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With a fast-paced, booming economy, the Gulf region has become a major hub for big business. The global market is fluctuating worldwide. While some of the most powerful countries are facing major financial challenges, others are reaching the peak of their economic status. However, despite the changes that the world is facing, it is important that we secure a future of economic prosperity. And who better to do this than the leaders of tomorrow and the agents of change – today's youth.
A two-day Higher Colleges of Technology (HCT) Financial Services Conference was held last week at Dubai Men's College (DMC) under the patronage of Shaikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research and Chancellor of the Higher Colleges of Technology.
Its aim was to educate students about major new developments, issues and trends in the financial services industry. Over 1,000 delegates attended the event, including HCT students, faculty and industry professionals from the UAE and abroad.
"By several important measures, the UAE is recognised as an international financial services centre: the number of banks and financial services companies is growing at a fast pace," Shaikh Nahyan said. "Naturally, education and training must keep pace with all these changes."
An expert speaks
Finance professionals from around the world spoke at the conference informing today's young generation about the state of the world economy and what must be done to improve it. One of the speakers was Stephane Garalli, professor at the International Institute for Management Development (IMD) and the University of Lausanne, Switzerland, and director of IMD's World Competitiveness Centre.
His lecture, titled Assessing the Global Economy and Future Developments, went down well with the audience. With interesting facts and witty humour, Garalli was able to sustain students' interest in his presentation.
One of the highlights of Garalli's presentation was his emphasis on the redistribution of economic power. "The money no longer lies in the US and Europe," he said. "It is with other countries including China, Japan, Russia, Taiwan and Korea."
Garalli explained that the "boomerang" effect, where money invested in countries returned to economic powerhouses – the US and Europe – no longer existed. He used the Gulf region as a prime example.
"Seven hundred billion dollars are being invested in regional products," he said. "And the dramatic consequence of this is that the money is not going back to the US or Europe. It is rather staying and being reinvested locally. And that's a good thing."
Risk is good
Garalli highlighted two essential factors for a prosperous economy: risk-taking and competition.
"The real challenge here is managing the risk factor," he said. "The greatest companies fail because they avoid risks. Risks shouldn't be avoided, they should be managed."
Garalli explained that people should spend less time studying the circumstances, and more time acting on it. Quoting British philosopher John Stuart Mill, Garalli said: "One person with belief is worth 99 with interest."
Another important factor for a thriving economy is competition. Without competition, Garalli explained, there would be no reason for the economy to grow and develop. He said that those who truly have the spirit of competitiveness must have a "why not" mentality.
What students think
Students were impressed with Garalli's lecture, and said he had their attention during every minute of his presentation.
"It was wonderful," said Ahmad Al Suwaidi, business student at DMC. "It was an excellent explanation of how the economy works – of what makes it rise and fall."
When asked what they thought was the biggest problem in the current state of the global economy, students said it was the distribution of financial power.
"This power is in very few hands," said Mahmoud Al Nuaimi, accounting student at DMC. "This power should be distributed among other countries to make the market stable and prevent huge drops and jumps in the economy."
What students found most fascinating about Garalli's presentation was his foreshadowing of the state of the economy.
"It was very interesting to see his predictions of how the world will be in 30 years," said Al Suwaidi. "By knowing what is to come if we continue on this path, we can take precautions and make a change."
Al Nuaimi attributed students' lack of knowledge about financial issues to the educational methods being used.
"The problem is, educators don't start teaching us about this until we reach college and by then it's often too late," he said. "This education should start from the very beginning in small steps so that students' interest in the subject can slowly grow."
Nevertheless, students recognised that being well educated about financial issues is an important step towards progress.
"Only by truly understanding the impact of what is going on around us can we play an effective role in the future," Al Nuaimi said.
Cornerstones of competitiveness
- Competent people are not necessarily competitive people;
- Competitive individuals should have a strong inner drive;
- Risk is good for you;
- Competitive individuals should have high ambition.
Source: Stephane Garalli, professor at the International Institute for Management Development (IMD) and the University of Lausanne, Switzerland
Presentation topics
Other lectures at the conference included:
- "The evolving role of Dubai as a centre for price discovery and transparency for Middle East crude oil" — Ahmad Al Aaizi, head of the IT department, Dubai Mercantile Exchange
- "The growth of the financial services sector to aid growth in the real estate industry" — Simon Gray, Director of Supervisions, Dubai Financial Services Authority
- "Investing on the DIFX – overview, different types of securities" — Sami Baliki, Senior Manager, Marketing Development and Sara Kamal, Manager, Dubai International Financial Exchange
- "Career opportunities in financial services" Faten Hani — CEO, Dubai International Financial Centre, Centre of Excellence
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