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An Untapped Resource: Emerging Fields of Employment for Women in the Middle East

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middle east women in tech

Echoing global trends, in the Middle East the number of women pursuing a university degree is equal to, or higher than the number of men. In Kuwait, Qatar, Saudi Arabia, and Jordan women constitute respectively 67%, 63%, 57%, and 51% of university graduates. Arab women outnumber men in even the hard sciences. Indeed, the number of female STEM graduates is higher in the Middle East than it is in Western Europe. But as of yet, these advances in education have not translated into jobs. The number of women in paid employment in the MENA region is the world’s lowest, at 32%. In Jordan that figure is 16%. And women are more than three times as likely to be unemployed as men in Saudi Arabia and Qatar. In Kuwait, nearly 80% of the unemployed are women.

Persistent social and economic barriers – both perceived and real – are standing in the way. How will women travel to work when they’re not allowed to drive? Who will escort them? Who will look after their children? And what happens if they become pregnant? Comprehensive female employment will require governments to enact new laws. And it will require companies to create separate offices, bathrooms, entrances, and more.

However, representing a highly educated talent pool and an untapped resource that could offer the region a competitive advantage, women are perfectly qualified to play a productive role in the workforce. And indeed, there are now some positive signs that fields of female employment are starting to emerge and that businesses are starting to capitalize on the potential of Middle Eastern women.

More female Internet entrepreneurs in the Middle East than in the West

Technology is playing a significant role. In a region where nearly a third of the 355 million population are aged 15 to 25, Internet and social media penetration is very high. Nearly 90% access the web from home (except in Jordan and Egypt where the figure is 44%-50%). And nearly nine in ten Internet users log in to social media every day. Nowhere in the world does Twitter have more active users in proportion to the population than in Saudi Arabia. Unsurprisingly, the region is also the world’s fastest-growing e-commerce market.

The combination is creating opportunities for women, allowing them to set up small businesses from home where they can at once conform to traditional social norms and work. Indeed, where only 10% of Internet entrepreneurs across the world are women, in the MENA region that figure is 35%.

sheburgerJust a few examples: Emirati Shaikha Eissa has built a successful burger company, She Burger, on Instagram utilizing her 25,000 followers. Mona Ataya has launched a baby product retail site, Mumzworld, targeting female shoppers, which employs 40 people and sells more than 100,000 products. And prominent Palestinian Instagrammers Ruba Abdulhadi and Badea Jaber, have brought luxury western fashion to the Middle East with an e-shop, ElMuda.com, which leverages social content.

ElMuda.com was supported by Oasis500, the first early stage and seed investment company in Jordan and the MENA region. And there are many other bodies similarly investing in the region’s female entrepreneurs. The Gaza Sky Geeks accelerator is actively working to increase women’s leadership in the Gaza start-up sector. Girls in Tech is working to inform women in urban and rural communities around the world about the possibilities that tech can open up. And the US State Department has a TechWomen initiative which pairs MENA female tech entrepreneurs with American counterparts in Silicon Valley.

Fetchr is revolutionizing Middle Eastern delivery with a female workforce

E-commerce is also creating further employment opportunities for women. For example, GPS delivery app Fetchr has developed a female workforce to revolutionize delivery in the region. Currently, much of e-commerce is paid for cash on delivery (60%), but if a woman is home alone she won’t answer the door for a male driver. This results in returned products, lag times in payment, and repeat delivery trips. In solution, Fetchr, operating in Saudi Arabia, Dubai, and Bahrain, has employed women to make the deliveries.

Co-founders Joy Ajlouny and Idriss al-Rifai say: “In Saudi Arabia, women are not allowed to drive. Our deliverywomen will not be driving, they’ll just be knocking on doors. And because Saudi law dictates that all women must be accompanied in public spaces by a mahram, a male-relative or in-law escort, Fetchr employs family teams. Father-daughter, brother-sister, uncle-niece.” The company is also actively hiring female drivers in the UAE where women are allowed to drive.

Creating new business spaces for women

Fetchr is not the only company capitalizing on the business benefits of a female workforce. In Saudi Arabia, the Olayan Group, a 30-company conglomerate led by Lubna Olayan, is similarly committed to female employment. The Group, which deals in investing, real estate, manufacturing and distribution for foreign brands including Coca-Cola, Ritz Crackers, and Oreos, currently employs some 400 women (3% of its 12,000 Saudi-based employees). It has set a target to have 1,000 female employees in roles at all levels, from the factory floor to sales and management, by 2016.

Lubna Olayan

Lubna Olayan

The Group’s first female employees, mostly disadvantaged women, made history when they became Saudi Arabia’s first ever female factory workers, sewing surgical gowns at Enayah. Coca-Cola bottling now has an all-female bottling line. And Nabisco Arabia has a woman-only production line. Olayan companies have installed female prayer rooms and created partitions in offices, canteens, and factory floors to give their women workers privacy in line with regulations. There are also women-only buses to and from work.

Because yes, in the short term female employment in the MENA region will take some investment. But in the long term, capitalizing on the potential of a whole sector of society will also come with benefits.

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Tunisian annual inflation rises to 4.6% in October

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TUNIS (Reuters) – Inflation rose to 4.6 percent in October after remaining steady for the past three months at 4.2 percent, official figures showed on Thursday.

The food and drink price index rose 5.6 percent in October from a year earlier, the state statistics institute said.

Tunisia’s central bank said last week it had cut its main interest rate to 4.25 percent from 4.75 percent to boost economic growth, as inflation rates fell.

Inflation dropped to 4.4 percent in the first 10 months of this year, compared with 5.5 percent last year.

The bank does not target a particular inflation rate but says the highest that should be tolerated is 5 percent.

 

(Reporting by Tarek Amara; Editing by Tom Heneghan, Reuters)

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Siemens could expand Egypt power deal, says CEO

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FRANKFURT (Reuters) – Siemens could win an expansion of its record 8 billion euro ($8.8 billion) power deal with Egypt, the German industrial group’s chief executive said in a staff newsletter.

Joe Kaeser said Egypt, whose state-run electricity grid is creaking under the weight of fast-growing demand, needed extra capacity before the start of the hot summer months – faster than Siemens could build new turbines under the existing deal.

“We had to come up with a good plan as to how we could help – and this plan pleased the president,” Kaeser said after a trip to Egypt during which he met President Abdel Fattah al-Sisi.

“We have a handshake on which we can build,” he added in the interview with Siemens Welt seen by Reuters on Friday.

The extra capacity would be 800 megawatts, which would be produced by upgrading existing power stations and putting into place decentralised power-generation units, Kaeser said. He did not say how much the deal could be worth.

The 8 billion-euro deal signed in June was for 16.4 gigawatts and is designed to boost Egypt’s power-generation capacity by 50 percent after going online in 2017.

 

(Reporting by Georgina Prodhan; Editing by Mark Potter, Reuters)

 

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Souq.com CEO Ronaldo Mouchawar: Empowering the Middle East through E-commerce

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RONALDO-MOUCHAWAR

Born and raised in Aleppo, Syria, Ronaldo Mouchawar is the co-founder and CEO of the Arab world’s largest online shopping site and a pioneer of e-commerce in the region. He is also an eloquent symbol of a rising trend that’s seeing entrepreneurs reject the, if not saturated then busy, Western market, so long seen as the choice, in favor of using their expertise and innovative spirit to revolutionize and empower the market at home.

Originally trained in the West, Mouchawar was educated at Northeastern University, Boston, where he obtained a Bachelors in Electrical and Computer Engineering, and a Masters in Digital Communications. He also spent the early years of his career in the US working in technology and business management, including a role as technical and systems consultant at Electronic Data Systems (EDS).

But in 2000, he returned to the Middle East with a belief he could improve the Arab world by exploiting the empowering possibilities of technology. He first launched a consulting company managing web and e-commerce projects for the local Arab market, before in 2005 joining forces with Maktoob’s Samih Toukan and Hussam Khoury to launch online retail site and marketplace for third party sellers, Souq.com, just as the Arab world began to embrace technology and mobile.

A decade on, Dubai headquartered Souq.com, known as the Amazon of the Middle East, now operates in the UAE, Egypt, Saudi Arabia, and Kuwait, and ships to Oman, Qatar, and Bahrain, selling more than 400,000 products from consumer electronics, to fashion, household items, and babywear. And it is growing fast: in the last two years, Souq has expanded ten times over; and in 2014 it saw an annual growth of over 100%. The site sees 30 million unique visitors per month, of which more than 10 million are on mobile. And an app, launched in 2014, has now been downloaded around two million times. There are rumors that Souq is fundraising at a valuation of $1 billion.

It’s some success story. But Mouchawar still considers his company a startup. While in financial terms this cannot be considered true, he says: “If continuing to think of Souq as a startup helps us innovate, then great.”

Innovating the e-commerce model for Arab markets

Certainly, Mouchawar’s ability to innovate has been key to Souq’s success. Originally launched as an auction site modeled on eBay, he quickly redirected the company into a fixed price model, recognizing its potential in the Middle East. And while Souq.com may now superficially seem like a copycat-Amazon, Mouchawar has transformed that business model for the market: he has localized and arabized e-commerce.

For example, Souq.com has gone some ways to rebalance the disparity between the availability of Arabic content online (currently just 3% of all content) and the number of Arabic speakers around the world (around half a billion). Arabic content has become a Souq forte, as are localized promotions, partnerships, and exclusive products. Mouchawar has also adapted operations for Middle Eastern challenges. For instance, in Egypt, only about 10% of the population have credit cards, and in countries like Bahrain and Saudi Arabia, 60% of online purchases are still paid for via cash on delivery. Mouchawar has developed prepaid cards which can be purchased in real life (IRL) and used online. He has also overcome an underdeveloped logistics infrastructure by developing a Souq-owned local delivery system offering “last mile” deliveries to places with no mail service or postal address, along with investing in local logistics companies and building relationships with local couriers. Souq teams are also in place in the majority of Souq’s operating countries, to continually innovate local solutions for area-specific problems.

Job creation in the Middle East

But Mouchawar believes his e-commerce solutions can have even further reaching impacts: he believes that e-commerce can empower.

“We believed the Internet and e-commerce specifically could be an empowering tool to support SMEs, and help create a knowledge base economy where we employ as many people and create jobs, as our region needed it,” he says. “It could create badly needed jobs for young people and boost the businesses that are the backbone of Arab economies.” “Imagine the access a merchant can have from a street in Cairo to a customer base in Saudi Arabia, to the UAE. If we can connect all these dots, you will have an incredible customer base.”

The Souq.com website proudly reveals that it employs 1,000 people directly and has provided jobs for another 6,000 people indirectly through its networks of partners, suppliers, and couriers, “not to mention the 75,000+ sellers, many of whom have built their livelihood via the website”.

Unsurprisingly, Mouchawar has become one of the Middle East’s most prominent entrepreneurs, visible and accessible on the startup circuit, speaking at conferences, and looking to inspire where he can.

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Egypt’s GB Auto says output resumes after 20-day stoppage

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CAIRO (Reuters) – Egyptian auto distributor GB Auto said on Thursday that production at some of its factories was halted for 20 days during September and October due to delays in supplies but is now back on track.

“GB Auto factories faced some turbulence in production during September and October due to delays of production input shipments which have led to the halting of production at some factories for 20 days,” the firm said in a bourse statement.

GB Auto said factories were now functioning in a “regular manner” due to the availability of production material.

Egypt is facing a currency shortage which is affecting the ability of businesses to import products.

GB Auto, Egypt’s largest listed auto assembler and distributor and the country’s distributor of tuk-tuks and motorbikes made by India’s Bajaj, has been affected by the currency crisis like many other companies in the country.

In August, the firm posted a 65 percent drop in its second-quarter net profit and said the currency shortage has depleted its inventory of some key models.

GB Auto made 22.4 million Egyptian pounds ($2.79 million) in the second quarter compared with 63.6 million in the same period a year earlier. [nL5N10L2EX]

(Reporting by Asma Alsharif, editing by David Evans, Reuters)

 

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EgyptAir to launch 10-year restructuring plan

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DUBAI (Reuters) – EgyptAir, the state-owned flag carrier, is in final stages of launching an overhaul and expansion plan that will reverse its downturn and propel it towards growth, its chairman said on Tuesday.

“We’re developing a 10-year restructuring plan, which should be finalised by mid-December,” Sherif Fathi Attia, chairman and chief executive of EgyptAir Holding told Reuters on the sidelines of an industry conference in Abu Dhabi. Attia is optimistic the plan will get government approval.

The plan includes a network and fleet expansion and Attia said the airline could place aircraft orders in the first quarter of 2016. He said wide-body aircraft would account for 20 to 30 percent of its total order.

The airline has struggled to make a profit, facing setbacks during the 2008 financial crisis, which was followed by the turmoil after the overthrow of then-president Hosni Mubarak.

EgyptAir reported an annual loss of 2.20 million Egyptian pounds at the end of June 2011, the last results the group published since the revolution.

The turnaround project, that could see changes in middle-management, aims for profitability at the end of the current fiscal year.

Attia ruled out initial public offering for the company, which had previously been under consideration.

EgyptAir is part of a group of seven companies which includes EgyptAir Cargo. It currently has a fleet of about 66 aircraft and flies to about 162 countries.

(By By Nadia Saleem, Reuters)

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Egyptian Parliamentary Elections: The Path to Prosperity?

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Egypt-elections

 

This week, more than 27 million Egyptians in 14 of the country’s 27 provinces began voting in the first round of long-delayed elections to choose a new parliament. The country has been without one since Egypt’s Supreme Constitutional Court dissolved the People’s Assembly in 2012, a body which was dominated by the Muslim Brotherhood. In place, current President Abdel Fattah el-Sisi – former head of the Egyptian Armed Forces who helped oust the Brotherhood’s President Mohamed Morsi in 2013 – has held all legislative powers, ever since he was overwhelmingly elected in 2014 with 96.6% of the vote.

But where Sisi has hailed this election a milestone in the country’s path to prosperity, and the final stage in the country’s three-step transition to stability (step one being the vote on a new constitution, step two, the election that made him president), Egyptian voters appear less interested and critics have called it a sham.

Low turnout in the first round of Egyptian parliamentary elections

Turnout has been low. On Wednesday, the head of the Electoral Commission reported that voter participation was 26.56%, even after the government declared a half-day holiday on Monday to encourage more to vote. Reuters put that figure at 10% on Sunday.

Egypt’s foreign ministry spokesman has strongly rebuffed claims that the low turnout represents a failed political environment. He insists the country is moving toward stability. “Anyone with a basic knowledge of Egypt’s political landscape should know that this year’s parliamentary elections are subject to many complex factors,” he said, citing, for example, Egypt’s continuing development of stable political opposition parties.

But whether low turnout can be called evidence of voter fatigue (Egyptians have voted seven times since the removal of President Hosni Mubarak in 2011), or disenchantment (most of the more than 5,000 candidates are perceived to support Sisi who has cracked-down on opposition groups and extremism), it seems that Sisi is losing some of his cult-like adoration.

What will the new parliament look like?

Held under heavy security – reportedly 185,000 soldiers and 180,000 police were deployed as a result of ISIS militant attacks over the past year -, this is the first phase of a two phase vote to select 596 MPs. The second round is set for November. 448 will be voted in as independents, 120 on party lists, and 28 as presidential appointees. There are quotas for women, Christians, youth, farmers, workers, and Egyptians abroad.

The independents list – which will form 75% of the assembly – tends to favor wealthy, well-connected, pro-government candidates. And the liberal, pro-market Free Egyptians Party, founded by telecoms tycoon Naguib Sawiris, who famously offered to buy an island for people fleeing Syria, has already seen 65 of its candidates qualify for the runoffs in 51 constituencies. Pro-Sisi coalition, For the Love of Egypt, an alliance of businessmen, politicians, and former NDP members, is also doing well, having secured all 60 party seats on offer in this first round.

Slow signs of reform

Many of these businessmen – who strongly supported Sisi’s rise to power – believe he can deliver the stability needed, and open up investment opportunities. But relations are also strained.

On election, Sisi – widely seen as a friend of economic reform – promised a rebalancing of government finances, a reduction of state debt and energy subsidies, reforms of the investment environment, a broadened tax base, the introduction of a value-added tax, labor reforms, and more. It is a commitment he repeated at the World Economic Forum in Davos, stating his intent to remove obstacles to private-sector development and resolve disputes between investors and the government.

But evidence of actual significant reform is slow. And in a country where half the population is under 25, average per capita yearly income growth has sat at around 2% since 1980. Unemployment has increased to 12.7%. Inflation is just under 10%. The economy is only projected to grow 5% in 2015-2016 (roughly the same as in 2009-2010 under Mubarak). And the main stock index is down 23% this year, more than twice the decline of the MSCI Emerging Market Index.

Sisi has focused his efforts on using the military (his preferred approach to achieving stability) to oversee huge infrastructure projects, such as the expansion of the Suez Canal area. Many think this strategy does little for long-term economic growth and reveals a suspicion of the private sector.

Courting foreign investment

Courting foreign investment should be essential for Sisi, if he is to fulfil his promises. Foreign direct investment is currently at $6.4 billion (year ending June 2015), compared with an average of almost $10 billion in the four years preceding 2011. Government debts to foreign oil and gas companies – who provide the essential fuel for industry and power stations – have grown to $5.7 billion, so many of them have pulled back or exited altogether. And the foreigners who once held around $10 billion of domestic bonds have left, and not yet returned.

But there are positives to be drawn. With Sisi holding a tight grip on the security and safety of Egypt, many believe that financial and economic policies will be the only area in which a parliament will be able to play. Particularly one with its own interests in business. And these elections are also a signal that Egypt is committed to creating stability – both political and economic – whether or not there is still a long way to go. Good news, perhaps, for future foreign investment.

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Tunisia sees growth at 2.5% in 2016 vs 0.5% expected in 2015

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TUNIS (Reuters) – Tunisia’s economic growth is seen at 2.5 percent for next year versus an expected growth of 0.5 percent in 2015 when two militant attacks have damaged its tourism industry, Finance Minister Slim Chaker said on Friday.

Chaker told reporters the country’s deficit was expected to narrow to 3.9 percent next year compared with an estimated 4.4 percent of gross domestic product this year.

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Russia’s Rosatom says Egypt nuclear talks in final stages

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ABU DHABI (Reuters) – Russia’s state-owned nuclear firm Rosatom is in the final stages of talks for a contract to build a nuclear power plant in Egypt, a senior official of the company said on Wednesday.

Anton Moskvin, Rosatom Overseas vice president, said that the deal was expected to be signed by the end of the year.

Speaking on a visit to the United Arab Emirates, Moskvin said construction of the the first reactor of the plant at Dabaa in Egypt’s north would finish by 2022 if a contract was signed by the end of 2015. The contract would involve a loan from Russia to Egypt, he said.

“The sooner we finish the better,” Moskvin said.

“We can start site assessment work next year and then see how soon we can start real site work,” he said.

Egypt has been considering building a plant in Dabaa, situated in the Matrouh governorate, on and off since 1981.

Cairo froze its nuclear programme after the 1986 nuclear disaster at Chernobyl, but announced in 2006 it planned to revive it. Plans for a tender were being prepared when President Hosni Mubarak was deposed in February 2011.

In February this year, President Abdel Fattah al-Sisi said he had signed a memorandum of understanding with Russia for the project.

The Dabaa plant will have four reactors when complete by 2025. Rosatom is currently the only firm in negotations with Egypt over the project.

“There are some 200 people from both sides meeting every month and sometimes twice a month to discuss commercial, technical and other issues,” Moskvin said.

Rosatom is also in talks with Saudi Arabia’s nuclear government body, the King Abdullah City for Atomic and Renewable Energy, over the kingdom’s nuclear plans.

“We are in constant contact with the King Abdullah City, the latest meetings took place in September,” Moskvin said. “Our primary interest there is in a building contract.”

Saudi Arabia and Russia signed an agreement to cooperate on nuclear energy development in June. [ID:nL5N0Z5163]

In 2012, Saudi Arabia said it aimed to build 17 gigawatts (GW) of nuclear power by 2032 as well as around 41 GW of solar capacity. The oil exporter currently has no nuclear power plants.

(By Maha El Dahan, Reuters)

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South Africa’s Mediclinic agrees deal for Al Noor Hospitals

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LONDON (Reuters) – South Africa’s Mediclinic Intl agreed to buy United Arab Emirates’ Al Noor Hospitals Group, gaining the upper hand on rival NMC Health in a tussle for expansion in the fast growing Gulf region.

But NMC Health, already a major player in the UAE, vowed to fight on, saying on Wednesday it remained committed to a tie-up with Al Noor.

Shares in Al Noor jumped 19 percent to 1,185 pence, above the 1,160 pence value of Mediclinic’s agreed offer and valuing the company’s equity at 1.38 billion pounds ($2.12 billion), as investors anticipated a battle for the group.

Mediclinic’s Chief Executive Danie Meintjes, who will remain CEO after the deal, said the combined group would be the largest private healthcare provider by revenue in the “highly attractive growth market of the UAE”.

Mediclinic, which has more than 50 hospitals in South Africa and Namibia, also has a presence in the UAE. Combining the two companies will create an operator with around 20 percent of the private beds in the region, analysts said.

It will also be the biggest player in Switzerland, the third largest in South Africa, and will have a 29.9 percent stake in Britain’s Spire Healthcare Group.

The deal, structured as a reverse takeover of Al Noor by Mediclinic, will create a London-listed group with a turnover exceeding $4 billion operating 73 hospitals and 35 clinics.

NMC Health, which is also listed in London, said it had made an informal cash-and-shares offer to buy Al Noor on Oct. 9, days after Al Noor and Mediclinic said they were in talks.

Al Noor Chief Executive Ronald Lavater said there was a “compelling strategic fit” with Mediclinic, and together they could expand coverage and service delivery in the region.

He said the board had considered the NMC Health proposal and had concluded it was “inferior both on the value and on the deal certainty”.

The tie-up with Mediclinic is backed by the two major shareholders in Al Noor, Sheikh Mohammed Bin Butti Al Hamed and Kassem Alom, who combined hold 34.3 percent, the companies said.

NMC, however, was undeterred. “This confirms our belief in the competitiveness of our initial possible offer and that the combination of NMC and Al Noor has the strongest strategic and financial rationale for all stakeholders,” it said.

Al Noor was advised by Rothschild, Goldman Sachs and Jefferies, while Morgan Stanley and Rand Merchant Bank worked for Mediclinic.

(By Paul Sandle, Reuters)

 

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