates that the number of drones used by police and firefighters will grow from one per 210,000 people to one per 47,000 people between 2018 and 2020.

“Fire service drones use cameras and thermal imaging to identify fire sources, extreme heat areas, trapped people and the positions of firefighters in the field,” said Sharpington. “Consequently, firefighting agencies can deploy resources in the right areas in emergencies and investigate incidents while minimizing risk to lives.”

Adoption of drones in the retail sector to rise rapidly after 2023

Drones used for retail deliveries will provide customers with rapid service and allow retailers access to customers in remote areas. However, the regulatory restrictions and logistical challenge of coordinating flight paths, managing airspace over densely populated areas and managing various payloads means that retail, overall, is a longer-term opportunity for drones.

Drone shipments will total 25,000 in 2020 and will rise to 122,000 units in 2023. Following this predicted trajectory, the biggest opportunity for retail will come after 2023.

In addition, Gartner estimates that the number of employees per drone will decrease from 73,000 global retail employees per drone in 2018 to 18,000 global retail employees per drone in 2020. – TradeArabia News Service

The Fight Against Climate Change, for ever

The Fight Against Climate Change, for ever


IMFBlog on December 2, 2019, posted this excellent article The Adaptive Age by Kristalina Georgieva whose advice is that No institution or individual can stand on the sidelines in the fight against climate change, for ever that is.

The COP 25 that started yesterday is designed to take the next crucial steps in the UN climate process.  This article is republished in the hope that these right words could help the MENA peoples contribute their share in this world collective endeavour.


 


When I think of the incredible challenges we must confront in the face of a changing climate, my mind focuses on young people. Eventually, they will be the ones either to enjoy the fruits or bear the burdens resulting from actions taken today.

(photo: SOPA images/Newscom)

I think of my 9-year-old granddaughter. By the time she turns 20, she may be witness to climate change so profound that it pushes an additional 100 million people into poverty. By the time she turns 40, 140 million may become climate migrants—people forced to flee homes that are no longer safe or able to provide them with livelihoods. And if she lives to be 90, the planet may be 3–4° hotter and barely livable.

Unless we act. We can avoid this bleak future, and we know what we have to do—reduce emissions, offset what cannot be reduced, and adapt to new climate realities. No individual or institution can stand on the sidelines.

Ready or not, we are entering an age of adaptation. And we need to be smart about it.

Reality check

Our efforts to reduce greenhouse gas emissions through various mitigation measures—phasing out fossil fuels, increasing energy efficiency, adopting renewable energy sources, improving land use and agricultural practices—continue to move forward, but the pace is too slow. We have to scale up and accelerate the transition to a low-carbon economy. At the same time, we must recognize that climate change is already happening and affecting the lives of millions of people. There are more frequent and more severe weather-related events—more droughts, more floods, more heatwaves, more storms.

Ready or not, we are entering an age of adaptation. And we need to be smart about it. Adaptation is not a defeat, but rather a defense against what is already happening. The right investments will deliver a “triple dividend” by averting future losses, spurring economic gains through innovation, and delivering social and environmental benefits to everyone, but particularly to those currently affected and most at risk. Updated building codes can ensure infrastructure and buildings are better able to withstand extreme events. Making agriculture more climate resilient means investing more money in research and development, which in turn opens the door to innovation, growth, and healthier communities.

The IMF is stepping up its efforts to deal with climate risk. Our mission is to help our members build stronger economies and improve people’s lives through sound monetary, fiscal, and structural policies. We consider climate change a systemic risk to the macroeconomy and one in which the IMF is deeply involved through its research and policy advice.

Mitigation plus adaptation

On the mitigation side of the equation, this means intensifying our work on carbon pricing and helping governments craft road maps as they navigate their way from brown economies dependent on carbon to green ones that strive to be carbon-free. Carbon taxes are one of the most powerful and efficient tools at their disposal—the latest IMF analysis finds that large emitting countries need to introduce a carbon tax that rises quickly to $75 a ton in 2030, consistent with limiting global warming to 2°C or less. But carbon taxes must be implemented in a careful and growth-friendly fashion. The key is to retool the tax system in fair, creative, and efficient ways—not just add a new tax. A good example is Sweden, where low- and middle-income households received higher transfers and tax cuts to help offset higher energy costs following the introduction of a carbon tax.

This is a path others can follow, strategically directing part of the revenues that carbon taxes generate back to low-income households that can least afford to pay. With the revenues estimated at 1–3 percent of GDP, a portion could also go to support firms and households that choose green pathways.

While we continue to work to reduce carbon emissions, the increasing frequency of more extreme weather like hurricanes, droughts, and floods is affecting people all across the world. Countries already vulnerable to natural disasters suffer the most, not only in terms of immediate loss of life, but also in long-lasting economic effects. In some countries, total economic losses exceed 200 percent of GDP—as when Hurricane Maria struck Dominica in 2017.

Our emergency lending facilities are designed to provide speedy assistance to low-income countries hit by disasters. But the IMF also works across various fronts on the adaptation side to help countries address climate-related challenges and be able to price risk and provide incentives for investment, including in new technologies.

We support resilience-building strategies, particularly in highly vulnerable countries to help them prepare for and rebound from disasters. And we contribute to building capacity within governments through training and technical assistance to better manage disaster risks and responses.

We work with other organizations to increase the impact of our climate work. One of our most important partnerships is with the World Bank, in particular on Climate Change Policy Assessments. Together, we take stock of countries’ mitigation and adaption plans, risk management strategies, and financing and point to gaps where those countries need investment, policy changes, or help in building up their capacity to take the necessary action.

New frontiers

Moving forward, we must also be open to stepping in where and when our expertise can help, and there are other areas where we will be gearing up our work. For example, we will be working more closely with central banks, which, as guardians of both financial and price stability, are now adapting regulatory frameworks and practices to address the multifaceted risks posed by climate change.

Many central banks and other regulators are seeking ways to improve climate risk disclosure and classification standards, which will help financial institutions and investors better assess their climate-related exposures—and help regulators better gauge system-wide risks. The IMF is offering support by working with the Network of Central Banks and Supervisors for Greening the Financial System and other standard-setting bodies.

Central banks and regulators should also help banks, insurers, and nonfinancial firms assess their own exposures to climate risk and develop climate-related “stress tests.” Such tests can help identify the likely impact of a severe adverse climate-driven shock on the solvency of financial institutions and the stability of the financial system. The IMF will help push forward efforts around climate change stress testing, including through our own assessments of countries’ financial sectors and economies. Careful calibration of stress testing for climate change will be needed, because such testing requires assessing the effects of shocks or policy actions that may have little historical precedent.

All these efforts will help ensure that more money will flow into low-carbon, climate-resilient investments. The rapid increase of green bonds is a positive trend, but much more is required to secure our future. It is that simple: we all need to intensify our efforts to work together to exchange knowledge and ideas, to formulate and implement policies, and to finance the transition to the new climate economy. Our children and grandchildren are counting on us.

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Migrant workers in Qatar facing discrimination

Migrant workers in Qatar facing discrimination


An AFP article published on December 1, 2019, by FRANCE 24 reported on Migrant workers in Qatar facing discrimination as per a UN expert warns of racial profiling ‘prevalence’ in Qatar involving migrant workers. We would add that this situation is not specific to the State of Qatar but all the region of the GCC with subtle variations between states.


DOHA (AFP) – Migrant workers in Qatar are facing discrimination because of their nationality, racial identity, stereotyping and the “prevalence” of profiling, an independent UN expert warned on Sunday (Dec 1).

The Gulf monarchy has seen an influx of migrant workers, mainly from poor developing countries, in advance of the 2022 World Cup meaning that the population is 90 per cent non-Qatari.

A worker walking at a construction site for the Ras Abu Aboud Stadium in Doha, Qatar, on Sept 25, 2019. A UN expert said that migrant workers in Qatar are facing discrimination.
A worker walking at a construction site for the Ras Abu Aboud Stadium in Doha, Qatar, on Sept 25, 2019. A UN expert said that migrant workers in Qatar are facing discrimination. PHOTO: AFP

“For many people living in Qatar, their capacity to enjoy human rights fully is mediated by their nationality or national origin,” the UN’s special rapporteur on racism and discrimination Tendayi Achiume told AFP.

Migrants from specific countries are often recruited for certain roles such as women from south-east Asia for domestic work and men from south Asia for unskilled construction jobs, she said.

“Far from being mostly short-term guest workers, many low-income workers spend the better part of their working lives in Qatar and do so facing serious barriers to full enjoyment of their fundamental human rights,” she said.

Very few migrant workers ever qualify for permanent residency and almost none achieve citizenship and the welfare benefits enjoyed by Qataris.

UN experts are independent and do not speak for the world body, but their findings can be used to inform the work of UN organisations including the rights council.

Ms Achiume will present her final report on the visit to the UN Human Rights Council in July 2020.

She warned that stereotypes persist in public and private that “Sub-Saharan African men are presumed to be unsanitary, sub-Saharan African women are presumed to be sexually available, and South Asian nationalities are presumed unintelligent”.

“North Americans, Europeans and Australians, on the other hand, are presumed superior, and whites in general are presumed to be inherently competent,” she said.

But Ms Achiume stressed that while racism and discrimination remained an issue in Qatar, authorities had accepted the issue and made efforts to improve the situation – unlike some other countries.

“The existence of racial, ethnic and national stereotypes and discriminatory structures… are, in part, the product of the history of slavery in Qatar,” she said.

Slavery in the country was abolished in 1952.

Ms Achiume, a law professor at UCLA in the United States, said she had also received reports that “highlighted the prevalence of racial and ethnic profiling by police and traffic authorities”.

Security guards in parks and shopping centres also engaged in such practices, she said, favouring white and Arab residents while treating others differently.

Ms Achiume praised Qatar for the “significant reforms the government has embarked on that stand to make important contributions to combatting structural racial discrimination”. “Much work remains to be done, however,” she said.

Situation of the Automotive Industry in the MENA

Situation of the Automotive Industry in the MENA


Automotive LOGISTICS MIDDLE EAST AND AFRICA in an article titled MENA: Leading the way in innovation by Victoria Johns on 27 November 2019 gives us a clear picture of the prevailing situation of the automotive industry in the MENA region.


While it has some infrastructure and regulatory obstacles to overcome, the automotive industry in the Middle East and Africa (MENA) region is developing fast, driven by investment and innovation, as delegates heard at the ALMENA conference in Dubai last week.

20191122_224219

Despite a sustained period of decline over the last few years affected by a fall in oil prices and geopolitical strife, the Middle East and Africa is fast becoming a region of automotive and supply chain opportunity. Carmakers such as VW, Toyota, GM, Groupe PSA and Mercedes-Benz are investing in local assembly, ranging from North African countries including Morocco, Algeria and Egypt, to sub-Saharan markets such as Rwanda, Ethiopia, Kenya and Ghana. There are also some notable logistics developments there and in the Middle East.

According to figures from IHS Markit, light vehicle sales in the Middle East and Africa are to increase by 6% in 2020 to around 3.5m, supported by ongoing recovery in Saudi Arabia and Gulf countries. That is still below 4.65m units sold in 2015 but at that point Middle East sales were helped by increases in Saudi Arabia and Iran, the latter of which was seeing an (albeit brief) resurgence after sanctions were temporarily lifted. That said, by 2025 annual new light vehicle sales across the region are set to hit more than 5.3m, according to IHS projections.

Saudi Arabia already accounts for about 40% of total vehicles sold in the Middle East and IHS Markit forecasts annual sales could reach over 800,000 beyond units by 2030. Contributing factors including the recovery in price per barrel of oil and to a lesser extent the lifting of the ban on female drivers suggest sustained growth is expected to start in the next two years.

Countries within the Gulf Corporation Council (GCC) have established a national employment challenge to employ more local workers, the so-called ‘Gulfization’ policy, which is increasing labour opportunities in the area, something also fuelled by the exodus of foreign workers and the need for investment in local skills and talent.

Read more on Automotive LOGISTICS

2020 Census: New jobs, complete count efforts and MENA

2020 Census: New jobs, complete count efforts and MENA


Posted on November 23, 2019, Hassan Abbas in his 2020 Census: New jobs, complete count efforts and MENA, predicted that for the US 2020 Census, the MENA populations of the US that might not be distinguishable from the wide spectrum of ethnicities could perhaps be eligible for employment, all within the framework of this census.

The image above is strictly for illustration only.


DETROIT — In a Wednesday teleconference, leaders from the U.S. Census Bureau briefed media outlets that serve the Middle Eastern/North African (MENA) communities on the status of the 2020 Census, describing the efforts underway for all people to be accurately counted and the opportunity for individuals to apply for temporary jobs supporting the operation.

The U.S. Constitution mandates that a census of the population be conducted every 10 years. Census Bureau population statistics inform how billions of dollars in federal funds are allocated for critical public services like hospitals and healthcare clinics, emergency response, schools and education, and roads and bridges. 

2020 Census: New jobs, complete count efforts and MENA
An attendee at a 2020 Census kick-off event in Dearborn reads in the informational booklet. The U.S. Census Bureau is ramping up its efforts to reach out to ethnic communities to work towards a complete and accurate count. Photo: Imad Mohamad/The Arab American News HomeLocal

The 2020 Census will also determine how many seats each state gets in Congress and guide the drawing of local political boundaries. In mid-March 2021, households will receive an invitation to participate in the census with an option to respond online, by mail or by phone. 

“We are working closely with state and local governments, the business community, civic organizations, nonprofits and the faith community to accomplish our goal of counting everyone, including young children and babies,” said Marilyn A. Sanders, Chicago regional director for the U.S. Census Bureau.

Sanders underscored that census responses are confidential and protected by law.

“We do not share your information with law enforcement agencies or immigration officials,” she said.

Sanders also provided an update on the recruiting for the 2020 Census operation, emphasizing the importance of hiring census workers to work in the communities in which they live.

“We are offering competitive pay, flexible schedules and the opportunity for individuals to make a difference in their own communities for the next 10 years,” she said. 

Individuals interested in working on the 2020 Census should visit www.2020census.gov/jobs.

With a team of multicultural audience experts advising on campaign messaging and strategy, VMLY&R is the marketing communications partner for the 2020 Census. VMLY&R Strategy Director Basem Hassan explained his marketing campaign’s research process and insights.

“We are relying heavily on trusted voices in the MENA community to help ensure everyone understands what is at stake in the 2020 Census,” he said.

The Census Bureau officials were joined at the briefing by Nada Al-Hanooti, executive director of the Michigan office of Emgage, and Rima Meroueh, director of advocacy and community engagement at ACCESS, who addressed why the MENA communities should fully participate in the 2020 Census. 

Al-Hanooti also encouraged Arab Americans to apply as census takers to help build confidence in the operation among the community.

No inclusion of MENA category on the census form

After the conference, The Arab American News reached out to Hassan to discuss a MENA-related census issue that has come under recent criticisms. The new census form will not include a separate MENA category, despite decades-long calls to change the bureau’s policy. 

As of now, respondents will have to pick between two racial categories, White or Black, and then include their country of origin or the country of origin they choose to identify with. 

Hassan said that in his nationwide research of MENA communities, he found this racial categorization to be a criticism and not necessarily a barrier to MENA populations engaging with the census. 

The bureau conducted research in 2015 into the inclusion of a separate “Middle Eastern or North African”  category and found including such a tick box would in fact “helps MENA respondents to more accurately report their MENA identities” and that it was optimal to use a dedicated MENA response category. 

Despite these findings, the bureau did not take on MENA as a category. Hassan cautioned that this omission should not be construed as an under-representation of MENA in census data. 

Census Sample

Race question on the 2020 Census form. Middle Eastern and North African respondents will be asked to pick a race and then include country of origin or ethnicity.

“The instruction for MENA, because we are so diverse, is to select the ethnicity that we most identify with,” he said. “When one writes their country of origin, the bureau has a way of tracking that back to a MENA category.”

“If we as a community come out en masse and be counted, it can only help,” he added. “If we’re not present and counted, it will be harder to demand that we be a tick box on future census forms.”

More information on a complete and accurate count of MENA on the 2020 Census will be released in an FAQ supplement in the coming weeks. For now, the country of origin subcategory under the race tick box is critical towards the MENA count. 

The census in Dearborn 

The Dearborn community came together at a Census 2020 kick-off event at the Ford Community and Performing Arts Center on Wednesday. 

Dearborn’s Economic and Community Development Department Deputy Director Hassan Sheik spoke along with Dearborn Mayor Jack O’Reilly, Zaineb Hussain from Wayne United and Linda Clark, a representative from the U.S. Census Bureau. 

Speakers stressed the importance of a complete count in Dearborn, helping the mayor and Wayne County achieve this count, and the importance of informing the community of the confidentiality of census data. 

Wayne County residents can apply to be census takers or field representatives, both of which are hourly jobs, or salaried regional technicians. 

Links for application for these jobs are:

Census taker: https://jobs.mitalent.org/job-seeker/job-details/6749805

Field representative: https://www.census.gov/about/census-careers/opportunities/positions/region-field/field-representative/CHIRO-FR-001.html

Regional Technician: https://www.usajobs.gov/GetJob/ViewDetails/550947000

Saudi Arabia ready to take over G20 reins

Saudi Arabia ready to take over G20 reins

Ellen Francis of UK Reuters informs that With young prince and PR push, Saudi Arabia ready to take over G20 reins. Here is her difficult to believe story.

NAGOYA, Japan (Reuters) – Saudi Arabia is set to take over the G20 presidency for a year as it seeks to bounce back from an uproar over its human rights record and last year’s killing of journalist Jamal Khashoggi. Foreign ministers attend a dinner during the G20 foreign ministers’ meeting, in Nagoya, Japan November 22, 2019. Charly Triballeu/Pool via REUTERS

The kingdom’s new foreign minister, a prince with diplomatic experience in the West, landed in Japan’s Nagoya city on Friday to meet with his counterparts from the Group of 20 nations.

Prince Faisal bin Farhan Al Saud was appointed in October in a partial cabinet reshuffle, joining a new generation of royals in their 40s who rose to power under Crown Prince Mohammed bin Salman, 34, the de facto ruler of the world’s top oil exporter.

Saudi Arabia – a key U.S. ally in confronting Iran – has faced heavy Western criticism over the murder of Saudi national Khashoggi, its detention of women’s rights activists and its role in the devastating war in Yemen.

Diplomats say the G20 might help put Riyadh’s problems behind it and could prompt it to close more disputed files such as the Yemen war and the boycott of Gulf neighbour Qatar, though they have yet to see much progress.

King Salman has hailed the kingdom’s G20 presidency as proof of its key role in the global economy. [nL8N28041F]

Prince Faisal will pick up the baton at a ceremony on Saturday in Nagoya, where G20 foreign ministers have gathered for talks.

Japan – which headed the G20 this year – was the kingdom’s second-largest export market last year, at $33 billion, according to IMF trade data.

Apart from its reliance on Saudi oil, Japan has deepened its ties to the kingdom thanks to Japanese technology conglomerate SoftBank Group. Riyadh has been a big supporter of SoftBank’s massive Vision Fund.

Japanese Foreign Minister Toshimitsu Motegi told Prince Faisal he was pleased to meet him for the first time and both sides wanted to boost relations, according to a read-out from Japan’s foreign ministry.

Motegi praised Saudi work to stabilise southern Yemen, where Riyadh orchestrated a deal to end a power struggle between Yemen’s government, which it backs, and southern separatists. [nL8N27L6J1]

PR PUSH

King Salman also said this week Riyadh wants a political settlement in Yemen, where it has battled Iran-aligned Houthis in a nearly five-year war that has killed tens of thousands and drive parts of the country to the brink of famine.

A diplomatic source said there had been an “apparent de-escalation” in Yemen’s conflict in recent weeks. The source said Saudi airstrikes killing civilians would not be “a great backdrop for hosting the G20” and would not mesh with the kingdom’s message of opening up.

Diplomats said that Saudi Arabia plans more than a dozen G20 summits throughout the year on tourism, agriculture, energy, environment and digital economy.

Top diplomatic and business contacts suggest Riyadh has already gotten over much of the opprobrium it received over Khashoggi’s murder, but it still struggles to attract foreign investors, said analyst Neil Partrick.

A Saudi court charged 11 suspects in a secretive trial and Western allies imposed sanctions on individuals. But Riyadh still faces heat from some governments saying the crown prince – known as MbS – ordered the murder. He has denied this though said he takes ultimate responsibility as de facto ruler.

Riyadh has sought to fix its image or turn attention to its social reforms since Khashoggi’s 2018 killing at the hands of Saudi agents in Istanbul.

A share sale of giant Saudi state oil firm Aramco this month and a bond sale earlier this year – under a drive to diversify the largest Arab economy away from oil – attracted interest in the traditional sectors of energy and finance.

After boycotting the Saudis’ annual “Davos in the Desert” summit in 2018, Western executives returned to the 2019 gathering last month. “Davos in the Desert” is unrelated to the annual World Economic Forum in Davos, Switzerland.

Reporting by Ellen Francis in Nagoya and Stephen Kailin in Bahrain with additional reporting by David Dolan in Nagoya; Writing by Ellen Francis; Editing by Mark Heinrich

The Thomson Reuters Trust Principles.

Growth potential for SMEs in the MENA region

Growth potential for SMEs in the MENA region


Claudia Perri, Regional Commercial Director for Southern EMEA discusses the growth potential for SMEs in the MENA region. Unlocking growth for MENA’s SMEs is the write up published by Business Chief Middle East – Leadership.


SMEs in the Middle East and North Africa (MENA) contribute approximately $1 trillion to the region’s economy per year, accounting for 96% of registered companies and employing approximately half of the workforce. Unsurprisingly, these businesses are the backbone on MENA’s rapidly evolving economies and are being recognised as a priority among the region’s governments. However, SMEs face fundamental obstacles to their potential growth, namely stringent regulations and compliance procedures, but chiefly access to finance. Indeed, traditional lenders have typically shied away from smaller and less established businesses in the wake of the financial crisis, instead opting for the assurances of larger companies. 

However, as the region’s SMEs grow in importance, opportunities for alternative finance providers are emerging to plug the finance gap. Traditional lenders, including banks, are having to adapt and are increasingly responding to these needs and leveraging technology to ensure SMEs can tap into their full potential. 

SMEs emerging as a priority 

As the region shifts its economic focus away from oil to economic models that enhance the role of the private sector, governments have recognised the importance of SMEs. The added value of jobs and economic growth offered by these businesses has meant that SME have become a priority. For example, Dubai’s Department of Finance has most recently announced a set of initiatives to boost the UAE’s fledgeling SMEs, which have grown by over 30% in the last decade. Among these initiatives, the government has committed to allocating 5% of the government capital projects to SMEs.

Financial crisis still resonates for banks 

With SMEs therefore seen as a catalyst for economic growth, they still face major obstacles that stop them from reaching their potential. Following the financial crash in 2008, access to funding has been more limited in the region and indeed globally. 

SMEs face a $260 billion credit gap in the region, with just one in five SMEs benefitting from traditional finance and accounting for only 7% of bank lending. But now, the attitude of lenders, such as banks, is having to catch up as these businesses take on their role as pivotal contributors to economic growth.

Various types of alternative finance emerging

As a result of the credit gap faced by SMEs, innovative alternative financing options have emerged, fuelled by the increasing digitalisation of businesses in the region. Funding models, such as Peer-2-Peer lending are seeing growth increase, from $4.5 million total market volume in 2014 to $32.5 million in 2016. Over the same period, equity-based crowdfunding has enjoyed growth from $62 million to $100.32 million.

However, there are indications that this growth is slowing, where the lack of regulatory clarity and flexibility is making the activity of alternative finance providers more complicated. 

Opportunity for traditional lenders fuelled by technology 

The lack of regulatory clarity for alternative finance providers has created an opportunity for traditional lenders, such as banks – an opportunity they are beginning to tap into. The increasingly sophisticated digitalisation of finance has also enabled traditional lenders to adopt these processes, allowing them to mitigate risk and broaden their offering, making bank lending more accessible to SMEs.

One example of this is the growth of established models such as asset based financing and factoring. As this form of finance has evolved, the emergence of new technologies has improved its appeal to banks, making a long-established model increasingly effective, efficient and ultimately more attractive. This has resulted in asset based financing growing by 7% in the Middle East in 2018 alone – not far behind the global figure of 9%.

The increased take-up of such technologies by banks means that they can now not only compete with alternative finance providers to provide modern financing to SMEs, but they can also partner with these providers to evolve their offering even further. 

MENA is experiencing a period of exceptional growth for SMEs, but in order to realise the true potential of these businesses, we must place greater focus on access to funding. Only with better access to finance can these businesses unlock growth as they navigate supply chains, working capital gaps and encourage innovation. Well established lenders have in recent years shied away from such businesses, but as technology evolves and the popularity of alternative finance providers signal the changing demands of businesses, there is an opportunity for them to tap into this market once again. Banks that recognise the opportunity to seize digitalisation and work to learn from the innovation in alternative finance, will be the ones who are working hand in hand with the region’s governments to ensure that the businesses that form the backbone of their economies reach their full potential. 

See also:

For more information on business topics in the Middle East and Africa, please take a look at the latest edition of Business Chief MEA.