JEDDAH – The Jeddah Economic Forum 2014 was an urgent response to the local crisis of youth unemployment. Held at Jeddah Hilton from March 18-20, this three-day event explored how job opportunities can be created for a million young Saudis entering the workplace over the next years. Organized by Jeddah Chamber of Commerce and Industrial (JCCI), this forum showcased innovative job creation initiatives from experienced speakers from all over the world; shared best practice in delivering employability skills training. Keynote speaker Gerard Gallagher, EY's MENA Advisory Managing Partner, shared perspectives on youth employment in the Gulf and supported his presentation with the details of the latest EY study “Perspectives on GCC youth employment”. He noted that GCC employers do not believe that the local education system prepares young people with the requisite skills, training and attitudes for the workplace. He said “Local education did not prepare young people with the right attitude for work.” Referring to the EY study, he pointed out that Saudi Arabia has the lowest participation in work experience programs, with only 7 percent of students having undertaken work experience placement versus a GCC average of 30 percent. The UAE fared better with 42 percent. In terms of preferred industries, the Information Communications and Technology Industry is the most desirable across the region, closely followed by Financial Services. The majority of young people in Oman, Kuwait, Qatar, and the UAE would prefer to work for the government. In Saudi Arabia, there is a 50:50 split in preference between the public and private sector, and in Bahrain, a much greater preference to work in the private sector. For young females, the most desirable industries are tourism and hospitality, public relations, and healthcare. Mohammed Al-Shaya, Executive Chairman of the Alshaya Group, Kuwait said there should be a greater emphasis on job creation in Saudi Arabia, where the number of young people of working age is increasing. Following the opening of Alshaya Retail Academy in Riyadh, Al-Shaya's chairman announced for the first time the opening Alshaya Retail Academy in Jeddah for young Saudis. He elaborated on the new project. “The Retail Academy effectively trains Saudi citizens in all aspects of the retail sector which gives them enhanced opportunities for full time employment prospects in the private sector,” he said. “The opening of this second training center in Jeddah is part of our ongoing commitment to support the development of young Saudis through our partnership with the government.” He stressed the importance of establishing new training centers across the Kingdom in order to develop the skills of young Saudis in the retail sector, “Unfortunately, Saudi Arabia does not have enough training institutes and many of young students graduate with no knowledge of how to deal with real world. Therefore, I urge other private companies to follow our step to open academic institutes,” he said. Meanwhile, CEO of AirAsia, Tony Fernandes, recommended that there is a need to diversify the capabilities and talents of the youth and their tendencies toward various businesses because it is the window for creativity, highlighting that the aviation sector is filled with job opportunities and is connected with various sectors such as tourism, economy and different businesses. In addition to that, any establishment must have the culture of dealing with people because they are the establishment's input and capital, and they make or break it. Panelists at one of the sessions discussed the challenges and incentives for tourism investment and job opportunities in Saudi Arabia, in addition to the competition facing internal tourism from both the region and international destinations. Lack of appropriate resources, products and programs – both in terms of quality and quantity – were also cited as barriers, along with incomplete infrastructure, poor facilities in some destinations, the decline in the handicraft industry, seasonality and low level of tourism awareness. The session also covered the obstacles for tourism project financing and risks such as limited support to small and medium enterprises. On the incentives front, the large area of the Kingdom, geographic diversity and a multitude of historic and heritage sites topped the list, coupled with a strong Saudi economy, a high spending power and political and economic stability. Challenges facing Saudization of the tourism sector from entrepreneurs' perspective were discussed as well, with lack of qualifications and experience cited as the main obstacle, in addition to poor English language skills, high packages for Saudis in comparison with expatriates and the small number of specialized colleges and training academies. Dr. Abdullah Dahlan, Chairman of the Board of Trustees University of Business and Technology (UBT), announced during his session that the highest unemployment rates were amongst BA graduates with 44 percent, followed by high school certificate graduates with 32.9 percent. He also said that Saudi women who have a BA form the highest rates of unemployment with 71.2 percent, followed by high school graduates with 18.7 percent. He concluded: “The government has indeed spent large amounts of money on education and training; the issue however remains in the fact that the educational system is not well aligned with the demands of the existing economy.”
