Developing emerging technology while retooling education for the modern labour market, among other strategies, has the potential to reverse decades of youth unemployment in the Middle East, creating millions of new jobs and doubling the region’s economic output, according to a new report from McKinsey.
“When I was younger, opportunities for youth and a better economic future in the region were few and far between, especially for youth who grew up in lower-income parts of the region,” said Khalid Aljihrish, a co-author of the report.
“I was one of the lucky ones who had one of those few tickets to a brighter future. Even though many countries in the region, both through private and public initiatives, are undergoing impressive transformations today to broaden economic opportunities available to their youth, there is still much to be done.”
Despite vast differences in political, economic and social conditions among nations in the region, youth unemployment remains a pervasive issue. Joblessness among young people in the Middle East and North Africa has been the highest in the world for more than 25 years, with young people often looking for years before finding work, a 2019 study from the Brookings Institution shows.
Without broad structural changes, the trend is set to continue, given the demographics of the region.
Between 2020 and 2040, about 127 million young people will enter the labour force in the Mena region, facing an unemployment rate of 23 per cent. At the same time, nearly 29 million jobs are at risk of being displaced by 2030 because of automation, McKinsey says.
The consultancy proposes expanding on priorities that are already taking root across the region. It found such efforts would create 100 million new jobs and double the economic output of the region over the next two decades.
Big home-grown companies
For the Middle East to drive employment and productivity, the region must increase its share of home-grown global companies, according to McKinsey. The top 10 per cent of the world's largest employers command 80 per cent of total economic profit. They on average employ five times more people, spend double on research and development and extract up to 20 per cent more from expended capital, the consultancy said.
To tap into a talent pool necessary to build and support larger home-grown companies, McKinsey proposes reconsidering barriers on existing inter-regional capital movement as well as removing movement restrictions for highly skilled workers to provide a more connected talent pool.
Competitive talent
A major funding priority should be expanding education that readies young people for the realities of this century's work. Greater access and public funding for early childhood education, which has an outsize impact on cognitive abilities later in life, as well as subsidising learning credits to help re-skill existing workforces, are two of the recommended priorities.
Patents pending
A growing population and the resulting fiscal burden will limit the ability of governments to create jobs for the next generation of workers. Young people will need to take an active role in creating economic opportunity for themselves, and an environment that enables R & and entrepreneurship can support that, the report said.
The report recommends a leave of absence policy for government employees starting a new business, which would help both eliminate the risk of entrepreneurship and reduce dependence on the government to provide jobs in the region.
The other half
Closing the gender gap in the economy is an enormous source of unrealised economic potential globally. However, the Covid-19 pandemic is a dampening force. It is estimated that women’s jobs were 1.8 times more likely to be at risk than men’s jobs. In the Middle East, North Africa and Pakistan, boosting female employment could add $1.9 trillion in incremental gross domestic product by 2040.
Educating females is on an upward trend in the region, with improvements in literacy and greater access to formal education. The share of women active in the region’s workforce rose between 2000 and 2019, but today’s participation is still very low by global standards — only 26.7 per cent of women work, compared with 54 per cent globally.
Rebuild conflict zones
Conflict in the region has significantly depressed the population’s job opportunities. It is estimated that only one in three adults in conflict zones, the equivalent of 4 million adults, will be employed by 2040 if conflicts in the region persist, according to McKinsey.
The firm recommends establishing a joint recovery fund and mechanisms to help overcome the impacts of conflict.
“A successful reconstruction of conflict zones could potentially recover the economic damage [which is] up to $175 billion to the region’s GDP and, if the region returns to its pre-conflict growth rates, improve overall employment levels. This impact is likely to touch all sectors of the economy, not only for conflict countries but also for other countries in the region,” McKinsey said.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Heather, the Totality
Matthew Weiner,
Canongate
Command%20Z
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Killing of Qassem Suleimani
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Killing of Qassem Suleimani
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
UAE currency: the story behind the money in your pockets
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
