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The Middle East still looking for a growth model

The Middle East still looking for a growth model

Posted on March 8, 2020, in The Arab Weekly, Six decades after independence, Middle East still looking for growth model by Rashmee Roshan Lall is an accurate survey of the region that faces, as we speak, prospects of harshest times. How is the Middle East still looking for a growth model? Investing in the human capital of children and young people as well as enhancing their prospects for productive employment and economic growth is little more complicated than relying on Crude Oil exports related revenues. These are the main if not the only source of earnings of the region now plummeting perhaps for good before even peaking. In effect, all petrodollar inspired and financed development that, put simply, was transposed from certain parts of the world, using not only imported materials but also management and all human resources can not result in anything different from that described in this article.


Though a large youthful population would normally be regarded an economic blessing, it’s become the bane of the MENA region.


The Middle East still looking for a growth model
Dramatic changes. Employees of Aramco oil company at Saudi Arabia’s Abqaiq oil processing plant. (AFP)

It’s been 75 years since World War II ended and the idea of decolonising the Middle East and North Africa began to gain ground but, while formal colonisation ended about six decades ago, the region seems unable to find a clear path to growth.

Rather than an “Arab spring,” what may be needed is a temperate autumn, a season of mellow fruitfulness to tackle the region’s biggest problems. These include finding a way to use the demographic bulge to advantage, reducing inequality of opportunity and outcome and boosting local opportunity.

Here are some of the region’s key issues:

Youth ‘explosion’

The MENA region’s population grew from around 100 million in 1950 to approximately 380 million in 2000, the Population Reference Bureau said. It is now about 420 million and half that population lives in four countries — Egypt, Sudan, Iraq and Yemen.

The 2016 Arab Human Development Report, which focused on youth, said most of the region’s population is under the age of 25.

The youth bulge is the result of declining mortality rates in the past 40 years as well as an average annual population growth rate of 1.8%, compared with 1% globally. The absolute number of young people is predicted to increase from 46 million in 2010 to 58 million in 2025.

Though a large youthful population would normally be regarded an economic blessing, it’s become the bane of the MENA region. The demographic trend suggests the region needs to create more than 300 million jobs by 2050, the World Bank said.

Jihad Azour, International Monetary Fund (IMF) director for the Middle East and Central Asia, said MENA countries’ growth rate “is lower that what is required to tackle unemployment. Youth unemployment in the region exceeds 25%-30%.” The average unemployment rate across the region is 11%, compared to 7% in other emerging and developing economies.

Unsurprisingly, said Harvard economist Ishac Diwan, a senior fellow at the Middle East Initiative, young Arabs are unhappier than their elders as well as their peers in countries at similar stages of development.

Last year’s Arab Youth Survey stated that 45% of young Arab respondents said they regard joblessness as one of the region’s main challenges, well ahead of the Syrian war (28%) and the threat of terrorism (26%).

The region’s population is expected to nearly double by 2030 and the IMF estimated that 27 million young Arabs will enter the labour market the next five years.

Poverty and inequality

Most Arab people do not live in oil-rich countries. Data from the UN Economic and Social Commission for Western Asia (ESCWA) stated that 116 million people across ten Arab countries (41% of the total population), are poor and another 25% were vulnerable to poverty. This translates to an estimated 250 million people who may be poor or vulnerable out of a population of 400 million.

The MENA region is also regarded as the most unequal in the world, with the top 10% of its people accounting for 64% of wealth, although the average masks enormous differences from one country to another.

The middle class in non-oil producing Arab countries has shrunk from 45% to 33% of the population, ESCWA economists said. In a report for the Carnegie Corporation last year, Palestinian-American author Rami G. Khouri described what he called “poverty’s new agony,” the fact that a poor family in the Middle East will remain poor for several generations.

Egypt is a case in point. In 2018, Cairo vowed to halve poverty by 2020 and eliminate it by 2030. However, Egypt’s national statistics agency released a report on household finances last year that said that 33% of Egypt’s 99 million people were classified as poor, up from 28% in 2015. The World Bank subsequently nearly doubled that figure, saying 60% of Egyptians were “either poor or vulnerable.”

Wealth gaps between countries are greater in the region than in others because it has some of the world’s richest economies as well as some of the poorest, such as Yemen.

Inequality is not the only problem in the region. Former World Bank economist Branko Milanovic said the uneven picture means that last year’s protests in Lebanon, Algeria, Sudan and Iraq cannot be explained by “a blanket story of inequality.”

Indeed, Algeria, a relatively egalitarian country, was roiled by protests, first against a long-serving president and then against the wider political system.

French economist Thomas Piketty, who wrote the bestselling book on income inequality, “Capital in the Twenty-First Century,” said Arab countries must come up with a way to share the region’s vast and unequally distrib­uted wealth.

Lost decades of growth

In the decade from 2009, the region’s average economic growth was one-third slower than in the previous decade. The IMF said per capita incomes have been “near stagnant” and youth unemployment has “worsened significantly.”

The state is the largest employer in many Arab countries and over-regulation of the private sector left it underdeveloped and unable to overcome the significant barriers to trade and economic cooperation across regional borders. Meanwhile, inflexible labour laws stifled job creation and cronyism allowed inefficiency to stay unchallenged. In 2018, the average rank of Arab countries on the World Bank’s Doing Business survey was 115th out of 190 countries.

Along with structural factors, conflict has had a debilitating effect on economic growth. Three years ago, the World Bank noted that the Syrian war had killed approximately 500,000 people, displaced half the population — more than 10 million people — and reduced more than two-thirds of Syrians to poverty.

By 2017, conflict in Yemen and Libya had displaced more than 15% and 10% of their respective populations of 4 million and 6 million. Taken together, the Syrian, Yemen and Libyan civil wars have affected more than 60 million people, about one-fifth of the MENA population.

Infrastructural damage runs into the billions of dollars but it is the loss — or outright collapse, as in Yemen — of economic activity that has affected real GDP growth.

Countries in the region affected by conflict lost $614 billion cumulatively in GDP from 2010-15 — 6% of the regional GDP, ESCWA’s 2018 report on institutional development in post-conflict settings stated.

New thinking needed

This is the year when, for the first time, an Arab country holds the chairmanship of the Group of 20 of the world’s largest economies. It could be an opportunity to consider existing trends within the region, what needs to be changed and how.

In the words of Oxford development macroeconomist Adeel Malik, “the Arab developmental model… seems to have passed its expiration date.” In a 2014 paper for the Journal of International Affairs, Malik said “failure of the Arab state to deliver social justice is ultimately rooted in the failure of a development model based on heavy state intervention in the economy and increasingly unsustainable buyouts of local populations through generous welfare entitlements.”

It’s a good point, for the region’s richest countries just as much as its poorest. Oil-rich states are affected by dramatic changes in oil prices and the increasingly urgent suggestion that the world is at “peak oil.” An IMF report warned that, by 2034, declining oil demand could erode the $2 trillion in financial wealth amassed by Gulf Cooperation Council members. The IMF said “faster progress with economic diversification and private sector development will be critical to ensure sustainable growth.”

Creativity and courage will be needed if the Arab world is to meet the expectations of its youthful population and the challenges posed by its increasing inequality.

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MENA youth’s perception of the private sector

MENA youth’s perception of the private sector

The following article titled Oliver Wyman: MENA youth’s perception of the private sector by Georgia Wilson – Leadership is worth reading to comprehend the peculiar situation of the MENA youth. In effect, the region despite having the highest youth population shares in the world, as well as the highest rates of youth unemployment, there seems to be still some sort of freedom of choice between private and public service employment.

Business Chief looks at Oliver Wyman, and INJAZ Al-Arab recently conducted research on the youth perception of the private sector. 

Across the Middle East and North Africa (MENA) region, over 2,400 young people between the age of 16 and 36 were surveyed to gain insight into the youth perception of the private sector.

“It is critical to capture the perspective of the youth and assess what they require to bolster the private sector of the future. We see a healthy inclination towards entrepreneurship, and a clear idea of what factors can facilitate lifelong learning. These are both indicators of their perception of the private sector, which is key to sustainable economic growth of their countries and the region. The youth are a key driver in the realization of economic stability, and we are proud to support INJAZ Al-Arab in helping the youth to fulfill their economic potential,” commented Jeff Youssef, Partner at Oliver Wyman.

Key findings of the youth survey:

  • 79% feel positive about the private sector’s contribution to the economy – a 41% increase from 2018
  • 75% expect the private sector to grow in the next five years – an 11% decrease from 2018
  • 55% are discouraged from working in the private sector due to lack of opportunities and lack of competitive benefits – an 8% increase from 2018
  • 50% perceive the “who you know” favouritism within organisations, to be the primary obstacle when seeking private sector employment
  • 78% see themselves working in the private sector in the near future
  • 84% feel inspired to start their own entrepreneurial venture in the near future 
  • 53% see leadership, creativity and communication as the most important skills for the private sector

“For young people today, it is extremely important that they are well equipped with skills, knowledge, and sense of entrepreneurship to enter the workforce. INJAZ’s collaboration with Oliver Wyman will further allow us to tackle the issue of youth unemployment in MENA, as we are certain that the findings are of great benefit to multiple stakeholders and that our initiative reflects on their potential to impact policy reform, program creation, and educational institution transformation,” added Akef Aqrabawi, CEO at INJAZ Al-Arab.

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

Follow Business Chief on LinkedIn and Twitter.

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IMF note on Gulf’s depleting wealth ‘a call to action’

IMF note on Gulf’s depleting wealth ‘a call to action’

In ZAWYA’s GCC, an article dated13 February 2020, by Nada Al Rifai is about the IMF note on Gulf’s depleting wealth ‘a call to action’ – Mubadala official referring to the IMF’s report on Oil demand declining is a huge challenge for GCC.

GCC countries need to absorb growing young population into future labor market.

IMF note on Gulf's depleting wealth 'a call to action'
The King Fahd highway in Riyadh, Saudi Arabia. Image used for illustrative purpose
Getty Images

The International Monetary Fund’s (IMF) recent report noting that GCC states could see their financial wealth depleted in the next 15 years is an important call to action for the region, a senior officer at the Abu Dhabi state fund said.

“The quest for economic diversification and the bridge that hydrocarbon has given us is something that we’ll continue to be looking at and focus on for the next 20 to 40 years,” Waleed Al Mokarrab Al Muhairi, Deputy Group CEO, Mubadala, told delegates at the Milken Institute Summit held in Abu Dhabi.

On whether the 15 years’ time horizon for the Gulf states is too aggressive, Al Muhairi said: “Whatever the number is, it is an important call for action. Everybody in the GCC is thinking about diversifying, but not everybody is at the same level of diversification.”

While the UAE’s hydrocarbon wealth was transformed over the last 45 years into world-class infrastructure, great education, and good healthcare, Mubadala’s Al Muhairi said, this would still not be enough.

“If you want to maintain relevance as an economic hub and to ensure the best quality of life for your citizens and the people who live in one of the most open economies in the region, we need to keep growing. To keep growing, we need to ensure that the economy is innovation-led, to become a technology developer and exporter, and to continue to look for ways to address some of the big issues of the day,” he said.

“We have one of the youngest populations on Earth, and while we don’t necessarily have an employment problem today, it is really important that we think about how we absorb all those young people and make sure they have productive ways to contribute to the overall wellbeing of society,” he said.

A recent report by Fitch Solutions said that Arab Gulf countries are expected to advance labour force nationalisation policies, yet some countries of the bloc will go in for stricter policy implementation than others.

Countries like the UAE and Qatar that are relatively wealthier, have more fiscal flexibility and smaller youth populations are under less pressure to implement labour force nationalisation than other GCC countries such as Oman and Saudi Arabia. Read more here.

(Reporting by Nada Al Rifai, editing by Seban Scaria)

(nada.rifai@refinitiv.com)

Knowledge Oman to step up support for Vision 2040

Knowledge Oman to step up support for Vision 2040

Times-News Service of February 2, 2020, informs that Knowledge Oman to step up support for Vision 2040, is fundamentally for enhancing skills and supporting job creation for the local population.

Knowledge Oman to step up support for Vision 2040
Tariq Hilal Al Barwanni, Knowledge Oman Founder. Photo: Supplied

Muscat: Enhancing skills and supporting job creation for locals is the new goal and vision 2020 for Knowledge Oman.

Speaking about the new plans, Tariq Hilal Al Barwanni, Knowledge Oman Founder said: “Supporting job creation by enhancing the necessary skills employers require from nationals to acquire is Knowledge Oman’s 2020 new goal and direction.”

This came as an announcement of the Sultanate’s multi-award winning knowledge-sharing platform’s strategic plan to make vision 2040 a reality. Knowledge Oman begins the new year with setting attainable goals, based on past achievements, which will support His Majesty Sultan Haitham bin Tarik in maintaining a prosperous and thriving country.

“Empowering the society with the necessary knowledge that is required to build a prosperous future is our key objective going forward. We will do this by aligning with vision 2040 and supporting His Majesty Sultan Haitham bin Tarik’s leadership,” he emphasised.

Since 2008, Knowledge Oman has managed within 12 years to solidify the vision of late His Majesty Sultan Qaboos bin Said bin Taimour of transforming Oman into a knowledge based society by impacting hundred of thousands of people with 74 initiatives in the form of projects, workshops, seminars that positively impacted students from college and universities, women, entrepreneurs and professionals from various industries.

Projects were supported by over 35 partners locally and internationally attracting over 80,000 registrations and 700 volunteers across the years.

Knowledge Oman received 4 awards that includes the Outstanding contribution to the cause of education from the World Human Resource Development (HRD) Congress.

Members of the platform consist of multinational group of both locals and expatriates living in the country with the passion of creating, sharing and exchanging knowledge.

“In planning our strategy for 2020, we are focusing on three key areas to support Oman towards a society which is rich in human, economic and natural resources that aligns with the 2040 vision. We are launching Knowledge Oman Talks, refining our Knowledge Oman Seminars and collaborating with like-minded partners to deliver initiatives that benefit the society” outlined Tariq.

Knowledge Oman Talks will manage and invite experienced professionals to schools, colleges, and universities to bridge the gap between academia & industry. Knowledge Oman Seminars will be enhanced to organise periodic events that discuss contemporary issues and offer suggestions for development to society. Moreover, Knowledge Oman will invite partners to collaborate on initiatives that benefit the society.

Knowledge Oman’s mission in the past was driven by the vision of late His Majesty Sultan Qaboos bin Said bin Taimour to create a knowledge-based society.

Optimistic about the year ahead and working under the leadership of His Majesty Sultan Haitham bin Tarik, Knowledge Oman will continue to build local and international partnerships and work towards providing people in Oman with the necessary knowledge and skills to meet the Oman Vision 2040.

UAE to accelerate space tech startups

UAE to accelerate space tech startups

Adelle Geronimo informs that despite all the hoo-hah in the Middle East, the UAE to accelerate space tech startups is no extraordinary youth employment programme. This follows the UAE launching in October 2018, its first satellite built entirely by Emirati engineers in the UAE and after sending an Emirati astronaut to the International Space Station. The UAE plans also to establish a self-sustaining habitable settlement on Mars by 2117.


space sciences

The UAE Space Agency has announced its collaboration with the Abu Dhabi-based global innovation hub, Krypto Labs, to launch the UAE NewSpace Innovation Programme, which aims to maximise the growth of space technology start-ups with NewSpace, the rising private spaceflight industry.

The programme falls under the purview of the National Space Investment Promotion Plan, which aims to heighten the role of the space industry in contributing to the economy of the UAE.

It is also in line with an MoU signed between the UAE Space Agency and Krypto Labs, which aims to increase innovation and investment in the space sector, drive a diversified UAE economy, and promote awareness through specialised initiatives that support space technology entrepreneurship.

Dr. Mohammed Nasser Al Ahbabi, Director-General of the UAE Space Agency, said, “The UAE NewSpace Innovation Programme invites students, entrepreneurs and start-ups to share their ground-breaking ideas and transform them into viable commercial products. This supports developing space technology as part of the UAE’s private spaceflight NewSpace sector, which aims to make space more accessible, affordable and commercial.”

Selected applicants will take part in a three-month incubation programme at the headquarters of Krypto Labs in Abu Dhabi, with access to the hub’s facilities. They will also have access to the innovation hub’s local and global network of investors, be mentored by global space experts, and develop their skills in business creation, marketing, and sales, among others.

Applicants will also have the opportunity to secure funds to ensure their start-ups are prepared to enter the market.

Eligible applicants must present an innovative and original idea with a clear technical approach, which generates a feasible and scalable product. The teams must have at least one Emirati team member.

Dr. Saleh Al Hashemi, Managing Director of Krypto Labs, noted, “By supporting innovators and young entrepreneurs, we aim to foster a spirit of originality and zest within start-ups to solve global challenges that keep the UAE on the frontier of the innovation map and elevate its position as a leader for innovation-focused businesses.”

A deep dive into the MENA games industry

A deep dive into the MENA games industry

SPECIAL REPORT of Region focus: A deep dive into the MENA games industry dated August 30th, 2019, by Will Freeman is literally illuminating in the sense of shedding the light on the presence of the games industry in the MENA region that was discretely kept away from the attention of the many. Here it is.

A deep dive into the MENA games industry

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.

A deep dive into the MENA games industry
Petra, Jordan

“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.

Hussam Hammo

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 GSMAcounted 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.

A deep dive into the MENA games industry
United Arab Emirates

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.

Cultural localisation

‘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.

Jawad Abassi

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.

And then there are those taking the opposite approach. Saudi Arabia’s Manga Productions, for example, endeavours to deliver ‘animation and video game projects to promote Saudi ideas and messages internationally through unique and professional productions’. As a local market, MENA is culturally distinct, but that doesn’t stop it from being globally ambitious.

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.

Get the latest mobile games news, interviews and in-depth analysis on TwitterFacebookLinkedIn and our daily newsletter.


Pocket Gamer Connects Helsinki is on October 1st and 2nd 2019. Book now!

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Will Freeman
A deep dive into the MENA games industry
  • Will Freeman is the former editor of trade publication Develop, having also written for the likes of The Guardian and The Observer.
It’s Good To Teach Entrepreneurial Thinking At A Young Age

It’s Good To Teach Entrepreneurial Thinking At A Young Age

Published by Entrepreneur Middle East, an international franchise of Entrepreneur Media, this article dated August 15, 2019, is an eye-opener on not only the educational requirements of the near future but on the times we’re presently going through. There are according to Helen Al Uzaizi CEO, BizWorld UAE, Three Reasons Why It’s Good To Teach Entrepreneurial Thinking At A Young Age.

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.

Three Reasons Why It's Good To Teach Entrepreneurial Thinking At A Young Age

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.

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War and turmoil in MENA region hitting youth job prospects

War and turmoil in MENA region hitting youth job prospects

The Guardian in 2015, came up with an article Enduring conflicts and political upheaval across the Middle East and North Africa are stopping almost 14 million children from going to school and shattering “the hopes and dreams” of a generation, according to a new report from the UN children’s agency, UNICEF. More recently, Arab News published War and turmoil in MENA region hitting youth job prospects, experts warn.

Conflict and unrest in the Middle East and North Africa (MENA) region are having a marked impact on youth unemployment, according to a former top UN official. (AP/File Photo)

By Sarah Glubb. July 03, 2019

  • 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.

Making sure there’s ‘No Lost Generation’ among Millennials

Because it is felt that “Young people are graduating with no clue on how to implement what they have learned,” the UNICEF is making sure there’s ‘No Lost Generation’ among millennials.

By Mariam Nabbout 2019-06-24

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. 

20 June, World Refugee Day: A long way to safety

20 June, World Refugee Day: A long way to safety

Maria Diaz Crego wrote in commemoration of 20 June, World Refugee Day: A long way to safety that :

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.

Meanwhile, a New paper: Teachers need support to better help migrant and refugee students suffering from trauma Posted on 20 June 2019 by GEM Report reads as follows:

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Image: UNESCO/Seivan M.Salim

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.

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Image: Anthony Upton/ARETE/GEM Report

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.

Key recommendations:

  1. Learning environments must be safe, nurturing and responsive.
  2. Teachers working with migrant and refugee students who have suffered trauma face particular hardships and need training to cope with challenges in the classroom.
  3. Psychosocial interventions require cooperation between education, health and social protection services.
  4. Social and emotional learning interventions need to be culturally sensitive and adapted to context. They should be delivered through extra-curricular activities as well.
  5. Community and parental involvement should not be neglected.