< Previous20 AB/ Money October – November 2021 SPE CIAL / ARAB YOUTH SURVEY Although more than two thirds of young Arabs are concerned about their personal debt and cost of living, they are also optimistic about their future, with 60 percent believing their best days lie ahead, ASDA’A BCW’s 13th annual Arab Youth Survey indicated. When it comes to economic recovery from Covid-19, most of those surveyed expected this to happen by 2022, with youth from the GCC envi- sioning a quicker return to normalcy. Meanwhile, 48 percent of Arab youth believe their country’s economy is going in the right direction, a 5 percent increase from last year, but below the pre-pan- demic optimism from 2019 of 53 percent. “The highlight of the findings this year is no doubt the optimism that shines through among young Arabs, despite the impact of the pandemic, the challenging economic environment, and ongoing regional conflicts,” Sunil John, President – MENA, BCW and founder of ASDA’A BCW, tells Arabian Business. “The survey finds that nearly two-thirds (60 percent) of young Arabs believe their best days lie ahead of them; this is the highest level of positivity in five years. Further, almost half of young Arabs (48 percent) said they were confident that they would lead a better life than their parents – the highest percentage expressing this sentiment for three years. We last observed optimism as strong Q THE FINDINGS OF THIS YEAR’S SURVEY WILL SURPRISE YOU WITH THE OPTIMISM OF YOUNG ARABS, THE HIGHEST LEVEL RECORDED IN THE PAST FIVE YEARS” u To understand the Arab world, one must understand the hearts and minds of its youth, says Sunil John, President – MENA, BCW and founder of ASDA’A BCWarabianbusiness.com 21 / ARAB YOUTH SURVEY METHODOLOGY The survey has done 3,400 face- to-face interviews across 50 cities and territories in 17 Arab states, with country nationals aged between 18-24 years. 2021 2020201920182017 50%59% 58%58% 60% Among all Six in 10 young Arabs believe their best days lie ahead GCC youth remain overwhelmingly optimistic, while there has been a spike in optimism among youth in the Levant and North Africa Which of the following do you agree with? (Showing % saying ‘Our best days are ahead of us’) Which of the following do you agree with? (Showing % saying ‘Our best days are ahead of us’) 93% 91% 78% 79% 71% 72% 81% 66% 47% 92% 90% 82% 81% 79% 74% 70% 68% 65% 20202021 84% 63% 36% GCC North Africa Levant 52% 20% 16% 13% 20% 28% 12% 6% 57% 46% 46% 41% 38% 36%36% 14% S audi Ar abia22 AB/ Money October – November 2021 as this in our 2013 survey, when nearly three-quar- ters (74 percent) of young Arabs, including those in the GCC, the Levant and North Africa, said their best days lay ahead,” he continues. Scope of the study The Arab Youth Survey polled 3,400 Arab citizens aged between 18 and 24 in 50 cities and territories across 17 countries. It was conducted for ASDA’A BCW by PSB Insights, the global strategic research and analytics specialist, amongst a cohort equally split between men and women. Despite the optimism reflected in the survey’s findings, the impact of coronavirus continues to weigh Arab youth down with 88 percent of them listing the pandemic as one of the top obstacles facing the region, just after “the rising cost of living”, which was listed as the highest obstacle with 89 percent. A third of Arab youth surveyed said they’ve had someone in their family lose their job due to coronavirus and 63 percent of those indicated the family member didn’t find a new career. u Car loans are one of the leading causes of debt among the Arab youth in the GCC More than two thirds of young Arabs are concerned about personal debt How concerned would you say you are about personal debt? 29%39%29%23% 71%61%71%77% Among allGCCNorth AfricaLevant ConcernedNot concerned SPE CIAL / ARAB YOUTH SURVEYarabianbusiness.com 23 FINDINGS: TOP THREE BARRIERS FOR ENTREPRE- NEURSHIP IN THE GCC – Preference towards working in the government sector – Lack of ideas for a good business – Afraid the busi- ness would fail u Young Arabs say their voice matters to their leadership and expect governments to tackle nepotism and promote youth entrepreneurship Q THE CONCERN OF YOUNG ARABS OVER THE QUALITY OF EDUCATION IN THEIR COUNTRY HAS BEEN A CONSISTENT WORRY” / ARAB YOUTH SURVEY Education and job creation Concerns over the rising cost of living have remained persistently high over the last five years, while more than two-thirds of young Arabs are concerned about personal debt. At 19 percent, student loans and educational expenses was the biggest expense in the personal debt category with 87 percent of those indicating they are concerned about the quality of educa- tion in their country. “The concern of young Arabs over the quality of education in their country has been a consis- tent worry. Tracking data from the past 13 years of our survey shows that they have called out the need for quality higher education as a prior- ity, along with the need for job creation. These two are interlinked and it is important to bridge the gap between the two,” John says, speaking exclusively to Arabian Business. As such, young Arabs are looking to their governments to tackle wasta (personal connec- tions) and nepotism, provide better informa- tion about job opportunities and engage in educational reform, all scoring 28 percent. u For the 10th consecutive year, Arab youth name the UAE as the country they would most like to live in and their own nation to emulateSU R V EY / ARAB YOUTH 24 AB/ Money October – November 2021 Q YOUTH ARE NOW MORE CREATIVE; MANY NO LONGER WANT A STEADY GOVERNMENT JOB LIKE THEIR PARENTS HAD. INSTEAD, THEY WANT TO DO WHAT THEY ARE PASSIONATE ABOUT” u Fewer young Arabs see religion as central to their identity while over two-thirds are looking for reform of religious institutions An overwhelming majority of Arab youth are concerned about the quality of education in their country How concerned would you say you are about the quality of education? (Showing % of ‘Very concerned’ and ‘Somewhat concerned’) North Africa 87% Among all 88% GCC 85% Levant 88% 27% The percentage of Arab youth who said economic factors are the reason why they want to emigrate to another countryarabianbusiness.com 25 / ARAB YOUTH must increase financial inclusion, providing our young Arab entrepreneurs ready access to afford- able finance. They must have a level playing field, where red tape and the interference of the state in economic management is kept to a minimum. And we need a new, citizen-based social contract,” he continues. When it comes to their career, an increasing percentage of Arab youth are leaning towards starting their own business, although working in the government/public sector remains the biggest draw at 42 percent. Asked what their government should do to promote entrepreneurship, issuing govern- ment-guaranteed loans (17 percent), encourag- ing affordable lending (16 percent) and reducing regulations and red tape (14 percent) were the three highest marked replies. “Arab youth’s hope for the future is extremely refreshing. They are excited about the future, which is a sentiment we see on the ground in Saudi Arabia,” says Dania Khaled Al Maeena, CEO of Aloula NGO. “Youth are now more creative; many no longer want a steady government job like their parents had. Instead, they want to do what they are passionate about. But we can’t take the optimism of our young people for granted. We must bridge the gap between the education sector and the needs of the workplace. This will involve creating new skill sets to ensure our youth are prepared for the new economy,” she adds. “We have a call to action, and decision-mak- ers must examine the impact of the findings on government policy closely, including both the areas of common ground and the areas where the data diverges,” says Jihad Azour, director of the International Monetary Fund’s (IMF) Middle East and Central Asia Department, Washington DC. “To achieve the aspirations of Arab youth, we FOREIGN RELATIONS The triumvirate of Egypt, Saudi Arabia and the UAE are widely considered to be the region’s strongest allies, with more than eight out of 10 respondents to the survey describing them as a strong ally or somewhat of an ally of their country. China and Russia are the region’s fourth and fi fth strongest allies, according to Arab youth. Arab youth are increasingly interested in starting their own business within the next fi ve years Do you intend to start your own business within the next fi ve years? (Showing % of ‘Yes’) 29% 31% 40% 43% 2018201920202021 49% 48% 34% North Africa Levant GCC Q TO ACHIEVE THE ASPIRATIONS OF ARAB YOUTH, WE MUST INCREASE FINANCIAL INCLUSION, PROVIDING OUR YOUNG ARAB ENTREPRENEURS READY ACCESS TO AFFORDABLE FINANCE” u Jihad Azour, director of the IMF’s Middle East and Central Asia Department, Washington DC26 AB/ Money October – November, 2021 C OVER S T O RY / PROPERTY BY ARABIAN BUSINESS STAFF COVER STORY It’s the biggest show in town attracting hundreds of thousands from around the world, and that’s having a positive impact on prosperity and investment sectors in the UAE The Expo Effectarabianbusiness.com 27 / PROPERTYC OVER S T O RY / PROPERTY 28 AB/ Money October – November 2021 u Global event Expo 2020 Dubai is expected to draw a large number of visitors from all over the world Expo 2020 Dubai is already having a positive impact on the emirate’s real estate industry, according to leading experts in the sector. Despite only being in its infancy, since open- ing its doors to the world on October 1, the global showcase has already attracted over 477,000 visi- tors, while its economic impact is being felt even at this early stage. Dubai’s real estate sector is already flourishing with the highest-ever residential secondary market transaction values recorded in the second and third quarters of this year, according to research by CORE, a research and advisory agency.BY LARA ABOUELKHEIR The six-month long exhibition is driving demand for residential properties with established villa and prime apartment districts considerably outperforming most market forecasts Property boomarabianbusiness.com 29 / PROPERTY Q THE EXPO IS HERE TO OFFER VISITORS A FANTASTIC OPPORTUNITY TO SAMPLE THE INNOVATIVE AND FORWARD-THINKING NATURE OF DUBAI” 27,373 The number of real estate transactions in Dubai in the fi rst six months of 2021 “The buzz in the city is entirely different than it was this time last year with schools reopened, most flight routes resumed, offices, malls and restaurants running at increased occupancy and Expo 2020 successfully inaugurated. The transi- tion to normalcy with robust public health and safety measures in place is signalling the end of Covid-19 restrictions in the UAE and accelerating real estate recovery,” says Prathyusha Gurrapu, head of research and advisory at CORE. “Although green shoots were visible since late 2020 and we remained positive of Dubai’s real estate performance for 2021, the sharp rises in capital values and rentals, particularly in the established villa and prime apartment districts, have considerably outperformed most market forecasts,” she continues. The global event is expected to draw a large number of visitors – and 25 million visits, accord- ing to organisers – while generating thousands of direct and indirect jobs and could potentially cause international visitors to decide to relocate to Dubai, leading to increased real estate demand over the short-term. Georges El Hachem, commercial director of Select Group, tells Arabian Business: “The expo is here to offer visitors a fantastic opportunity to sample the innovative and forward-thinking nature of Dubai. The city is already a must-visit tourist destination and is emerging as one of the most important business hubs in the region. “Whether it’s tourists looking for short-term holiday rentals or professionals looking to relocate to take advantage of this truly global destination, the ready-to-move market is drawing huge inter- est from investors and homeowners alike.” Average home prices are rising at the fast- est pace since February 2015, with transaction volumes surging nearly 77 percent in August from a year earlier – up over 56 percent when compared with the same period in 2019, before the pandemic hit, according to real estate adviser CBRE Group Inc. And according to Ata Shobeiry, CEO at Zoom Property, the recovery is being fast-tracked by Expo 2020 Dubai. He says: “The market was already show- ing signs of recovery before Expo 2020. However, it picked up pace as the mega event approached, with August 2021 recording double-digit growth in the villa segment.” A spokesperson from Elysian Real Estate adds: “Expo 2020 will certainly bring a lot of focus to Dubai; however, we will see a sustained demand being created over the next two years once people who have visited the city during the event fall in love with it and look to relocate.” u Property transaction volumes in Dubai surged nearly 77 percent in August from a year earlier u Prathyusha Gurrapu, head of research and advisory at CORE u Georges El Hachem, commercial director of Select GroupNext >