Investors in technology have resolved the problem of youth unemployment in the Arab region key




May constitute the IT sector a key solution to the dilemma of rampant unemployment among young people in the Arab region, which ranked first in the world between the unemployment rates in this critical age group, registered 25.1 percent in the region compared to a global average of 12.6 percent, according to business leaders Arabs who flocked to the Davos Economic Conference this weekend to discuss the economic and social challenges in the region and the world and how to build a brighter tomorrow and sustainability for future generations.

Many agree that solving the unemployment problem requires a concerted effort at all levels of education and create a positive economic cycle outputs create millions of jobs each year, and it needs the cooperation of the public and private sectors.

It would appear that the establishment of such a positive impact on the future of the Arab region on the economic and social levels virtuous cycle, which should continue increasing and accelerating with time, it may seem like this is very difficult and arduous it.

But Arab business leaders may have approached more than a part of the solution to that problem. Seems to be the magic word in Davos this year’s conference is “technology.” There is also a consensus among influential in the Arab economic sector on the role of “digital economy” as a way towards many answers to solve that dilemma.

He says Danny joy, CEO of “Pico Capital”, a regional investment companies that provide financing for emerging companies in the information technology sector in the Arab region, and who is taking part in this important debate in what has become one of the most important economic conferences on the global map, “If We were a major topic we will choose one raises controversy in the deliberations of this year in Davos, I personally would choose the subject of rampant unemployment among young people. The problem of unemployment reinforce the differences between rich and poor at the level of individuals and states, especially in the Arab region, which, unfortunately, ranked first in the world in this field. ”

If kept unemployment at current rates, it will become the Arab region 149.5 million unemployed among the population census, which is expected to reach 598 million in 2050. These “terrifying reality” according to Danny delight.

Confirms Danny joy “that more investment in technology and the digital economy to private and government levels, will help in the medium and long term, to reduce the economic, social and political risks associated with youth unemployment. Such investments will contribute to the creation of a greater number of jobs, and this is not only the best but also the quality of jobs. At present, the Arab region has a rate of investments in emerging companies for the individual annually ten times less than India and 15 times less than China and 35 times less than Europe and 200 times less than the United States. ”

He adds Danny joy: “governments and major companies I have worked in the area all requires work to stimulate the generation of more jobs, the time has come to Nrdm the gap between us and the rest of the world and strengthen our investments in the technology sector through the support of companies that can invest and trains and supports a check of great value and create useful functions and contribute to the improvement of life in our region. “This is exactly what you do,” Pico Capital “, it supports the most promising technology companies that have the skills and vision to become one of the pioneers in the sector in the future, but the lack of funding and support in the field of business and operations, where the” Pico Capital “funded by the growth of these companies in the initial stages and provide specialist operating in the field of technical and field support, and this in turn generates more income, jobs and growth, which establishes a positive and healthy cycle of social and economic benefits.

Danny joy explains: “The consolidation of the technology sector in our social and economic gives us a multi-dimensional advantages, not the least of efficiency, transparency and better quality of life. For me, it is worthwhile lies in the large contribution that will achieve the technology in the area of ​​job creation and the growth of gross domestic product at the national level. “To prove it, Danny gives joy to the city of Cambridge in the United Kingdom as an example, which was famous for being the best place to study, but I decided since less than a decade ago that also opens its doors to investors and entrepreneurs and pioneers in the field of technology who want to create their own companies and small. Today, the city employs 57,000 people in technology companies, which reaches about institutional worth almost $ 50 billion. In order to explain more, one of the major companies operating in manufacturing, which employs 50,000 people, with a market capitalization to $ 20 billion.

As an example of the region, with the “Pico Capital” document with ten specialized companies related to technology in the Arab region. These companies have a combined 2,600 employees and institutional value exceeding $ 2.5 billion and generate more than $ 800 million in annual revenues currently. These companies either they were not present on the scene five years ago, or, if it exists, it was still a fledgling or new and he worked a few of the staff are born very little revenue. The technology sector is one of the few sectors that can achieve such an effect so quickly and with a little money.

Danny says his joy: “This is the ability to double revenues in this way is a very powerful computational advantage. When they grow, these companies achieve growth ranging between 50 and 150 percent a year, where we are witnessing the establishment and success of more such companies. We can understand how it could be $ 800 million to grow to several billion dollars of annual revenue in a few years those companies doubled the number of its employees and institutional valued in a similar way. ”

Confirms Danny joy: “This technology generates jobs as companies cumulatively contribute to the economy, and this also feature unique to the technology sector. While such companies may cause some fluctuations and changes in the sector sometimes, but most of the time provide a new value and create new demand was not being met in the past by traditional companies in the traditional economy. More often than not these are new jobs in the administrative office, technical and specialized technology companies, has paid an average of five to ten times the minimum manual jobs. This means that the 2,600 employees equate between 10,000 to 20,000 employees who usually fill the jobs in the old economy in industry and construction. These new employees will enjoy the highest purchasing capabilities so that they buy cars and consumer goods and houses, wherever it is possible, as they will be spending on their extended family. ”

And gives Danny joy examples of some digital companies that do not occur radical changes in the sector, which has provided new jobs without disposal or influence the functions previously exist: “Maybe be company have been taken from some newspaper work and affected the demand for part of it, but Due to the lack of a dedicated print classifieds in our region, enabled consumers from buying, selling and leasing of real estate brokers and developers across the way were not previously available to consumers. ”

He added: “Such electronic service more effective for all concerned, they are able to complete more transactions in the same time frame, which contributes to a cumulative positive and about the economy and allow for a greater number of transactions per year.”

Company “cream” competent car reservation service is another example of the provision of new uses for consumers who did not use the means of personal or public transport even made available to them mobility provided by the “cream” service, which are easily affordable and safe, practical and cost option. Children and adolescents, the elderly and those who were formerly in need of a driver or a third car to resort to the services “cream” instead of staying at home has become.

In sum, will contribute to efforts at the governmental and private levels, both in terms of developing frameworks and laws stimulating or find more investments in emerging companies, in creating a new quality of investors and entrepreneurs in the field of technology and the formation of one of the factors that Strdm gap between youth unemployment and economic inequality and Social in the Arab region.


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