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Most Emirati students not motivated, says study

Most Emirati students not motivated, says study Sarah Young (Youth Spot) / 2 June 2013 New ways to motivate the generation of the electronic revolution and tackle the “female face of unemployment” are needed if Emiratis are going to be part of the workforce, experts say. Speaking recently at the Microsoft Regional Summit and Expert Group Meeting on Youth for Global Competitiveness on a panel discussing the youth labour market, Al Maskari Holding chairperson Dr Shaikha Al Maskari said a Dubai study done last year showed 60 per cent of Emirati high school students showed very little motivation, and “did not care what type of course they did, or career they chose”. “Our first priority is to find out why, and how we can reverse this.” Delegates at the Microsoft Youth for Global Competitiveness initiative at Jumeirah Beach Hotel, Dubai. — KT photo by Juidin Bernarrd Low motivation was also evident in the fact Abu Dhabi had reached a “unique status in the world” by paying high school students to perform, she said. “If they get grades over 90, they get Dh5,000 as a gift as well as a monthly salary … nowhere in the world do you pay high school students to attend. And did it work? No. Actually Abu Dhabi students are doing less well than anybody in the UAE.” While working for Adnoc in the early 1980s, a serious effort was made to provide career paths for UAE nationals, which resulted in many reaching senior manager status 20 years later — a concept almost unheard of back then, she said. “This was because they were motivated. Taking youth now and saying we will do this for you — it doesn’t ring a bell. Why? I don’t speak your language. The electronic revolution has created, as never in history, a generation gap. Anyone over 50 doesn’t speak their language. “When you go to high school those youngsters are literally light years ahead of us.” Instead, “humility” on the behalf of the employer was important, and she now tried to trust her younger employee,  as long as they performed, she said. Dr Leila Hoteit, Booz and Company principal Her company focused on providing “heart and compassion”, creating an ambience of belonging and trust, and asking young employees for input on policy making – something her generation was not equipped to do alone given the electronic revolution was changing  the way business was done, she said. The youth also needed to feel “energised, motivated and excited” at work. “Youth need thrill. If you put them in something very dull, they won’t stay.” However, Booz and Company principal Dr Leila Hoteit said it was difficult for this type of innovation to take place, given the country’s open immigration policy which stifled creativity on behalf of employers who were only acting ‘rationally’ in response. “If you have cheap abundant labour you use that. You’re not motivated to innovate, train your people or be an entrepreneur. If you have a problem, just throw more cheap labour at it and solve your problem.” This meant Emiratis were “stuck in the middle”. “They have the skills for low to medium level jobs, but they don’t desire those jobs, and those jobs don’t desire them because people can get cheaper labour. But for higher skilled jobs (Emiratis) are not as skilled, so there’s a need to … work on building skills of Emiratis. “But as long as you have an open immigration policy, you stifle innovation.” Emirati unemployment is estimated to be around 13 per cent, according to the UAE National Bureau of Statistics website. Meanwhile, the Middle East overall has one of the highest youth unemployment rates in the world, sitting currently at 30.3 per cent, compared with an estimated global rate of 12.6 per cent, according to the International Labour Organisation’s (ILO) Global Employment Trends for Youth 2013 report. And while women in the region were surpassing boys ‘by a long shot’ in education, their high levels of unemployment potentially highlighted a cultural issue of whether “(we are) spoiling our boys”, Hoteit said. Women often had more intrinsic motivation to work, because they had to prove themselves, while men did not. According to the ILO report, almost half of the female population in the region is unemployed, sitting at 43 per cent, compared to young males, of whom about 25 per cent are out of work. Dubai-based recent graduate Shaima Al Awadhi said she had been one of the 60 per cent of students who had not cared what they did for a career — until she did an internship with Pepsico where she worked under a “mentor” who helped her professionally and personally. She is still employed at the company and said she loved her work — but she was one of the lucky ones, she said. Many of her peers who did similar internships finished unhappy and unmotivated. Lack of career guidance was one of the biggest problems at university, meaning many students either ended up in the wrong jobs and stayed there just for the salary or a lack of other options, or were left confused and unable to choose, al Awadhi said. However, International Labour Office senior advisor Dr Zafiris Tzannatos said while information like this was important, private companies also had to be prepared to provide salaries and incentives good enough to stop highly-skilled Arabs leaving their home countries after university. sarah@khaleejtimes.com Continue reading

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An African Setback For The Palm Oil Industry

By Bruce Einhorn 31/05/13 Africa is the next frontier for the world’s producers of palm oil, a food ingredient that environmentalists blame for destruction of rain forests in Southeast Asia. Indonesia is the world’s biggest producer of palm oil but the government there is trying to reduce deforestation by banning development of new plantations on primary rain forest. With the world’s appetite for palm oil increasing, plantation developers are targeting territory in sub-Saharan Africa . That’s alarming some green activists worried about the industry clearing rain forests in order to plant palm trees. “The global palm oil industry is running out of land,” says Filip Verbelen, a Brussels-based senior forest campaigner for Greenpeace. “People look where the land is available and they look for Africa.” The drive into the continent suffered a setback on May 18 when Herakles Farms, a New York-based company developing a 73,000-hectare plantation in Cameroon, announced it was suspending work and laying off 690 workers there following a dispute with the government. The U.S. company needs to get the correct permits before it can proceed with the project, according to Cameroon’s Ministry of Forestry & Wildlife, which says it took action following complaints from the local community. A 2009 agreement between the Cameroonian government and Herakles subsidiary Sithe Global Sustainable Oils Cameroon does not exempt the company from respecting “legal procedure and environmental constraints,” Forestry Minister Ngole Philip Ngwesse said in the statement. Herakles Farms says it had been acting properly. “The Company had obtained permission to proceed and always has and will comply fully and transparently with government regulations in force,” the company said in a statement . “The Company is deeply distressed to see so many of its committed Cameroonian employees being left without jobs for an uncertain period of time,” Herakles Farms added. “The company finds these events especially tragic and will do all it can to achieve a positive outcome.” Greenpeace says the Cameroon project could set a precedent for other palm oil developments in Africa. “If this project isn’t stopped, investors are going to say, ‘Look at what is possible in Cameroon and the rest of the region,’” says Verbelen. “‘You can go for a free ride.’ If we can stop this or create strong safeguards, I think then new investors will become a lot more careful.” The Cameroon standoff is also significant since demand for palm oil continues to grow—thanks in part to health concerns among Americans worried about the dangers of trans fats. As consumers try to avoid unhealthy trans fats in their diets, the global food industry has been trying to reduce its reliance on hydrogenated oil, and palm oil has become an attractive option, according to Eric Decker, a professor at the University of Massachusetts and head of the school’s food science department. “Ever since the awareness that trans fats have negative effects, the food industry has had to find alternatives,” he says. “It used to use solid fats that came from hydrogenated oil, but those are high in trans fats. So they had to find another fat source that was still solid. And so they have switched to palm oil.” Developing countries are big consumers of palm oil, too. The World Bank expects demand to double by the end of the decade, thanks largely to increased consumption in China and India. Palm oil is an inexpensive ingredient in ice cream and cookies, and unlike other vegetable oil sources such as soybeans, the palm fruit produces mostly oil, so growers looking to maximize their oil production can get the most bang for their buck. “Palm is the most efficient,” says Paul Conway , vice chairman of Cargill, a major importer of palm oil from Southeast Asia. “It’s basically all oil.” Palm oil is versatile, with uses not just in food but also in soaps and detergents and, increasingly, biofuels. “Anything you can make from petrochemicals, you can also make from palm oil,” Dorab Mistry, a director of Godrej International, said in an interview with Bloomberg Television. And, he added, there aren’t a lot of big costs involved with making it. “There are very few commodities in the world which are as profitable to produce as palm oil.” Einhorn is Asia regional editor in Bloomberg Businessweek’s Hong Kong bureau. Continue reading

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Housing Bubble II: But This Time It’s Different

MONDAY, MARCH 18, 2013 AT 6:00PM We have seen it for several years now: foreclosure sales—there were 5 million since the peak of the housing bubble—have become the hunting grounds for investors with two goals: hanging on to these homes until the Fed’s flood of money drives up their value; and defraying the expenses of ownership by renting them out. And funds have a third goal: collecting management fees. Thousands of smaller investors have piled into the game. And so have the giants. Blackstone Group LP, the world’s largest private equity firm, plowed over $3.5 billion into the housing market, according to Bloomberg , to gobble up 20,000 vacant and foreclosed single-family homes. It just fattened up a credit line to $2.1 billion to do more of the same. Colony Capital LLC, which already owns 7,000, is putting $2.2 billion to work. Last year, institutional investors made up 19% of all sales in Las Vegas, 21% in Charlotte, 23% in Phoenix, and 30% in Miami. It had an impact. In the latest Case-Shiller report—a three-month moving average for October, November, and December—home values soared 9.9% in Atlanta, a bigger jump than even during the peak of the housing bubble . Las Vegas popped 12.9%, and Phoenix 23%. It’s getting hotter. In February, compared to prior year, asking prices jumped 14% in Atlanta, 18% in Las Vegas, and 25% Phoenix. Seen from another point of view: in January, the median price of a single-family home in Phoenix skyrocketed 35%. “We recognized that prices were moving faster than people expected,” explained Devin Peterson, a Blackstone real estate associate, to Bloomberg. Despite that, they’re still “finding opportunities to buy.” They might not be able to rent them out very quickly, but they’d rather not be “missing out on a few points in home price appreciation.” The race to buy is on. The next housing bubble is inflating. And that’s great. Money—which the Fed hands to its cronies at the frenetic pace of $85 billion a month—magically finds places to go and drives up values, and transactions take place, and paper gets shuffled around, and homes change hands as banks get out from under them, and fees and commissions change hands too. It inflates GDP, which is what everyone wants. And Chairman Bernanke can contort his arm slapping himself on the back. Trying to rent these places is another story. Housing is zero-sum: when you move into a new place, you move out of the old place at the same time. So it becomes available. And someone else goes through the same process. Only household formation solves the problem of vacant homes—but that takes years or decades. Best of all, these formerly foreclosed homes have now been pulled off the for-sale inventory list. Hence the “tight” inventory. And they’ve been transferred to the for-rent inventory list where they don’t bother anyone. Except the owners. Colony Capital, for example, with its 7,000 homes, has an occupancy rate of 53%. Suddenly, the market for single-family rental homes—unlike apartments, which cater to different people—has turned into an elbow-to-elbow affair. The pressure on rents is huge. Year-over-year, rents edged up only 0.5% in Atlanta and dropped 1.7% in Las Vegas. For Phoenix, Bloomberg cited Fletcher Wilcox, a real estate analyst at Grand Canyon Title Agency: median rent per square foot rose 3% year-over-year in February 2011, and 1.5% in February 2012. But in February 2013, it fell 3%. This tendency was confirmed by others. On the west side of Phoenix, where investors have concentrated their purchases of single-family homes, rents dropped by $100 a month last year—a stunning 10%!—according to James Breitenstein, CEO of Landsmith which has dumped most of its Phoenix properties. He is seeing similar pressures in Las Vegas and Atlanta. “There’s a whole bunch of rental supply that’s coming on that used to be sitting empty in bank portfolios,” he said. Timing couldn’t be worse. Occupancy rates of single-family rental homes are already low— 53% for Colony Capital. But investors are buying ever more properties and flood the rental market with them. Just when the stream of people who’ve gotten kicked out of their foreclosed homes is tapering off. With rising costs and declining revenues, the rental part of the business model collapses. As the Fed’s money is trying to find a place to go, prices may continue to rise. But with the economics to support these prices—namely rental revenues—giving way, the remaining reason to buy would be a singular hope : economically unsustainable price appreciation. The definition of a bubble. At some point, not being able to make money on rentals, investors will try to bail out. Then, the process of a Fed-inspired housing bubble blowing up starts all over again. Dallas Fed President Richard Fisher often warned about the nefarious effects of this flood of money. But he was shuffled off to “an out-of-the-way ballroom” at the CPAC, where Republicans struggled with the future, and drew barely two dozen people; yet he had a pungent message. Read…. The Fed’s Token Voice Of Reason: Megabanks Undermine Americans’ Faith In Democracy Continue reading

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