250 P. MAHDAVI AND N. UDDIN
out half of Saudi oil production for several weeks and triggered fears about
the future value of the country’s petroleum sector. 49
Fourth, and perhaps the most prominent draw to the renewable energy
transition, is the potential boon for widespread employment. This is
particularly crucial to alleviate the ‘labor resource curse’ in that the
MENA oil and gas producing countries have a terrible track record in
terms of labor productivity when compared to non-oil producers. 50 Youth
unemployment in the region stands at 30%, with the highest rates in Palestine (43%), Saudi Arabia (42%), Jordan (36%), and Tunisia (36%). 51 Even
where unemployment is relatively low, such as in Qatar, the problem is
‘solved’ by bloating the public sector with redundant jobs.
Labor force issues are only expected to get worse over time. The
region’s high youth population ratios have spurred some to label youth
unemployment as the Middle East’s ‘ticking time bomb.’ The problem
is most acute in Palestine, Syria, and Yemen, where young people
(ages 15 to 24) make up over 20% of the population. 52 The IMF estimates that roughly 27 million youths will enter the Middle East labor
market by 2023, which will significantly inflate unemployment. 53
The region also suffers from highly gendered employment challenges:
only 15% of women are active in the MENA labor force, and unemployment rates are 80% higher among women compared to men (the
global average gender differential is roughly 20%). 54 As with the region’s
other maladies, this is in part due to the gender inequities inherent in
an oil-dependent economic system that crowds out manufacturing and
service jobs held by women, though such imbalances are still quite prevalent in the oil-importing states as well. 55 Nonetheless, shifting to the
more gender-balanced renewable energy sector would narrow the gender
employment differential, which by itself could increase regional GDP by
up to 7.1% by 2025. 56
Within these sectors, there are numerous synergies in transitioning
petroleum-sector workers to renewables jobs. Biofuels processing facilities share technical similarities with oil-processing plants, while offshore
wind platforms necessitate skilled labor for construction, assembly, and
deployment that mirrors development of offshore oil and gas platforms.
The key to fostering these synergies is the establishment of a competitive renewables manufacturing industry, something which MENA states
have so far struggled within the context of petroleum equipment. The
more that these governments can do to create incentives and favorable
regulations for renewables manufacturing, the greater the opportunities
out half of Saudi oil production for several weeks and triggered fears about
the future value of the country’s petroleum sector. 49
Fourth, and perhaps the most prominent draw to the renewable energy
transition, is the potential boon for widespread employment. This is
particularly crucial to alleviate the ‘labor resource curse’ in that the
MENA oil and gas producing countries have a terrible track record in
terms of labor productivity when compared to non-oil producers. 50 Youth
unemployment in the region stands at 30%, with the highest rates in Palestine (43%), Saudi Arabia (42%), Jordan (36%), and Tunisia (36%). 51 Even
where unemployment is relatively low, such as in Qatar, the problem is
‘solved’ by bloating the public sector with redundant jobs.
Labor force issues are only expected to get worse over time. The
region’s high youth population ratios have spurred some to label youth
unemployment as the Middle East’s ‘ticking time bomb.’ The problem
is most acute in Palestine, Syria, and Yemen, where young people
(ages 15 to 24) make up over 20% of the population. 52 The IMF estimates that roughly 27 million youths will enter the Middle East labor
market by 2023, which will significantly inflate unemployment. 53
The region also suffers from highly gendered employment challenges:
only 15% of women are active in the MENA labor force, and unemployment rates are 80% higher among women compared to men (the
global average gender differential is roughly 20%). 54 As with the region’s
other maladies, this is in part due to the gender inequities inherent in
an oil-dependent economic system that crowds out manufacturing and
service jobs held by women, though such imbalances are still quite prevalent in the oil-importing states as well. 55 Nonetheless, shifting to the
more gender-balanced renewable energy sector would narrow the gender
employment differential, which by itself could increase regional GDP by
up to 7.1% by 2025. 56
Within these sectors, there are numerous synergies in transitioning
petroleum-sector workers to renewables jobs. Biofuels processing facilities share technical similarities with oil-processing plants, while offshore
wind platforms necessitate skilled labor for construction, assembly, and
deployment that mirrors development of offshore oil and gas platforms.
The key to fostering these synergies is the establishment of a competitive renewables manufacturing industry, something which MENA states
have so far struggled within the context of petroleum equipment. The
more that these governments can do to create incentives and favorable
regulations for renewables manufacturing, the greater the opportunities