hsygj presentation

Supporting Youth Employment Projects in Emerging Sectors – Kingdom of Saudi ArabiaA way forward

2010

Help Saudi Youth Get Jobs (HSYGJ)

Message from the Founder

Dear Friends

The “Help Saudi Youth Get Jobs” Campaign is an initiative started 6 Feb, 2010 on the issue of youth employment in Saudi Arabia. The Group within a short period of span garnered support from 27 members who are Business Owners, Senior Executives, Management Experts from the private sector. We intend to create Country Wide Networks that would then play a key role in bringing diverse stakeholders together to fulfill our promise to our youth.

Now is the time to strengthen the efforts of this campaign by pulling together our efforts and resources. In this presentation I have outlined, why it is essential for us to come together now and help this cause. We are expecting the group to grow further and work towards building capacity of young people, create awareness on opportunities the government is creating for young people, support government agencies who work in the area of youth employment and all other partners in the ecology will stand up and play their part.

Please view this as just a concept note that needs your comments and support.

In solidarity Tajamul Hussain

Help Saudi Youth Get JobsTable of Contents

1. The Twin Opportunities

2. The “HSYGJ” Campaign’s Solution

3. The “HSYGJ” and The Centennial Fund

4. “HSYGJ” Background Information

1. The Twin Opportunities

Help Saudi Youth Get Jobs

The Twin Opportunities

Kingdom of Saudi Arabia is currently facing two sets of pressing problems:

Imagine if we could solve both of these problems at once?

Sector Development Needs Youth Unemployment

1. Diversification of Economic Base: Development of the non-oil sectors to enhance high value-added production and services and raise their contribution to exports remains one of the main development challenge.

2. Development and Productive Employment of Human Resources: In recent years, there has been mismatch between outputs of education and training and the skills and specializations required by development, leading to structural unemployment. This multi-dimensional issue is one of the main development challenge.

3. Balanced Regional Development: Disparities in economic activity have encouraged internal migration from rural to urban areas. The consequent immense increase in city populations and the huge geographic expansion of the cities has put their services and facilities under substantial pressure. Restoring regional balance is, therefore, one of the major challenge to sustainable development, calling for stimulation of economic activity in the least developed regions.

4. Gender Inequality and Women's Participation in Growth: Roughly 50% of population – but 27% unemployed – promoting women’s capabilities, and removing obstacles to participation of women in development is one of the major challenges to sustainable growth.

5. Information & Communications Technologies:Internet penetration is less than 30% in Saudi Arabia. Further growth in this area means huge business opportunities. ICT can be the next growth driver for Saudi Arabia.

• There are currently 5.5 million young Saudi people between the ages of 15-24

A little over a million of these young men and women are unemployed

• Over the next decade, this number may increase further, if corrective measures are not taken today

• Young people are cognizant of the inequities of the system, and are susceptible to association with the negative forces in their communities

• It is critical that we develop youth skills, entrepreneurial mind-set is nurtured, employment opportunities are created.


Unemployment of youth has far-reaching implications on the labor market and the society at large. Youth unemployment contributes to economic exclusion and poverty and increases the probability of future joblessness. Youth unemployment results in the loss of a valuable contribution to economic activity and growth from one of the most productive elements in society. It obstructs the movement of young people from adolescence to adulthood and in turn is a major cause of crime and drug abuse. High levels of youth unemployment can also lead to alienation from society and distrust of national developmental processes. As a result, social cohesion is undermined.”

- International Labor Organization’s World Employment Report - 2009


2. The “HSYGJ” Campaign’s Solution


Introduction to the Campaign

• The “HSYGJ” Campaign is launched in Jeddah on 6 February, 2010

• The campaign is launched in response to the national challenge of youth unemployment affecting nearly a million Saudi Youth.

• The campaign’s goals are to

build the capacity of young people to create sustainable livelihoods

establish an entrepreneurial culture where youth will work towards self employment

• It is our endeavor to develop national networks that will work with stakeholder groups such as the government, business, academics, NGOs, UN agencies and other Int’l organizations etc. to develop programs, and suggest policies for promoting youth employment

• These “HSYGJ” groups will be supported by 5 regional coordinators, and with the campaign Headquarters in Jeddah.

• Additionally, the Campaign will work with national and global partners to develop and deploy effective programs that realize the following objectives

Develop capacity of youth to lead in-country youth employment initiatives

Promote (in-country) youth employment to address key development challenges

Build in-country coalitions to develop national strategies addressing youth unemployment

We want to emphasize the issue of youth employment on the national agenda.


The Proposed Evolution of the Campaign

1. Identifying the issues

2. Building consensus

3. Generating ideas

4. Supporting the development of 5 regional networks across country

5. Advocacy with leaders and institutions

6. Identifying sectors for employment and doing pilot work

7. Establishing an Academy – an R&D hub for generating employment and promoting entrepreneurship

8. Building Partnerships

9. Creating employment generation models within network regions

10. Building in-region self-reliance

11. Replicating and scaling up employment generating programs


The Proposed 5 Regional Networks

Two core design principles that will drive our Campaign’s work:the recognition that no one individual or institution can do the work alone; working in partnership is essential

our belief in building self reliance and absorption capacity within proposed regional networks

Proposed Networks:1. Central Region : Riyadh

2. Western Region: Jeddah

3. Eastern Region: Dammam-Khobar

4. Southern Region: Abha

5. Northern Region: Tabuk

Events to be organized across regions every fortnight.


National Activities

Outreach & Engagement

• Building strategic alliances and fostering partnerships – grow from 28 members nationally

• Seeking and develop programs and projects

• Communicating information about youth employment and the “Help Saudi Youth Get Jobs” Campaign through newsletters, press releases, the website, electronic discussion groups, toolkits, and publications.

• Convening National Summits, organizing regional and national training workshops and Forums.

Knowledge Development

• Designing and implementing youth employment pilot projects centered around the Campaign’s five key sectors

• Conducting policy analysis and publishing policy briefs

• Managing the National Knowledge Resource (NKR) a resource database and communication medium where all stakeholders of youth employment can share and access innovative initiatives, useful toolkits, and comprehensive research and publications

• Managing the “Help Saudi Youth Get Jobs” Academy, a hub for youth employment initiatives located in either Jeddah / Riyadh.

We want to be at the forefront of youth unemployment advocacy and research.


National Activities

Capacity Building

• Supporting the formation and development of “Help Saudi Youth Get Jobs” Regional Networks, youth-led entities comprised of diverse stakeholder groups committed to the issue of promoting youth employment

• Supporting the “Help Saudi Youth Get Jobs” Regional Networks in the following activities:Consultations: Hosting national level consultations with government Institutions, private sector, academic institutions, education and training organizations, NGOS and youth groups to build the national coalition for youth employment

Partnership Building: Building partnerships for developing and implementing projects

Action Plans: Preparing country action plans and reports to inform stakeholders

Entrepreneurship Development: Promoting an entrepreneurial culture through workshops and materials; developing programs to provide business development services to young people; working with banks and government agencies to provide credit and to provide credit and other services to youth

Understanding Markets: Understanding the needs of the market place and creating products and services to serve the market and to help in enterprise development

Mobilizing Resources: Building the capacity of “Help Saudi Youth Get Jobs” Network leadership to identify needs, develop projects, build partnerships, mobilize resources and implement projects

Build Absorption Capacity: Working to make the “Help Saudi Youth Get Jobs” Networks sustainable and effective and able to absorb the resources available for its development

We want to excel in a catalyzing youth-led employment creation programs.


3. The “Help Saudi Youth Get Jobs” Campaign and The Centennial Fund


Our GoalAlignment with The Centennial Fund

The Problem:Over one million Saudi youth in the labor market who are

seeking gainful employment opportunities

Solution:

Creating Markets

Unleashing Entrepreneurship

What will the “Help Saudi Youth Get Jobs” campaign and The Centennial Fund do:

Offer a mix of grants, loans and technical assistance to young entrepreneurs

The coordination of efforts between our campaign and the fund will turn our knowledge into action.

“Let us be clear. Half-educated, unemployed youth, with no prospect of being integrated into a better future is a prescription for disaster. If young people do not have a stake in the existing social order, if they do not feel there is a way for them, why should they sacrifice today for a better tomorrow? Why should they have an interest in protecting the stability and social safety of that system?”

Dr. Ismail Serageldin, Vice President, WorldBank, 1999


Our Aim

The HSYGJ Campaign is uniquely positioned to leverage the investments available in the market through The Centennial Fund

We need a New Deal for Youth Employment

“The Help Saudi Youth Get Jobs Campaign will recognize that it is only through employment, empowerment that we can accomplish conditions of equity, where youth can live in dignity and relate to the society and the environment in a truly sustainable way”.

1. Diversification of Economic Base: Part of Saudi Arabia’s Millennium Development Goal – the HSYGJ and The Centennial Fund will work together to support entrepreneurs with knowledge, skills and resources to grow non-oil sector – particularly services.

2. Development and Productive Employment of Human Resources: Help Institutions, Organizations and Schools & Universities through collaboration with industry to feed Human Resources that meets the market requirements.

3. Balanced Regional Development: Promote sustainable growth opportunities amongst youth from least developed regions of Saudi Arabia – support government initiatives like economic cities and industrial development at second tier cities.

4. Gender Equality and Women's Participation in Growth: Women’s advocacy – Skills Development –Promoting increased participation in different sectors of industry – Supporting Entrepreneurship will help in removing obstacles to participation of women in development and sustainable growth.

5. Information & Communication Technologies: Collaboration with CITC and other leading universities and colleges across different regions of the Kingdom – HSYGJ campaign is proposing to set up several (number to be decided) Knowledge Centers to train youth in ICT skills, and serve as an information hub for local communities


DONATIONS LOANS EQUITYInvestment Options

Goals To create jobs for unemployed youth in the 5 development sectors

Investment Beneficiary

Knowledge & Training

Individual Youth Entrepreneurs

New or Growing Enterprises

Investment Use

• Fund “knowledge and employment centers” that provide job-skills training classes and practical experience

• Provide small loans (with ROI) to local youth entrepreneurs looking to start businesses

• Provide capital and strategic advice to young and growing businesses in return for an ownership stake

Job CreationImpact

• Prepare youth for the working world

• Help build youth employment opportunities

• Create many new jobs as businesses grow

Overview of how we Leverage Funds

The Collaboration with Centennial Fund will offer various avenues for investment and return.


Donations Investments

• The HSYGJ Campaign needs investment to help strengthen local infrastructure for developing young entrepreneurs

• The donations will be used to create Knowledge and Research centers that will offerYouth Leadership Training

Green Enterprise Training

Social Entrepreneurship Training

Livelihoods Internship Programs

• As well as supporting youth inYouth Led Innovative Program Implementation

Seed Grant Projects for Entrepreneurship Development

Developing multi-stakeholder partnerships for program design

Building local capacity for program implementation

Using new technologies for livelihood generation

Community Driven Development

Designing Collaborative Projects

Donations will impact scores of youth creating employment programs.


Loans Investments

• We will work with the Centennial Fund to select the young people and train them to design business solutions in the five development sectors

Diversification of Economic Base

Development & Productive Employment of Human Resources

Balance Regional Development

Gender Equality – Women’s Participation in Growth

Information & Communication Technologies

• The HSYGJ and The Centennial Fund on agreement can work together to provide the start-up capital to help entrepreneurs launch their business ideas

• Many of these investments we suggest should be made in the form of micro-credit loans that will offer investors (in this case The Centennial Fund) a good return on investment.

• Micro-credit has been proven to act as a catalyst for both new employment-generating ventures and reliable investor returns.

• The HSYGJ Campaign will leverage its local knowledge and experience as well as commercial and government partnerships to help implement these investment initiatives

Loans to young entrepreneurs will spur crucial development solutions.


Equity Investments

• In the medium-term, many of the development projects inspired and supported by HSYGJ Campaign initiatives will be in phases of fruition and growth

• The HSYGJ Campaign aims to be in a position to provide significant capital to young and growing enterprises through partnerships via The Centennial Fund to further our two goals of creating employment and developing sector infrastructure

• The HSYGJ Campaign suggests market-based solutions and understands that hand-outs are not the best long-term answer, the Centennial Fund should make capital contributions in the form of equity

• These contributions will ensure aligned incentives, long-term sustainability and an investment return

• Additionally, our partners and members can leverage their business backgrounds and provide strategic advice to the youth entrepreneurs

• Creating a culture of market-driven ownership and investments will catalyze long-term systemic change in Saudi Arabia

Equity investments are the final step in ensuring lasting enterprises.


4. HSYGJ Background Information


HSYGJ Current Members

Current MembersShaker Al-SehlyAbdullah ALHarbiMerfat EskandarMahdi alHusseiniDr.Turky AbdulmajeedBandar Adnan AbdualmajeedTurki Al-SaudBander A. Al MutlaqAbdulaziz Al-DhuayanAsiya SheikhAbdullah NouhWaleed BahamdanNada DardeerAsmaa AbughalibAbeer JoharjiDuha alHusseiniMunira AL-AJLANI.Hatim Alkahily


Founder of the Group:Tajamul HussainHelp Saudi Youth Get Jobs - CampaignJeddah, Saudi ArabiaEmail: [email protected]

Fahad Al SemariAmina Al JassimSoraka AlkhatibMohammed Al-HarithiMaria MahdalyDalya BajunaidHesham RowaihiAhmed Helal

The HSYGJ Framework for Action

Employability

Equity

Entrepreneurship

Empowerment of Youth

Employment Generation

Environmental Sustainability


MESSAGE

Each and everyone of us must assume a personal responsibility to embrace a new spirit of collaboration for building secure communities full of productive work for young people. For any one of us to succeed we must all succeed as a NATION.


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