Companies in GCC Research Paper Example | Topics and Well Written Essays - 2000 words

Companies in GCC - Research Paper Example The performance analysis of all these companies and recommendations will be presented in a detailed manner in this report. The Business plan highlights the performance analysis of the companies in UAE through the balance sheet, the income statement and stock market movement of the companies such as Dana Gas, Sorouh, Tabreed, Emirate Islamic bank and Orient insurance (The Wall Street Journal, 2014). Among these, Dana Gas is a company which functions independently and deals in gas. The major private shareholder in this company is Crescent Petroleum . Sorouh, on the other hand is the largest developer in the real estate business of UAE. Tabreed is another company for which detailed performance analysis will be conducted. It is a company based in Abu- Dhabi which is associated in the business of district cooling. Emirates Islamic Bank is the leading bank in Middle East and has a huge asset base (The Wall Street Journal, 2014). There will be analysis of the performance of Orient insurance as well, which is a pioneer in the insurance business. They provide security for covering all kinds of risks (The Wall St reet Journal, 2014). The current assets of the company like inventories increased in 2012 to USD 54 million from USD 53 million in 2011. The increase in the inventories is a negative indication to the company and should be curbed. A high rate of inventory denotes low rate of turnover of the same. This adds to the cost of the company in terms of storage (Terterov, 2006). Again, through the performance analysis of the current assets it can be noticed that there is an increase in the trade receivables in the year 2012, as compared to the year 2011. There is increase in the trade receivables from USD 501 million in 2011 to USD 670 million, which is a positive sign (Bloomberg, 2012). A high rate of return from the debtors of the company is always beneficial to maintain the liquidity position. From the analysis of the equity and