Friday, March 12, 2010

Going Home

Today was our last day in Dubai and time to experience some of the amazing things that put Dubai on the map. Our first stop was Ski Dubai – the indoor snow skiing experience that is part of the Emirates Mall. Throughout our stay in Dubai, many of us marveled at the ski slope as we drove by the mall. Many of my classmates had never been snow skiing before and some had never seen snow at all, so this activity was on the must do list for many of us. I guess for this activity we fell into the “build it and they will come” philosophy.

We also went back to the Souk Madinat and Gold Souk for some last minute souvenir shopping. Souk Madinat was developed to resemble a traditional souk but without the bartering and pressures that are found at the Gold Souk. We decided to venture back to the Gold Souk that evening before we departed Dubai, but it did not have the same appeal it did during the day. Though We felt reasonably safe, we did not allow the boys to get to far ahead of the girls and we came across many areas where the shipping boxes and garbage filled empty spaces between stores. Also, when it came time to leave multiple taxi drivers denied us transportation. This was something we had not experienced during our entire visit to Dubai.

After that we headed to the airport where we were surprised to be rechecked before boarding the plane and women were brought into a private room to be patted down. The trip home was a debacle and resulted in the trip home to Tampa taking over 50 hours due to delayed planes and mechanical errors. Which throughout the frustrations we asked ourselves multiple times why we flew United instead of Emirates!!

The trip was enlightening and made me wish Dubai was closer so that more American could experience the culture and uniqueness of the region. I have already reached out to Mr. Jerad Bachar from the Dubai Tourism and Convention Bureau who has put me in contact with the Dubai Chamber of Commerce External Networking department. I hope to make my way back to Dubai for both business and personal travel.

Thursday, March 11, 2010

Diversification

“Dubai is not Abu Dhabi,” quoted a BusinessInsurance.com article on Monday. Yes, we have come to understand that during our time here. Dubai’s economy is not fueled by oil and it could not survive on import and export trade alone. So, the government in the early 200’s decided to build the economy based on five key areas—port operations, real estate, tourism, transportation and financial services. Today, I took advantage of three of these areas.

Port Operations: Today we visited DP World and received a tour of the port by bus, which allowed us to see the magnitude of this single port. I was personally amazed about the level of security inside the port since I have worked on campaigns in the past to enhance security in US ports. Every shipping container is x-rayed to ensure the contents are correctly identified in paperwork, all areas of the port are on surveillance at all times and they have no tolerance for illegal activity. This is completely opposite of the ports in the US. Hardly any shipping containers are x-rayed and many of them are not even locked allowing for all kinds of illegal activity to take place.

I also appreciated our presenters’ responses when asked politically charged questions. He simply answered, “we are businessmen not politicians.” Also fascinating is all of the security services in the port are provided by the parent company Dubai World.

Transportation: After our business meeting we had the afternoon free to explore the city and we chose to take the opportunity to ride the world’s largest unmanned metro. We decided to splurge and spend the extra money to ride in gold class. We were surprised to see that there was a specific car for women and children. I think this was more of a courtesy to those individuals that would feel more comfortable in this car verses a mandate to ride there. It provided a different view as we traveled through the city.

Tourism: That evening we participated in some more aspects of the tourism economy and spent the evening on desert safari. It was quite an experience and was beautiful to experience the sunset over the desert dunes. We also got to ride a camel, eat a traditional Arab meal, watch a belly dancer, and have henna painted on our hands or feet. I wish there was more of an explanation to the food, henna and dance. I feel like it is such a big part of their traditional culture but I also would not be surprised if it is more of a tourist attraction than anything else.
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Wednesday, March 10, 2010

Elaborate Doesn’t Begin to Explain It

I spent the entire day looking for Nermal and she was nowhere to be found. I had known there was a place called Abu Dhabi ever since I was a kid and watched Garfield ship Nermal to Abu Dhabi in so many episodes. I can only hope that he sent her in the winter and not summer when temperatures reach 135 degrees.

This morning we went to the Sheikh Zayed Mosque for a cultural experience that will not soon be forgotten. Upon arrival all of the women received an abaya and shela. The abaya is a loose-fitting black gown that covers you from neck to fingertips and all the way down to your toes. They shela is a light headscarf that covers the hair and neck. Just changing into these clothes was an experience. I put mine on backwards and Marshall, our tour guide, was quick to approach me and tell me I had in on wrong.

We entered the mosque grounds and immediately removed our shoes. Imagine some of the most elaborate set designs at Disney World and now imagine they are made of pure marble and real gold. This is what we witnessed inside the mosque. We also received more information about the customs of the Islamic religion. For example, women are asked to be completely covered and pray in a separate room from men in the mosque in order to prevent impure thoughts while praying.

We also were told that men and women visitors should not touch one another in the mosque and should not be photographed together at all. This surprising custom caught many of us off guard but once we learned about the reasoning (to prevent impure thoughts), we understood. After all, we are in their private religious sanctuary and need to follow their customs and traditions. I thought it was generous to even allow women into the main prayer room of the mosque at the same time as the men after that. This was the only time I experienced any inequality in the UAE between women and men.

That afternoon we saw the site location of the new Ferrari World and the Formula One racetrack, both projects of the ALDAR Development Group on Yas Island. Our presenter was more resistant and defensive than others had been when we asked about marketing plans and how they expected to attract visitors to this region. I will say it was impressive to witness.

Today we learned a lot more of the relationships between the Emirates as well. Since one large family rules the Emirates, a lot of the wealth that Abu Dhabi receives through its oil industry is still shared with the other Emirates. We also learned that the sheik of Dubai is married to the daughter of the sheik of Abu Dhabi. This intermarriage of the family also results in sharing the wealth between Emirates. This is important to know when discussing the financial future and doubts westerners have about Dubai’s future.

Tuesday, March 9, 2010

Build It and They Will Come

My day started on top of the world, or at least that is how it felt when we walked into the lobby of the Burj Al Arab touted as the only seven star resort in the world. This exclusive resort, which only allows visitors if you are staying at the hotel or plan to spend at least $400 USD at the bar or high tea, is as lavishing as you might imagine. Here is where the true sense of the “world’s only, best, largest, most fascinating, etc.” came to fruition and we were spoiled for the rest of the trip.

The Dubai Convention and Tourism representatives spoiled us by hosting our meeting in the boardroom at the top of the hotel. Here we learned about all the future plans Dubai has and how it plans and hopes to continue attracting visitors all over the world.

However, their exact marketing plan for how they planned to attract these tourists was left completely unclear. The “build it and they will come” approach seemed to be the theme of the day and the attitude towards why people would come was because it is here. This marketing approach or lack thereof left me dumbfounded.

How can they plan to continue pumping money into new developments and staying on top of the world’s largest approach without any solid marketing plan? Then I began to think about places like Walt Disney World and Las Vegas. Did people think the visionaries who developed these major attractions were out of their minds as well? For example, Walt Disney literally built a theme park in swamp and cattle land in the middle of nowhere. Granted there were not many other competing tourism attractions, but I am sure he had some of the “of course people will want to come see this” attitude that seems omnipresent in Dubai.
This meeting was also probably the most important and relevant to me as a business professional. It truly opened my eyes to the business opportunities that are available in Dubai and the surrounding regions. By networking in Dubai, you have access to more world regions than by networking in London. The meeting with the Emirates Group that afternoon enforced this even more when they mentioned that Europe, Asia and Africa are all within an eight-hour plane ride from Dubai. This made me realize that maybe this build it and they will come attitude really will work if their target markets are these regions and not the US.

Monday, March 8, 2010

Differing Experiences

This morning started off with a meeting with two Americans from CBRE and NCorp and I was surprised by their candidness with us. During their presentations they spoke about doing business in Dubai and the reality of the real estate situation. However, the thing that struck me the most was their discussion of the challenges they have faced here.

For example, Leslie Orr has lived in Dubai for two years and said that she spent most of her time mentoring her colleagues than doing the work she was sent to Dubai to accomplish. She found it difficult to conduct business because people from all over the world came to Dubai in its boom, but they came without the proper business skills. She mentioned that a lot of college graduates came to Dubai ready to rule the world, however they did not have the critical-thinking and strategic planning skills required to conduct business in the area.

Ed Smith from NCorp was a surprise speaker who had a lot of international business experience. His main message and takeaway was “Stay true to yourself and do not fully immerse yourself into other cultures”. Mr. Smith told us of his experience working for American and Australian companies in the UAE and India and said the main thing to remember is you are sent to another country to change how they are currently doing things, so do not fall into the trap of doing things their way and give them the tools they need to conduct business better.

The lawyer from Chadbourne and Parke reinforced many of the things about the DIFC we learned the day before and then we spent the afternoon learning about other free zones in Dubai from Tecom investments. Tecom was developed by order of the government to help with operations and set-up for companies coming to Dubai as both start-ups and multinationals.

The free zones in Dubai allow businesses to start companies in Dubai without 51 percent ownership by a UAE national and provide a guaranteed tax-free zone for 50 years from the establishment date. Each of the zones in Dubai are focused on a specific industry and built with the infrastructure to support that industry’s specific needs. For example, we met in Dubai Media City, which was built for television studios.
On Tuesday, the big news was that the UAE plans to readdress the 51 percent ownership law for companies outside of the designated free zones in order to increase foreign investments in the region. They hope to have the new law in place by the end of the year and say it has been in the pipeline for several years.

Overall, today provided interesting perspectives from companies that are conducting business in Dubai both as mandates from the UAE and as multinational companies who view the region as an important central location to work with all countries in the Middle East and Northern Africa (MENA).

Sunday, March 7, 2010

Perspective

Imagine a large personal gathering of 20 people that takes place in your home. Sixteen of your guests come from a different culture, region, language, and world-view than you and the other three members of your family. How do these dynamics affect the gathering? Does the vibe of the event change? Does your menu and activities change? How do you ensure that you and your family members remain comfortable in your home while still meeting the needs of all of your guests?

This is exactly what Dubai faces on a daily basis. In 1960, Dubai had a population of about 40,000 people. In the last estimated census in 2005, the population had tripled with over 1.2 million people residing there. This explosion of growth has been attributed to the ex-patriot community that has moved to the region to live and work. The estimate is that 80 percent of the population is ex-patriots and 20 percent are citizens.

So how do the citizens of Dubai remain true to their culture and traditions? The government of Dubai ensures that their cultures remain intact despite the large population of other cultures in its region. As an emiratee, the government makes sure that you are well taken care of and are provided with all the care you will need. Education is provided through college, medical care is provided for life and if you cannot receive the care you need in the country they will fly you to a specialist in another country, housing is provided, and the government pays men a “gift” for their first two wives. As an emiratee, you needs are covered but citizenship is limited to children born to emiratee parents, or an emiratee father and foreign mother. Emiratee women who marry foreign men loose their citizenship status and just because a person is born in the U.A.E they do not have citizenship.

We did not receive any further insight or personal experiences into this way of living but I am sure it has many positive and negative impacts. If I ever go back to Dubai I hope to befriend an emiratee who can share their personal experiences of living there.

Today was the first day of the business week in Dubai we met with representatives from the U.S. consulate and the American University in Dubai. The U.S. consulate representatives gave us an excellent overview of the country and a positive overview of their experiences in Dubai especially related to the religious tolerance in the region. They also explained that the traditional wear in the region is not related to religion and that we can identify emiratees by the tassel (kerkusha) on the front of their kandura (traditional white gown).

Next, we went to the American University in Dubai and listened to two professors speak about business in Dubai. This was the first place that we learned about the Dubai International Finance Center (DIFC). This is one of the free zones in Dubai and the most interesting part is that it maintains its own judicial system for civil and business law. This was fascinating to me as I am currently in the Business Law class and was actually missing our arbitration exercise that day by being in Dubai. So learning about the Dubai International Arbitration Center was exciting. The most fascinating thing was that many businesses agree to transfer the jurisdiction of the case to Dubai in order to have the proceedings done in English to eliminate language barriers between countries.

After our business meetings we went on a tour of the city and went to the Dubai Museum where we learned about the trading and import/export business that Dubai was built upon. We also went to experience the Gold Souk and Spice Market and we went on an abra (water taxi) ride across the Dubai Creek. It was amazing to see the small trading vessels that still come into port there loaded down with goods.

Saturday, March 6, 2010

We're Here

Well we have finally arrived. It was a long but smooth flight that went by relatively quickly. Ran into a couple of panic moments when we thought we lost our passports. (We found them, Justin handed them to me and I put them in a "safe place." Go figure.)

We made it through passport control and customs with no real problems, but they were very curious as to why Justin had such a big camera with him. They wanted to give him additional screenings but were too busy so they let him pass.

We got to the taxi stand and the man assigning cabs began teasing me because I only had one small bag. I was surprised that he was willing to joke with me like that. We arrived at the hotel with no problems, checked in, showered and met up with some other MBA students and headed to a local hot spot for the evening...then the fun and cultural experience began.

We followed the recommendation of another student and headed to "the it" club that was a short walk from the hotel. When we arrived we found out women got in free but it was 75AUD for the guys, which is about $25 US. However, everyone received two coupons for free drinks. Well the communication was not clear and we ran into a lot of drama over where you can and cannot use your coupons. We sorted it all out eventually, but it was pretty crazy for a while. This is when I realized that certain parts of Dubai (especially this nightclub) are very similar to America, except for the communication barriers.

Looking forward to our first full day in Dubai tomorrow.