Is over-consumption finally catching up with Middle Easterners?

One health condition that may never come to mind when "The United Arab Emirates" is brought up is diabetes. The U.A.E, however, has one of the world's highest rate of the metabolism disorder, second only to Nauru, a small Pacific island with a population of just 10,000. In fact, over 20% of the U.A.E's total population suffers from diabetes, with its neighbors, Saudi Arabia, Bahrain and Kuwait suffering rates of 16.7%, 15.2% and 14.4%, respectively.

This ailment, however, is just one unfortunate consequence of the past 3 decades of economic transformation. Before 1961, the capital of U.A.E, Abu Dhabi, had no more than a single paved road. Today, the region has enjoyed rapid growth in nearly every sector of the economy, and the culture. The pearling industry of the 60's and 70's gave way to the lucrative drilling for oil and natural gas; the demise of souks led to the expansion of the consumer culture and the opening of four of the world's largest shopping malls. This economic opulence has certainly brought on a sedentary lifestyle and diets high in sugar.

Could the demise of the simple, healthy life of the Middle East of the past have triggered this genetic disposition for one of the world's most dreaded diseases? Dysfunctional insulin levels are surely to blame for diabetes, and as newer, younger generations become more accustomed to these "Americanized" diets, it may very well be the case. Critics around the world continue to blame the Americanization of foreign cultures for the demise of traditional, beloved customs of century-old cultures around the world. It seems as if this fate has overtaken this region of the world. With small populations and inflated incomes per capita, this collection of nations is incredibly susceptible to the temptations of fast culture - one which plagues America and many other "Western" nations.

To combat record levels of diabetes, Abu Dhabi has allowed for construction of Imperial College London's immense diabetes center. With the disease now being used as a metaphor for the regions problems, it is very clear that something had to be done about it. Nearly 6,000 patients pass through the center on a daily basis. The chain of tests and procedures that the center operates may be among the largest in the world, and, after just 18 months of operation, has made tremendous breakthroughs in diabetes-focused medical science.

This is good news, and the hundreds of millions of dollars that the U.A.E government has vowed to inject into the research centers currently operating and in the planning process will surely help produce a revolutionary cure or two. But will it be in time? Can the unofficial cultural metaphor of the region hint at equivalent economic problems? Rapid inflation, the drying up of the world's richest oil sector and a growing workforce in desperate need of outside labor are all factors that may contribute to the reconsideration of many individuals, and corporations, as they look to over seas expansion potentials.

One or two thriving industries, namely tourism and education, should be able to carry and sustain a "healthy" economic lifestyle for the next few decades. Whether the rise of this ill-fated disease is a precursor to the demise of the culture, or even an omen, is anyone's guess.

If any Dubaian becomes worried about his or her health, they can simply enroll in one of the city's "Mall Walkers" classes. They will be able to work off those extra pounds in one of Dubai's mile-long mega malls, all while keeping their blood sugar levels to a reasonable level - for a meager cost of $100/session...

...Now if only America had this sort of motivation.

Art and Culture in UAE's Capital

As mentioned previously, Abu Dhabi will soon boast NYU's largest liberal arts campus outside of the United States. This will certainly attract many individuals with tremendous talent and vast interest in the arts. Talks with Yale University are currently underway, which is planning to open an arts institute on Saadiyat Island, the Cultural District of the city.

With all of the major economic and global business players migrating to Dubai, Abu Dhabi certainly needs an unrivaled area to focus on. The city is shaping out to be UAE's cultural hub. New York-based Guggenheim Foundation is set to establish a world-class museum devoted to modern and contemporary art. It will be called the Guggenheim Abu Dhabi, and the museum, designed by internationally-acclaimed architect Frank Gehry, will truly position the emirate as a leading international cultural destination. The museum will be approximately 30,000 square feet, and will be larger than any existing Guggenheim museum worldwide (New York, Venice, Bilbao, Berlin, Las Vegas, Guadalajara, Bucharest and Vilnius). The museum will form its own major collection of contemporary art and will also exhibit masterworks from the Guggenheim Foundation’s global collections.

The Cultural District will also be home to a national museum, classical art museum, maritime museum, performing arts centre and an expansive arts center park. HH Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and member of the Executive Council was quoted in a press release regarding the announcement of the museum. "Today’s signing represents the determination of the Abu Dhabi Government to create a world-class cultural destination for its residents and visitors." This is a major step forward in our plans for Saadiyat Island and its Cultural District which will become an international cultural hub for the Middle East on par with the best in the world. The signing also represents a significant development in the creation and nurturing of international cultural ties which will do much to forge greater understanding between all globalizing nations.

Saadiyat Island translates from Arabic literally into "The Island of Happiness." With six highly individual districts with 29 hotels, including an iconic 7-star property, three marinas for around 1,000 boats, museums and cultural centers, two golf courses, recreational and leisure facilities, sea-view apartments and elite villas, Saadiyat Island will seemingly be a cultural Dubai, only on the small scale.

International Opportunities

The Dubai Knowledge Village (DKV) is shaping out to be the essential crown jewel in the international educational arena. With globalization at its peak, yet with absolutely no sign of the trend waning, organizations, institutions, governments and people are looking overseas for profitable collaboration, key competency development and outsourcing opportunities. The DKV boasts a breathtaking one kilometer picturesque campus that provides a dynamic environment prepared for a variety of knowledge-based entities including training centers and learning support entities.

The Hult International Business School is just one example of the dozens of international organizations making move to Dubai. Hult currently operates three other branches in Boston, Shanghai and London. With four branches fully established by September 2008, students will be given the freedom of rotating to each location, gaining insight into the world's major economies in the process. This will also allow the Hult brand to gain international recognition.

One key idea that Hult has adopted and which is fundamental to the success of the educational free zone philosophy is, that regardless of which of the four locations students choose to study, they will receive a fully accredited education which is completely identical to that offered at the main site (Boston). They now offer a one-year MBA course which gives graduate students the valuable opportunity to study in all locations within one accelerated year. I know that I will personally be researching this opportunity, as I would like to study at all of these locations.

This path is not just being pursued by top international universities, but corporations as well. Corporations seeking international growth are beginning to look at Dubai as their first, if not largest investment abroad.

While Dubai is, of course, seeking expansion within practically every industry, local government is attempting to attract certain companies and institutions that target specific industries. The Dubai media industry and proposed Dubai Media City will bring dozens of corporations which will base their Middle East broadcasting in the booming city. CNN, Bloomberg, Reuters, BBC World, APTN, Middle East Broadcasting Center, Geo TV, CNBC, Showtime Arabia, Ten Sports among others will feature state of the art campuses within the next two years. Of course, visa and operational procedures are relaxed for firms operating within the Media City, as with every other tax-free industry-focused development area.

Of course, Abu Dhabi will not be overdone by its seemingly rival neighbor. The Abu Dhabi education council announced plans for a similar Knowledge Vilage in 2005. NYU will finish construction of the first American liberal arts branch campus abroad in 2010.

An Incentive for Foreign Institutions

To draw this amount of foreign universities and institutions certainly seems like an ambitious objective for the United Arab Emirates. For any other industrialized nation, this may seem like a close to impossible feat – especially in a nation with under 83,000 square kilometers of land area and a population of just under 5 million. The GDP of the minuscule United Arab Emirates is, however, over $175 billion. They have a significant amount of capital to "play around with." They look to everything as a major investment. Oil is certainly no longer an investment whatsoever, so the thriving industries of tourism, international business expansion and education have major priorities in the Arab state.

To attract foreign students as well as foreign universities themselves, Dubai has a series of incentives that are very difficult to compete with (sorry Australia) let alone pass up. The educational free zones offer many advantages which lure universities to set-up campus there, including 100% foreign ownership, 100% tax free status and effortless visa issuance procedures. In turn, these world-renowned colleges and universities present considerable benefits for both undergraduate and postgraduate students who wish to study in Dubai.

It is seemingly unreal to potential investors, interested students and desperate universities seeking rapid international expansion. Dubai's closest competitors in the educational field, namely the Australian Board of Higher Education and other European international universities, face no other options than to cut costs, offer similar incentives or simply stick to traditional campaigns and recruiting measures and suffer tremendous drops in application and attendance rates.

Job Opportunities in the Middle East

The projected increase in the estimated number of job opportunities in the region is making is imperative to focus on quality education. By the year 2010, it is estimated that there will be almost 100 million job opportunities in the Middle East. With the recent release of this statistic, the U.A.E. government has stepped up efforts to attract foreign educational institutions. They are focusing attention on the need for high quality education to supply a highly skilled work force to fill these positions.

With the establishment of Dubai Knowledge Village (which includes the renowned Academic City as have I previously mentioned) Dubai has certainly taken on the responsibility of nurturing the region’s talent pool and supporting its exponential growth. Dubai’s all-encompassing Knowledge Village is the world’s only economic free zone wholly focused on professional training in dozens of educational fields, specifically pharmaceuticals and other medicines as well as technology. The smaller International Academic City, which hosts 20 additional foreign organizations that are currently under construction or in the late planning process, is a unique cluster solely for graduate level institutions. The ultimate goal of the two free zones is to double the amount of universities currently in Dubai and serve at least 25,000 students by 2012.

Higher Education

This is the first posting of a mini series in which I will be analyzing higher education and opportunities for foreigners in the Middle East.

Australia/Dubai Competition

There is tremendous competition in the international arena that many might find shocking and intriguing. The competition exists in the form of a fierce battle to attract top scholars in higher education. The education “market” in Eastern Australia has historically drawn many individuals from every reach of the world seeking valuable graduate programs. This market has never truly experienced significant competition from other international markets. The United States always features thousands of graduate programs each year, but for some reason, never highly promotes internationally. This may be because of the large graduate consumer base from domestic graduates.

Nevertheless, Australia has engaged in intense recruiting measures to increase and maintain high levels of foreign graduates for their prestigious graduate school programs. The University of Melbourne, The University of Western Australia in Perth as well as Australia's first university, The University of Sydney all offer incentives to foreign undergrads seeking a first-class graduate degree. The University of Melbourne Business School offers Australia's most reputable MBA program as well as a Centre of International Business. Melbourne has certainly jumped on board with the globalization trend and are certainly looking very attractive to potential graduate candidates.

The U.A.E. and Qatar have different plans, however. Dubai and Doha are featuring "Education Cities" built into their rapidly expanding infrastructure. Some of America's most prestigious universities are frantically taking advantage of the low-tax incentives, educational stipends for international organizations and the opportunity to become a part of the most prestigious collection of private schools in the world.

Qatar's Education City

Qatar has a unique vision for the future of its younger generations. in 1995, Sheikh Hamad bin Khalifa Al-Thani of Qatar established the Qatar Foundation as a private, non-profit organization with the goal of sponsoring and funding education, science and community development. The Sheikh has noted that the country's greatest resource is the potential of its people, and investment in the expansion of the nation's education system is a key priority in the Qatari culture. The current chairperson of the Foundation is the wife of his highness, Sheikha Al-Missend.

The flagship project of the Foundation is the further development of Doha's Education City, which currently hosts branch campuses of 6 American Universities. These branches include Carnegie-Mellon, Georgetown, Texas A&M, Virginia Commonwealth, Cornell and Northeastern. Two Canadian universities have also opened campuses in Education City as well.

With the world's highest GDP per capita, a booming economy and a record number of immigrants, this is a valuable investment on behalf of Doha. A high national literacy rate is crucial in today's globalizing world, especially if a small nation is considering competing in the international arena with players such as neighboring UAE and Bahrain.

In a recent article in Penninsula Qatar, the leading English news source in the country, it was announced that the Ministry of Education would be dissolved by 2010. This is a part of the education reform process currently underway.

This highlights significant progress for Qatar, and displays a very socially responsible move for the Sheikh.

In Dubai, the recent opening of Academic City in May of 2006 marked the city's push to "become the new global academic destination." With construction underway on land that will soon accommodate 25 international universities, and provide top-notch education to over 150,000 students, Sheikh Muhammad of Dubai may very well place his city on the map of academia. There are already smaller branches of international universities, such as the American University of Dubai, within the city center. Dubai's Academic City will boast research firms and institutions responsible for developing cutting-edge technology and medical research that rivals that of many Western universities. Chairman of the Dubai Education Council, Ahmed bin Bayat was recently quoted as stating, "There is no doubt that the main challenge that our region faces is the challenge of development in the information age, and the most significant characteristic of this age is the human aspect." With the tremendous economic growth the region has experienced, it is evident that Dubai is capable of attracting scholars and students from every corner of the globe. Similar to the Qatar Foundation, the Dubai Education Council is responsible for the investment, development and accreditation of their institutions.

It is fascinating that Dubai has chosen to "group" their development centers. This certainly makes construction and navigation throughout the region more efficient. Dubai Sports City and the Dubai International Finance Centre (located at the base of the Burj Dubai) are just two examples of multi-billion dollar projects funded by the Sheikh as well as significant support from foreign investors. The promotion of education and global centers of higher learning will certainly create a more well-rounded appeal for the city of Dubai. It is not appropriate to compare Qatar's Education City and Dubai's Academic City in terms of the levels of education that will be provided, as both locations will boast branches of the world's top universities, each featuring an array of specific areas of study and multi-million dollar institutions.

Updated Post on Qatar

Qatar
On the Arabian Peninsula, Qatar was an early region occupied by Muslims. During the late 18th century, the Al Khalifa branch of the Utub tribe in Kuwait emigrated to Qatar and eventually settled on the northwest coast of the peninsula. Accomplished sailors and skilled traders, Al Khalifa became the mainstay of commercial development in this region. The Ottoman and British Empires had imperial interests in the region during 1600-. The British found the peninsula ideal for shipping routes to their colonies in India. Following the Second World War and the independence of India in 1947, pressure for British withdrawal increased. They announced a political withdrawal from the Gulf region in 1968, resulting in Qatar joining seven other Trucial States in a federation. Regional disputes ensued, and Qatar ultimately became an independent sovereign nation on September 3, 1971.

Qatar has experienced exponential growth in its economy following the discovery of oil. Many social and economic developments have ensued following its declaration of independence, including rights for women, and the launch of the region’s largest media outlet, Al Jazeera. Since 1995, Emir Hamad bin Khalifa Al Thani has ruled Qatar. Nearly all of Qatar’s native citizens proclaim Islam, but international expatriates form a majority of the country’s residents today.

Foreign Policy
After the formation of the Gulf Cooperation Council in November 1981, Qatar has enjoyed a stable membership and tranquil associations with the other six states. Border dispute issues have existed with neighboring Bahrain over the legitimacy of man made Fasht al-Dibal island. Qatari forces raided the island and took Bahrain workers as prisoners. The prisoners were released, but the sovereignty of the island continued to obscure relations between the two countries. Unlike other GCC members, Qatar has cordial relations with both Iran and Iraq and continues to maintain contacts with both governments at very high levels. Qatar is also member of the League of Arab States, the Organization of Arab Petroleum Exporting Countries, the United Nations, the Organization of the Islamic Conference, Non-Aligned Movement, the International Monetary Fund, World Health Organization and the World Trade Organization.

Economy
Qatar currently ranks as the ninth wealthiest nation in the world per capita, and has the highest GDP in the Arab world at USD $70,000. Its citizens enjoy no income tax, and Qatar is the second least taxed sovereign state in the world, after Bahrain. The country’s primary source of income, and chief export is natural gas. It is estimated that Qatar natural gas reserves will supply the world’s current usage for the next 109 years. Oil is the second largest export, supplying 1.9% of the world’s oil reserves.

Some fine tuning, and significant additions to the current business climate of Qatar are in the works...

KD

New Oman Travel Guide

The Musandam Peninsula of Oman juts out into the Strait of Hormuz. Its pristine, jagged peaks and red rock cliffs breathtaking to any tourist, which are, for now, few and far between. Khasab, an eclectic port, is the peninsula’s largest town and capital, with about 19,000 residents. With three hotels, it’s also the closest thing to a tourist hub. In town, the bustling exchange of food and cloths may seem like a flashback to more historical times. Modernism has yet to overtake this seemingly preserved location. They are in danger, however, as some residents say. Cranes as big as the ones in Dubai sit on the horizon. Prospective businessmen in Western style clothing visit on a daily basis, and survey the beauty of the land and the clear water it sits on. For Muscat, Oman’s capital, there is hope for the country; in the unrelenting form of tourism. Other neighboring regions have been exposed already, including a majority of the major cities in the U.A.E. and Oman is doing everything it can to bring in foreign investors.

Once you have seen Khasab, you will surely be convinced of its potential. The town is currently free of tourist shops that plague other port towns of Oman, but that may soon change. The promise that the Omani government is banking on is Khasab’s proximity to the region’s current center of commerce and tourism. Dubai is just a two hour drive south of the port city, and with roads being paved and flights linking the two locations, more and more tourists are now beginning to look elsewhere for a unique escape. While the residents may not approve of the impending influx of investment, it will surely bring a tremendous flow of crisp capital to the local economy.

For now, Khasab is preserved as the sole seacoast gem of Northern Oman, but it will soon transform into the “Dubai escape of the North.” It will be very interesting to monitor the economic transformation of this tiny town, which will surely set the course for future endeavors in the slowly expanding nation of Oman. This is just a piece of the trend that will engulf the coast, and bring the world to this region.

Encyclopedia of Global Business

I have been informed by my professor Nik Dholakia that a proposal to publish two articles coauthored by him and I in the Encyclopedia of Global Business has been accepted. This is exciting news for both of us, and we will be working diligently on preparing two articles, one on Oman, the other on Qatar, for the Encyclopedia. It will be published in 2008 by Sage Publications. Both Nik and I will be collaboratively writing and editing our work over the next month or so. I will be posting updates every week to inform everyone of our progress.

I have come up with preliminary notes regarding the general region of my area of research that we will be grabbing excerpts from. We have been told that each article must be under 750 words, and must utilize 6-10 scholarly publications for reference. I have begun researching reputable sources that discuss the shifting economic environments of the Middle Eastern states.

This is what I have so far, and will be editing constantly (so be sure to keep posted!):

Notes

General
The Gulf Region is one of the oldest and continuously inhabited regions in the world. Dilmus, a flourishing civilization on the coast of the Gulf, came into existence over 5,000 years ago. The two most prominent resources in the region were historically pearls and dates. The trade of these two products on the international market continued to become the major products of the Gulf until the discovery of oil. Soon after nations in the region began to tap into the “black gold,” it became the major contributor to the GDP and almost the only export commodity in the region. The Gulf has always been regarded as the “Land of Living,” “Land of Paradise,” and “Home of the Gods.” The Eastern coast is certainly flourishing, and experiencing exponential growth as a result of residual wealth from fossil fuels. A crucial move toward regionalism in the Gulf was effected in 1979 with the formation of the Gulf Cooperation Council (GCC), which is comprised of Oman, Kuwait, Qatar, Bahrain, Saudi Arabia and the United Arab Emirates. The steady supply of this resource will soon become exhausted, just as every other resource in the region seemingly has.

This inevitable cycle will give rise to a new commodity, however, which many of the region’s leaders have realized. Tourism is the fastest growing industry in the Gulf, and nearly every aspect of society in the Eastern Gulf nations cater to just that. This is invariably attracting significant growth in every other business sector in the region. International commerce and trade have found their new centers of influence; Dubai, Doha, Abu Dhabi, Kuwait City and Muscat. The Middle East of the old is in one of the largest phase of economic transformation that the world has ever experienced.

With new commercial growth comes tremendous economic and social responsibility on behalf of the local governments. Economic Free Trade Zones have been established in the States of the United Arab Emirates, Oman and Qatar. A region-wide campaign to strengthen the private sector has been regarded as the strategic goal for securing future incomes from non-oil sources. Given this objective, industrialization has become a common agenda in the development plans of the Gulf states. To ultimately achieve this objective of diversification, nations in the region have diverted a sizeable segment of revenues received from oil exports to finance ambitious programs of industrialization. As a result, joint ventures with foreign partners were formed to import technologies capable of building the economies. Buildings, trade centers, hotels and islands have been developed with the assistance of international investment. This is resulting in the emergence of locally based investment firms and agencies, such as Dubai World, currently providing capital for over $1 trillion worth of projects in domestic and international markets.

In recent years, the delicate political climate in the Middle East has often overshadowed critical discussions related to economic and social development in the Arab world. The region's economic fragility has intensified due to the economic backlash following September 11, 2001. Scholars and researchers are now focusing on the chalenges of improving the region's competiveness at a particurally critical time.


Oman


Qatar
With respects to the general Arabian Penninsula, Qatar has been one of the earliest regions occupied by Muslims. During the mid to late 18th century, a branch of the Utub tribe in Kuwait known as the Al Khalifa emigrated to Qatar and eventually settled on the northwest coast of the peninsula. The Al Khalifa had a long-established reputation as accomplished sailors and skilled traders, and they soon became the mainstay of commercial development in this region. The Ottoman and British Empires had imperialized the region during the past three centuries. The British initially sought the peninsula for its ideal location in relation to their shipping routes to their colonial interests in India. The weakening of the colonial power of the British Empire was prevalent following the second World War, especially after the independence of India in 1947. Pressure for a British withdrawal increased in the 1950s. They announced a political withdrawal from the Gulf region in 1968, resulting in Qatar joining seven other Trucial States in a federation. Regional disputes entailed, and Qatar ultimately became an independent sovereign nation on September 3, 1971.
Qatar has experienced exponential growth in its economy following the discovery of oil. Many social and economic developments have ensued following its declaration of independence, including rights for women, and the launch of the region’s largest media outlet, Al Jazeera. Since 1995, Emir Hamad bin Khalifa Al Thani has ruled Qatar. Qatar currently ranks as the ninth wealthiest nation in the world per capita.
Nearly all of Qatar’s native citizens proclaim Islam, but international expatriats form a majority of the country’s residents.


Bibliography:
Abbas Abdelkarim, Change and Development in the Gulf, (Macmillan Press, 1999); Ragaei el Mallakh, Qatar, Energy and Development, (Croom Helm, Ltd., 1985); Ian Skeet, Oman: Politics and Development, (St. Martin's Press, Inc., 1992); A. Lopez-Claros and K. Schwab, The Arab World Competetiveness Report, (World Economic Forum, Palgrave Macmillan, 2005); M. Noland and H. Pack, The Arab Economies in a Changing World , (Peter G. Peterson Institute for International Economics, 2007); N. Raphaeli and B. Gersten, “Sovereign Wealth Funds: Investment Vehicles for the Persian Gulf Countries”, Middle East Quarterly (2008);

Oman and Globalization: A Reality

In 1970, Oman had 10 miles of paved road, no organized educational or health care system, and its fledgling oil economy was faltering. Sultan Qaboos Bin Said took the throne at the turn of the decade, and was faced with a looming economic dilemma: diversify or begin to witness the decline and decay of a once oil-rich Middle East economic power. Part of this dilemma also included major issues with Islamic traditions. Bin Said recognized that he had to incorporate every member of his society, even if it meant going against what his culture had traditionally done. He knew that by incorporating this one factor, potentially even a major competitive advantage, he could gain ground on neighboring nations and their quickly diversifying economic planes.

Bin Said began to introduce women as his front-runners to lead his economic overhaul and expansion.

Fast forward to present day, and the 3.5 million citizens share an enviable prosperity, women have training and career opportunities equal to men, traditional culture and Muslim religious practices are honored, and international differences are respected. Better yet, bin Said has chosen a woman to head the new Ministry of Tourism - Oman's new economic powerhouse.

I am beginning to notice a trend after my latest research into Oman. I am finally beginning to understand, from a culmination of my international business courses (a majority of which coming from my research on the Middle East), intercultural communication training, and overseas experience, that globalization has nearly reached its peak in world affairs. This globalizing trend, comprised of a migration of ideas, individuals, education, language and commerce are affecting every area of our small world. From Rwanda to Oman to Siberia to Abu Dhabi, billions upon billions of the earth's citizens are becoming more and more dependant on one another. The trend, however, that I am noticing is a combination of the keen competitive advantage factor and the assimilation of cultural differences across international borders. Individuals in every reach of society are slowly, but surely, beginning to realize the importance of incorporating the world's accepted ideas and perspectives with expansion within their own societies, traditional cultures, businesses and governments. In order to be accepted, and at least considered, by the international community, an entity such as a government or a corporation must adapt, reformat and include. It is inevitable that the world will only continue to become smaller, flatter (term keyed by Thomas Freidman) and more accessible by a majority of its inhabitants.

The nations of the "Other Middle East" have recognized this trend, and jumped on before it has gotten too late. Other nations, such as Saudi Arabia, have held on firmly to their roots, specifically religious traditions. They are a very conservative nation, barely allowing women to enter the general work force. This has not only unfortunately tarnished their international image by not treating every member of society as equals, but forbade many multinational companies from penetrating this market, thus preventing many potentially lucrative investment opportunities.

We individuals who have been exposed to this international community, worked with "foreigners," witnessed the differences, begun to accept them and adapt to them understand that as other nations will not allow certain things, we likewise have to be wary of upsetting or offending them with our apathy and ignorance. As universal understanding becomes more prevalent, differences will become more relevant and noticeable, but I feel that with such channels and resources like the Internet, we will witness a general acceptance by a majority of individuals in our world. Wars are inevitable, and some people will never emerge from their "bubbles," but that is another story. This may happen many decades, or centuries into the future, but we are truly witnessing the one of the largest transitions of global understanding in history.

With that tangent tackled and off of my mind, I would like to re-introduce Oman in all of it's glitz an glamor. Virtually every ambitious Omani has gone abroad to study, work and live, only to return to their homeland with a better understanding of the world, its cultures and exactly what people want. With Oman's oil reserves virtually tapped, their tourism industry is on the rise, and is their dominant economic sector. Historic Muscat, the nation's capital, is bustling with visitors from every reach of the globe. Europeans are attracted to the grandeur of the capital's castles, only to rest their heads in one of the 2 dozen 5 star hotels.

Just as bin Rashid Maktoum did in Dubai, bin Said has realized the tremendous economic potential by basing his national economy on the justice and principles of a free economy. Bin Said has done such a tremendous job in transforming the face of his nation's economic stance. He began in 1970, introduced a basic 5-year plan to introduce new facets of the economy. Then in 1995, he held a conference titled "Vision Conference: Oman 2020." This 25 year plan outlined his economic goals for Oman, including the reshaping of the role of the government in the economy, the broadening of private sector participation, diversification of the economic base and sources of income, and to ultimately globalize the Omani economy as much as possible. He even posted a 15% raise in worker's salaries, placing Oman in the category of high-medium income countries of the world. It is tremendous economic plans and historic transformations such as this that nations across the world are in dire need of. As risky as they may be, they are almost necessary to keep up with and compete with today's global economies.

In the coming decades, we will certainly witness a shift in economic power, mainly (middle) East, and far East. Oman is a prime example of a successful step, one which has the next 12 years of its economic life planed out and molded perfectly for economic success.

Dubai World: An International "Dubai-ification"

Dubai World. When I was first introduced to this company by professor Nik Dholakia, I imagined something along the lines of Disney World, or simply another out-of-this-world, multi-billion dollar tourist attraction in the heart of the U.A.E. that would take me a few minutes to truly grasp and visualize. To my astonishment, Dubai World is just the opposite. It is an investment firm that manages and supervises a portfolio of businesses and projects for the Dubai Government across a wide range of industrial segments and projects that promote Dubai "Free Trade Zone" as a hub for commerce and trading. It was established by the Vice President & Prime Minister of UAE and Ruler of Dubai himself, his highness, Sheikh Mohammed bin Rashid Al Maktoum in March, 2006. Just a few months later in July, it was officially launched as a holding company with more than 50,000 employees in over 100 cities around the globe. The companies managed by Dubai World include DP World, the world's third largest port operator, Jafza, Nakheel, Dubai Drydocks, Limitless, among many others international firms. It also has extensive real estate investments in the US, the UK and South Africa.

Dubai World has now entered a new and very challenging market: Djibouti, a small East African country that boasts high rates of poverty, unemployment and a tortured and scared countryside. The nation has witnessed horrific suppression from cutthroat Somali military dictators from the neighboring war-torn nation of Somalia. It sits directly on the Southern tip of the Red Sea, with Yemen just a few miles across the busy straight separating Africa from the Middle Eastern peninsula. Not many individuals have ever heard of this small nation of under half a million inhabitants, but when Sultan Ahmed bin Sulayem, co-founder and chairman of Dubai World came witnessed its prime location and great economic potential, he made a move. Not many investors would make the plunge into a nation plagued with poverty and military and political uncertainty, but Dubaians see the greatest challenges and risks offering the largest potential economic return.

Sulayem looks at a large prehistoric, desolate salt lake over an hours drive from electricity and fresh water and envisions a luxury resort, complete with hotels and a golf course. He relates Djibouti to Dubai just 30 years ago; a city of sand, poverty and uncertainty. Many look to Sulayem as a genius venture capitalist, heading the operations of one of the fastest growing and most successful holding companies the world has ever witnessed. Others see him as a genuine bringer of good-will, and certainly good fortune, transforming cities once considered doomed and untouchable by the outside world into high class luxury centers of bustling commerce and tourism. His vision is unique, so say the least, and his ventures even more unprecedented, but the reality is that Dubai World has hit more than enough goldmines. He imagines that virtually any city, under any circumstances, has the potential for greatness, with a few billion dollars of investment capital of course.

Djibouti is just one of the latest examples of his venture and vision for rebuilding an entire city and transforming a nation's economy. This is just a snapshot of the current holdings and major investment projects underway by Dubai World:

New York

Three hotels, including the Mandarin Oriental

Rwanda

Two national parks, a golf course, and a tea factory

Britain

Three ports and the Metropole hotel (purchased from the Queen of England)

Dubai

Two ports, three palm-shaped islands, and a 75-kilometer canal for new "waterfront" condos

South Africa

A Capetown mall, three wildlife reserves, and a golf estate

Djibouti

Some $800 million worth of ports, free-trade zones, and 5-star luxury hotels

China

Six ports, including two in Hong Kong
(source: Fortune Online)

One can say that Sulayem simply traverses the globe, scouring for more unique locals with "Dubai-ification" potential. Sulayem has paved roads in this destitute land, and even bought an airline to serve as the nation's national carrier. Dubai World's developers are building a $27 billion city in Saudi Arabia, $20 billion worth of luxury projects in Algeria, resorts in Morocco, housing in Vietnam, ports in Indonesia, free-trade zones in Senegal, and game parks in South Africa, and the list goes on. Dubai World has created such a prestigious international image in less than two years that certain countries are simply giving them land to develop on, or at least large portions of land leased or sold at ridiculously cheap prices. Dubai World works with this formula: run a country's port, establish free-trade zones, and build luxury hotels and housing nearby. All of this backed by a portfolio of the world's most impressive architectural feats and economic triumph, and ultimately guaranteed with Dubai-like success.

How could a nation turn down an offer like this?

Like I mentioned previously, entire governments are flocking to Dubai World for investment, and throwing open property at them. One nation has, however, turned down a potentially successful venture: the United States. Dubai World had control of six major U.S. ports until Congress objected to handing the keys to a Middle Eastern company. This reinforces the statements in the previous posting on the SWF, and the "Strapped Western Multinationals," namely U.S. firms and individuals who need a lesson or two in moving global and foreign culture appreciation. This surely hurt the U.S.-U.A.E. economic relations, but worse even, the image of the U.S. in the Muslim world. They may have lost out on a significant opportunity, and by the looks of DW's recent successes, I would say they did. But then again, who would want a Dubai City in the place of a boring New York, or Houston, or Seattle seaport?

Attack of the SWFs

Some business journalists are having a field day writing about SWFs -- they cheekily get the attention of readers by throwing in this abbreviation and then go on to explain that, no, they are not talking about Single While Females looking for dates. Rather, they are talking about Sovereign Wealth Funds.

Yes, the SWFs of the second type, especially from the Middle East, are on a strident march.

From the perspective of this blog, it is interesting to note that some of the biggest Sovereign Wealth Funds are based in what we are calling "The Other Middle East". The grand-daddy of SWFs is the one from Abu Dhabi, whose asset base is approaching $1 trillion.

In late 2007 and early 2008, Sovereign Wealth Funds pumped in money to buy stakes in Citigroup, Merrill Lynch, Morgan Stanley, and UBS. Nearly $60 billion flowed to troubled Wall Street banks, mostly from SWFs in the Middle East and Asia. Citigroup alone got a money injection of $7.5 billion investment from the Abu Dhabi Investment Authority, the world's richest sovereign fund.

Qatar is also on the move.

Qatar's state-controlled fund is accumulating shares in Credit Suisse. Qatar plans to spend $15 billion on European and U.S. bank stocks during 2008-2009.

With a population of less than 1 million, Qatar owns the world's third-biggest natural gas reserves and 1.3 percent of global crude oil-reserves, generating surpluses for investment by the investment authority. Qatar's state investment fund managed $60 billion in early 2008.

Sheikh Hamad bin Jasim bin Jaber al-Thani, Prime Minister of Qatar, also serves as the CEO of the Qatar Investment Authority. At a conference in Washington DC in February 2008, Sheikh Hamad also indicated some strategic diversification plans for Qatar Investment Authority. Qatar is creating funds of a $1 billion each in Finland and Malaysia, and Indonesia is next on the anvil. In this way, Qatar will have strong local access to investment opportunities in the EU and ASEAN.

Because of growing political concerns, especially in the United States where military and homeland security issues are often on front burners, officials from "the Other Middle East", such as Sheikh Hamad, seem to be on a diplomatic overdrive to reassure the U.S. that these investments are coming from Middle East countries that are friendly to the U.S., and that there are no intentions to grab control of strategic U.S. business entities. They also point out, quite rightly, that for decades U.S. firms have been investing in these countries.

Now, perhaps it is time for the SWFs to stalk the SWMs - Strapped Western Multinationals!

Nik Dholakia
Professor
University of Rhode Island

Is Qatar the Next Dubai?

In Doha, the capital of Qatar, hundreds of cranes peak the skyline. To some, views of the city may even be mistaken with the skyline of Dubai City. This seems to be the theme on the East Coast of the Arabian Peninsula, but why? The race to become the largest, most recognized economic city in the world is most certainly on. With only 7-8% of this region's economy funding rapid construction and historic economic growth, where is the rest coming from? When I search for new and interesting articles and sources on Middle Eastern economic expansion, I continue to stumble upon record growth in the tourism industry. It seems as if every major city in the region is frantically building up, towards the sky, with high hopes of attracting the world's most affluent. It is working quite well, with the largest concentration of 5 (and beyond) star hotels in the world, the world's wealthiest with seemingly bottomless wallets and a keen craving for luxury are arriving in droves.

But what can cities such as Kuwait City, Doha and Dubai create, innovate or build to set them apart from each other? In today's globalizing world, the tourism industry is becoming one of the most aggressive. Shifting demographics are giving rise to a greater distribution of wealth and disposable income. Coupled with pressure from the international community, cities, not just companies, require a unique competitive advantage to attract the best of the best.

Cities all around the globe certainly have their own distinct symbols that tourists and traveling business people alike can recognize in an instant. New York City has the Statue of LIberty, Rome the Colloseum, Paris the Eiffel Tower and Sydney the Opera House. These are all historical landmarks that have been around for ages, but cities in the Middle East are essentially "new." They must create symbols that the international community will learn to recognize, and associate with pristine fame and fortune. In Dubai, the unofficial symbol is the Burj al Arab; the 7 star hotel shaped to resemble the sail of a dhow. Doha has their own unique "symbol" as well. The Pearl, a $2.5 billion, 985-acre artificial island loaded with five-star hotels, two million square feet of high-end shopping is currently under construction. It will attract more than 1 million visitors per year upon completion.

Dubai is certainly shooting for the recognition of the world's pemeir tourist destination, but it will face some serious competition from Doha in the next few years. With a population of 400,000 and investment reaching into the tens of billions, the city has significant room to grow. It seems as if Qatar is mirroring the growth of the UAE, implementing every idea of new construction, attraction and super structure in from Dubai in their city of Doha. Qatar Airlines, a 5 star, first class airline, is experiencing incredible growth in the international marketplace, on par with Emirates Airlines. Will projects such as the Pearl be enough to attract some potential out of towners to Qatar instead of the UAE? Only time will tell. More on Qatar (pronounced CUT-er) and photos in the near future.

-KD

Today's Show Is Brought To You By The Number 5 - For A Cost Of $6.8 Million

I had to refrain from doing it again, but I almost started this post with the opening "imagine." Now that I think of it, every aspect of "The Other Middle East" is seemingly unimaginable, so unreal that we have to sit back, close our eyes, and picture a world unlike any other we have ever witnessed. I suppose the only way to truly appreciate the prestige of a city such as Dubai, is to experience it first hand. Sometimes I cannot beleive everything that I discover about this region, the construction, the international influence and the plans that are sure to build this part of the world up to become the most attractive destination for business and leisure seeking travelers alike. I will begin to post more photographs and videos to deliver yourself just a bit closer to the "real" experience, because half of what I post probably seems overly embellished anyways...

Enough dreaming, but will you please just "imagine" yourself at an auction in the heart of Dubai City. This isn't an ordinary auction; there are dozens of incredibly successful businessmen bidding on numbers. Yes numbers. The lower the number, the higher the bid. If the number may fall into the double digits, or even single digits, prepare yourself for a heated battle ending with the winning bidder shelling out as much money Tiger Woods makes in one year of his professional career. What exactly are these men bidding on? Vanity license plates.

The video will explain everything, but I wanted to prepare you for the shocked reaction that is sure to ensue. The brief interview follows an incredibly wealthy stock broker in Dubai, bidding on a vanity license plate for his new Rolls Royce. I wont spoil the outcome, so here's the link:

Vanity Plate Auction

Now that you have hopefully viewed the video, you can begin to realize the scope of the wealth within the UAE. It is not just from big oil executives, because only 6% of the UAE's revenue is derived from fossil fuels. Hard working, high class citizens such as this stock broker are running the city, and it seems as if Dubai will soon turn into the new Hong Kong, or NYC, or Singapore.

On a side note, I cannot imagine what it must be like to drive around the city of Dubai, and how many 6 and 7 figure cars you would see. The only image that I can draw up in my mind is driving down the new strip in Las Vegas, only on steroids. Only this is what every major road in Dubai would look like.

-KD