Ras Al Khaimah Economic Zone (RAKEZ) has today launched its BusinessWomen Package, a ‘first-of-its-kind’ product in the United Arab Emirates (UAE) designed exclusively for women who are passionate about business.
The package is offered at a pocket-friendly rate starting from AED 6,200 with instalment plan options, a free zone licence, a shared workstation and various support services in a one-stop shop.
Businesswomen who want to set up their company with the economic zone can either select the 1-Year or 3-Year Package. Both packages come with value-added services such as free usage of RAKEZ shared workstations, free printing of business cards, priority tokens at RAKEZ Service Centres and eligibility for a UAE Residence Visa(s). The 3-Year Package has an added benefit of one free investor visa, which is equivalent to AED 3,950.
In addition, the newly-launched package gives businesswomen eight free zone licence types to choose from: Commercial, Educational, E-Commerce, General Trading, Individual/Professional, Media, Service and Freelancer Permit.
Commenting on the introduction of the new package, Ramy Jallad, Group CEO of RAKEZ, said: “We are very proud to launch the RAKEZ BusinessWomen Package, which is a clear testament to our commitment of encouraging more women to achieve their entrepreneurial dreams. In the past, we have conducted events exclusively for women, such as networking sessions. We have used these events as platforms to get to know what challenges they are facing and what can we do to support them. Then, here we are, we have introduced an entire package that has all the elements to help them become the successful businesswomen that they are meant to be. It comes with a selection of cost-effective office spaces, licences, as well as support services. All they have to do is pick the solutions that suit their needs and they are good to go.”
“This is just the tip of the iceberg,” Mr Jallad added. “Watch out as we are going to work on more initiatives to inspire women to be in business.”
According to the World Economic Forum’s 2018 Global Gender Gap Report, there is a 40% gender gap in the Middle East and North Africa in various areas of the society, including business. Closing this gap by promoting female entrepreneurship can help the region achieve a more sustainable and inclusive economic growth path.
Ask anybody with their ear to the rail of the global games industry about the MENA region and they’ll very likely assert that it offers ‘opportunity’.
The vast area has for some time now been associated with market potential that games companies from across the globe would be wise to harness.
However, the detail around what founds that opportunity, how it should be seized and the reality of its distinct challenges can seem like something of a mystery. A thorough analysis, however, reveals a region that might not be as atypical or enigmatic in its machinations as many assume.
As the oft-talked about BRIC region – ‘Brazil, Russia, India and China’ – has blossomed from ‘emerging’ to ‘emerged’, the MENA countries have been quietly building an impressive momentum of their own. And it is the mobile games sector specifically that provides the region with its most striking prospects.
By MENA, of course, we mean ‘Middle East and North Africa’. It is ultimately an area without a firm or agreed definition. But for the purposes of this article – which kickstarts a series of pieces looking at MENA – we’re considering numerous countries, including but not limited to, Jordan, Saudi Arabia, the United Arab Emirates/Dubai, Bahrain, Iran and Lebanon.
Nations such as Israel, Turkey and Egypt also warrant reflection, though those are places with games sectors that are relatively well-known to the outside world and even distinct from the rest of their MENA family.
Speaking the same language
While one could spend a lifetime developing a universally agreed framing of ‘MENA’, the reality is that the opportunity for mobile games developers, publishers, platforms and service providers is significantly defined by a language; not a list of countries. That language is Arabic, and one thing is clear; the Arabic speaking world provides a substantial audience for those that make a living from mobile games to consider.
“The reason why the mobile gaming market [here] is so interesting comes from the fact that Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic,” offers Hussam Hammo, CEO of Jordanian outfit Tamatem, which specialises in publishing and maintaining mobile games in the MENA region.
“More than 70 per cent of the population of the Arabic speaking countries – around 400 million – use Arabic as their default language on their smartphones. Add to that that countries like Saudi Arabia have the highest ARPPU in the entire world, and you have a perfect opportunity.”
Record-breaking ARPPU alone should immediately prick the ears of industry observers. For while the world’s biggest gaming market China has ARPPU of around $32, Saudi Arabia’s ARPPU is a striking $270. Tamatem’s own figures, meanwhile, point to consumers in MENA spending $3.2 billion on games broadly back in 2016.
Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic.
And then there are those 400 million people keen to digest Arabic language smartphone titles. They are presently served with a bounty of gaming content; but a great deal more fails to support both Arabic language – and culture.
An appetite for growth
It seems clear there is an underserved and ravenous appetite for gaming in MENA, which means one thing; there is a generous capacity for growth. Indeed, consulting giant strategy& predicts that by 2022, mobile gaming across MENA will stand as a $2.3 billion industry.
Smartphone penetration has also hit alluring levels in many MENA countries. 46 per cent of Saudi Arabia’s 33,554,000 residents own a smartphone, according to Newzoo data. That’s just shy of 15.5 million people.
The United Arab Emirates, meanwhile, can boast of an 80.6 per cent smartphone penetration rate. That is against a relatively modest population of 7.5 million, but it still presents a demographic worth serious attention.
Contemporary data on smartphone penetration on Jordan is a little harder to come by, but the Pew Research Center’s data for 2016 lists a 51 per cent rate. The same study gives Lebanon a slight lead at 52 per cent. Of course, not every country in MENA provides such appealing device penetration, but looking at the region as a whole, growth is forecast.
The global trade body for mobile network operators, the GSMA, counted 375 million unique mobile subscribers across MENA in 2017. They expect that number to reach 459 million by 2025. By that same year, GSMA predicts the area will count 790 million individual SIM connections, not including IoT devices. That’s a striking 118 per cent penetration rate, if you consider the region’s entire population, across all languages.
As for the make-up of mobile device breakdown in MENA, region-specific data is in relatively short supply. StatCounter figures for specific countries in the area do, however, paint a fairly familiar picture.
As of July 2019, in Saudi Arabia specifically Android accounts for 65.6 per cent of in-use handsets, while iOS trails at a still-healthy 34.12 per cent. That leaves a trivial amount of unknown and fringe or legacy OSs, including the likes of Series 40, which still has a 0.01 per cent penetration rate in the country.
Over in Jordan, Android dominates with 84.65 per cent of the market, while iOS accounts for 15.15 per cent of smartphones. And in the UAE, Android can claim 77.34 per cent of the market, with iOS holding on to 22.18 per cent. The picture appears reasonably consistent, including looking back over the last year.
The Google Play and Apple App Stores dominate, but that is a topic PocketGamer.biz will return to in-depth later in this series of features.
‘Growth’ remains the keyword if you look at MENA as a place to succeed with gaming content. And, when considering mobile specifically, that growth which will likely be significantly facilitated by providing a great deal more games in the Arabic language. Those 400 million handsets set to Arabic by default are active now, and their number is likely to climb.
Not that language is the only factor in localising a game for MENA. The region is culturally a different place from both the West and areas like China or Southeast Asia. Making a game created outside of MENA culturally appropriate for the market will perhaps offer the biggest challenge to companies external to the area.
The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans.
It’s a perfect example of the distinction between translation and true localisation. As for the key to mastering cultural localisation? Collaboration with resident MENA outfits may be an absolute necessity.
Tamatem is one of a number of companies specialising in publishing to MENA, and it’s certainly not alone in its effort. Babil Games, MENA Mobile and others are striving to connect international games companies with the local market.
Another factor central to the potential of mobile gaming in MENA is, of course, the arrival of 5G networks. GSMA points out that in some parts of MENA, 5G has already been commercially deployed.
“The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans,” confirms Jawad Abbassi, head of Middle East and North Africa at GSMA.
“Operators in MENA – particularly in the GCC States – are among the first to launch 5G networks commercially. Following these launches, operators in 12 other countries across MENA are expected to deploy 5G networks, covering around 30 per cent of the region’s population by 2025. By then, regional 5G connections will surpass 50 million. Early global 5G pioneers include the GCC countries, South Korea, the United States, Australia and the United Kingdom.”
Clearly, when it comes to infrastructure, much of the MENA region rivals some the rest of the world’s tech leading nations.
Ultimately, of course, MENA is a diverse and multifaceted place. Its various nations all bring their own distinct make-ups, and in taking a broad perspective this round-up has perhaps just served to highlight the fundamentals of a very real opportunity.
The figures speak for themselves. But if you want to move on what MENA offers? You’ll want a little more detail.
That is why this piece is just the start of a series of articles looking at the companies, countries and trends shaping MENA’s mobile gaming future.
So keep an eye on Pocketgamer.biz and consider joining us at Pocket Gamer Connects Jordan on November 2nd and 3rd, where you can come and meet the publishers, developers and game tech outfits that might be the future of your success in MENA.
Teaching entrepreneurial thinking at a young age can help kids learn and hone valuable skills that they can use to cope with stress and unforeseen issues that arise in their ever-changing world.
Moving from childhood into adolescence can be a very challenging time for kids. Not only are social norms changing, but their ability to adapt to their quickly evolving environments is being developed. Schools change, responsibilities change, and their lives become different from day to day. Throughout this time, maturing happens, and it aids in their ability to critically think, react to situations, and become more independent.
But is there a way to develop these skills sooner to help them mature, and ultimately, cope better? In a nutshell, yes. Teaching entrepreneurial thinking at a young age can help kids learn and hone valuable skills that they can use to cope with stress and unforeseen issues that arise in their ever-changing world. Creativity, problem-solving, and emotional intelligence are just a few of these skills that can be gained through early teaching and long-term practice. For kids that practice entrepreneurial thinking, in difficult situations, they are able to problem solve effectively by analyzing long-term ramifications. This kind of processing comes with so many benefits that will bode well for kids from childhood all the way into adulthood.
1. Positive habit-forming Entrepreneurial thinking is not just an activity, but rather a lens through which all situations are viewed. This is also known as a “positive habit.” Instead of going down another path, the child has to make a conscious decision to change their perspective. By making these daily decisions, kids become more aware of the benefits that come along with forming positive habits and find them easier to engage in a variety of life aspects.
2. Emotional support When a child is able to effectively problem solve, and see the fruit of their efforts, positive feelings and increased self-worth follow. This internal confidence leads to kids feeling emotionally supported, and it has a great effect on their ability to take criticism and grow without fear of failure.
3. Behavior Most of the time, bad behavior comes from the inability to control one’s emotions and/ or the inability to communicate. Practicing entrepreneurial thinking solves both of those inhibitors by giving the child the tools to be able to look at the problem from a big-picture and emotionally intelligent perspective. All of the attributes that are gained from teaching entrepreneurial thinking tend to lead to better behavior, emotional health, and positive habits by giving kids the tools to not only cope, but thrive. Equipping them early helps kids navigate the landscape of their lives so that they can face obstacles with creativity and without fear. Difficult situations, new experiences and issues that arise are all the more easily handled and learned from by learning and practicing entrepreneurial thinking young.
The skills gap poses a genuine threat to economic progress and could leave nations stalled, millions unemployed and prosperity dwindling.
Only one in five working-age women in the Middle East and North Africa (MENA) has a job or is actively looking for one, according to the World Bank and the region has one of the lowest female labour force participation rates in the world.
If the MENA region continues along this trajectory, it could take at least another 150 years to match the current global average for female labour force participation.
Despite good progress in some countries, challenges and inequities persist.
Increasingly, there is a realisation that the levels of female unemployment are not simply a mirror of the business cycle, but a persistent structural issue that has distinct causes and requires specific solutions that cut across socio-economic and education policies.
This not only represents a great loss of human capital, but it also seriously hinders the region’s potential for social and economic development.
Across MENA, restrictive barriers including limited mobility, restrictive laws and closed industries, coupled with long-standing political and social issues, continue to impede women’s access to the labour market.
However, one factor that stands out is that education does not always lead to employment. There is a persistent mismatch between employers and jobseekers – whether in terms of skills, attitudes or expectations.
For example, in Saudi Arabia, female enrolment in tertiary education has doubled in the last decade (68.5% in 2017 compared to 34.2% in 2007), but still only two in ten working-age women participate in the labour force.
In Egypt, unemployment among women with advanced education is almost six times that among those with basic education only, according to World Bank Development Indicators. While in Tunisia, only 41% of women are enrolled in tertiary education and they represent just 26.5% of the total labour force in the country.
This skills gap poses a genuine threat to economic progress and has the potential to leave nations stalled, millions unemployed and prosperity dwindling.
I believe that women can be change-makers for the political, economic and social development of MENA.
However, participation from governments, employers and education providers is needed to bridge the gender gap, increase regional output, and put MENA on a more sustainable and inclusive growth path in the long run.
Companies can do their part by engaging in thoughtful planning, cooperating with others and getting strategic about their staffing practices. This could range from supporting access to soft and technical skills programmes, endorsing philanthropic partnerships, designing policies and spearheading discussions among the education community to pushing inclusive job opportunities.
Over the next decade, it is estimated that 50 million women will come of working age in the region. Therefore, corporations are in a unique position to bring about significant change through empowering a previously untapped human resource.
Despite increased focus and spending over the past decade, MENA governments still have a long road ahead in improving women’s social and political barriers to employment. Without a drastic overhaul of personal development and soft skills programmes, companies will continue to struggle to fill jobs across the region.
The influence and investment of companies is crucial to start to re-shape the position of women across MENA and successfully bring them into the workforce – ultimately shaping a stronger, more inclusive economy.
Carmen Haddad is the Chief Country Officer of Citigroup Saudi Arabia and the Citi Saudi Arabia Business Governance Head. Citi Foundation has partnered with international NGO Education for Employment to tackle the MENA unemployment crisis.
* Any views expressed in this opinion piece are those of the author and not of Thomson Reuters Foundation.
Christer Elfverson tells Arab News diversity in the Arab world partly due to population growth and GDP.
Unless tensions are eased the outlook for many young Arabs remained bleak.
LONDON: Wars and turmoil in the Middle East and North Africa (MENA) region are having a marked impact on youth unemployment, according to a former top UN official.
And unless tensions are eased the outlook for many young Arabs remained bleak, said international diplomatic adviser, Christer Elfverson. His comments follow figures from the International Labor Organization (ILO), showing that one in five young people under the age of 25 in the region are jobless and have no skills, and in some countries, the issue is becoming more acute.
Elfverson, who spoke at a recent event hosted by Education for Employment (EFE) in collaboration with Citi Foundation, told Arab News that the diversity in the Arab world was partly due to population growth and GDP. But he added that turmoil and wars in the region had also affected unemployment rates, and a lack of initial education in some MENA countries was concerning for future generations. Salvatore Nigro, EFE global VP and CEO, said that the MENA region had the highest percentage of young people, with 65 percent under the age of 25, yet unemployment rates were running at an average of 30 percent. More than 27 million young people will come of working age in the next five years, creating even more pressure and competition in the jobs market. However, MENA countries often face very different problems. In some mountainous regions of Morocco, for example, it is difficult and dangerous for children to undertake daily journeys, whereas Syrian or Palestinian refugees do not have the money for school transport or books. “In some issues, it has gotten better and others it’s worse but at the same time those in the countries that have been able to find jobs then maybe the possibilities are greater now. But it is two different worlds,” said Elfverson, who is an EFE board member.
Abdesselam Aboudrar, the Moroccan ambassador to London, said that the education system in his country was currently being reformed. He added that the illiteracy rate had decreased from just over 40 percent to about 25 percent, which although “still a lot,” had been slashed over the past 10 years. “We are reforming the whole system to make it more effective and more empowering for youth,” the envoy said. Aboudrar told Arab News that Morocco had been working with several NGOs and countries including Japan, China, Russia, Canada and EU nations to develop the maritime, industrial and textile sectors and encourage more young people to take jobs in these fields. The ambassador said vocational training was a very important aspect in preparing young people for current and future jobs. It was also vital to simultaneously train youth in supplying water, maritime and fisheries, developing skills in the automotive, computing, agricultural and tourism industries, to curb poverty, educate women and provide young girls with access to education.
When it came to the MENA region, David Cowan, Citi Africa economist, compared Saudi Arabia with Algeria due to the oil factor. “The level of growth and employment per dollar of government spending is one of the lowest in the world. If the Saudi government spends $10, the amount of jobs and growth that number generates is much lower than, for example, in many other countries. So that is a problem,” he said. Cowan added that Saudi Arabia had a high level of revenue with no constraint but said: “It is how you spend that revenue wisely. Sometimes you need to spend money on lower-profile projects that may generate more employment in the long run.”
Jordan’s EFE chief executive officer, Ghadeer Khuffash, told Arab News that this quarter’s unemployment rate had increased to 19 percent. She said there was “economically active people in Jordan and there are economically inactive people.” The inactive ones were not working or looking for jobs. “In Jordan, 87 percent of females are economically inactive, which means only 14 percent of the women are contributing to the labor market. So, in our work, we don’t only target unemployment or unemployed youth, but we also target those who are economically inactive.” Not only is Jordan suffering from a high unemployment rate, but the country also has to bear the responsibility of millions of refugees or displaced persons and borders states that have endured years of war and unrest.
Refugees often do not have valid permits and are not able to leave camps. Those that do are barely able to move within the camp, let alone leave to go to work.
Regarding the challenges females face in employment, Khuffash said: “All the reports from the World Bank and so on, highlight the lack of public transportation systems and nursery care.” She added that most of the work was predominantly in the capital Amman and the northern city of Irbid. The other governorates had minimal job opportunities. One key factor, however remains consistent: As candidates filter into the market, it has become evident that they are ill-prepared for the workforce, whether coming from a disadvantaged background or a more educated path. The problem cannot be solved by simply modernizing education and labor markets. Speaking to Arab News, Cynthia Muller, board member of EFE-Europe, said the EFE had a measurable, traceable and easily comprehensible mission that did not need a lot of due diligence because “the money goes to where it is supposed to go. And it’s effectively being put to work. “There is a bit of magic when you have humans together with a common mission who have not had the privilege of being attended to on a silver plate. I have been amazed to see people change their life with a very small amount of help by getting that first job,” the hedge fund banker added. For any economy to advance it needs human talent. “Anything that affects the economy and the country, and the well-being of people affects the youth more than the adults,” said Elfverson.
The Middle East is plagued with some of the highest unemployment rates among the up-and-coming generation. One reason behind this could be that most education systems in the region do not link what students learn with the knowledge they actually need in the future.
However, it seems that’s about to change thanks to the efforts of individuals and organizations who are tirelessly working to bridge the gap between learning and earning. This specific issue is at the center of the region’s third annual “No Lost Generation Tech Summit,” which is set to be held in Jordan’s capital Amman on Tuesday and Wednesday.
The two-day event is primarily organized by UNICEF’s regional office for the MENA region and NetHope – an NGO “eager to make a difference in this world through technological innovation.” It is also “supported by the steering committee for youth from the region, and representatives from the International Labor Organization, the International Rescue Committee, Mercy Corps, the Norwegian Refugee Council, UNESCO, UNHCR and World Vision.”
The summit focuses on presenting tech-enabled solutions attemped to link learning and earning among youth from vulnerable communities across the region.
The event’s packed agenda is “almost entirely developed and managed by young people who have all pioneered ways to bridge the gap between young people’s schooling and employment.” (These juniors were selected by involved committees after applying for various roles.)
Speaking to StepFeed, a few of these bright young participants told us more about the ambitious initiative and what it means for youth across the Arab world.
“What makes this summit special is its impact on youth”
Balqees Shahin Al Turk, a 22-year-old Jordanian, has been participating in youth engagement programs and events with UNICEF and other NGOs since 2016. When she learned about this year’s Tech Summit, she immediately applied for a leading role.
“What makes this summit special is its impact on youth, since youth engagement is very high pre, during and post-summit,” Shahin explained.
There are 75 youngsters from across the MENA region working on this summit, she says. The fact that people her age are organizing such an event and have their voices heard among adults is a boost of self-confidence and energy to work harder.
“The rate of unemployment in the MENA region is about 30% although most of the MENA populations is composed of youth,” which Shahin finds disappointing. A main problem, according to her, is the gap between what young people learn and what real work environment requires.
“Young people are graduating with no clue on how to implement what they have learned so its quite important to work on minimizing this gap first by figuring out that there is a problem and second by talking about it and trying to find solutions for this and that’s what the summit is about,” she explained.
“I think the impact on adolescents and youth after the NLG Tech Summit will be wonderful”
For Syrian teens – and those a bit older – it’s not easy to cope with all that’s been lost. “This summit is very important for me as a young person because I have lost a lot of important things like education and my country Syria because of the war,” Saber Al-Khateeb, a 22-year-old Syrian and one of the representatives of youth at the NLG Tech Summit, said.
The summit will bring together “youth, private sector companies, development and humanitarian experts, academic institutions and donors to leverage technology and cross-sector collaboration to connect learning to earning for young people in the region, particularly those affected by the crises in Syria and Iraq,” he explained.
Al-Khateeb remains hopeful when it comes to learning-to-earning solutions, as he believes proper implementation will lead to a decrease in unemployment rates.
NLG’s young participants are here to inspire future generations
Speaking to StepFeed, 24-year-old Palestinian Shahenaz Monia, another young participant in the summit, said the gap between learning and earning should be reduced before unemployment rates skyrocket.
“Never underestimate the power of any opportunities to get more experience,” as these, in her belief, will allow anyone to enhance and hone their skills.
The two-day event will be packed with people from different backgrounds, and with divergent experiences and success stories, which should be interesting and educational to young people.
“Passing through a hard and long way doesn’t mean you are wrong,” Monia said. “If you believe in something work hard to make it true. It’s okay to feel nervous, it only means you are stretching out of your comfort zone,” she continued.
According to UNCHR, those fleeing their own countries for fear of persecution travel collectively around two billion kilometres per year to reach a safe haven. To honour their resilience and determination and to remind us of the long and tortuous journeys they are forced to make on their way to safety, the United Nations High Commissioner for Refugees (UNHCR) has launched the www.stepwithrefugees.org campaign to mark 2019 World Refugee Day.
The number of migrant and refugee school-age children around the world has grown by 26% since 2000. Eight years on from the beginning of the Syrian conflict, a new paper released today and at an event in the Netherlands looks at the importance of making sure that education systems are set up to address the trauma that many of these children face before, and during their journeys to new countries. In particular, teachers need better training to provide psychosocial support to these children, including through social and emotional learning.
In Germany, about one-third of refugee children suffer from mental illness, and one-fifth suffer from post-traumatic stress disorder. Unaccompanied minors are particularly vulnerable. One third of 160 unaccompanied asylum seeking children in Norway from Afghanistan, the Islamic Republic of Iran and Somalia suffered from post-traumatic stress disorder. Among 166 unaccompanied refugee children and adolescents in Belgium, 37-47% had ‘severe or very severe’ symptoms of anxiety, depression and PTSD.
Rates of trauma among the displaced in low and middle income countries are also high. For instance, 75% of 331 internally displaced children in camps in southern Darfur in Sudan met diagnostic criteria for post-traumatic stress disorder, and 38% had depression.
In the absence of health centres, schools can play a key role in restoring a sense of stability. Teachers are not and should never be leant on as mental health specialists, but they can be a crucial source of support for children suffering from trauma if they’re given the right training. But they need basic knowledge about trauma symptoms and providing help to students, which many do not have. NGOs, including the International Rescue Committee, iACT, and Plan International, are training teachers to face this challenge through their programmes, but their reach is not enough.
In Germany, the majority of teachers and day-care workers said that they did not feel properly prepared to address the needs of refugee children. In the Netherlands, 20% of teachers with more than 18 years of experience working in mainstream schools reported that they experienced a high degree of difficulty dealing with students with trauma. The vast majority of these teachers (89%) encountered at least one student with trauma in their work. A review of early childhood care and education facilities for refugee children in Europe and North America found that, although many programmes recognized the importance of providing trauma-informed care, appropriate training and resources were ‘almost universally lacking’.
The paper shows the importance of social and emotional learning, as an approach to psychosocial support which targets skills, such as resilience, to manage stress, and is often rolled out through interactive, group-based discussions or role play. It shows the importance of this approach for less acute situations but emphasizes that for more challenging cases trained specialists are needed.
It is also important to involve parents in social and emotional learning so that activities can continue at home. One programme in Chicago looked at addressing symptoms of depression among Mexican immigrant women and primary school children with in- and after- school programmes and home visits, for instance, and improved school work, child mental health and family communication.
Learning environments must be safe, nurturing and responsive.
Teachers working with migrant and refugee students who have suffered trauma face particular hardships and need training to cope with challenges in the classroom.
Psychosocial interventions require cooperation between education, health and social protection services.
Social and emotional learning interventions need to be culturally sensitive and adapted to context. They should be delivered through extra-curricular activities as well.
Community and parental involvement should not be neglected.
UNITED NATIONS, May 1 2019 (IPS) – The United Nations has estimated a hefty $466 billion as remittances from migrant workers worldwide in 2017—and perhaps even higher last year.
These remittances, primarily from the US, Western Europe and Gulf nations, go largely to low and middle-income countries, “helping to lift millions of families out of poverty,” says UN Secretary-General Antonio Guterres.
But most of these migrant workers are known to pay a heavy price, toiling mostly under conditions of slave labour: earning low wages, with no pensions or social security, and minimum health care.
As the United Nations commemorated Labour Day on May 1, the plight of migrant workers is one of the issues being pursued by the Geneva-based International Labour Organization (ILO), a UN agency which celebrates its centenary this year promoting social justice worldwide.
In a December 2018 report, the ILO said: “If the right policies are in place, labour migration can help countries respond to shifts in labour supply and demand, stimulate innovation and sustainable development, and transfer and update skills”.
However, a lack of international standards regarding concepts, definitions and methodologies for measuring labour migration data still needs to be addressed, it warned.
But much more daunting is the current state of the migrant labour market which has been riddled with blatant violations of all the norms of an ideal workplace.
Ambassador Prasad Kariyawasam, a member of the UN Committee on Migrant Workers, told IPS rising populist nationalism world over is giving rise to rhetoric with unfounded allegations and irrational assessments of the worth of migrant workers to economies of many migrant receiving countries in the world.
Since migrant workers remain voiceless without voting or political rights in many such receiving countries, they are unable to mobilize political opinion to counter assertions against them, he said.
“And migrant workers are now being treated in some countries as commodities for import and export at will, not as humans with rights and responsibilities,” said Ambassador Kariyawasam, a former Permanent Representative of Sri Lanka to the United Nations.
Unless these trends are reversed soon, he warned, not only human worth as a whole will diminish, but it can also lead to unexpected social upheavals affecting economic and social well-being of some communities in both sending and receiving countries of migrant workers.
At a UN press conference April 10, ILO Director-General Guy Ryder said the ILO Centenary is a time to affirm with conviction that the mandate and standards set by the Organization remain of extraordinary importance and relevance to people everywhere.
He called for a future where labour is not a commodity, where decent work and the contribution of each person are valued, where all benefit from fair, safe and respectful workplaces free from violence and harassment, and in which wealth and prosperity benefit all.
Tara Carey, Senior Content & Media Relations Manager at Equality Now told IPS poverty and poor employment opportunities are a push factor for sex trafficking.
There are many cases in which women and girls in African countries are promised legitimate work and are then trafficked into prostitution. This happens within countries, across borders, and from Africa to places in Europe and the Middle East, she pointed out.
And recently, the police in Nigeria estimated 20,000 women and girls had been sold into sexual slavery in Mali:
“The new trend is that they told them they were taking them to Malaysia and they found themselves in Mali. They told them they would be working in five-star restaurants where they would be paid $700 per month.”
The number of migrants is estimated at over 240 million worldwide. And an increasingly large number of countries, including Saudi Arabia, Qatar, Kuwait, Bahrain and the United Arab Emirates (UAE), are home to most migrant workers from Asia.
In a background briefing during a high-level plenary meeting of the General Assembly in April, the ILO said conditions of work need to be improved for the roughly 300 million working poor – outside of migrant labour — who live on $1.90 a day.
Millions of men, women and children are victims of modern slavery. Too many still work excessively long hours and millions still die of work-related accidents every year.
“Wage growth has not kept pace with productivity growth and the share of national income going to workers has declined. Inequalities remain persistent around the world. Women continue to earn around 20 per cent less than men.”
“Even as growth has lessened inequality between countries, many of our societies are becoming more unequal. Millions of workers remain disenfranchised, deprived of fundamental rights and unable to make their voices heard”, according to the background briefing.
In its 2018 review of Human Rights in the Middle East & North Africa, the London-based Amnesty International (AI) said there were some positive developments at a legislative level in Morocco, Qatar and the UAE with respect to migrant labour and/or domestic workers.
But still migrant workers continued to face exploitation in these and other countries, including Bahrain, Jordan, Kuwait, Lebanon, Oman and Saudi Arabia, in large part due to kafala (sponsorship) systems, which limited their ability to escape abusive working conditions.
In Morocco, the parliament passed a new law on domestic workers, entitling domestic workers to written contracts, maximum working hours, guaranteed days off, paid vacations and a specified minimum wage.
Despite these gains, the new law still offered less protection to domestic workers than the Moroccan Labour Code, which does not refer to domestic workers, AI said.
In Qatar, a new law partially removed the exit permit requirement, allowing the vast majority of migrant workers covered by the Labour Law to leave the country without seeking their employers’ permission.
However, the law retained some exceptions, including the ability of employers to request exit permits for up to 5% of their workforce. Exit permits were still required for employees who fell outside the remit of the Labour Law, including over 174,000 domestic workers in Qatar and all those working in government entities.
In the UAE, the authorities introduced several labour reforms likely to be of particular benefit to migrant workers, including a decision to allow some workers to work for multiple employers, tighter regulation of recruitment processes for domestic workers and a new low-cost insurance policy that protected private sector employees’ workplace benefits in the event of job loss, redundancy or an employer’s bankruptcy, according to AI.
Meanwhile, as the ILO pointed out in a report in May 2017, current sponsorship regimes in the Middle East have been criticized for creating an asymmetrical power relationship between employers and migrant workers – which can make workers vulnerable to forced labour.
Essential to the vulnerability of migrant workers in the Middle East is that their sponsor controls a number of aspects related to their internal labour market mobility – including their entry, renewal of stay, termination of employment, transfer of employment, and, in some cases, exit from the country, the report noted.
Such arrangements place a high responsibility – and often a burden – on employers. To address these concerns, alternative modalities can be pursued which place the role of regulation and protection more clearly with the government.
This report demonstrates that reform to the current sponsorship arrangements that govern temporary labour migration in the Middle East will have wide-ranging benefits – from improving working conditions and better meeting the needs of employers, to boosting the economy and labour market productivity.
Meanwhile, in its ”Century Ratification Campaign”, ILO has invited its 187 member States to ratify at least one international labour Convention in the course of 2019, with a commitment to apply a set of standards governing one aspect of decent work to all men and women, along with one political commitment supporting sustainable development for all.
Growth in Saudi Arabia’s economy will slow slightly this year, creating a challenge in terms of generating enough jobs for its citizens, an economist has told Zawya.
A new Economic Insight: Middle East Q1 2019 report published by accountancy body ICAEW (Institute of Chartered Accountants in England and Wales) and Oxford Economics said that it expects economic growth in the Kingdom to slow marginally in 2019 to 2 percent, down from 2.2 percent in 2019 as oil revenue falls due to Organization of the Petroleum Exporting Countries-mandated production cuts and “only a modest acceleration in non-oil activity” due to the challenging business environment.
The report said that although it expects growth in Saudi Arabia’s non-oil sector to grow by 2.6 percent this year, supported both by an expansionary fiscal policy and reforms aimed at boosting the private sector, hiring activity remains “subdued”.
Mohamed Bardastani, ICAEW economic advisor and Middle East senior economist at Oxford Economics, told Zawya in a telephone interview that the jobs market in Saudi Arabia has been “extremely challenging, and we don’t see it changing any time this year”.
He explained that that in the two years between the end of 2016 and the end of last year, the country’s Labour Force Survey showed that more than 1.5 million jobs were lost among expats – a result of “the economic slowdown, various fiscal consolidation measures, but most importantly the measures that the government took in terms of applying expat levies and expat dependent fees on private sector companies”, Bardastani said.
“The private sector, historically speaking, has been relying on expat workers. Around 80 percent of the private sector is made up of expat workers. So obviously, this will have ramifications on growth,” he said.
Moreover, unemployment among Saudi nationals remains stubbornly high at 12.7 percent, considerably above the 7 percent target set under the kingdom’s Vision 2030 goals.
“Historically speaking, the public sector most of the time absorbed the new job entrants. This is one of the main challenges in Saudi right now. I think it is the most pressing challenge, where you have around a 12-7-12.8 (percent) unemployment rate and you have around 400,000 graduates (each year), and then job creation is relatively weak,” he said.
Bardastani said that the government faces a difficult choice, “between either absorbing those new job market entrants and increasing its spending, which will lead to higher budget deficits” or continuing to push through reforms in the expectation that they create enough opportunities for private sector companies to generate jobs.
“I think, for sure, that’s going to take some time,” he said.
The survey also stated that it expects faster non-oil growth in the United Arab Emirates, but again a limited increase in employment opportunities.
Growth in the non-oil economy is set to increase to 2.1 percent this year, up from 1.3 percent in 2018, on the back of expansionary budgets and “pro-growth government initiatives”, such as the 50 billion dirham ($13.6 billion) ‘Ghadan 21’ initiative in Abu Dhabi, but job creation has slowed in key sectors, including services and manufacturing.
Bardastani said firms that have seen input costs rising have been unable to increase selling prices due to competitive pressures.
“So you have this squeeze in profitability margins. Many firms are becoming more efficient in terms of producing the output – they have to do more with less resources. That’s why job creation has been weak.”
A jobs survey also published on Wednesday by recruitment firm Michael Page was more upbeat on the prospects for Saudi jobseekers, stating that 64 percent of respondents were positive about the current job market in the kingdom. It also said 86 percent of respondents said that they expect the jobs market in Saudi Arabia to improve over the next six months.
In a press release announcing the survey results, Michael Page Saudi Arabia’s operating director, Domenic Falzarano, said: “Given the kingdom’s commitment to its Vision 2030, the bulk of the hiring is taking place in the financial services, infrastructure, entertainment, tourism and healthcare sectors.”
(Reporting by Michael Fahy; Editing by Mily Chakrabarty)
EY research says the largest event to be held in the Arab World is predicted to add the equivalent of 1.5% to UAE GDP
Expo 2020 Dubai will boost the UAE economy by AED122.6 billion ($33.4 billion) and support 905,200 job-years between 2013 and 2031, according to an independent report published by global consultancy EY.
During the peak six-month period of the World Expo, the largest event to be held in the Arab World is predicted to add the equivalent of 1.5 percent to UAE gross domestic product.
The scale of investment pouring in to construct and host an event of this ambition, as well as goods and services consumed by the millions expected to visit and the businesses that will occupy the Expo site in the legacy phase, will result in an economic dividend that will benefit businesses large and small across a range of sectors for years to come, according to the report.
From November 2013 – when Dubai won the bid to host the Expo – until its opening in October 2020, the economic impetus will be driven by the construction sector as work continues on building the site and supporting infrastructure such as roads, bridges and the Dubai Metro Route 2020 line, EY noted.
Najeeb Mohammed Al-Ali, executive director of the Dubai Expo 2020 Bureau, said: “This independent report demonstrates that Expo 2020 Dubai is a critical long-term investment in the future of the UAE, which will contribute more than 120 billion dirhams to the economy between 2013 and 2031.
“Not only will the event encourage millions around the world to visit the UAE in 2020, it will also stimulate travel and tourism and support economic diversification for years after the Expo, leaving a sustainable economic legacy that will help to ensure the UAE remains a leading destination for business, leisure and investment.”
The report added that small and medium enterprises, a core component of the UAE economy, will receive AED4.7 billion in investment during the pre-Expo phase, supporting 12,600 job-years.
Job-years is defined as full-time employment for one person for one year and describes the employment impact over the life or phase of a project.
During the peak six months of Expo 2020, visitor spending on tickets, merchandise, food and beverage, hotels, flights and local transport will propel economic activity.
Expo 2020 expects 25 million visits, with 70 per cent of visitors coming from outside the UAE, providing the hospitality industry with an unmissable opportunity to show the world what the UAE has to offer.
The EY report added that the positive thrust will continue in the decade after Expo closes its doors in April 2021, thanks largely to the transformation of the site into District 2020, an integrated urban development that will house the Dubai Exhibition Centre.
Matthew Benson, partner, Transaction Advisory Services, MENA, EY, said: “Expo 2020 is an exciting long-term investment for the UAE, and is expected to have a significant impact on the economy and how jobs are created directly and indirectly.
“As the host, Dubai aims to use the event to further enhance its international profile and reputation. The event will celebrate innovation, promote progress and foster cooperation, and entertain and educate global audiences.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.