Dubai, City of Merchants

Today, our group was up bright and early to make our way down to the DIFC. After a short bus ride, we arrived at our destination. Amidst the towering and ambitious yet relatively young skyline, we proceeded through the glass menagerie of art shops (one shop contained lifelike art paintings with Star Wars ships parked outside of Dubai landmarks, including the Millennium Falcon hanging from the Burg Dubai. Note: The Burj opens officially tomorrow, a HUGE event of providence for us who are 'in the neighbourhood'). Finally, we arrived at the Capital Club.

Although we wouldn't know it when we applied for this trip, most of us would be very aware of the current events in Dubai and the recent complications of Nakheel's Sukuks. This would be a recurring theme in the day’s discussion.

Our meetings began with a presentation in the Tokyo room from Mr. Hani Obeid who, as a fellow Canadian, gave us a unique perspective as head of Investment House. With a wildly successful history, the envy and aspiration of students in the room, he outlined his vision of Dubai, the effects and implications of current events and his perspective. In my role of ambassador, I once told a class of prospective students that Rotman values its international students. I think that goes double for our international relationships as we listened very intently on his pitch on the future of Dubai and why current events were being perceived from a very insightful insider's position.

Following Mr. Obeid's presentation was a series of student presentations from our peers (myself included) about the various companies we would be visiting over our trip and strategizing over what we wanted to get out of each trip.

We had a very 'generous' lunch (Shukran, Walid) at a Lebanese restaurant boasting seating in the outside courtyard (a treat even for natives as the possibilities for appropriate temperature for enjoying a sit down meal outside in Dubai are quite limited. Temperatures of 30- deg C are quite rare). Following lunch, we moved from the Tokyo room to the Dubai room which proved to be much nicer. I joked that perhaps we were afraid the previous room wasn't glamorous enough that we felt we had to upgrade.

Following lunch we had another series of presentations of the lifestyle and work style of the day to day life (and big picture) of Dubai, Abu Dhabi and the UAE in general. The next presentation was a very involved discussion with the CEO of Islamic Advisory Group, the body which has the new CIFE accreditation (Certified Islamic Finance Executive).

The day concluded with a talk from Anesh Jagtiani, CEO of Empowering Leaders who spoke with great animation yet asked some tough questions which really caused the entire Rotman MBA participants to reflect on their purpose and drive for doing the MBA. Once gain, I jokingly remarked: "Why didn't we take this course before we started?"

While the day still seemed relatively light (not too technical for the most part and still relatively soft to warm us up), we were definitely building up momentum as there were some absolutely brilliant questions asked in the class (slightly paraphrased):

- If an Islamic equity is issued in a recapitalization and then later liquidated, how is it valued? (As a percentage of ownership of a cash flow reflecting historical investment principal or of the liquidation of the fair / market value of the asset which backs the security?)

- If many of the instruments of Islamic finance replicate the mechanics of conventional finance, what drives the market demand for Islamic finance?

- Considering the apparent success and scalability of the CIFE program, have you considered licensing the material to providers such as Kaplan?

- What is Dubai’s relationship with its neighbouring cities? It’s big sister relationship, Abu Dhabi? Bahrain as a financial centre? Qatar as a potential younger challenger / usurper?

- In the wake of the recent issues surrounding Dubai's sukuks, what is the cash position of funds in the region? Do they need to raise more funds? Sell at a loss? Or is the market at a 50% off sale an opportunity for cash currently sitting on the sidelines? (Subtly: What is the intrinsic potential which remains in the region)