ANTWERP, Belgium: At 29, Samira Ahidar just got a permanent job, her first.
Ahidar, who still lives with her parents, dropped out of school a decade ago and her adult life has been dominated by the search for work. She would still be jobless if it were not for a job creation scheme that employs her at an elderly care home.
"I’ve no idea where I’ll be in five years time," said Ahidar, dressed in an orange apron that comes with her new role. "It is so hard to find work, you feel like giving up."
Ahidar does not live in Greece or Spain, countries where as many as one in two young people are without work, but in the wealthy Belgian port city of Antwerp. With its stunning 16th-century Gothic houses, the city is a world center for diamond trading and boasts a cutting-edge fashion industry. It also has a fast-growing number of unemployed twenty somethings.
Youth unemployment is notoriously a problem of southern Europe. What is less obvious, as the euro zone slips into its second recession in just three years, is the scale of the problem in the north.
A quarter of 18-to-25-year olds in Antwerp are now jobless, up from 19 percent in 2008. In some parts of Brussels, the Belgian and European capital and the third-richest region in the European Union, youth joblessness is as high as 40 percent. In France, Britain and Sweden, as many as one in five young people are now out of work.
The rising pool of jobless youth is fueling class and racial divisions, according to youth workers and some politicians. Many experts blame joblessness for outbursts of violence such as last year’s riots in Britain.
And today’s problem could have a big impact on Europe’s future. The continent’s labor force is set to decline by 50 million people over the next 50 years, according to the World Bank. Skilled, experienced new workers will be needed to support an aging population.
"Young people are being marginalized with major economic consequences," said Francois Robert, a social worker at the employment institute Bruxelles Formation. "The problems people are talking about in Greece and Spain are right outside the European Commission’s door in Brussels."
Southern Europe has long struggled with youth unemployment. In Italy, the rate has not dropped below 20 percent in more than two decades, according to the EU’s statistics office Eurostat. In Spain, the rate has averaged 30 percent since 1990.
By contrast, in the United States, youth unemployment is 17 percent, up from just under 12 percent in December 2007. The European exception is Germany, where only 8 percent of young people aged 15 to 24 are out of work, according to the Organization for Economic Cooperation and Development (OECD).
It is normal that unemployment goes up in tough times. But worryingly, some of the problems, even in northern Europe, are structural. In Belgium as elsewhere, these include a lack of skills, discrimination and the cushion of welfare payments that approach the minimum wage.
Belgium has an open, high-tech economy and the world’s 12th highest per capita income, but "the education we offer is not always in tune with what the market needs," says Pascal Smet, education minister for Flanders, the northern, Dutch-speaking half of the country.
The shortcomings have important consequences. The gap between young people’s skills and those required by employers means Belgium has one of the highest percentages in the industrialized world of young people who are not in employment, education or training, according to the OECD.
It’s not as if there are no jobs. Flanders, which is home to Antwerp, has a trade-friendly location between Germany’s industrial belt and the North Sea that attracts multinationals. In 2011, the number of jobs on offer in the region — excluding temporary agency work — rose 17 percent from the year before. But there were only about three job seekers for every vacancy in March, according to the latest data available — the lowest level since 2000.
Entrepreneur Frederic Bulcaen says he cannot find the staff he needs for his industrial ventilation company Typhoon, which deploys teams of engineers across Europe to install equipment to keep factories clean.
"I just hired somebody with a master’s in industrial engineering who was able to choose from 10 different companies that all wanted him," said Bulcaen, in an office overlooking stacks of shiny steel pipes and giant motors. "It is very, very difficult."
Materials engineers are needed in industries such as aerospace and chemicals, but only about 15 of them graduate in Belgium every year, forcing companies to look abroad.
For some young people, basic education is the problem. To work in Brussels, for instance, English is a must-have: The city, often likened to Washington D.C., is packed with embassies, international organizations and industry lobbyists.
About 36 percent of people in Brussels come from outside the European Union, and there’s not much opportunity for monolingual French-speaking children of immigrants. The car plants and factories where they would have found work two decades ago have closed.
Twenty-four-year-old Michel Ayim is a second-generation immigrant who spends his days with his friend Pierre Bello, smoking cigarettes and listening to French rap in front of the paint-flaked warehouses along Brussels’ industrial-era canal. Just a few stops away on the metro are the shiny complexes of the EU institutions, where members of the European Parliament earn 95,000 euros ($120,000) a year plus benefits.
"I go to a temping agency, but I get turned away because I don’t speak good English," said Ayim, who has not had a permanent job since leaving school. "So maybe I work as a waiter for a day, but I can only dream of a good salary."
Children of immigrants — who mostly came from North Africa — face particular hurdles. One in five people in Belgium are of immigrant origin but people from outside Europe are often poorly integrated, and immigrants rarely fill professional jobs.
Fewer than half the non-EU immigrants who have yet to obtain Belgian nationality were in a job in May this year, according to a study by the Flanders job agency VDAB.
"They should have told our parents how important education is and that you have to push your children to get a qualification," said Ahidar, whose parents came from North Africa in the 1960s to work in Belgian industry.
Some children of immigrants say they are dissuaded from gaining useful skills. Jobless 26-year-old Rashid, whose parents came from Morocco, said his "teachers at primary school used to tell my parents I was a talented and creative student."
"But when I moved to secondary education, they immediately started telling them I should follow a career in manual labor," he said, sipping mint tea and watching Latin American football in a Moroccan cafe in Antwerp.
Some Belgian employers also discriminate on race despite laws against it. An investigation by recruitment agency federation Federgon found a third of agencies agreed to send only white Belgians to fill vacancies during the past year.
One 25-year-old, Hamza Ahmadoun, said he had done around 60 jobs from security to telesales in the six years since leaving school. "I speak Dutch, English and Arabic, but I don’t get a chance, it is pure discrimination," he said. "In the morning I get up, I pray and see what the day brings."
But it is not just the children of immigrants who are struggling.
Anna De Cock, 24, a white Belgian born in the Netherlands, works sweeping Antwerp’s tree-lined avenues as part of another job creation scheme. "I am lucky to be here," she said, dressed in a bulky jump suit and carrying a black broom.
De Cock wanted to become a chef and took jobs washing dishes in dark, back-alley kitchens, but was unable to find steady work, lost interest and stopped showing up.
Then there’s the issue of unemployment benefits in northern Europe, which for a single young person are more than double that of the United States. Belgium is even more generous than that.
A Belgian school leaver with a diploma can receive benefits of around 900 euros ($1,200) a month after a year of unemployment. The minimum wage of 1,400 euros a month before tax, which De Cock earns, is one of the world’s highest.
After deductions, there’s only about a 150-euro difference between unemployment benefit and the pay for low-skilled work, said Peter Stappaerts, director of Werkhaven, a job scheme in Antwerp. "So unfortunately it is easier to stay home and collect benefits." On top of this, young mothers have an added disincentive: to work, they have to pay for childcare.
Over the past year, riots in Britain and France have been linked with the frustration of unemployment. There has also been rioting in Antwerp and Brussels.
"We are looking at the emergence of a generation of young people who have always been unemployed," said Patrick Manelickx, the head of Brussels-based youth center JES that trains youngsters and tries to get them into work.
"There is a feeling of frustration, of anger among many of them, that they don’t have a future," he said.
The European Commission is pushing the bloc’s 27 countries to set up schemes to offer training or further study to any young person who does not find a job within four months of leaving school. Some countries have set aside funds to support this.
Governments elsewhere have moved to reform benefits or education, and encourage youth employment with lower taxes and less job security. In France, the government is fast-tracking a job-creation scheme.
But Belgium is forcing through around 13 billion euros in budget cuts this year and says it cannot afford such a plan, although it may reform its education system. Flanders’ education minister Smet wants to make unemployment benefits dependent on trying to find work or study. "I am all for solidarity in our society," he said. "But you can’t have something for nothing."
Ahidar’s new job as a driver gives her hope of starting her own taxi business ferrying Antwerp’s elderly about. But she cannot get bank financing.
"I had the character to keep looking for work," Ahidar said. "Others didn’t and ended up in crime, and the job situation is so bad that you start to understand why."
FROM: REUTERS
Young jobless on the rise in Europe’s rich north
Young jobless on the rise in Europe’s rich north
GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII
RIYADH: Global investors can find a “safe harbor” in the Gulf Cooperation Council as the bloc’s public-private partnerships pipeline offers “compelling” opportunities, according to a new report.
The latest document from the Future Investment Initiative Institute highlights how economies in the region are currently driving the next wave of PPP growth.
It cites findings from Partnerships Bulletin, which ranks Saudi Arabia as second in the global emerging markets pipeline for PPP projects up to July 2025, and also places Dubai in the top 10.
While that analysis claims the Kingdom has 98 PPP projects either formally published or announced, FII says Saudi Arabia has a further 200 currently awaiting approval.
The findings align with the goals outlined in the Kingdom’s National Privatization Strategy, launched in January, which aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, and exceed 220 PPP contracts by 2030.
The strategy also aims to increase private sector capital investments to more than SR240 billion ($63.99 billion) by 2030.
The FII report says that around 90 percent of FDI into Saudi Arabia now flows into non-oil sectors, from advanced manufacturing and tourism to green energy and digital infrastructure.
“That shift reflects deliberate policy choices to open markets, standardize regulatory frameworks and use public capital to de-risk new value chains,” says the document, adding: “The result is a kind of safe harbor in an otherwise low-growth, high-uncertainty world.”
It continues: “While global FDI has stagnated or declined in many regions, the GCC’s pipeline of planned infrastructure and industrial projects now exceeds $2.5 trillion, according to Boston Consulting Group data, with PPPs playing a central role in structuring and financing them. For global investors searching for yield, diversification and inflation-linked income, this represents a compelling proposition.”
Commenting on the FII Institute report, Sally Menassa, partner at international management consulting firm Arthur D. Little, said PPPs are a strategic necessity for delivering infrastructure at speed and scale, and described Saudi Arabia’s pipeline as a “powerful execution and financing tool.”
She added: “The Kingdom’s PPP momentum must remain focused on impact, value creation and execution excellence. PPPs should not be viewed merely as a funding mechanism, but as a structural tool to enhance infrastructure performance, attract investment and support sustainable economic growth in line with Vision 2030.”
Menassa said that Saudi Arabia’s National Privitization Strategy marks a shift from a project-by-project approach to institutionalization of efforts and value creation.
“By clarifying sector priorities, strengthening project selection criteria, and formalizing governance and investor pathways, the Strategy reduces uncertainty. This clarity enhances investor confidence and improves pipeline quality,” said the Arthur D. Little official.
She added: “PPP and privatization efforts in Saudi Arabia are not about divestment or the state shifting execution to the private sector, it is really about becoming more productive as a nation. It enhances efficiency, raises service standards, mobilizes private and SME participation, and attracts capital.”
Menassa further said that the strategy could help the Kingdom achieve stronger fiscal sustainability and higher private sector GDP contribution, both of which are critical components to accelerate the Kingdom’s economic transformation under Vision 2030.
Vijay Valecha, chief investment officer at Century Financial, believes input from the private sector across all stages, from design to construction and operations, improves the efficiency of project delivery and long-term operations in Saudi Arabia.
“Tighter governance through centralized management at the National Center for Privatization and PPP and a more streamlined process, including template contracts, a clearer regulatory environment, and a transparent pipeline, is likely to improve delivery speed,” said Valecha.
He added: “This means faster delivery of big projects like Red Sea resorts or Neom, with private firms handling operations to drive innovation. Ultimately, the strategy supercharges diversification by making the private sector the main engine of growth, aligning perfectly with Saudi Arabia’s push for a vibrant, non-oil economy.”
The FII Institute added that the global flow of FDI is increasingly concentrated in the Gulf Cooperation Council region, driven by ambitious national transformation agendas and deep pools of sovereign wealth.
Tony Hallside, CEO of STP Partners, outlined several factors that are boosting the PPP landscape in the region, which include large infrastructure demand from Vision-level programs and urbanization.
“Government frameworks that standardise PPP procurement are making projects bankable. Strong regional capital pools and sovereign support will mitigate risk and attract global players. In the GCC, Saudi Arabia’s pipeline itself is one of the largest in the Middle East, indicating strong investor interest,” added Hallside.
Underscoring the role of growing PPP in Saudi Arabia, the FII report said: “A decade ago, the Kingdom’s solar capacity was negligible, despite its vast solar resource. Through early anchor investments, long-term power purchase agreements and support for national champions, the state seeded a competitive renewables market that now attracts global players on purely commercial terms.”
Valecha said that clearer PPP laws, standardised contracts and dedicated PPP units have reduced execution risks and made projects more bankable for global infrastructure funds and developers in the GCC region.
He added that rapid urbanization, a young and growing population, rising data center power demand and energy transition projects create predictable, long-duration cash flows in the region.
“This combination of policy support, fiscal necessity and structural growth is why the GCC is emerging as one of the fastest-growing PPP markets globally,” said Valecha.
Key Saudi PPP projects
Yanbu 4 Independent Water Project - supplying water to Medina and Makkah
Location Yanbu, Red Sea coast
Companies involved: Engie, Mowah, Nesma, Saudi Water Partnership Co.
Cost: $826.5 million
Expected delivery date: Operational as of 2024
Hadda Independent Sewage Treatment Plant
Location: Makkah Province
Companies involved: Metito Utilities, Etihad Water and Electricity, SkyBridge Limited Co., Saudi Water Partnership Co.
Expected delivery date: 2028
As Sufun Solar PV Independent Power Project
Location: Hail region
Companies involved: TotalEnergies, Aljomaih Energy & Water, Saudi Power Procurement Co.
Expected delivery date: Expected to connect to the grid in 2027
Construction of greenfield international airports
Location: Taif, Abha, Qassim, and Hail
Companies involved: Currently in the planning stage; investors are being sought
One-Stop Station Project
Location: Intercity road network across the Kingdom
Companies involved: Saudi Arabia’s Roads General Authority and National Center for Privatization & Public-Private Partnership announced a full list of qualified bidders in February.
King Salman Park
Location: Riyadh
Companies involved: King Salman Park Foundation, Ajdan Real Estate, Sedco Capital
Cost: $1 billion
Project: Madinah-3, Buraydah-2, and Tabuk-2 Independent Sewage Treatment Plants
Location: Madinah, Buraydah, and Tabuk
Companies involved: Acciona Agua, Tawzea, Tamasuk, Saudi Water Partnership Co.
Cost: $627 million combined
Riyadh Metro Line 2 Extension
Location: Riyadh
Companies involved: Royal Commission for Riyadh City, Arriyadh New Mobility Consortium, led by Webuild. Riyadh Metro Transit Consultants (JV between US Parsons and France’s Egis and Systra) as project management and construction supervision consultant.
Cost: Up to $900 million
Expected delivery date: 2032
The crucial role of emerging markets
According to the FII Institute report, the ability to deliver resilient infrastructure, expand digital connectivity and accelerate the energy transition will increasingly depend on the strength and legitimacy of PPPs, as fiscal space tightens and investment needs rise.
FII estimates a $5 trillion global infrastructure financing gap by 2040. It also points to significant regional shortfalls, including an estimated $3.7 trillion gap in the US and an annual $130 billion to $170 billion gap across Africa. In this context, PPPs are moving from a transactional procurement route to a central model for financing and delivery.
The report highlighted that emerging markets, including Saudi Arabia, are currently driving the next wave of PPP growth, with spending across low-and middle-income countries reaching $100.7 billion in 2024, up 16 percent year on year, according to figures from the World Bank.
Moreover, emerging markets now represent around 61 percent of global PPP activity by gross domestic product share.
According to Partnerships Bulletin’s findings up to July 31 2025, the Philippines leads the emerging-market pipeline with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71, and Peru with 54 projects.
Greece has 42 projects in the pipeline, followed by Dubai at 28, Kenya at 25, Colombia at 24, and Pakistan at 14.
PPP: An engine of growth
When capital was cheap, PPPs were often treated as an optional extra – a way to shift specific projects off the public balance sheet, or to import private-sector efficiency into construction and operations, the FII report said.
However, now, nations consider PPPs as a central hub of their economic strategy, as they enable the state to stretch every dollar of public investment using private capital, while retaining strategic control over what gets built, where and to what standard.
“The real differentiator is complexity. When a project presents significant financial uncertainty or unpredictable demand, or if there’s a high level of climate exposure or technological risk, a PPP can give leaders the tools to manage those issues without slowing things down,” said Bob Willen, global managing partner and chairman of Kearney, said in the FII report.
Erik Ringvold, chief business development officer at Regional Voluntary Carbon Market Co., was quoted in the report as saying that carbon markets will benefit through PPPs, as deepened public-private partnerships could help achieve progress toward national emissions targets, while simultaneously creating economic opportunity and catalyzing new green industries.
“Saudi Arabia has made large strides toward an emissions compliance system, with an operational carbon standard in place, and an emissions trading system announced to be launched over the coming few years,” said Ringvold.
He added: “At VCM, we see a clear future carbon vision for Saudi Arabia. One ecosystem. One marketplace. One iconic collaboration – with the PPP model at the heart of its success.”
PPPs for investors and citizens
For investors, infrastructure-backed PPPs offer long-duration, often inflation-linked cash flows at a time when public markets are volatile and dominated by a narrow set of mega-cap technology stocks.
For citizens, well-designed PPPs can mean better services, more resilient infrastructure and faster progress toward climate and development goals, without unsustainable tax rises or austerity.
FII, however, cautioned that public consent is becoming decisive. Across seven countries, only 23 percent of citizens agree that PPPs “equally benefit everyone”, compared with 41 percent of business and government leaders.
Hallside said that public consent hinges on transparency, accountability, and visible service outcomes.
He added that governments should publish clear procurement frameworks, communicate cost-benefit and performance expectations in plain language, and measure user satisfaction and service quality over time — “reinforcing that PPPs deliver tangible improvements in infrastructure and services.”
Menassa echoed similar views and said that communication with the public is not sufficient, but the performance and execution phase holds the key to PPP projects.
“Winning public opinion for PPPs is rather a marathon not a race. It starts with building awareness and trust by providing transparency and demonstrating value for money, ensuring affordability and service quality of public services is maintained through strong regulatory oversight, and ensuring competitive, transparent procurement processes,” added Menassa.
According to the Arthur D. Little official, the public must see tangible improvements in service reliability, efficiency and accountability, and acceptance will follow.
“The world can’t afford to delay the infrastructure and energy transition investments that will determine prosperity – and planetary stability – for decades to come. Nor can it fund them through public budgets alone. Financing the future is, by definition, a joint endeavour,” added the FII report.
