MBA Programs Grow in Middle East
Thursday, 29 July 2010 | The Future of Education
By Access MBANew opportunities have opened up for MBA candidates in the Middle East, where the current demand for qualified business leaders has exceeded all expectations. Business schools are setting up new programs and entire campuses in order to train a new generation of highly skilled managers who can run the expanding sectors of the economy, including finance, healthcare, services and tourism.
What makes the learning environment so special in the Middle East? First and foremost, MBA students are passionate about business in the Gulf region. They bring to their MBA programs an exceptional drive and the motivation required to undertake a rigorous academic program, coupled with a strong professional track record and proven academic ability.
Secondly, the Gulf states have opened their doors to business schools wanting to develop programs in the region. Far from being victims of their own success, these oil-rich countries have succeeded in diversifying their economies but, in order to continue the momentum, need trained managers with core business skills.
Banking, for example, is a key growth area in the Middle East. To train a new generation of managers for this sector, Cass Business School recently opened a campus in the Middle East, where it offers EMBA students the chance to specialise in Islamic Finance. This speciality has been fuelled by a growth in liquidity that extends beyond the oil-producing countries. Indeed, there are now an estimated 270 Islamic banks operating globally, with total assets exceeding $265 billion.
MBA candidates have many options
As a result of rapid economic diversification beyond oil and gas, top North American and European business schools are developing programs, opening campuses and forming partnerships in the Gulf states. INSEAD is launching a section of its Executive MBA programme at its new campus in Abu Dhabi, with the first EMBA class due to start in September 2010.
The Dubai-London Executive MBA (London Business School) recently witnessed the graduation of its second class in the presence of HH Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Centre (DIFC). The class's recognition ceremony followed an intensive 18-month program of study, based on a series of four-day modules taught at DIFC by world-class staff visiting from the London home campus. An elective phase of study is delivered principally in London.
This program now attracts more applicants than initially anticipated, from Beijing, Jakarta, Baghdad, Athens, Moscow, Cairo and Toronto. In 2009, classes started in both September and January, doubling the previous annual intake.
"Dubai's strategic location makes it a gateway to India, Africa and the Middle East while attracting top talent from Europe, North America and Asia," says Kartik Ram, a student currently enrolled in the Dubai-London Executive MBA. "This vantage point has been pivotal in elevating my program from being an ‘academic move' to a ‘career move'. My professional development, industry contacts and salary growth have been positively impacted as a result of being actively networked in Dubai." The DIFC centre is also home to one of the six global campuses of the Cross Continent program at Duke University's Fuqua School of Business.
A similar story is that of HULT International Business School, which recently opened a one-year programme in Dubai that is now attracting students from North America. American MBA student Kurtis Kaminishi, from the class of 2009, comments: "Choosing HULT Dubai gave me the opportunity to learn business and management in the multicultural setting of the UAE, the epicentre of the fast-growing Middle East region. Working on teams with classmates from over 30 countries has broadened my exposure to various cultural backgrounds, behaviours and value systems, sharpening my ability to be an efficient and effective manager in any setting."
Strathclyde Business School has been running a part-time MBA program in Dubai since 1995 and Abu Dhabi since 2004. Colin Eden, director of the business school's International Division, said the Strathclyde MBA in the UAE offers good job prospects for the school's graduates.
More than just a Dubai story
MBA candidates have far greater choices than may first appear, as business schools grow throughout the Gulf states, and in particular in Kuwait, Qatar and Saudi Arabia. It is not just a question of residential campuses that drives Middle East students to study abroad, however. With a per capita income of $86,000, Qatar is the best MBA market globally for online and distance-learning. The demand for trained business managers is crucial in Qatar, which has just launched a multibillion-dollar program to expand the country's transport infrastructure. Qatar has also placed its bid to host the 2020 Olympic Games and the 2022 World Cup. With the huge development in its infrastructure, it is no wonder that Qatar is seeing an increase in its online MBA community.
The thirst for knowledge in the Middle East is also demonstrated by the huge increase in the number of Middle Eastern nationals studying abroad. According to the US-based International Educational Exchange, Saudi Arabia ranks first among Middle Eastern countries, excluding Turkey, in the number of Middle Eastern students studying in the USA. In the 2006/07 academic year, the number of Saudi Arabian students studying in the USA increased dramatically by 129 percent, and increased by a further 25 percent in 2007/08 and 28 percent in 2008/09.
Saudi Arabia has also interested UCLA, which is looking to expand its presence and partnerships in the Middle East. In December 2009, Judy D. Olian, Dean of UCLA Anderson School of Management, visited Riyadh and Jeddah to meet with the Kingdom's business leaders and academics.
Scholarships and support to entrepreneurs
Scholarships are another important means for business schools to attract top MBA students from the Middle East. The Mohammed bin Rashid Al Maktoum Foundation offers scholarships to Middle Eastern MBA candidates at over twenty top business schools around the world. These include Chicago Booth, Columbia, Duke, Haas (UC Berkeley), McGill, Michigan, NYU Stern, Stanford, Wharton and Yale in North America; Cambridge, INSEAD, London Business School, IE, IESE, IMD and Saïd (Oxford) in Europe; and Melbourne Business School, Monash University, National University of Singapore and University of Queensland in the Asia-Pacific region.
"I am delighted that the Saïd Business School has now become a Fellow of this tremendously important scholarship program which aims at developing the knowledge capabilities of talented youth across the Arab World. It will play a vital role in increasing the number of MBA students from the region, and will enable them to transfer the knowledge they gain through their study at the Saïd Business School back to their country for the benefit of its society," says Professor Colin Mayer, Dean of the Saïd Business School.
In addition, the Mohammed bin Rashid Al Maktoum Foundation supports MBA graduates when they return to the Middle East. At the beginning of February 2010, the Foundation signed an agreement with the Higher Colleges of Technology (HCT) in the UAE to be one of its partners in the Philips Innovation Programme, a leading platform to encourage innovation in the region. Three applicants to the Philips program will be selected annually, to be hosted at Philips R&D sites for up to six months to develop their innovative ideas into matured business cases.
In Manama, Bahrain, the foundation has formed a partnership with the Bahrain Business Incubator Centre, a subsidiary of the Bahrain Development Bank. This is designed to support and develop the entrepreneurial skills of MBA students and working executives in Bahrain. Students learn to assess a business idea, develop a strategy and a business plan, understand the market and acknowledge the financial aspects of a business.
Growing collaboration
Collaboration among business schools is also evolving quickly in the region. A leading academic institution in the UAE, Abu Dhabi University (ADU), and the Paris-based ENPC have signed a collaboration agreement to jointly offer a part-time dual MBA degree focusing on international business. Students joining the MBA programme at ADU will earn two degrees in their 18-month programme: a general MBA degree from ADU and a specialised MBA degree from ENPC.
Furthermore, the modular format of the top MBA programs in the Middle East is designed to accelerate careers in the region. These MBA programs foster career success in an increasingly complex business environment, and enable students and alumni to make a real impact on their organisations by providing them with confidence, networking and knowledge.
Recovery in the Middle East
With the global economic and financial crisis, the Middle East has seen its share of setbacks. Even in dynamic Dubai, a bubble of debt nearly crippled the city last year. After negotiations with neighbouring Abu Dhabi, the city is now on the road to recovery. This is generally the case through the entire region, as the underlying economics are solid and the demographics of a rapidly expanding population are working in its favour. "Though deeply affected by the recession in 2009, the job market in the Middle East has proven resilient for MBA graduates and other job seekers," says Kartik Ram.
With the expected recovery, new companies in the Middle East competing for contracts and financial backing will have to prove to clients and asset managers that they have experienced, high-quality managers to run their businesses. With so many new entrants to the corporate market, MBA graduates might be wise to read the 2009 inaugural study by Hewitt Associates entitled 'The Best Employers in the Middle East', which aims to provide key insights into attracting and retaining talent in the Middle East and enabling stakeholders to make the Arab world a better place to work. The top employer in the report was Alghanim Industries of Kuwait, with BankMuscat SAOG of Oman and Deloitte & Touche (Middle East) in second and third place respectively.
Not just about GMATs
With the rebound, the growth in MBA programmes will go on but business schools cannot continue to take a cookie-cutter approach to the Middle East. Admissions officers with experience in the region know that MBA applications are not about high GMAT scores, although sadly some very qualified MBA candidates underestimate their value on account of their GMAT scores.
Applicants tend to be older with far more experience in running businesses than in taking multiple choice exams. Furthermore, Middle Eastern candidates have a much better command of English than is often the case with their Asian counterparts. If business schools want to succeed in the region, then they will most likely have to readjust their application priorities to the background and experience of the local talent pool.
In conclusion, MBA candidates thinking about earning their MBA in the Middle East face a number of decisions and choices. With scholarships available, candidates will need to assess their criteria before they select the right MBA programmes to which they will apply.
One thing is certain: if you are looking for a degree that counts, along with an incredibly loyal network in this fast-growing region, then the MBA at a Middle East business school is definitely the logical choice.
