Sunday, Aug 07, 2016

Dubai: Some companies in the UAE have just been named among the top 100 global “challengers” from emerging markets that have continued to power ahead amid economic uncertainty.

The 2016 Boston Consulting Group (BCG) report, “Global Leaders, Challengers and Champions: The Engines of Emerging Market”, 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.

Overall, companies from the region who made it to the BCG’s list of challengers have witnessed their revenues grow from approximately $80 billion to $133 billion, which represents nearly six per cent of the Middle East’s 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.

“The global challengers are the leading edge of a much larger group of companies from emerging markets that, despite economic uncertainty, are powering ahead with confidence and ambition,” said Cristiano Rizzi, partner and managing director in BCG’s Dubai office.

“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,” added 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 emphasised 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.”

Staff Report

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