UNIVERSITY OF PENNSYLVANIA The Wharton School TENTATIVE SYLLABUS FNCE 897: FINANCE IN THE MIDDLE EAST & NORTH AFRICA January 5-7, 2015 Professor Nihat Bülent Gültekin, Finance Department Professor Michael J. T. McMillen, Penn Law School Spring 2015 Teaching Assistant: Elizabeth Dahan: lizzied25@gmail.com Course Objective This is a Wharton Global Modular Course on finance in the Middle East and North Africa. Its objective is to bring students, academics and industry experts together to study financial markets, practice, and institutions in this region. Course Content The course will primarily examine following areas: 1. Current Challenges in the Middle East 2. Political Economy of Middle East 3. Financial Markets and Institutions in the Region 4. Sovereign Wealth Funds 5. Alternative Investments 6. Islamic Finance We will cover the above topics by studying practice and transactions in the region with a comparison to USA and rest of the world. This is a half unit course and it is designed for Wharton MBAs and undergrads. Course Format This course will be taught through cases and lectures. Guest Lecturers Distinguished practitioners will lecture and conduct case discussions by bringing their experience and insights to the classroom. 1
Grades This course will be graded on our regular scale or on a pass or fail basis. Your final grade will be based on: a. Attendance and class participation (20%) b. Course project (80%) a. Class Attendance and Class Participation Lecturers in this seminar are experienced senior managers of major financial institutions. You will learn directly from their experiences. You are expected to attend every session and engage in class discussions. b. Course Project You need to prepare a project for the course as an individual or as a team another student. The course project is an active learning tool and allows you to apply many concepts that you have learned at the Wharton School to the issues in the region. As such, this course is more like an independent study and most of the learning will come from the preparation of the course project. We will give you further information about the course project, required deliverables and the deadlines during the course delivery. Course Materials a. Textbook The Arab Economies in a Changing World, Marcus Noland and Howard Pack, Peterson Institute of International economics, 2 nd edition, 2011. b. Reading Assignments Course readings and references will be on Canvas. You should read the textbook before the first day. c. Canvas The course site will contain optional and relevant reading materials as well as some reference materials. You can also find other course information such as case questions and exhibits, lecture notes and handouts distributed in class, and relevant news articles as well as the most up to date information about the course. All announcements for the course will be on Canvas. As the course progresses, I will add additional reading materials that will be related to the various stages of your course project. Course Venue Course will be held at the Center of Excellence of Dubai International Financial Center and at the headquarters of Abu Dhabi Investment Council. 2
MONDAY, JANUARY 5, 2015 VENUE: CENTER OF EXCELLENCE AT DUBAI INTERNATIONAL FINANCIAL CENTER GATE VILLAGE BUILDING 02 LEVEL 2 AUDITORIUM 08:00 08:45 COFFEE & LIGHT BREAKFAST 08:45 09:00 COURSE OVERVIEW Bülent Gültekin 09:00 10:30 DUBAI FINANCIAL MARKETS AND DUBAI INTERNATIONAL FINANCIAL CENTER Arif Amiri Chirag V. Shah Deputy CEO of DIFC Head of Strategy and Corporate Planning of DIFC 10:30 10:45 COFFEE BREAK 10:45 12:45 ALTERNATIVE INVESTMENTS, INVESMENT BANKING, AND CORPORATE FINANCE: Tamer Bazzari CEO, Genero Advisory Anuj Khanna CEO, Lagoon Capital Partners Stefano Sartoretti CFO, PepsiCo Asia, the Middle East, and Africa Wassim Moukahhal Senior Vice President, Samena Capital Investments Ltd Mustafa Abdel-Wadood Board Member, Chairman of the Management Executive Committee and Member of the Investment Committee, The Abraaj Group 12:45 14:00 LUNCH BREAK 14:00 15:30 COUNTRY PERSPECTIVES: SAUDI ARABIA & EGYPT: Shk. Sultan Al-Qassimi Freelance Columnist (Gulf News, Foreign Policy, FT, CNN, The National, Al Monitor, The Guardian) Ammar Al-Khudairy CEO, Amwal AlKhaleej Investment Co., Saudi Arabia Georges Makhoul CEO, Constellation Holdings, Dubai, UAE Bulent Gultekin Former Governor of the Central Bank of Turkey 15:30-16:00 Bus to Burj Khalifa 16:00 18:30 SITE VISIT TO BURJ KHALIFA REAL ESTATE MARKET IN THE REGION Emaar Properties 3
TUESDAY, JANUARY 6, 2015 VENUE: CENTER OF EXCELLENCE AT DUBAI INTERNATIONAL FINANCIAL CENTER GATE VILLAGE BUILDING 02 LEVEL 2 AUDITORIUM 07:30 08:00 COFFEE & LIGHT BREAKFAST 08:00 12:00 ISLAMIC FINANCE SUKUK AL-IJARA: A CASE STUDY OF A SUKUK AL-IJARA PERTAINING TO AN FPSO Michael J.T. McMillen Shaykh Nizam Yaquby Ali Taufeeq This case study of a sukuk financing of a floating production servicing and offtake vessel (FPSO) will be used to explore contemporary Islamic finance transactions. The specific transaction will serve as a platform for discussing contemporary Islamic finance more broadly, including Shari ah, legal and financial aspects of transactional structuring, the roles and functions of Shari ah boards, and the nature of contemporary Islamic finance markets. These sessions are structured to allow the students to direct discussions to topics of interest and relevance to them. 12:00 12:45 Bus to DP World 12:45-14:45 SITE VISIT TO DUBAI PORTS WORLD 14:45-15:30 Bus to DIFC 16:00-18:00 ISLAMIC FINANCE THEORY AND STRUCTURE OF INSTRUMENTS: Michael J.T. McMillen Ijara (Lease) Structures: Real Estate and Private Equity Murabaha, Musawamma and Tawarruq; Working Capital; Short-Term Instruments; Financings Mudaraba Structures: Islamic Banking; Takaful; Investments Sukuk and the Finance Side of the Capital Markets Islamic Banking 4
WEDNESDAY, JANUARY 7, 2015 VENUE: ABU DHABI INVESTMENT COUNCIL 07:00 09:00 BUS TO ABU DHABI (Meeting place in Dubai will be announced) 09:00 12:00 ABU DHABI INVESVESMENT COUNCIL Host: Mark Nicolas Cutis Special Situations, Abu Dhabi Investment Council (ADIC) MACRO ECONOMIC SCENES IN THE GCC SOVEREIGN WEALTH FUNDS 12:30 14:30 THE COURT OF CROWN PRINCE of ABU DHABI Rabih Abouchakra Mona Hammami Managing Director Director 15:00 16:00 MASDAR CITY 16:00-16:30 Dr. Ahmad Belhoul, CEO, Masdar 17:00 19:00 Visits/Abu Dhabi* CLOSING REMARKS Professor Gültekin 19:00 Bus to Dubai *Majlis of Sheikh Nahayan Mabarak Al Nahayan, UAE Minister of Youth, Culture, and Community Development, if he is in town. 5