The construction on the Burj Dubai --the world's largest tower has topped out at 2,648 feet (818 meters).  Watch the video to see how tall this tower is.

No end appears in sight for a robust economic recovery in the GCC. This article illustrates how Dubai and Qatar are hard hit in the global economic recession. Oman was the only stock market to show positive gains. While the Middle East / GCC region is down, the outlook appears more vibrant than in Developed markets, with stock markets making gains in positive territory.

This shows the degree of slowdown in Dubai's massive property market.  It further shows how highly leveraged many consumers are in Dubai and high degree of speculation in Dubai's property market.  In a blunt article by the New York Times, expatriates in Dubai are sharing ther fears about not only their property ownership (Freehold property), but also their futures in the city-state.  Many are fleeing due to these fears.  Other observations on the ground is that traffic is lower on key thoroughfares, a rare sight in Dubai.

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Carrefour's Market Entry Into Dubai in 1995

I. Executive Summary
In 1995, Carrefour expanded its European hypermarket concept that it had originally pioneered decades ago into Dubai, United Arab Emirates. Following a cautious country-by-country expansion strategy into Emerging Markets, Carrefour saw potential in the Dubai emirate. The emirate had a flourishing retail industry and exhibited strong fundamentals in its flourishing economy. Carrefour’s objective was to find a mode of entry that would allow it to reduce risk of failure and maintaining profitability, while offsetting its longstanding global rival Wal-Mart.

Dubai presented many advantages for companies considering market entry into Dubai in 1995. Despite a small population relative to other markets it served, Dubai offered an unusual composition of Expatriates and local residents in an economy with one of the highest standards of living and income in the world. The market was extremely business friendly with many advantages like zero corporate taxes in conjunction with very few barriers to trade. It had superior transportation networks, a well-defined legal system, positive retail conditions, strong economic growth, low political, and transfer risks. Carrefour reviewed the laws and determined that a joint venture would be best to minimize the risk of failure while having a qualified partner to aggressively seek growth and manage operations. It partnered in a joint venture with Majid Al Futtaim, a pan-regional conglomerate with retail experience in the Middle East. The joint venture adapted to the market by changing the place of its stores to the shopping mall, adapted its food to socio-cultural norms, promoted mostly non-food items because of higher profit margins, and was very careful in discounting amidst double-digit inflation.

• Strategic business advantages
  • Achieve competitive edge
• Location: Trading hub between Europe and Asia
• Currently stable GCC market
• Remarkable economic growth & investment opportunity
• Large consumer market
• Pro-investment environment
• Fear of falling behind competitors
• Many multinationals already have regional presence
• Neglecting region can potentially impair longterm competitiveness for many companies

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Carrefour has announced a major investment plan in Krasnodar, Russia. The company expects to be functional in Southern Russia by the end of 2008. Furthermore, it plans to have 5 additional hypermarkets in 2009. The company realizes the importance of “growth markets” given that its international composition of sales grew 3% yoy to 28% of all sales.

Meanwhile, Wal-Mart is left in the dust in its emerging markets expansion plan. Media reports last year discussed Wal-Mart's search for a Russian partner, which likely included Lenta and X5. One potential cause for the delay in entry has been the process in dealing with government regulations which require partnerships. It may not help that diplomatic relations are strained following the conflict between Georgia and Russia, and the US' perceived role therein. While Wal-Mart's troubles in regards to its Russia market entry remain relatively unchanged from a year ago, Wal-Mart is being left behind.

Michigan State University (MSU) has founded a campus in Dubai's Knowledge Village. The program offers Bachelor's and Master's degree programs at the same level of rigor as MSU's flagship campus in East Lansing, Michigan.

Bachelor degree programs include Computer Engineering, Construction Management, Media Management, Early Childhood Education, and Child and Youth Development. Its Master's program offers degrees in Human Resources and Labor Relations, Retailing and Educational Technology

MSU is following a major trend of universities founding campuses throughout the world, particularly in the Middle East Gulf and in East Asia. The globalization of Western Universities allows professors and students to study abroad and enrich themselves, and at the same time provides students in those countries to gain a worldclass education without having to travel across the world.