...AIR ARABIA PJSC Highlights FIN 324 Research Report Date : RE Economic Impact: In 2010-2011, the Middle Eastern carrier traffic rose by 8.9% and the passenger traffic rose by 6% which shows that air travel has become the preferred method of transportation in this region. There was a rise in fuel prices by 36.6% compared to 2010 and the airline hedged 17% of its fuel consumption in 2011. According to IATA, International freight demand will grow at 4.9% in the Middle East, the strongest growth among the regions. Price: AED 0.59 Ticker: PJSC Recommendation: BUY Price Target : AED 0.79 Future Plans: Air Arabia plans to remain focused by capitalizing on their strength and remains the leading low cast air travel provider for the region with more number of destinations and highest-quality services. It aims at establishing more hubs to Link the whole range of the Arab World to Africa and Europe. It also signed agreement with Airbus to acquire 44 A320 aircraft by 2016. Financial Analysis: As of 2011, the ROA decreased from 4.86% in 2010 to 3.85%. The ROE also dropped slightly by 0.54%. Profitability and asset management ratios decreased by a slight percentage but the airline portrays operating efficiency. In addition the liquidity position of the firm is very strong and the airline has seen a reduction in its dividend payout ratio. Buy Recommendation: Based on the target price of Air Arabia’s Stock, the recommendation is to BUY. As we can see in the appendix...
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...Air Arabia, as a national carrier of Sharjah, has been successful in targeting its customers since its start. The reason behind this is that they were able to create awareness in customers’ mind thought tight marketing strategies and through campaigns. Currently, Air Arabia knows that within last 5-7 years, many low-cost carriers were introduced plus the big airlines have also started to reduce their tickets prices. So Air Arabia, along with low prices, started to give many services with the same prices. Recently, Air Arabia started giving their customers easy visa services but for that awareness was necessary, so they started doing outdoor campaigns using billboards everywhere where they felt is a good place to attract customers, especially in UAE. They also provided their customers with “King Meals” which they can order online when purchasing tickets and can also order on board. They also provided their customers with more leg spaces so that they can have their journey in a more comfortable way. Air Arabia has also recently started product-print campaigns, in which they show their customers some special product which their customers relate themselves like showing a clock with headphones and telling that their customer service is now 24 hours, showing remote control and putting keys arrangements as in their fleets and telling their customers that now they can reserve their favorite seats, either the middle seats or window ones. Air Arabia has also joined another campaign...
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...Project - Air Arabia and Gulf Airlines Name University Introduction The project is based on the financial analysis of the two companies from the airline industry. The first company is Air Arabia and the second company is Gulf Airline. Air Arabia which was established by the King of Sharjah in the year 2003 is known as the best economic mode of air travelling in the United Arab Emirates. The company continued to provide economic and valued services to its customers through the last decade and has been successful in penetrating the Air traffic business. The company did not limit its operation only to the Arab countries but also expanded its business operations to the Europe and other parts of the world. The Air Arabia destinations not the Arab countries but also reached the European destinations like Casablanca and the Cairo. The company believes in expanding its business operations and for this reason, it has established its subsidiaries airlines in the other Arab countries as well. The company is performing air travelling operations through its subsidiaries companies in Egypt and Morocco as well. The company today operates its flight to 88 destinations across the globe. The company planes lands on the destinations ranging from Arabia, Middle East, Asia to Europe and Africa. The company believes in offering comfortable and reliable journey for its passengers at the lowest possible fares and with this business strategy, millions of passengers have travelled through Air Arabia...
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...was under Iraqi control. Saudi Arabia was likely to be the Hussein regime’s next target. On 6 August 1990, King Fahd bin Abd al-‘Aziz Al Sa’ad of Saudi Arabia invited friendly nations to participate in the defense of the royal kingdom, marking the beginning of Operation Desert Shield, the deployment of U.S. military forces to protect the Gulf region from further Iraqi encroachment. By 21 August, fighter, attack, reconnaissance, electronic warfare, airlift, and tanker aircraft were based in the Gulf region. That day, Secretary of Defense Richard Cheney declared that the threat of an Iraqi invasion of Saudi Arabia had ended. In November 1990, the United Nations passed Resolution 678 authorizing the use of force to expel Iraq from Kuwait if Iraq did not leave by 15 January 1991. President George Bush requested congressional concurrence in the UN resolution, and, following lengthy and forthright debate, the Congress joined with the Bush administration in bipartisan votes of support on 12 January 1991. Saddam Hussein still showed no signs of leaving Kuwait, and the deadline of the 15th passed. Accordingly, President Bush signed a National Security Directive authorizing military action. The violence of Desert Storm broke suddenly and furiously at 3 a.m. Baghdad time on 17 January 1991 as waves of coalition aircraft set forth on the largest air campaign since World War II. By dawn, Iraq was well on the way to losing the war, thanks to the strategic air campaign. The early morning attacks...
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...Feasibility Study and Business Plan – Al Hayat ECOFIN Research Services Feasibility Study and Business Plan to set up a Domestic Electrical Appliances Distribution Company in Saudi Arabia Al Hayat International Holding Co., Saudi Arabia Sole Distributor of Green World Electronics Co., USA September 22, 2008 1 Feasibility Study and Business Plan – Al Hayat Content 1. Executive Summary 2. Introduction - Al-Hayat International Holding Co. 2.1. About ECOFIN Research Services 2.2. About the Promoter 2.3. Project Background 2.4. The Franchise Concept 2.5. About Green World Electronics Co. ECOFIN Research Services Page 07 11 11 11 14 14 15 3. Success Stories of Electronics Retailing and Distribution Companies around the World17 3.1. Best Buy 3.2. GOME Electrical Appliances Holding Ltd. 3.3. Jumbo Electronics Co. 3.4. Media Market 3.5. NEXT Retail India Ltd. 17 18 20 22 24 4. Favorable Investment Environment 4.1. Investment Climate in Saudi Arabia 4.2. Overview of the Retail Industry in Saudi Arabia 4.3. Saudi Domestic Electrical Appliances Sector 4.4. Key Drivers for Saudi Domestic Electrical Appliance Industry 4.5. Saudi Domestic Electrical Appliance Industry – Major Trends and Forecast 4.6. Conclusion 27 27 33 40 43 55 56 5. Al-Hayat International Holding Co: Strategic Planning 5.1. Stakeholder analysis 5.2. Vision 5.3. Mission 5.4. Strategic Objectives 5.5. USP 58 58 58 58 58 58 6. The Business Plan 6.1. Product and Portfolio Analysis 6.2. Market Segmentation, Targeting...
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...beliefs, traditions, work ethic ( culture) The full name of Saudi Arabia is the Kingdom of Saudi Arabia. Arabic is the official language. In the 7th century, the successor of the Mohammed who was the founder of Islam established Arab empire. The 8th century is a heyday for Saudi Arabia, and its territory crosses Europe, Asia and Africa. However, in the 16th century, Arab empire was ruled by the Ottoman Empire. In the 19th century, The Great Britain invaded into Arab, it was divided into two parts, Hejaz and Nejd. In 1924, the chief of Hejaz in Saudi Arabia merged Nejd and then gradually unified the Arabian Peninsula. Finally, in September 1932, he declared the establishment of Saudi Arabia kingdom. Saudi Arabia is the birthplace of Islam. Islam has become the world’s second large religion. The founder Muhammad established Islam approximately A.D 600 in Mecca; the sacred city of Islam is located in Saudi Arabia. Islam prospers in northwestern Africa, the Middle East, Central Asia, Pakistan, and some Southeast cities. Religion strongly affects consumption behavior of Arabian. For example, Muslim consumers are not allowed to consume alcohol and pork, besides that, the nation is governed under the Law of Islamic. Muslim pray five times a day, the local people usually go to the mosque to do religious service. Women must wear black robes in that day. Some of the traditions and customs in Saudi Arabia are similar to the other countries, but some of them are not. Most social...
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...energy-efficient. So the demand for fuel is logically decreasing. Added to this is the fact, on the supply side, the oil cartel OPEC is determined not to cut production as a way to prop up prices. Moreover, countries like Saudi Arabia, Nigeria and Algeria are now competing to the Asian markets so producers had to drop prices and USA has gave up the imports as its domestic production has doubled these years. Finally lot of competitors are rising such as Canadian, Iraqi or even Russia and they manage to increase their oil production and exports every year. 2. What economic impact would these lower prices have on the world economy including the USA? Like in every changing situation, there are winners and losers. Consumers all around the world will enjoy a main benefit: less expense for the gas! Low prices are excellent news for oil consumers in places like Japan or the US, where gasoline is the cheapest it's been in years. For example, the price of the gallon, in average, fall from $3.28 a year ago to $2.07 and this drop benefit to lower-income groups in America. China, which is set to become the largest net importer of oil, should gain from falling prices and India which import almost all its oil is totally benefit from this situation. Alongside Saudi Arabia, Gulf producers such as the United Arab Emirates and Kuwait have also amassed considerable foreign currency reserves, which means that they could run deficits for several years if...
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...CEPCO (Civil and Electrical Projects COntracting) is a leading construction company with corporate headquarters in Jeddah, Saudi Arabia, and offices throughout Saudi Arabia and the Middle East. CEPCO has been in business since 1977 and provides construction services in the fields of Civil & Infrastructure, Electrical, Electromechanical, Oil, Gas & Power. CEPCO executes projects for civil and electrical projects in Saudi Arabia and in GCC countries, especially in the field of 69 up to 380 kV Cable Systems, Delivery, Installation and Testing of 110 kV Transformers and Substation Construction. They are qualified Turnkey-General Contractors with Saudi Electricity Company – Western, Eastern, Southern and Central Regions. CEPCO has executed a number of projects and had a turnover in excess of $150 million in 2007, and $500 million until end of 2008. In addition to construction services, CEPCO is an authorized agent for world class manufacturers and provides related support and field services. As a privately owned company, CEPCO's current strategy is to enhance its growth by building the company's resources and depth of services provided. Contents [hide] 1 Project fields 1.1 Civil and Infrastructure 1.2 Electrical 1.3 Electromechanical 1.4 Oil, Gas and Power 2 Trade 2.1 Authorized agents 2.2 Associates/Partners 3 References Project fields[edit] Civil and Infrastructure[edit] Specialized for turn-key contracts for water distribution, rainwater evacuation schemes...
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...brand which introduced the concept of a cable music channel. It was launched in America in 1981 and quickly its popularity spread to other similar channels across the world. Over the years MTV developed a reputation for providing programmes with a localized content without diluting down what MTV stood for. MTV using its open western culture and sometimes controversial content was known to air sexually explicit and provocative programmes to a youthful audience. The Middle East is highly individual and religiously and politically sensitive region with no fewer than 35 Arabic regional dialects. However with a cash rich oil industry and a population of some 120 million people under 25, it is no wonder MTV joined forces with Arabia Media Group (largest media group in UAE) to launch the Arabic version of MTV in November 2007. As a free to air music television channel, it was launched and rebranded as MTV Middle East. MTV Arabia shows Arabic music videos and locally produced programmes as well as popular US programmes such as the “The Hills” and “Jackass.” There are approx. 370 other free to air channels in the region. The market is reported to be worth 2.5bn to 3bn US dollars and is growing at a rate of approximately 30%. Another important factor is that there is no established TV rating system which means advertisement slots are being sold against shows that the ruling families in the region vote to be good! Innovation Competitors Economics Demographics Regulations...
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...Because there are a lot of low cost airlines in Indonesia, Garuda Indonesia need to create their own low cost brand called Citilink. Citilink is created by Garuda Indonesia to take over the majority of Indonesian customer that needs low cost fee transportation. This will give a positive impact for Garuda Indonesia, and because of the existence of City Link, an airline price will be more competitive. 2. Growing Buyer Preferences With a lot of demand by customer in increasing international flight, Garuda Indonesia add more flight to Japan and Saudi Arabia. This off course a really good change made by Garuda Indonesia, because increasing demand means more profit for them. Not only for international flight, Garuda Indonesia also getting a lot of demand for Citilink domestic flight. In 2015 there will be more option for domestic flight from Citilink. 3. Increasing Globalization By add more international flight to Japan and Saudi Arabia, Garuda Indonesia also make some contract with local company in order to press the cost of add a new flight. Right now 50% of Indonesia – Japan flight is occupied by Garuda Indonesia, and Garuda is targeting 20% more by associating with All Nippon Airways. And in the end of 2015 their target is 65% of the flight, and 70% in the 2016. If there is a change, there will be an impact also. The impact in Garuda Indonesia decision in opening Citilink is making airline price in Indonesia become more Competitive. A lot of discount and promos from other airline...
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...Executive Summary The purpose of this business proposal is to gain investor interest in capitalizing on Saudi Arabia’s blooming construction industry. Due to the lack of demand in the US, Future Growth Inc. has cut down on manufacturing construction and forestry machinery. The emerging demand for heavy machinery in the Middle East motivates FGI to increase barriers to entry in the construction industry by using pricing and nonpricing strategies. FGI needs financial support in the endeavor to enter the global economy with significant advertisement and appropriate prices. Week 4 Business Proposal Future Growth Inc. (FGI) has the ability and determination to succeed. Since 1951 FGI has built, sold, and financed its own brand of construction and forestry equipment with increased profits year after year. Due to the falling American economy, profits declined 30 percent, one-third of FGI’s workforce was laid off, and the domino effect of reduced new-home sales has hindered the entire construction industry. Despite the economic downturn, hospitals and nursing homes still have a demand for new buildings in the United States (University of Phoenix). Future Growth Inc. manufactures heavy construction equipment used for the development of residential and nonresidential buildings, energy and manufacturing plants, water lines, roads, and bridges. Such heavy equipment consists of bulldozers, large cranes, mixers, pavers, and off-highway trucks. Being experienced in the industry...
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...you’re a lucky lone star rider, in which case you’ll probably have a much easier time. Fortunately, my group and I are not strangers to this environment. We know to limit the amount of checked bags and the exact weight constraints on all carry-on luggage. Passports and tickets should be hidden-yet easily accessible—in our traveling satchels. Although I am pretty familiar with my departure grounds, my destination is new territory that I will be calling my home for the better half of two years. I have been to the Middle East to visit my working expat father before, but never to attempt to establish a life for myself there. The destination I am referring to is Qatar, a small peninsula creeping out of the Persian Gulf bordering Saudi Arabia to the south. My father is a construction engineer and had been working on a project building a large commercial mall in Saudi’s capital, Riyadh for the past three years. I visited him there at the beginning of the 2010 summer for about a week. I wouldn’t have wanted to stay an hour longer as I might have been a victim of heatstroke or third-degree sunburns! He would try to dilute the conditions with optimism such as claiming the climate is tolerable because it is a dry heat; but, at a sweltering 130 degrees Fahrenheit during the day, it’s still more unbearable than having nature call for an entire twelve hour flight. It was interesting to witness a country of...
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...The Persian Gulf War Iraqi leader Saddam Hussein ordered the invasion and occupation of neighboring Kuwait in early August 1990. Alarmed by actions, fellow Arab powers such as Saudi Arabia and Egypt called on the United States and other Western nations to interfere. Hussein refused United Nations Security Council demands removed from Kuwait by January 1991, and the Persian Gulf War began with a massive U.S. led air offensive known as Operation Desert Storm. After 42 days of constant attacks by the allied coalition in the air and on the ground. U.S. President George H.W. Bush declared a cease-fire on February 28. By that time, most Iraqi forces in Kuwait had either surrendered or fled. Even though the Persian Gulf War was initially considered an unqualified success for the international coalition, firing conflict in that region led to a second Gulf War known as the Iraq War, that began in 2003. Adding to Hussein’s speech, Iraq had begun amassing troops on Kuwait’s border. Surprised by these actions, President Hosni Mubarak of Egypt initiated negotiations between Iraq and Kuwait in an effort to avoid intervention by the United States or other powers from outside the Gulf region. Hussein broke off the negotiations after only two hours. On August 2, 1990 he ordered the invasion of Kuwait. Hussein’s assumption that his fellow Arab states would stand by in the face of his invasion of Kuwait, and by not calling in outside help to stop it. Two-thirds of the 21 members of the Arab League...
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...Petroleum and Minerals, P.O. Box 667, Dhahran 31261, Saudi Arabia E-mail: sghamdi@kfupm.edu.sa M. Sadiq Sohail* Department of Management and Marketing, King Fahd University of Petroleum and Minerals, PO Box 210, Dhahran 31261, Saudi Arabia E-mail: ssohail@kfupm.edu.sa E-mail: sadiqsohail@hotmail.com *Corresponding author Abstract: This paper analyses the competitive advantages of Saudi Arabia in the global petrochemical industry. Porter’s model is used for this purpose. Saudi Arabia, a leading producer of oil, is also the largest worldwide producer of a number of petrochemical products. Competitiveness in the global market demands an examination of comparative advantages and is the reason why Saudi Arabia is yet to succeed in the global market. This paper is an attempt to analyse the industry and to provide strategic alternatives. Keywords: petrochemical; Porter; Saudi Arabia; strategy. Reference to this paper should be made as follows: Al-Ghamdi, S.M. and Sadiq Sohail, M. (2006) ‘Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective’, Journal for International Business and Entrepreneurship Development, Vol. 3, No. 1/2, pp.4–17. Biographical notes: Salem Al-Ghamdi graduated from Virginia Technology in 1994 with a PhD in Strategic Management. He is an Assistant Dean for Graduate Programs of the College of Industrial Management, King Fahd University of Petroleum and Minerals, Saudi Arabia and is an Associate Professor in the Department of...
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...part of the lobby’s ability to shape policy, (Bard, 2004). According to Teitelbaum, (2010), the American-Israel Public Affairs Committee (AIPAC) is a registered lobby being one of the organized groups that try to influence legislation. Other groups like B’nai B’rith and Hadassah do not engage in direct lobbying. However, they disseminate information while encouraging their members to become more involved in political processes. Most times they specifically attempt to lobby on specific issues though they have rarely influenced policy. The Israel lobby grew significantly in the 1980s, but controversy arose from opponents of the lobby and supporters. This was due to the proposed sale of the AWACS warning and command system in 1981 to Saudi Arabia, (Teitelbaum, 2010). This angered many Israeli supporters in the United States. The sale was intended to appease Arab nations in an attempt to promote stability...
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