Day 9 - Oil rigs, Dinner on the beach, Trip to the Burj Al-Arab hotel, Thursday Jan 6

The theme for the morning and afternoon today was: Oil. In the morning it was a class on Oil and Development in GCC [Gulf Cooperation Council]. The topic was the same which we had heard throughout the whole trip: Oil will run out at some point for these countries and diversification is the key to sustaining a healthy economy. Currently, the biggest gainers are Bahrain and Dubai. The reasons behind this? Bahrain was the first country in which oil was found, by USA's Standard Oil company, in 1932. The other end of it is that Bahrain is also going to be the first state which runs out of oil. The government saw the "Writing on the wall" years ago, and has moved away from petroleum-based resources as the sole meaningful way of creating revenue. With Dubai, it is a similar story; the economy was built on oil reserves yet at this point represents only 5% of the GDP for the Emirate. Dubai and Bahrain have set themselves as the model that the rest of the GCC wants to emulate. As I have mentioned before, the key diversifying businesses that will allow the Gulf countries to thrive are: trade, logistics, finance, and tourism. Already Abu Dhabi (which currently does rely alot on oil) has started construction on a huge project to create a man-made island which will become a world-class leisure, residential, business, and cultural hub. Included will be two large museums: Guggenheim Abu Dhabi, and Louvre Abu Dhabi.
After class it, we took a trip out of Dubai to another Emirate, Sharjah. Here the class saw the manufacturing and refurbishing of oil rigs by the foreign company, Lamprell (Lamprell plc is incorporated in the Isle of Man, in Europe). Some of Lamprell's top brass gave us presentations on the history and current status of the company, and even the engineering designs of these "Jackup Rigs" as they are called. The first photo shows work being done on the grounds. The speakers were accommodating to our available time, and even took us for a live tour. Next time you see an oil rig in the ocean, remember that it may have taken 2 years for it to be constructed from start to finish!

After all that class and knowledge, we really earned our day. Now it was time to go to the Jumeirah Beachcomber, back in a district of Dubai, for an all-you-can eat buffet right on the beach! Planned ahead by Dr Chaudhry, our view was of the Burj Al-Arab hotel in the background, and the food was an assortment of salads, meats, vegetables, soups, noodles, rice, and desserts. An unexpected treat was that of a live band which would come to each table and play the a requested song. These guys were good! On the other side of the world from the U.S., Villanova MBA students were singing along with the band to tunes like "Sweet Caroline". I did not want to leave. But we had to- the Burj Al-Arab awaited with our reservations to go in. With all the hype in our minds, we all took chauffeured golf cart rides from the Beachcomber to the Burj Al-Arab. It literally sits on the water, away from everything else. Walking in the doors, my initial sense was that it was all a scene of opulence and shine. Here is a youtube clip of the hotel. I had to skip around a bit since it's a promotional video, but you'll get the idea! When I walked around, I saw water fountains that danced, gold, and inviting sofas all around, as well as Christmas trees! It seemed like everywhere in Dubai there were Christmas trees.
With all of us taking pictures like the tourists we were, it was amazing to see the attention to detail. Part of the reservation package included a trip to the Sky View Bar. We all took our seats, with a nice panoramic view from the 27th floor.
The entire experience of the evening was finished late night, and it was back on the Fancy Bus to IMT. Our next two days were free open days with each one of us free to explore anything we wanted, including: the beach, the souks, and even a neighboring country! Then we would board back onto the plane and return back home. I appreciated the entire experience, and as a result of this course & trip I have decided to specialize my MBA in International Business.
-Pete

Day 8- DIFC and DUBAL site visits, Manvaar and Chi

Day 8 began with a visit to another free zone, the Dubai International Financial Center. Nasser Saidi (Chief Economist of Dubai International Financial Centre Authority) spoke to us about the strategic importance of Dubai as a financial center. The DIFC is considered by many to be the financial hub of the middle east. Dubai's location means that it can interact during business hours with markets in New York, London, and Hong Kong. NASDAQ Dubai (rebranded from Dubai International Financial Exchange, DIFX, in 2008) has been in existence since 2005 and operates under regulation of the Dubai Financial Services Authority. After Mr. Saidi's talk, we had the opportunity to walk around the grounds of the DIFC and see all of the construction underway in this area.  

From there, we visited DUBAL (Dubai Aluminum). Hitching a ride on the Fancy bus, we toured much of the company grounds including the living quarters (complete with on-site mosque and gym) as well as the smelting operations.

In the evening, several of us went to visit the Global Village. Much like a theme park, Global Village hosts shows, amusement rides, international fare, and the kind of amalgamated shopping experience that could only be found in Dubai. According to Global Village's website, 45 countries are represented in the shopping pavillions (although I only managed to make it through about 7 countries). Here you can find spices, furniture, pashiminas, jewelry, and just about anything else you can imagine.

Afterwards, most of the class met up in Bur Dubai to celebrate the birthday of our classmate, Tess (Happy Birthday, Tess!) An excellent Indian dinner at Manvaar followed by dancing and carousing at Chi topped off a full day. What could have made the evening any better? Just one thing: Chi's DJ could have played the Barbra Streisand song. 

Day 7 - Dubai Chamber of Commerce, and the Burj Khalifa, Tuesday January 4

All of us MBA's-to-be were looking forward to some getting some exposure to learning Dubai's way of conducting business. So today we were scheduled to visit the Chamber of Commerce in the morning, where we were given access to a boardroom, and each of us seated with our own desk microphone. I could only imagine what types of decisions were made in this room and shortly after taking our seats, Professor Chaudhry introduced Omar Khan, a Director at the Chamber. Mr. Khan gave us some economic highlights of Dubai and the intentions that the Emirate has for the future. With less than 5% of its GDP coming from Oil, it was shown to us that Dubai's core competencies are: Trade, logistics, finance, and tourism. Even the Dubai Airport has positioned itself to be one of the top 5 hubs in the world for international cargo. The objectives the Chamber of Commerce have for Dubai are: 1)Favorable business environment (through Free Zones), 2) Development of businesses, 3) Promote Dubai as an international business hub. Some areas that need attention, Khan noted, are education and healthcare. After the presentation, Khan spent time answering our questions, and then gave each of us a parting gift. I even found out from one of my classmates that Mr. Khan actually went to undergraduate university in the US, in Florida. Once the session was over, many of us started to feel like we were understanding business in this Gulf State much better. A highly recommended website (by Khan) to keep up with this information was www.gulfnews.com.

After our ride back to IMT and our afternoon session on Business Negotiation in the Gulf with Dr. Saqib Qureshi, it was time for each of us to make a personal record and visit the world's tallest building - the Burj Khalifa. While we waited for our turn to take the elevators up, we saw some statistics that make this building a modern marvel. The one that stood out to me the most was "Each year, by channeling the condensation off of the windows of the Burj Khalifa, 15 million gallons of water are collected for use." In a desert, something that can do this is a big asset to the livelihood of its inhabitants. In terms of how high this structure is- according to The New Yorker, "Even if you put the Chrysler Building on top of the Empire State Building, that still wouldn’t equal its height." The official height is 160 floors, but 124 is the highest we are allowed to go. Finally we all piled into several elevators, with the interior of each elevator, nightclub-inspired with the flashing lights set across intentional darkness. In less than a minute we shot up 124 floors! Yes my ears popped and I remember wishing that the elevator at my work was this fast when it was going up just a few floors. The elevator doors opened and the air immediately felt colder and slightly thinner. Walking up to the glass windows, I could see just how high up we were. It felt like I was in an airplane, and could see all of Dubai in every direction. There was even a small open window for people to stick their arm or head out and look down at the Dubai skyline. When it was time to come down from the clouds, the elevators brought us down as quick as going up, and it was time to enjoy some free time. With plenty of places to eat, we all had our choices. My pick was a Lebanese restaurant out on the water with the view of the Burj Khalifa and the fountain show. This show is similar to the one in front of the Bellagio at Las Vegas, but bigger. At one point, the worlds largest fountain show choreographed the water fountains to the song "Thriller" by Michael Jackson. It actually was done well, and every 30 minutes or so a different song would come on and a fountain show would ensue. When dinner was over, everybody headed out for a night on the town. The destination spots varied among different crowds but there was a celebrity sighting at a hotel club: Hugh Grant. The night seems to have so much opportunity in Dubai, partly because of the variety of amazing nightclubs and partly because everything is so accessible by taxi. It doesn't matter that you may have to wake up early the next morning for class, because you are still excited about the day before, and looking forward to the day yet to come.

Day 6- DuCab and some free time!

One of the great things about traveling with a school group is that it gives you an excuse to see how companies in the region are doing business. Day 6 was our first corporate visit, DuCab (Dubai Cable) in the Jebel Ali Free Zone (JAFZA).



Check point at entrance to DuCab

The free zones, such as Jebel Ali, are the only areas in Dubai that allow 100% foreign ownership. The free zones offer significant financial incentives to companies such as no customs duty, and 0% income and corporate tax. Combined with Dubai's strategic location to the Middle East and North Africa, its new and still growing infrastructure, airports, and sea ports, and access to cheap, highly qualified labor, Dubai easily lures investors into the region. DuCab is owned by the Governments of Abu Dhabi and Dubai, but chooses to operate in Jebel Ali.

DuCab creates high-voltage cables, like those used in building up a growing area's electrical infrastructure. With the pace of growth that this area has seen in the last 30 years, DuCab's success is not surprising.

Our visit included an overview of the company from Budoor al Yousuf (from marketing) and a product overview from Anson Monteiro (a technical trainer.) Then we toured one of their manufacturing buildings, where we saw in action the complex machinery required to create cables that power the recently completed Dubai Metro.

Later that afternoon, we visited the Ibn Battuta Mall, named after an Arab traveler that explored Andalusia, Tunisia, Egypt, Persia, India and China in the 1300s. The mall is comprised of six courts, each court's architecture reflecting a region he explored.

A few of us test drove the Dubai Metro system, and headed to dinner at the Glasshouse Brasserie, a Gordon Ramsey restaurant at the Hilton Dubai Creek. Some kept the night going by going to the Irish Village Pub  (yes, the have everything here!) for drinks.

Day 5 - Desert Safari and Desert Party, Sunday January 2

When was the last time you saw a Toyota Land Cruiser off-road? Not counting the snow back home, I don't think I've seen one except on Discovery Channel. Today we got to experience that first-hand.. more on that later, and first I will discuss a few highlights from our classes today: "Financial Centers in the Gulf Region" and "Islamic Banking in the Gulf Region." Alot of ground was covered in both these classes today, but some key takeaways were the following: Qatar has the highest GDP per capita in the world, at $94,783. The geography of the GCC region is critical to the world economy since it sits between Europe/Americas and Asia. A challenge the GCC will have to overcome is that these Gulf states are capital exporters and their domestic capital base is small, partly because of state ownership and partly because of reliance on family-owned companies. However, the UAE has signed a double-tax avoidance treaty agreement with over 45 countries, to encourage businesses to transact locally. The NASDAQ Dubai opened about 5 years ago, in 2005 and 135 of the Fortune Global 500 Companies have established operations in Dubai. Now, the concept of Islamic Finance comes to this: It is based on Islamic canons, that state finance must operate within the framework of the religion, based on Quran and Sunna. Forbidden within this framework are gambling, liquor, hoarding, and usury-based lending. On any investment, principle is guaranteed but profits are variable. The intricacies of how business is dealt with Shariah-compliant versus non-compliant companies is so detailed that we didn't have enough time in class to really open it up! But, you get the idea of what the goal is: conservative investing.
After class, we left for our Desert Safari on our Fancy Bus (The bus company name is "Fancy" and is prominently shown on the front of the bus) and once in the holding area for the Safari, we walked the grounds and saw a few exotic animals including monkeys, a camel, an emu, and a falcon. Then it was time for our ride into the desert. A caravan of 6 new, white Land Cruisers arrived and we all piled into our SUVs. I had no idea what to expect, but definitely buckled up when I saw the cage and roll bars inside our vehicle. As soon as our doors were closed, the drivers hit the gas pedal and we sped off into the desert in a single file. We drove up and down the dunes and drifted from side to side in our own desert roller-coasters. We were riding the crests of the dunes and then breaking off to a side hard so the car would slide. At times I looked down and saw a drop right below of 30-40 feet! At other times we would spot a cluster of high dunes that were enclosed, and we would drive from the top to the bottom in a funnel-fashion, much like water going down a drain. It was a thrill and had us laughing and screaming the whole time. On top of all this, my driver was playing old-school rap music as our soundtrack the entire time, and I was treated to NWA, EPMD, and Salt N Pepa. Although the SUV was moving very quickly, the vehicle was extremely sure-footed. This is why I say with confidence the Toyota Land Cruiser is a great off-roader. After we took a brief stop in the desert to get out, walk around and take pictures, we were whisked back to the camp in the fashion of which we came.
With smiles on our faces, we loaded onto the Fancy Bus for our next leg of the trip- a Desert Party! Our meeting point was on the side of the road, and once again we were driven from the paved road into the desert by SUVs at sunset (civilized driving this time). We got out of our trucks and walked toward the sound of music playing. The picture is exactly how you would imagine it- like a scene from a movie with an oasis in the middle of the desert. It was an outdoor party, and as I walked around I saw a few small shops, a soft and hard drink bar, rows of low tables with pillows as seats, an area for dancers, and outside the perimeter- camel rides, ATVs for rent, and sandboarding. The ladies of our class went to receive their Henna designs on their hand as well (see photo). My favorite spot was a circle of pillows to sit on, on top of a huge rug, where we could enjoy the atmosphere and have a huka (ergeela). As it became dark we were served dinner and a little show with a diverse group of dancers. The dancers wore loose clothes with lights inside of them, so that their movements were all glow-in-the dark. Time flew by and when we had to depart, none of us wanted to leave! It was an immensely cultural and fun day, and upon arrival back to IMT a few of us were ready to go to sleep while others made a run into the city to hit the nightlife. It was one of my favorite days here in Dubai.
-Pete

Day 4- Old Dubai and the Souks

Much of what we had seen until Day 4 was the new Dubai: the modern conveniences and lavish extravagance that billions of dollars in oil money can buy. After a late (and wonderful) evening greeting the new year from a 1500 dollar-per-night hotel built on top of a man-made island in the Arabian Gulf, it was time to take a step back and experience the historical region that made Dubai a bustling center for trade with India, Iran, and China: the souks of Deira.

We ventured first to the Gold Souk, famous for its hundreds of jewelry stores and loved even more because it is possibly the cheapest place in the world to buy gold.

No matter where we ventured, we were quietly approached by "businessmen" seeking to sell us "real" Rolexes and Prada purses. In Manhattan, you will see counterfeit merchandise set up on outdoor tables without shame or fear of the law. Here they are more likely to hide their trade, and will offer to take you to secret rooms in off-alley buildings to show you what they have to sell.

One group experienced this first-hand, as they were led into a non-descript building, then to the elevator, then to the third floor, then were buzzed in to a secret room in order to see what they had. (Thanks to Jason for playing the role of bodyguard!) Inside: thousands of counterfeit handbags, watches, ties, Mont Blanc pens, and Ray Ban sunglasses; screens displaying the output from several security cameras; and an entrance secured with 5 separate sets of locks. When they say that counterfeiting costs businesses $600 billion each year, it is easy to see why. This was an MBA lesson in and of itself.

Storefront in the Spice Souk

Stepping off the bus on Al Khor Street, the first thing that hit me was the overwhelming scents from the Spice Souk. Walk into any one of the stores and you will see just about any spice you'd find in Mom's kitchen, teas from China and Arabia. In front, the storekeepers stand by giant bags of spices, breaking open dried lemon and saffron threads, offering them up those who pass by.

Finally, the textile souks showcased bolts of fabric from around the world in combinations of colors you can't find at the local Jo-Ann Fabrics. There are stacks and stacks of pashmina shawls, cashmere wool scarves made in Italy or India, with flowing patterns and eye-catching colors. These are hand woven and some have beaded stitching, created by the most talented textile artists in the world. Insider tip: If you're looking for great gifts to bring back as souvenirs for the women you know, these are undoubtedly the items to buy -- unless of course you've got the budget for gold!

Later that evening we returned to the location of the souks, Dubai Creek, for a cruise on a dhow, a replica of the boats traditionally used to transport the types of goods we'd seen throughout the day... Then it was back to campus for a good night's sleep, in preparation for classes tomorrow.

Dubai- Day 3 New Years Eve December 31

This is the blog for December 31-- With a day off from classes we were able to take advantage of some of what Dubai has to offer. So what would a group of 31 people who have just left the snow in Philadelphia do? Of course go snowboarding/skiing in the middle of the desert! It's 75 degrees or so here during the day, so there is something to be said about going to the Ski Dubai inside the Emirates Mall, wearing just a t-shirt and jeans. It's unbelievable how casual it is to walk right by a movie theater, a shoe store, and then see through a window actual snow on a slope. For 2 hours we had our pick of snowboarding, skiiing, tubing, or something like rolling in a big plastic ball down a snowhill. So, what next? Easy- walk around the mall and take your pick of the cafe's, jewelry shops, or other high end stores. When we walked outside, we saw a car show of Bentleys, Ferraris, and my favorite- the Porsche Carrerra GT. It was funny seeing the BMWs and S-Class Benz's not parked alongside these Exotics, and instead parked along with all the other 'commoner' cars.
What to do after that? How about a trip to the Atlantis Resort on The Palm island (Wikipedia article: http://en.wikipedia.org/wiki/Atlantis,_The_Palm). Thanks to Professor Chaudhry's negotiating skills, the entire class was able to experience an authentic Arab tradition of Lebanese food and a Belly Dancer. The food included the Arabic staples: Hummus, Baba Ganouj, Fattoush, Pita bread, Chicken and Meat Kabobs, as well as Shrimp and Lobster. Dessert was Baklava and Arabic Ice Cream, which is like regular ice cream but a little bit stringy-er, due to Arabic Gum used in it. What took this dinner to the next level was our awesome Belly Dancer. I've seen real belly dancing plenty times before and would have to say she nailed the show for anyone who has never seen a dance before. She engaged the group and would come around to everyone's tables and get people dancing with her, and even did an act with balancing a sword on her head (and another time her hip) all the while dancing for us. If you look closely in the picture you can see the sword handle resting on her left hip. She had to be good if she got the quietest one of us- Dan, to dance with her! With all included food and drinks, we really enjoyed our time and treated ourselves to walk on the beach right outside where we were eating, and watch an amazing firework display that lasted at least 20 minutes, to ring in the New Year. When all was said and done, we arrived back at IMT's campus around 3:00 am, full of great food and an awesome memory. Happy New Year!
- Pete