OIC (Organization of Islamic Conference)OIC (Organization of Islamic Conference)

With US $1.08 trillion in total revenues (based on EOY 2006 data) and a healthy 14.5% in revenue growth over the year before, the ranking shows the continuing strengthening of the Muslim world economies. (Fortune 100 Global Company revenues grew 10% in the same period.)

The 20 Integrated Oil & Gas Companies on the list continued their dominance representing 65% of the total DS100 company revenues. However, the biggest year on year growth in revenues was logged by construction services companies at 74%, followed by 43% by the transportation services sector, 34% by Basic materials (chemical, iron, copper, other) sector and 27% by the Finance sector. Meanwhile, the integrated Oil & Gas Companies logged a year on year revenue growth of 21%.

Much of the growth has resulted from major M&A activity and an ability to expand regionally and globally. Turkey's Koc Holding acquired Turkish Petroleum Refineries Corporation (Tupras) and Yapi Kredi Bank, Saudi OgerSaudi Oger benefited from its Turk Telekom acquisition, and Malaysian Sime Darby merged with Golden Hope Plantations and Kumpulan Guthrie. Many other companies such as DP WorldDP World (UAE), ZainZain (Kuwait), SABICSABIC (Saudi Arabia), and Orascom TelecomOrascom Telecom (Egypt) employed acquisitions as a key part of their growth strategies.

First time entrants on the DS100 include Agility (Kuwait- transportation services), Goldas (Turkey- Jewelry manufacturing), DPWorld (UAE- marine cargo services), and Sui Northern Gas (Pakistan- natural gas distribution.) Meanwhile, the biggest disappointment of the list was Malaysian automobile manufacturer Proton, whose revenue of $1.48 billion was 33% less than that of its previous year - knocking it off the DS100 list for the first time. The minimum threshold to be on the 2007 DS100 list was $1.72 billion.

Global Comparison
Globally, the DS100 Companies represent a mere 10.6% of the $10.2 trillion in revenues attributed to the global 100 companies from Fortune magazine's 2007 Global 500 list.

However, a higher revenue growth of 14.5% by DS100 companies against the world 100's revenue growth of 10% is a positive sign.

Petronas (Malaysia), SABICSABIC (Saudi Arabia), and KOC Holding (Turkey) are the only three DS100 companies also on the Fortune 500 Global list. Meanwhile, no brands from OICOIC member countries made it to the BW/Interbrand Top 100 Global Brand list.

Industry Breakdown
Saudi AramcoSaudi Aramco, the world's top oil producer, continues to lead the DS100 list as the largest business enterprise of the Muslim world recording an estimated 19% rise in its revenues from the year before.

Overall, the energy sector continues to confirm its dominance based on the mere fact that 9 out of the 10 top companies on the list are all state-owned Integrated Oil & Gas companies of which Kuwait PetroleumKuwait Petroleum (#3 rank) showed the biggest growth of 38% in estimated revenues compared to previous year.

However, the ten largest growth companies in the ranking were all non-energy specific. Saudi OgerSaudi Oger, the Saudi Arabia native construction and telecom services Company showed an impressive year to year 142% revenue growth followed by AgilityAgility (124%), Kuwait based freight trucking player. Other big gainers include ZainZain (108%), Kazakhmys (94%), Koc Holding (90%), Consolidated Contractors International (79%), Emaar PropertiesEmaar Properties (67%) The Lion Group (52%), and IOI Group (47%).

Even with the energy sector's top placement on the ranking, it's the diversified companies that represent the largest sector on the list (21 of 100), with the Turkish family owned conglomerates such as Koc Holding, Sabanci Holding, and Dogan Holding which have the highest revenues.

Finance continues to be the next most represented sector (17 of 100) with Turkish banks Ziraat Bank (#21), IsBank (#25), Akbank (#30), leading the list, followed by Malaysia's Maybank Group (#44). Saudi Arabia, Indonesian and Jordan based banks are also represented.

The other major sector is Telecom with 9 companies represented and led by Saudi TelecomSaudi Telecom (#20), Telecom Indonesia (#34) and Telkom Malaysia (#40). This continues to be the most exciting sector with a flurry of privatization, market expansion and innovation activities. The other key industries represented in the DS100 include Food Processing, Airlines, Construction, Automotive, Basic Materials, Consumer Appliances and Utilities.

Publicly Listed vs. Government and Private Companies
The number of publicly listed companies on the DS100 modestly increased in this years ranking. The 2007 DS100 list has 57 publicly traded firms from 13 countries compared to the previous year's 55 firms from 11 countries.

Turkey based Koc Holding--a diversified electronics, automotive, energy, finance, and retail giant, has jumped to the number one spot of publicly traded companies on the list. It surpassed SABICSABIC - Saudi Basic Industries CorporationSaudi Basic Industries Corporation, a leading global petrochemical company, by almost doubling its revenue to $34.5 billion (led by major acquisitions of Turkish Petroleum Refineries Corporation (Tupras) and Yapi Kredi Bank, and a strong performance of its existing group companies.)

While a majority of the companies on the DS100 are publicly traded, the bulk of the total revenue, more than 65%, is attributed to the 27 Government owned companies on the list signifying their powerful roles in the respective economies. This trend remained mostly the same from the year before, although there was a slight drop of 2% (67% last year) in the Government owned companies revenue share of the DS100. At the same time it should be noted that some of the 'Listed' companies still have majority Government ownership and are at different stages of privatization drives.

In regards to Privately held companies, the ranking this year has 16 private enterprises compared to 17 last year. Data was available for these companies through public sources. Sabanci Group (Turkey) leads this list, followed by Saudi OgerSaudi Oger (Saudi Arabia), and Dallah Albaraka GroupDallah Albaraka Group (Saudi Arabia). Even though there is a small representation of Private Companies on the list, it is believed that there are many for whom data was not available and hence were not included*.

Turkish, Malaysian, Saudi and Indonesian
Companies lead the List
Companies from 20 out of the 57 OICOIC member countries are on the DS100.

Turkish companies continue to lead the list with 24 represented enterprises, followed by 17 from Malaysia, 15 from Saudi Arabia, 9 from Indonesia, and 7 from the UAE. Other countries represented include the Egypt, Kuwait, Pakistan, Iran, Nigeria, Morocco, Kazakhstan, Bahrain, and Algeria.

Ranking Purpose & Challenges
The purpose of the DS100 (in its fourth year) is to portray as close a picture as possible of the leading domestic business activities in the OIC (Organization of Islamic Conference)OIC (Organization of Islamic Conference) member countries while providing its corporate managers and strategists with a tool to benchmark trends and identify opportunities.

At the same time, the DS100 aims to recognize companies that are leading the charge in the global competitive landscape and are making a significant impact in the well-being of their communities.

The ranking is purely based on 2006 end of year annual revenue figures. It continues to include Government and Private enterprises to reflect their disproportionately significant role in the Muslim world economies. At the same time, more than half of the list is comprised of publicly listed companies (57 of 100) from the growing public markets of the Muslim World.

Only those private and government enterprises are included for whom data could be estimated or verified through various media sources. This continues to be a challenge. However, a visible positive trend towards better corporate governance, transparency practices, and privatization is facilitating a clearer view of the corporate environment in the Muslim World.

In order to accommodate for corrections, the ranking will maintain a Corrections section online. This will be particularly true in the case of privately held or government businesses. Also, a select list of businesses which we think may have made it to the DS100 list but whose revenues we were unable to verify are included below.

© Dinar Standard 2008