Dubai Holding - Finance in selected companies PDF

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Running Head: Dubai Holding

DUBAI HOLDINGS

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Table of Contents Industry Profile................................................................................................................................3 Introduction......................................................................................................................................3 General and specific environment analysis.....................................................................................8 External and Internal Assessment of Dubai Holding.....................................................................11 Space Matrix..................................................................................................................................12 Strategy Execution.........................................................................................................................15 Conclusion and recommendation..................................................................................................17 Reference.......................................................................................................................................19

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Industry Profile Dubai Holding is an investment holding company that provide their investment business and financial services worldwide. It develop an extensive range of portfolio on investment for different companies, which includes real estate business, advance Business Park, various financial services, telecom and hospitality services. It was established in 2004 and its aim was to introduce a development for sustainable future economy. It was founded by Mohammed bin Rashid Al Maktoum in Dubai. It plays a most important role in Dubai’s economy by associating with multiple industries. Now it is associated with 12 industries and continuing with the UAE government a growth of a sustainable economy. They actively procuring to introduce a sustainable future and making Dubai in forefront position of innovative approaches. As a part of their philosophy, Dubai Holding promotes and encourage healthier lifestyle and a responsive living.

Introduction In this research paper, we discussing about Dubai Holding Investment Company. Dubai Holding Company aimed for creating an innovative knowledge based economy and it is the longest ambition to transform Dubai into the most productive and smartest city globally. Dubai Holding’s entire ideology strategy and values are depends on six principles that includes Excellence, Loyalty, Integrity, Innovation, Speed and People. They are involved with 12 industries i.e. ICT, Hospitality, Media, Real Estate, Tourism, Design, Industrial, Science, Education, SME, Retail, Wellness.

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ICT It introduces the leading path for transforming Dubai into an innovation-led economy. The company always trying to maintain an uninterrupted growth of ICT industry with its TECOM groups. With the establishment of Dubai Internet City (DIC) in 1999, the company introduces a original period industry of ICT and in 2007 Dubai Outsource City (DOC) was traditional as a separated society to maintain these uninterrupted growths of the ICT industry in the region. Hospitality Dubai Holding Company can be considered as the first position for developing an effective hospitality service and a brand portfolio since 1997. In 2000, it already introduce 670 hotels (from 400) that offered 98000 rooms (from 25000) that directly shows the growth of the industry. Another reflection of success in terms of hospitality brand, the average room rate excessed in occupancy rate. Media Dubai Holding Company plays a most valuable role in developing the media industries in Dubai. In addition, it always enhancing the continuous growth to making it one of the most established business sector in the Emirates. After the establishment of the TECOM business community, Dubai Media City (DMC) achieves a remarkable growth and in modern days, the DMC is considered as region’s leading hub for media and production. Until now, DMC associated with 2000 national and international media companies. Real Estate

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Dubai Holding with the UAE government vision establishing various new and unique infrastructure that enhance the real estate business of Dubai and also give a boost of nation’s economy (While, 2020). Dubai properties are considered as the largest real estate and community development business that offering homes and many other development for last 10 years. Tourism Dubai Holding company fully supports the growth of the sightseeing manufacturing in the Dubai that often considered as the pillars of Emirate’s various strategy. Dubai Holding trying to maintain the growth of the tourism industry with the help of its associated companies such as Dubai Properties Group, Jumeirah Group and many other media and entertainment groups. Design With the help of TECOM group, industry focused communities Dubai Holding Company provide all the necessary design for regional creation. Dubai Design District established in 2013 by Sheikh Mohammed bin Rashid Al Maktoum along with the Prime Minister of UAE for developing a national design sector. Industrial In 2004, Dubai Holding Company established Dubai Industrial Park, which now considered as the dedicated industrial hub in Dubai for providing different solution along with logistical and manufacturing services. The Dubai Industrial Park offers an excellent infrastructure side by side a cost competitive and efficient service. Science

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In 2015, Dubai Holding Company established Dubai Science Park, that support Dubai’s Vision 2021 for establishing sustainable economic growth of the UAE’s science industry. It is established for fulfill all the necessity of business and professionals working for science. Education Dubai Holding Company introducing a knowledge based innovation-led economy for making a transformation in Dubai to establish a successful education based communities. They also introduce Dubai International Academic City (DIAC) and Dubai Knowledge Park (DKP) as these education based communities. The main aim of the Dubai International Academic City is to provide a higher education and fulfill the gap between the industry and academic system with appropriate knowledge. The DIAC along with the DKP often sponsors some event for supporting the nation’s economy. SME Dubai Holding Company was a constant supporter of SMEs Dubai. By making investment among several number of SME initiatives it enhancing their growth and success. Retail The Dubai Holding Company along with Dubai Property work together for creating retail investment opportunities across the retail community in Dubai. It also facilitates the continuous growth through its associated companies such as Dubai properties group and Jumeriah group. Wellness

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IT is considered as one of the most valuable sector in Emirate’s hospitality community. Dubai Holding Company in its maximum hotels and resorts available introduces premium wellness brands and Talise globally. Ownership and leaders of the Dubai Holding 

Chairman: HH Sheikh Ahmed bin Saeed Al Maktoum

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Chief Executives Officer: Amit Kaushal

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Managing Director: Khalid Al Malik

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Chief International Audit Officer: Abdulrahman Al hareb

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Chief Legal officer: Edward Sunna

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Chief Marketing Officer: Huda Buhumaid

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Chief Technology Officer: Neetan Chopra

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Chief Human Capital Officer: Nasser Al Awadhi

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Chief Investment officer: Omar Karim

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Chief Financial officer: Sharjil Anwar.

The Dubai Holding Company has 130 Billion AED total Assets. 20 thousand employees are worked for the company across the entire industrial group (Zaidi, 2019). And in 13 countries the company has been operated. Company’s vision and values are categorized into six sub-division: 1. Innovation: the company aimed to execute all the creative and innovative ideas in real life. 2. Speed: Dubai Holding Company execute their entire operation as fast as possible for achieve success earlier.

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3. Loyalty: the Company achieve all of their goals by maintaining a mutual commitment with others. 4. Excellence: Dubai Holding Company always require excellence in everything for delivering a quality results. 5. Integrity: they act in both as individual and as an organization. 6. People: they always give appropriate value on true talent. Dubai Holding Company also tries to unlock individual’s potential and awarded them after getting achievement.

General and specific environment analysis PESTLE analysis of Dubai Holding: The United Arab Emirates is a wealthy Middle Eastern Country situated on Arab Peninsula. According to the World Bank UAE includes 25 gross domestic products per capital. In this research paper, we includes a PESTLE analysis of the Dubai Holding Company. It is essential to make a PESTLE examination for a specific organization. It represents Political, Economy, Environment, Social, technology as well as Legal factors that straightforwardly influence an association or nation's prosperity. The PESTLE investigation on a specific organization can be considered as a breaking down devices that give an away from about the presentation of the chose organization or association in serious market and business condition. Political factors: As Dubai Holding company situated in United Arab Emirates it has a different political factor than others.

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In several times for the ownership of land or reserved oil, UAE suffer from political conflicts with nearby countries that directly affect the Dubai Holding Company.

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The Dubai Holding Company achieve a remarkable growth because of the healthy trade relation with several country that made by the United Arab Emirates across the globe.

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UAE also includes individual government organizations, which introduce a flexible management system that become very helpful for the Dubai Holding Company.

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The company also introduce some rules and regulation that help them to work efficiently and legally.

Economic factors: A country’s economy state always considered as most relevant factor. Dubai Holding Company always tries to enhance the economic state of Dubai for making it in a forefront position in worldwide. 

Dubai Holding Company has a very low unemployment rate.

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This company interacts with highest amount of foreign investor and invested in multiple industries.

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The Dubai Holding Company also maintain their interest rates in an organized manner in their individual investment.

Social factors: The social factors provided by the Dubai Holding Company in UAE is quite different. 

The company has aimed to provide a comfortable lifestyle along with they provide a well-paying job towards their employees.

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Dubai Holding Company introduce several ideas that help them to give courage, inspiration and training their entire citizen for maintaining an efficient workflow through out every industries under it.

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They also raise awareness of appropriate knowledge among their citizen for achieving a better lifestyle.

Technology features: In these contemporary days, technological elements are become additional important than ever. For a good wealth and middle-aged population like United Arab Emirates, every organizations or industries should adopt proper technologies for enhancing their business. 

The modern young population is very tech oriented. Therefore, companies like Dubai Holding introducing advance technologies to fulfill the entire consumer’s requirement as well as satisfy them.

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They also adopt many advance technological equipment in their individual management for faster decision-making process.

Legal factors: In the United Arab Emirates, there presents a modest wisdom for argue about the legal reason that indirectly concern the whole management (Hvidt, 2019). Dubai Holding Company maintains the entire legal factor in term of their investment law and all of the processing rules and regulation for establish themselves in a stable and reputed position.

Environmental factors:

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The last element in the PESTLE analysis is the environmental factor. 

The United Arab Emirates has a dry and hot climate and for that reason many multinational companies such as Dubai Holding Company is affected in their productivity. The entire productivity process low down slightly. There are another issue of proper air conditioning in the company.

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As the UAE has some coastal areas, that become helpful for the industries for making easier trade by sea.

External and Internal Assessment of Dubai Holding The IFE Matrix evaluates and summarizes the primary strengths and weaknesses in a business’ functional areas. Furthermore, the IFE Matrix provides a basis for evaluating and identifying relationships among those areas. Dubai Holding Investment Group LLC does not publish its financials. As such, when determining the company’s strengths, factors such as liquidity, inventory turnover, Return on Investment, annual revenue, dent-to-total assets ratio, and various other financial ratios were quite hard to generate. Nevertheless, below is the Internal Factor Evaluation Matrix for Dubai Holding. Internal Factor Evaluation Matrix for Dubai Holding. Key Internal Factors

Weight

Rating

Weighted Score

Strengths 1. Good cash flows from investments in Jumeirah,

0.08

4

0.32

2. High reputation in market

0.07

4

0.28

3. Big property portfolio including Dubai Properties,

0.10

4

0.40

TECOM, and other companies.

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Dubai Retail, and Dubai Asset Management. 4. Excellent employee morale

0.04

3

0.12

5. Annual revenue of 14.69 billion AED

0.06

3

0.18

6. A portfolio of asset worth 129 billion AED.

0.05

3

0.15

7. Dubai Properties Group – company subsidiary – 0.04

2

0.08

0.03

1

0.03

9. Dubai Properties Group ranked in 3rd among Dubai 0.04

1

0.04

clocked in 1895 off-plan sales, an annual increase of 103.5%. 8. Jumeirah al Naseem – subsidiary – becomes first hotel in world to receive prestigious Bureau Veritas safeguard label.

Developers with 8% market share. 10. Recurring revenue assets and new projects.

0.07

3

0.21

11. Dubai Asset Management footprint expansion at

0.04

1

0.04

12. Jumeirah Group’s the Burj Al Arab, which is Dubai’s 0.06

3

0.18

0.07

3

0.21

2. Vulnerable to risks of various local economies.

0.06

3

0.18

3. Significant pressure on working capital requirements.

0.05

1

0.05

4. Dubai Holdings has very little presence in Europe.

0.02

1

0.02

Jaddaf Waterfront residential scheme, the Dubai Wharf and Manazel Al Khor communities. Average occupancy levels have reached 95 per cent%.

most economic property. Weaknesses 1. Competitive pressures from Dubai World

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5. Limited Career Growth Opportunities for employees.

0.02

1

0.02

6. Delay in employee payments as a result of

0.01

1

0.01

7. Lack of flexibility and tendency to micromanagement.

0.03

2

0.06

8. Bureaucratic workplace politics.

0.01

1

0.01

9. A lot of

0.02

1

0.02

0.03 1.0

2

0.06 2.67

administrative insights.

company restructuring which keeps

employees on their toes every time. 10. Weaker Financial Institutions Total

Notably, Dubai Holding’s IFE of 2.67 is above the average of 2.50. Therefore, it can be concluded that Dubai Holdings has a strong internal position even though strategic improvements could be made. Furthermore, the there is one important matrix in the industry: Property portfolio. Dubai Holdings does excellent with a rating of four in having a diversified product portfolio. This thus means that it is important to have a diversified asset portfolio within the industry for success. The company is on a great path in building a sustainable, innovationdriven economy in line with the UAE Government’s Vision 2021 especially with its portfolio of Jumeirah Group, Dubai Properties, Dubai Asset Management, TECOM Group, Dubai Retail, and Arab Media Group. Furthermore, the company’s portfolio operates in a wide range of industries including real estate, hotel management, media and entertainment, and even retail management. However, the company is having major problems with bureaucratic workplace politics, a lot of company restructuring which keeps employees on their toes every time, and delay in employee payments because of administrative insights.

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External Factor Evaluation Matrix for Dubai Holding. Key External Factors Opportunities 1. Diversification in UAE’s multiple industries. 2. Dubai’s

strategy

to

build

a

Weight

Rating

Weighted Score

0.11

3

0.33

sustainable, 0.07

3

0.21

innovation-driven economy in line with the UAE Government’s Vision 2021. 3. Focus on emerging markets

0.06

3

0.18

4. Improve its operational efficiency and increase

0.05

1

0.05

5. Merger with Meraas is an opportunity for 0.07

3

0.21

0.06

2

0.12

7. Asset expansion along the west coast of South 0.05

2

0.10

1

0.04

1

0.03

1

0.03

the capacity of its existing facilities by investing in advanced handling equipment.

sustaining and advancing growth through an integrated and unified vision. 6. Include HMM into Alliance

America 8. New available sites that can be used for 0.04 strategic expansion. 9. Strong signs of recovery in the Dubai property 0.03 sector 10. Putting the current Asset Management and 0.03 Real estate market in perspective and adapting

DUBAI HOLDING to new realities Threats 1. Impact of COVID-19 on business volumes

15

0.09

4

0.36

0.04

1

0.04

0.06

4

0.24

4. ISIS and regional instability

0.03

2

0....