Aldar Properties - Analysis of Company Risks

United Arab Emirates University

College of Business and Economies

Department of Accounting

ACCT315 – Principals of Auditing

Class Project – Analysis of Company risks

ALDAR Properties PJSC

Spring 2010

Done by

Abdelrahman M. Elfeky – 200734721

Mohamed AlSaleh – 200734874

Ahmed Hassan Hajjo – 200734684

Foad Al-Marsoqi - 200703119

Mana Al-Shamisi - 200734679

Yassir Riyad - 200633384

Submitted to

Dr. Nirosh Kuruppu

Page 1

Contents

1. Introduction ………………………………………………………………..3

2. ALDAR Mission and Vision ………………………………………………3

3. Industry Analysis

i) Current Economic Trends ………………………………………………4

ii) Regulatory environment affecting the company’s industry …………….4

iii) Components of the balance sheet of the companies in the industry that

would represent high risk ……………………………………………….5

4. Business strategy of ALDAR ……………………………………………….8

5. Key Competitors …………………………………………………………….8

6. Key business process ……………………………………………………….10

7. Financial resources availability……………………………………………..10

8. Major Risks and implications of those risks for the conduct of the audit ….11

Page 2

Introduction

Since the establishment of the UAE, the local economy began to evolve at a rapid

pace. One of the major outcomes of this development is a dramatic construction boom in most of

the emirates, especially Abu Dhabi. In this research we chose ‘ALDAR Properties’ as an

example to study and analysis of all the financial aspects and the risks expected, which may

affect the company.

Aldar Properties PJSC was first-launched in 2001 in Abu Dhabi City , the capital of

United Arab Emirates as the premier real estate development management and investment

organization in Abu Dhabi. This development company is owned by Abu Dhabi Institution,

founder shareholders and individual investors. It has a key competitive advantage due to large

resources and high level of the management experience and Abu Dhabi government support inunder taking large scale projects. Aldar...