By Mohammad Shoeb
DOHA: Qatar Airways is among five GCC companies in the list of ‘100 Global Challengers’ from emerging markets which are expanding their business operations very rapidly and have started influencing the global market hitherto dominated by major players from advanced countries.
According to a new study by The Boston Consulting Group (BCG) these 100 companies from emerging markets have stood the test of time, moved into the global spotlight, and reshaped the landscape of their industries — and of key geographic markets.
The report titled ‘Global Leaders, Challengers, and Champions: The Engines of Emerging Market’ marks the 10th anniversary of the first publication of BCG’s list of global challengers.
Remarkably, the 2016 edition has the highest number of companies from the Middle East ever. The other four firms from the GCC which have featured in the list include Emirates Global Aluminum, Etihad Airways, Etisalat, and SABIC, a Riyadh-based diversified manufacturing company.
“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.
From 2009-2014, the 2016 global challengers from the Middle East have grown about 1.5 times in revenue size — and some companies such as Emirates Global Aluminum and Qatar Airways have even dramatically doubled in size.
Overall, global challengers from the region have witnessed their revenues rise from approximately $80bn to $133bn — which constitutes nearly 6 percent of the Middle East’s $2.2 trillion GDP (2014). Moreover, they have managed to maintain higher gross margins and revenue CAGRs than many emerging markets such as Latin America and Africa.
“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. “In fact, in terms of profits, between 2005 and 2014, global challengers from the region achieved a growth rate approximately 1.5 times greater than S&P 500 companies and global peers.”
In that very time frame, Middle East challengers generated an earnings before interest and taxes (EBIT) margin of 16 percent; in parallel, S&P 500 companies and global peers, achieved a margin of 12 percent and 11 percent, respectively.
In addition, challengers from the region have also effectively kept pace with local stock indices.
Among the Middle East challengers identified by BCG over years, 12 percent are graduates, 59 percent remain global challengers and 28 percent continue to be successful (they were either acquired or have gone local). In short, none of them declined in size.
Abu Dhabi’s Etihad Airways and Qatar Airways, two of the fastest-growing airlines in the Middle East made both the 2013 and 2014 lists. In recent years, both airlines have succeeded in leveraging the region’s favorable geostrategic location as a transportation hub at the crossroads of Asia-Pacific, Europe, and Africa.The Peninsula
By Mohammad Shoeb
DOHA: Qatar Airways is among five GCC companies in the list of ‘100 Global Challengers’ from emerging markets which are expanding their business operations very rapidly and have started influencing the global market hitherto dominated by major players from advanced countries.
According to a new study by The Boston Consulting Group (BCG) these 100 companies from emerging markets have stood the test of time, moved into the global spotlight, and reshaped the landscape of their industries — and of key geographic markets.
The report titled ‘Global Leaders, Challengers, and Champions: The Engines of Emerging Market’ marks the 10th anniversary of the first publication of BCG’s list of global challengers.
Remarkably, the 2016 edition has the highest number of companies from the Middle East ever. The other four firms from the GCC which have featured in the list include Emirates Global Aluminum, Etihad Airways, Etisalat, and SABIC, a Riyadh-based diversified manufacturing company.
“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.
From 2009-2014, the 2016 global challengers from the Middle East have grown about 1.5 times in revenue size — and some companies such as Emirates Global Aluminum and Qatar Airways have even dramatically doubled in size.
Overall, global challengers from the region have witnessed their revenues rise from approximately $80bn to $133bn — which constitutes nearly 6 percent of the Middle East’s $2.2 trillion GDP (2014). Moreover, they have managed to maintain higher gross margins and revenue CAGRs than many emerging markets such as Latin America and Africa.
“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. “In fact, in terms of profits, between 2005 and 2014, global challengers from the region achieved a growth rate approximately 1.5 times greater than S&P 500 companies and global peers.”
In that very time frame, Middle East challengers generated an earnings before interest and taxes (EBIT) margin of 16 percent; in parallel, S&P 500 companies and global peers, achieved a margin of 12 percent and 11 percent, respectively.
In addition, challengers from the region have also effectively kept pace with local stock indices.
Among the Middle East challengers identified by BCG over years, 12 percent are graduates, 59 percent remain global challengers and 28 percent continue to be successful (they were either acquired or have gone local). In short, none of them declined in size.
Abu Dhabi’s Etihad Airways and Qatar Airways, two of the fastest-growing airlines in the Middle East made both the 2013 and 2014 lists. In recent years, both airlines have succeeded in leveraging the region’s favorable geostrategic location as a transportation hub at the crossroads of Asia-Pacific, Europe, and Africa.The Peninsula
