How financial education can empower the region’s future workforce

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Financial markets facilitate the interaction between those who need capital and those with capital to invest. Their importance to the smooth operation of the economy cannot be overstated.

With such a profound impact on our economic fortunes and day-to-day livelihoods, it is perhaps surprising that many in the corporate world do not know the fundamentals of how these markets operate.

Given their overall significance, it is about time that more of us began understanding how capital markets work.

A big part of that lies in the right approach to financial education, which many still often associate with a process where fundamental budgeting and money management skills are imparted across the generations, with an emphasis on young people.

The impact of financial education

Financial education is much more than that, and in this specific case, it can take on a newer, greater meaning by playing a pivotal role in shaping robust capital markets – not just for traders but for young professionals across the economy.

This is especially true when you consider the Gulf region and its booming exchanges.

Enhancing the investment acumen of the next generation in this region will serve a grander purpose – it will support the stability and sustainability of the region’s capital markets and by extension the development and diversification of the wider economy.

This is not necessarily about building a generation of day traders, although that will add much-needed liquidity to the system, rather the goal is to equip the region’s future unicorn founders and corporate executives with an understanding of how to use increasingly sophisticated capital markets to support growth and development.

Empowering the future workforce

Building a workforce equipped for future challenges is the cornerstone of the UAE Centennial 2071 strategy.

In the context of capital markets, that means understanding the role that financial information and analytics play in investment and trading and leveraging the huge technological advances like real-time analytics and machine learning that are reshaping the industry.

Financial education that equips these emerging leaders with a deep understanding of market dynamics, risk assessment, and the nuances of investment strategies in the face of increasing complexity and rapid technological change is a benefit to both the individual and the wider economy.

By fostering this level of expertise, not only do we prepare these professionals for success in the job market, but we also lay a robust foundation for resilient and adaptive markets that can thrive amid global economic shifts and technological advancements.

This must go beyond traditional education into the world of applied learning, giving young people a chance to hone their skills in financial data analytics and simulate the experiences of professional traders and investors.

We need to bridge the gap between theoretical knowledge and practical application, enabling students to put their specialised financial skills to the test and gain a glimpse of the challenges they will encounter in their careers.

This empowers them to navigate complex capital markets and diverse asset classes, setting a solid foundation for their future careers. To apply their learnings, tackle real-world financial challenges, and develop practical skills.

As they move forward in their careers, these skills will stay with them and support better, more sophisticated corporate decision-making when accessing the debt and equity markets.

As the Gulf diversifies and builds globally connected capital markets, the need for a broader understanding of the financial sector across the workforce becomes more imperative.

A deeper understanding of investment and the mechanics of capital markets will have far-reaching effects, benefiting the next generation of students and the economic development of the region.

David Massias is the head of Market Specialists Middle East and Africa, Bloomberg LP and Dr Ryan Lemand is the CEO of Neovision Wealth Management. Massias and Dr Lemand are among the judges for the annual ADNOC–Bloomberg Trading Challenge.