The petrodollar influence is diminishing gradually as it has shifted into a few unproductive and not revenue generating directions which are:
- Buying luxurious products;
- Inflating real estate and basic commodities prices;
- Living beyond our means;
- Financing endless wars;
- Creating unproductive jobs;
- Financing our growth with debt;
- Having under or over regulated markets; and
- Focusing on gaining power and popularity.
The abovementioned economic diseases are not relevant to fresh graduates who are dying to get out of unemployment. The main concern of those fresh graduates is getting a job with the aim of getting back their confidence and cover their basic needs and wants.
Realistically, most fresh graduates won’t be focusing on buying luxurious products such as Ferrari cars, large apartments or Rolex watches. As mentioned earlier, they need someone to give them an opportunity to apply what they have learnt back at the school or university and live within their means.
Therefore, the Gulf countries should shift its focus from hiring expensive expats, who will leave the Gulf whenever things go bad, to hiring fresh graduates from neighboring countries, who have waited months or perhaps years to have a job offer and even if things go bad, they have no alternative back at their home countries.
For example, this strategy for hiring fresh graduates can ignite the market for used cars. As fresh graduates cannot afford buying a new car or are not creditworthy yet to borrow from banks, they can simply save money and borrow money from friends or family, which is the conventional way or borrowing, without having the burden of interest expense.
In addition, Gulf nationals would keep good reselling prices for their cars as the demand will increase on those used cars.
Moreover, the Gulf countries can also develop their transport infrastructure as the demand on those services will increase because those fresh graduates are willing to use them to save money rather than spending it on fueling their cars and paying installments.
In the same time, recruiting fresh graduates will open the opportunity for experienced Gulf nationals to occupy top position in the private sector as the experienced non-nationals are not likely to stay if there is downsizing or salary cuts.
Lastly, those fresh graduates have the ability to revive the economies of the Gulf countries as they are still young and still have a lot to give.