Portfolio Management Analyses of Qatar-Based Organizations - Research Paper Example

There are organizations within the service industry providing various services to their clients. The service industry is one of the most pivotal sectors within the economy of Qatar. Service industries struggle to satisfy citizens as well as residents within the Qatar economy in a bid to enhance their welfare and standard of living. In addition, the service industry is amongst the fast-growing sectors of Qatar's economy. Therefore, the following is a portfolio management analysis of the abovementioned organizations.

Qatar Oman Investment Company Macroeconomic Analysis Evidently, statistics indicate that Qatar is one of the fastest-growing economies in the world. Since 2010, Qatar’s GDP has been tremendously increasing based on oil prices. Moreover, Qatar has been ranked amongst the top countries in respect to the rate of growth. Given the increasing GDP, the service industry within Qatar continues to benefit from such macroeconomic improvements. The improvements of the macroeconomic aspects within Qatar have provided opportunities for project development especially those based on aspects that are not connected to oil or natural gas.

Qatar continues to enjoy the improving aspects of the GCC or UAE economy. Some of the macroeconomic aspects that continue to improve within the GCC and UAE, which have been experienced within Qatar, include economic growth, the decline in inflations, stable currency, and fiscal position. It is amazing that the economy of the GCC and UAE region has tripled between 2002 and 2008 with potential aspects of continued growth. Qatar’s economy has continued to grow within the same range, hence providing more opportunities for firms.

Figure 1: Economic Growth between 2002 and 2011e On the other hand, the inflation rates within Qatar, UAE, and GCC regions have continued to decrease considerably. Such low inflations make it possible for organizations to charge reasonable prices hence do not send away the consumers. The inflation rate trend between 2004 and 2011 is illustrated in the following graph: Figure 2: Inflation rate
Trend another macroeconomic variable that has been useful for the operations of firms within Qatar includes fiscal position, currency, and external accounts.

In respect to fiscal position, the region has continued to have a budget surplus of approximately 25.3% of the GDP in 2008, which grew courtesy of increasing oil prices. Figure 3: Fiscal position of the economy, In addition, the currency is fairly stable given the good monetary policies that Qatar has continued to use. Such monetary policies have remained focused on helping to attain and maintain fixed exchange rates with respect to the US Dollar. Figure 4: Stability of the Currency within Qatar and other UAE counterparts Lastly, Qatar, just like the other UAE counterparts, has continued to enjoy huge surpluses on trade as well as current accounts between 2004 and 2008.

This trend is likely to continue despite the disturbances caused by the global financial and economic crises.
Figure 5: Current Account of the Economy Industry Analysis
In relation to other firms or companies within the same sector, Qatar Oman Investment Company performs better as portrayed in the following data.