Dubai's free-trade zones and beneficial tax treatment have long brought major companies, such as Haliburton, to Dubai. But, financial firms are increasingly seeing the attraction as well, particularly since Dubai has continued to promulgate Western-based securities laws.

Dubai has become a center for private equity deals. And, although the Dubai International Financial Exchange, a nearly two-year-old international exchange that is part of Borse Dubai, trades only a handful of stocks and bonds, it already has attracted the world's largest broker dealers as members, including Citigroup Global Markets Ltd. and Merrill Lynch International.

Increasing its ties to these firms, the country has also bought into several of them, including building a 2.2 percent stake recently in Deutsche Bank. The country estimates that revenues from financial services firms will contribute $15 billion to G.D.P. by 2015, up from about $3.4 billion currently. 

Borse Dubai's drive to take over the OMX is another sign that these financial heavyweights haven't set up shop in the wrong locale. Such a takeover would immediately turn Dubai into a strong regional contender because about 60 world exchanges run on OMX technology, while it owns outright several other Nordic and Baltic exchanges. As Larsson noted in explaining the deal, the combination would turn the relatively sleepy Borse Dubai into the fifth largest and fastest growing exchange group in the world.

Eric Meyer, president and C.E.O. of U.S.-based Shariah Capital adds that Sheikh Mohammed has made clear that the move against OMX is only the start. "Owning exchanges, and integrating them into yours, ties trade and commerce to  your economy as well," he says. "It is the ultimate feeder system of capitalism and commerce."

At first, Borse Dubai has to capture the prize. Whether it will is up for debate. Borse Dubai's offer, which must be filed formally by September 14, has brought it a host of headaches so far and the regulatory scrubbing could continue for another month. Whatever the outcome, Borse Dubai will likely still have to fight off the Nasdaq, its chief rival for control of the OMX. The Nasdaq, which earlier made a $3.7 billion bid for the exchange company, may raise its bid to be more competitive if regulators don't knock Borse Dubai out of the running first.