Entrepreneurship in Gulf Region is the New Job Market Requirement

New businesses are need of the hour in UAE and other gulf nations. Many firms are coming up to invest in exciting new business plans by new entrepreneurs.

Seedstartup, a venture capital fund is promoting start up firms in the Gulf region. It organized an event where 60 guests attended from the United Arab Emirates and other Gulf countries. They attendees presented business plans to attract investors and venture capital funding. The organization invests between $20,000 and $25,000 in business plans, which have bright prospects. In return, they take 10% equity. The founder of this organization Rony el-Nashar commented that this is a high risk they are taking in business as investing in practically nothing. Entrepreneurs who are part of this program are required to stay for 3 months in Dubai. The organization mentors them and gives an opportunity to pitch their ideas to investors.

The Gulf region is witnessing many new and innovative businesses coming in different cities. Entrepreneurship is presently the buzzword in the Arab world and many new businesses are trying to find a launchpad. Expansion of new businesses is a necessary for political, social and economic progress in the region. As the Gulf region is under constant pressure to generate jobs besides the oil and gas job or construction jobs, new businesses are required. With the youth population one of the largest in the world, job creation is of utmost importance. According to International Labor Organization stats, 26.4 percent are unemployed under the age group of 25. ILO foretells that in the next five years (2017) the employed population will rise to 28.4 percent.

The report of 2011 talks about the problems young Arabs will face in the job scenario. Highly prosperous nations like Kuwait, Qatar, Bahrain, Saudi Arabia and the U.A.E. have decline in new businesses because of government regulations.

The chairman of du, one of the well known telecom operators inn UAE says , that since most of the current young population are happy with Jobs in UAE, they are reducing their risk appetite and lacks innovation. Entrepreneurship must be focused and new businesses should be part of the job market.