The report recommended various incentives for excellence in research and teaching in universities, a separate staff bonus system for other institutions and a special budget for encouraging poorly performing staff to take early retirement. In addition to these recommendations, there is a need to reduce the demarcation between the colleges and universities to improve the capacity of the colleges to respond to the regional needs and build their capacity in applied R&D. Continuing disparities in educational attainment and labour market outcomes also call for a structural change in education increasing vocational training opportunities, stronger efforts in upgrading the skills of the adult population and equitable investment in education between population groups. The population is characterised by a high degree of ethnic diversity and considerable presence of Arabs who represent about 50% of the total population.