LSE Public Lectures and Events
Episode Title: Entrepreneurship in the Arab world
Date: March 22, 2010
Host: LSE Film and Audio Team
Guest Speaker: Sheikha Hanadi Al Thani

Episode Overview

This episode features a lecture and Q&A by Sheikha Hanadi Al Thani, a prominent Qatari businesswoman and leader, on the subject of entrepreneurship in the Arab world. The talk explores the unique challenges and opportunities facing the region's youth, the importance of mindset and policy in fostering entrepreneurial culture, and the role of education and institutional initiatives in shaping the next generation of Arab business leaders.

Key Discussion Points & Insights

1. Aftermath of the Financial Crisis and Importance of Learning

• [02:08] Sheikha Hanadi opens by reflecting on the recent global financial downturn, highlighting its devastating effects and the necessity for future generations to internalize its lessons.
• The episode underscores the need for young leaders to be not only financially literate and aware, but also “conscious of their actions and their consequences,” emphasizing personal and collective responsibility in navigating economic instability.

“They must be financially literate, astute, aware of their economic environment, and most importantly, conscious of their actions and their consequences.”
— Sheikha Hanadi Al Thani, [03:00]

2. The Diversity of the Arab World and Economic Realities

• [04:20] Sheikha Hanadi stresses the heterogeneity of the Middle East, cautioning against overgeneralizations about ‘Arab’ experiences and economies.
• She illustrates the region’s economic challenges through stark statistics—highlighting lagging industrial exports and patent registrations compared to other countries like South Korea and Israel.

“All generalities about the Arabs, their experiences, instinct and style of faith, and even politics must be treated with skepticism.”
— Sheikha Hanadi Al Thani, [05:02]

3. Role of Youth and the Need for Ambition

• [06:00] Despite the negative economic indicators, Hanadi identifies the youth’s aspirations as a beacon of hope for the region, insisting that “attitude—ambition, motivation, confidence, and purpose—must be the starting block” for transformation.
• She notes that a third of the Arab population is aged 18-25, highlighting both opportunity and the impending challenge of job creation.

“Without these qualities, the game is lost. And this applies to the mentors as much as the people they mentor.”
— Sheikha Hanadi Al Thani, [06:52]

4. Educational and Institutional Initiatives

• [07:20] Details her involvement with Injaz Al Arab, a Junior Achievement initiative fostering entrepreneurial values and skills from an early age; more than half a million students have benefited since 2004.
• Discusses Silatec (SILA Connection), founded to create jobs by linking youth with private sector opportunities across the Arab world.

“Through Silatec, we envision a world in which every young person is prepared to succeed, engaged in decent work, and actively pursuing their dream.”
— Sheikha Hanadi Al Thani, [10:20]

5. Barriers to Entrepreneurship and Employment

• [11:10] Hanadi confronts the issues of youth emigration—26% would leave if they could, most being well-educated candidates for private sector growth.
• Points to strong cultural bias towards governmental jobs and a shortage of opportunities for motivated youth, risking a “loss” of potential entrepreneurs.
• Advocates shifting from reliance on government employment to a more dynamic private sector.

“Those that are more likely to stay and contribute to their own economies are young Arabs who would rather work for the government than the private sector. And this is something that needs to be addressed.”
— Sheikha Hanadi Al Thani, [12:06]

6. Cultural and Structural Shifts

• [14:30] Reflects on how oil wealth insulated economies but also bred complacency, outsourcing, and a lack of skill-building among locals.
• Discusses quota systems for local employment as a partial, “band-aid” solution, advocating for deeper, long-term development.
• Suggests that only a committed, well-prepared, and globally aware youth can lead the transformation toward self-sustaining entrepreneurial economies.

“This generation has greater access to information than ever before. There is a desire for global citizenship and already a greater awareness of the demands of a successful national and international economy.”
— Sheikha Hanadi Al Thani, [16:05]

7. Personal Experience and Optimism

• [17:30] Shares her personal entrepreneurial journey in Qatar, from founding a small finance company to creating a multi-billion dollar enterprise.
• Emphasizes that success is the result of hard work, ethics, and a commitment to education and self-improvement.

“This is not an accident. This has been a commitment.”
— Sheikha Hanadi Al Thani, [18:28]

8. Closing Reflection

• Points to a statistic: two-thirds of young Arabs believe their countries are heading in the right direction, ending on a note of hope and encouragement.

Audience Q&A Highlights

9. Developing Entrepreneurs: Education and Society

• [19:05] Hanadi stresses the need to develop entrepreneurs early, addressing “herd” mentality in education and society.
• Calls for a holistic approach: “Even if we had the most encouraging policies in the Arab world, there is a lot of work to be done within our youth, within the mindset process.” ([20:04])

10. Role Models, Mentorship, and Long-Term Change

• Advocates for more business role models, mentorship, and shadowing; counters social stereotypes about entrepreneurs.
• Notes challenges are global and not unique to Arab women; emphasizes the importance of persistence and adapting to failure as well as success.

“Mentoring is very important. Shadowing is very important. The mere fact to see that people who go into enterprise and to establish their businesses are not something out of the blues...”
— Sheikha Hanadi Al Thani, [22:44]

11. Private Sector, Mindset, and Local Opportunity

• Discusses the need for local talent to prove itself, and that neither gender nor nationality should be a barrier.
• Notes the historic welfare state mentality in the Gulf but sees change occurring, with private and public sectors increasingly seeking local talent.

“Opportunities are there in every aspect in the government, in the private sector. And I think it’s for the individuals themselves to go look for these opportunities and not wait for opportunities to come to them.”
— Sheikha Hanadi Al Thani, [27:15]

12. The Legacy of Oil and Structural Reforms

• Recognizes both the benefits and drawbacks of oil-driven economies, including distortions in local labor markets.
• Praises more recent progressive leaderships’ adaptation and investment in education, including grants and university collaborations.

Notable Quotes & Memorable Moments

• “As US President F.D. Roosevelt once said, we cannot always build the future for our youth, but we can build our youth for the future.”
  — Sheikha Hanadi Al Thani, [04:00]

• “This is a process... it is not, you cannot just have a policy saying that we’re going to encourage entrepreneurship and by the second day open up investments... It’s a whole process from your educational system and how you nourish your entrepreneurs and how you deal with success and failure...”
  — Sheikha Hanadi Al Thani, [21:22]

• “Role models are very important. Mentoring is very important. Shadowing is very important.”
  — Sheikha Hanadi Al Thani, [22:44]

• “Connections are very important into business. It’s called connections over here, it’s called wasta over there. But... any long term success needs more than wasta or a connection.”
  — Sheikha Hanadi Al Thani, [25:12]

Important Timestamps

• [02:08] – Introduction and reflection on the financial crisis
• [05:02] – Cautions on generalizing the Arab world
• [07:20] – Injaz Al Arab: Fostering youth entrepreneurship
• [10:20] – Silatec: Connecting youth to private sector
• [12:06] – Emigration and youth attitudes toward work/government
• [16:05] – Youth, information access, and global citizenship
• [17:30] – Hanadi’s entrepreneurial journey in Qatar
• [19:05] – Q&A: The educational system’s role in developing entrepreneurs
• [21:22] – Long-term process and embracing failure
• [22:44] – Importance of role models and mentorship
• [27:15] – Shift to private sector and personal initiative

Closing Note

Sheikha Hanadi Al Thani’s lecture offers a thoughtful, candid, and hopeful analysis of both the obstacles and potential within Arab world entrepreneurship. Her emphasis on youth, mindset, and proactive, systemic change provides not just critique but also a vision for sustainable economic and social development in the region.