Why entrepreneurial capabilities are key to empowering MENA’s youth 

Entrepreneurship is increasingly seen not only as a career path, but as a powerful tool for economic transformation across the MENA region. With 48% of the population under the age of 25 and youth unemployment at 24% in 2024, the report highlights that the region must prioritise entrepreneurial capability development to realise its full potential.

The report defines entrepreneurial success as more than a good idea - it is grounded in a mix of behaviours, skills and traits including problem-solving, adaptability, emotional intelligence, and comfort with uncertainty. This expanded view of capability is essential in a world where, according to LinkedIn, job skills have changed by 25% since 2015 and are expected to double in pace by 2027.

In response, PwC outlines a framework focused on four strategic areas: structured entrepreneurship education, mentorship and collaboration, mastery in emerging technologies, and female empowerment.

The first strategy calls for integrating entrepreneurship into formal education systems from an early age. While technical and business skills are often prioritised, the report stresses the importance of teaching agility, creativity, and financial literacy - areas often overlooked but vital to successful start-ups. 

Mentorship is the second pillar, aimed at closing the experience gap. With only 35% of non-mentored businesses surviving five years, connecting young entrepreneurs with experienced guides can double their chances of success. This is particularly relevant in the MENA region where the desire to launch a business is strong, yet many lack access to support networks.

The third focus area is emerging technologies, particularly artificial intelligence. Governments across the region have launched ambitious national strategies and programmes, such as Saudi Arabia’s NSDAI and the UAE’s One Million AI Talents, to build a digitally skilled workforce. These initiatives show great promise, but the report emphasises the need for coordinated action between government, industry and educators to provide inclusive, high-quality upskilling pathways.

Female empowerment rounds out the strategy. Despite legal reforms in countries such as Saudi Arabia, fewer than 5% of businesses in the region are led by women. The report identifies access to finance, mentorship and societal barriers as the main challenges and calls for targeted interventions from both public and private stakeholders.

These four priorities respond directly to gaps in the region’s entrepreneurial ecosystem. Confidence, technical skill shortages, communication difficulties, and cultural disconnects with investors were all cited as barriers by those interviewed. Addressing these issues through coordinated national and regional efforts will not only prepare the youth for future jobs but also support broader goals such as economic diversification and political stability. 

Finally, the report underscores that the stakes are high. Without local innovation and support, the region risks relying on imported technologies that may not reflect local needs. Investing in entrepreneurial development, however, positions MENA as a contributor to global innovation rather than a consumer of it.