Halliburton, arguably the world's largest energy services company, has caused a storm in a teacup in the United States by announcing its Chairman and CEO David Laser is moving to Dubai, where part of the corporate head office is also shifting.
While the legal and corporate head office will remain in Houston, the "close to business" reasoning has been the argument for the move to Dubai, prompting a whole host of criticism from US political circles, many of whom interestingly give long speeches on open world trade.
The political heat did seem to lose some of its teeth over the weekend when Halliburton announced it will be hiring more people in the United States.
Halliburton, a company that started in 1919 as the New Method Oil Well Cementing Company by Mr and Mrs Erle P Halliburton, has not been free from controversy and media attention.
Apart from the political figures who have graced its corporate offices, including presidents and vice-presidents, the company has never been far from controversy, whether it be selling oil technology to both Iraq and Libya during the 1990s (when it was banned from doing so) or the highly controversial "Tehran" office of a company called HPS (with a similar logo to Halliburton) and offering Halliburton services to the oil sector, Halliburton catches the limelight time and again.
But relocating offices and being close to the business is an argument commonly used by many companies and it would seem that the uproar in the US has been caused by political circles for mileage.
What American circles are learning is that Dubai has been forthcoming in welcoming the move and the ease of entry into the Dubai business scene is a huge plus for the Dubai Government.
After all, it was only a year ago that the Dubai Ports deal in the US caused unnecessary controversy.
While the critics will point to Halliburton's controversial recent history and argue that in the face of investigations Halliburton will find being in Dubai more conducive.
Either way, the beneficiary will be Dubai with an estimated 13,000 employees, most of whom will be relocated here or new staff from other regions brought in.
The move will boost not only the image of Dubai but also the economics of the marketplace. In the wake of the move there is a likelihood that other smaller companies who do regular business with Halliburton and its subsidiary KBR will also consider beefing up a presence in Dubai, not forgetting that KBR is the largest single contractor working in long.
By Anwer Sher
© Emirates Today 2007
