Dubai: Amid reports of job losses, slowing revenues and declining oil prices, there are organisations that have stood against all odds. These companies, some of them based in the UAE, have just been named among the top 100 from emerging markets that have continued to power ahead amid the current global macroeconomic environment.
The 2016 Boston Consulting Group (BCG) “Challengers” report highlighted that at least six organisations in the UAE and other parts of the Middle East have continued to impress: Emirates Global Aluminum, Etihad Airways, El Sewedy Electric, Etisalat, Qatar Airways and SABIC.
The two Gulf carriers on the list, Etihad and Qatar Airways are considered among the fastest-growing airlines in the Middle East. They have succeeded in leveraging the region’s strategic location as a transport hub for Asia-Pacific, Europe and Africa.
Etisalat has earned a name for being one of the largest corporations in the GCC, having served about 11 million customers in the UAE and operated in 17 countries.
Emirates Global Aluminum is the fifth-largest aluminium company and is being recognised for its continued growth. “Looking ahead [the company’s growth] shows no sign of abating. The company has actually rolled out international expansion plans,” said BCG.
Chemicals giant SABIC in Saudi Arabia is the largest public company operating in chemicals, polymers and fertilizers in Saudi Arabia. It has more than 100 offices worldwide.
Elsewedy is a leading manufacturer of electrical wires and cable in Egypt. This firm, as well as SABIC, have continued to “impress with their scale and international market positions”, according to BCG.
Companies from the region who made it to the BCG list have been recognised for making their revenues grow from approximately $80 billion to $133 billion, which represents nearly six per cent of the Middle East’s $2.2 trillion gross domestic product (GDP) for 2014.
They also did quite well in expanding profits, which grew about 1.5 times greater than S&P 500 companies and global peers between 2005 and 2014. Moreover, they maintained higher gross margins and revenue CAGRs than many emerging markets such as Latin America and Africa and kept pace with local stock indices.
“Challengers from the Middle East have been particularly successful in delivering growth and profitability – and most have also managed to create exceptional shareholder value, especially compared to their local and global peers,” said Mirko Rubeis, partner and managing director in BCG’s Dubai office.
The list also highlighted the achievements of Saudi Aramco and Emirates Airlines, which are referred to as “graduate” companies in the BCG list. “[These two companies] are becoming true global leaders in their respective fields,” the BCG report stated.
These two companies share five key attributes that include having an ambitious global vision, global culture and commitment to global standards, according to BCG.
“For example, Emirates Airlines has, since its founding, strongly emphasized innovation and global branding. It has become a world-class airline providing a superior passenger experience. And it has reported a remarkable record of 26 consecutive profitable years,” said BCG.
“As for Saudi Aramco, it is, today, the largest integrated global petroleum enterprise in the world, with ventures all over the globe.”
