Thursday, May 20, 2010

Letters From Dubai

British University in Dubai Visit
John Rummo

Today our group had the privilege to hear a lecture from Professor Mohammed Dulaimi, an Iraqi born Civil engineer on the working environment in the United Arab Emirates. Although Mr. Dulaimi's background is in the sciences, his particular study in the academic field has been in supply chain and project management along with group dynamics and inter-relations.


Professor Dulaimi first spoke on the three most important stages in the history of the UAE, highlighting Infrastructure, corporate branches and sustainable development. His proceeding slides follow an open style of discussion touching on why expatriates have come to Dubai, the economic recession, and the underlying problems in the Emirates economy.


Many of our speakers have driven the point that Dubai is an open, western economy, full of all the western facilities and accommodations to attract foreign direct investment and immigration. The underlying problem of management in the government is its lack of focus upon the middle economy. Although many developers like Emaar and Nakheel have undertaken massive tourist attracting project, the Arab world continues to lack infrastructure. The title of Mr. Duailmi's next slide was “Is the Party Over” which restated my thoughts from the last entry summarizing the Nakheel group visit. Dubai has overstated the demand for its lavish supply of opulent hotel's and real estate. The economic downturn has been a detriment, but also can be viewed as a positive occurrence.


The global economic downturn has forced top level management all across the world to take a step back and begin to run “lean”. Particularly in Dubai many corporations are now focusing inward on creating efficiencies and getting rid of dead wood in their companies rather than focusing on expansion. The downturn will hopefully lead to stable growth of a middle class economy and infrastructure to support it.


The dangers Dubai faces now is the governments insistence on pumping money into projects that there is no emend for. Tense relations suppliers, contractors and customers remain a problem and there needs to be a change in the targeted investor should any real growth take place in the upcoming years.


Finally, our speaker spoke on the economy of Abu Dhabi, a more conservative society floating on oil wealth and hopefully not making the same overgrowth mistakes as little brother Dubai. Abu Dhabi prides itself on sustainable development, and a secure society. A large, empowered private sector facilitates a strong educational and health infrastructure. Although the conservative nature of this society has probably blinded the government to lucrative opportunities, it has also saved them trouble during our turbulent times.


In conclusion, this presentation was very insightful coming from a person who has been present for the growth in Dubai with an academic viewpoint rather than a business bias. Upon completion of our lecture we were taken on a brief tour of the campus which was sponsored by many universities I was familiar with here in the states such as the University of Michigan. The campus was beautiful although the heat forced us into an entertainment room before leaving.


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