UAE is one of the prospering economies of the world whose per capital income is in par with some of the most developed nations of Europe. This is attributable to the oil revenues and the booming real estate market. This boom created a base for competition in the country market from different sectors like industrial sector especially mentioned the “Cement Industry”. Cement industry is fast growing due to the growing real estate market in the country and especially in Dubai and Abu Dhabi.
At present, there are nine cement factories in United Arab Emirates and they produce 8. 5 million tons of cement every year. The emirate of Ras Al Khamah is the largest cement producer in United Arab Emirates. In our report, we studied the cement industry in UAE and analyzed them financially for the years from 2008 to 2010. Assuming that three main cement producers in the Emirate of Ras Al Khaimah will represent the whole cement market as they are the biggest cement producers according to the economic publications and their level of productions.
The analysis included Union Cement Company (UCC), Gulf Cement Company (GCC) and Ras Al Khaima Cement Company (RAKCC). The choice of the companies based on the similarity of their core business and productions activities beside the fact that they all listed in Abu Dhabi Securities Exchange market (ADX) giving us the opportunity for fair comparison. Financial analysis for the companies based on their published annual financial reports in ADX has been conducted to check their financial performance for the years from 2008 to 2010.
The analysis take in consideration the corporate governance mechanism conducted in each company to check the effectiveness of the corporate governance on their financial performance in the market. Assuming the average of the three companies will represent the market, an overall ranking of the best company in the market is conducted based on financial analysis ratios and their corporate governance mechanism implemnted.