When Borse Dubai made a hostile bid for Sweden's stock exchange last month, it conjured up visions of Rodney Dangerfield trying to join the exclusive Bushwood Country Club in the movie Caddyshack.

Swedish regulators expressed concern that Borse Dubai, which is owned by the Dubai government, might not be a proper fit for a "strategic industry" like the OMX exchange. Government officials said the offer price couldn't be their sole concern. And major shareholders questioned Borse Dubai's commitment to transparent markets and securities regulation.

It didn't help matters that Borse Dubai's managers, led by former OMX chief Per Larsson, apparently broke Swedish law by building their large stake in the OMX without publicly stating that they intended to make a takeover bid. That slip has increased the regulatory hurdles and spawned several investigations into the takeover.

But whatever the missteps, Dubai's $4 billion move to buy the Swedish exchange clearly highlights the ambitions of the country's leadership to remake the tiny Gulf island into a financial powerhouse, and the large petrodollar-filled war chest it has to ensure success.

"Dubai, in particular, wants to establish itself as a regional financial center and it feels a recognized, respected exchange is integral to achieving that status," notes Tahir Jawed, a Dubai-based expert in Islamic finance with the law firm of Maples and Calder. He adds that Dubai's ambitions would be furthered by "any links with a European exchange and the mutual recognition that would inevitably follow."