BY ANJANA KARUMATHIL
NATIONALIZATION 101
The GCC is among the most vibrant economies on this planet. As a new expat, I am amazed at how it has redefined the realms of possibility! As GCC begins its journey from O&G to a knowledge-based economy, it must prioritize one dimension: education.
A study by the Weill Cornell College describes GCC’s current demographic situation as a 'large youth bulge' - 60% nationals are under 30. World Bank numbers indicate 27% youth unemployment, double the global average! With 3 million entering the workforce annually, this situation needs urgent attention.
Thanks to oil revenues, GCC provides citizens generous social contracts including tax-free income. Citizens are offered high-paying and flexible government jobs thereby creating a perception of entitlement. This results in masked unemployment where 100% productivity is unnecessary. There are many unemployed dependents for every working individual.
Cheap expatriate labor is a regional hallmark. Expatriates now dominate the workforce – 87% in Qatar and 84% in UAE. This began when the O&G sector demanded more skilled labor than the region could supply. These private sector jobs required more technical work and paid less. There is now a national deficit of employable STEM skills and a surplus of arts graduates without employable skills.
What Do We Do Now?
My analysis serves to trigger futuristic solutions that turn GCC’s youth into productive people with skills to create competitive economies. Successful nationalization requires an integrated framework with education that bridges skill gaps, labor policies that incentivize private employment and immigration laws that meet skill requirements.
Diversification is crucial in a knowledge economy. This means studying technology, law and medicine (among others) - sectors that open paths to employment much better than back-office jobs that the private sector currently offers nationals. Currently, lucrative positions demanding intellectual rigor are outsourced as nationals lack 'employable skills'. Nationals are also considered less productive than non-nationals, and there is low motivation among employers to train nationals.
Like all GCC countries, Qatar's National Development Strategy 2011–2016 prioritizes education. However, the link between education and economic development must be clearly articulated. High-paying private sector jobs are incomplete solutions - the bigger issue of finding the right talent remains.
GETTING EDUCATION RIGHT