(MENAFN- Arab Times) With youth unemployment rates averaging almost 25 percent across the Middle East and North Africa (MENA), it is one of the region's greatest challenges and a barrier to future peace and prosperity. The topic was central to discussions at the recent World Economic Forum on the Middle East and North Africa, with education systems, women in the workforce and business regulation identified by regional leaders as keys to the solution.
"It's easy to diagnose the problem, but far harder to solve it. It's easy to point to government and say 'we are not getting the quality of people we need'. But this is our neighbourhood too. We have a role as private sector leaders to provide young people with the skills they need to succeed as professionals," said Omar K. Alghanim, Chief Executive Officer, Alghanim Industries and Co-Chair of this year's World Economic Forum on the Middle East and North Africa. "The principal difference between the Middle East and Silicon Valley is not degrees; it's a way of thinking. We need to teach young people to think critically."
Government red tape is also holding young people back from entrepreneurship, according to research conducted by Alghanim Industries to coincide with the World Economic Forum on the Middle East and North Africa.The study found that that over half of young people who had started their own business listed government regulation as a barrier to success. Of those who said they had considered starting a business, 25% said that lack of capital had prevented them from doing so.Kuwait has been leading the way with some funding reform, and recently announced a dedicated KD 2 billion SME fund created by the government which serves as a model for regional partners to follow.
"Sadly, in our region, it's not the lack of capital that is a problem for young entrepreneurs, but excessive government regulations," said Alghanim. Moreover, the private sector has a role to play. "We need to create laws that make it easier for banks to fund SMEs."
In a bold sign of commitment to tackling the regional unemployment challenge, the Forum's Regional Business Councilfor MENA, chaired by Alghanim,has invited business leaders and organizations to join a collaborative effort to making 100,000 youth job-ready by 2017. Part of the New Vision for Arab Employment Initiative, partner companies will introduce incremental corporate initiatives for skills development, fostering entrepreneurship and connecting talent to markets. Nine founding partners, Abdul LatifJameel, Alghanim Industries, Consolidated Contractors Company (CCC), Crescent Enterprises, Crescent Petroleum, Jumeirah Group, Olayan Financing Company, VPS Healthcare and Zain Group will meet nearly 50% of the target.
Panellists also discussed this issue during a plenary session at the recent World Economic Forum on the Middle East and North Africa.
Speaking of young people, who make up two-thirds of the Arab population, Fadi Ghandour, Founder and Vice Chairman, Aramex International, said: "Youth is the biggest challenge and the biggest opportunity in the region." He emphasized that the main function of the educational system in the Arab world is "still to produce people who work in the public sector". In some Arab countries, the public sector employs 50-80% of the workforce, he noted.
"In our region, we are so caught up with getting the degree but are not teaching youth how to think," said Alghanim. He added: "Across the Gulf, there is no teacher proficiency. We have a lot of desks, a lot of school buildings and a lot of teachers, but we don't have a lot of quality."
For Bodour Al Qasimi, Chairperson, Sharjah Investment and Development Authority (Shurooq), the need to overhaul the educational system is imperative and the collective responsibility of parents, governments, the private sector and civil society. "We need to first invest in people then in infrastructure," Al Qasimi said.
The role of education was also highlighted by H.R.H. de Borbon Parma, Head and Representative for Partnerships in Switzerland, United Nations Relief and Works Agency for Palestine Refugees (UNRWA). "During conflict, education is seen as one of the most important elements that we have to continue providing, because it gives hope to children and their families," she said.
Compounding the problem is that young women are not joining the workforce. At 44%, female youth unemployment is almost double that of their male counterparts in the region, although more than half of university graduates are women. "We need to change perceived gender roles in our society," said Al Qasimi. "We need to have more legislation that supports women, such as maternity leave and shared parental responsibility."
If young people are not given options, there is the danger of them turning to radicalization, said Mahmoud Jibril, Prime Minister of Libya (2011) and Leader of the National Forces Alliance of Libya. "The question is do we want our kids to be part of the productive force, or do we want them to be part of Daesh (ISIS)," he said.
The World Economic Forum on the Middle East and North Africa took place at the Dead Sea in Jordan on 21-23 May. With the full support and presence of Their Majesties King Abdullah II and Queen Rania Al Abdullah, this year's event marked the Forum's ninth meeting in Jordan and the 16th meeting in the region. More than 1000 business and political leaders and representatives of civil society, international organizations, youth and the media from over 50 countries participated under the theme, Creating a Regional Framework for Prosperity and Peace through Public-Private Cooperation.
The Co-Chairs of the meeting were: Omar K. Alghanim, Chief Executive Officer, Alghanim Industries, Kuwait; Gordon Brown, Chair, World Economic Forum Global Strategic Infrastructure Initiative; UN Special Envoy for Global Education; Prime Minister of the United Kingdom (2007-2010); Suma Chakrabarti, President, European Bank for Reconstruction and Development (EBRD), London; Bodour Al Qasimi, Chairperson, Sharjah Investment and Development Authority (Shurooq), United Arab Emirates; and John Rice, Vice-Chairman, GE, Hong Kong SA.
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