Three Middle East manufacturing and industrial powerhouses are among six companies from the region named as ‘Global Challengers’ by The Boston Consulting Group (BCG), in recognition of their rapid growth, global expansion and emerging position as leaders in key markets.

They include Emirates Global Aluminium (EGA) of the UAE, Saudi Basic Industries Corporation (Sabic) of Saudi Arabia, and El Sewedy Electric of Egypt.

The 2014 BCG Global Challengers report sheds light on the innovative business models, strategies, and challenges arising from emerging markets.

It also highlighted how these companies are rapidly gaining success in developing capabilities beyond low-cost manufacturing.

It has identified 100 fast-growing companies that are from emerging markets and are shaking up the global economy through success overseas.

The list features companies from 18 countries, eight more than on the original 2006 list, including ones from Qatar, Saudi Arabia, Egypt and the UAE. The BRIC nations of Brazil, Russia, India, and China, once home to 84 challengers, are now down to 65.

Several of the new global challengers come from new categories, including quick-serve restaurants and beverages.

Thomas Bradtke, partner and managing director in BCG’s Dubai office and originator of its Global Challenger report series in 2006, said: “Eight years ago, when we created the global-challenger list, it was dominated by Chinese and Indian manufacturers that largely competed on the basis of low costs. Today, the global challengers come from a much wider range of industries and countries – and increasingly from consumer goods sectors.”

This year, the Middle East is also home to two ‘graduate’ companies, one of which is oil giant Saudi Aramco.

Cristiano Rizzi, partner and managing director in BCG’s Dubai office, said: “The Middle East challengers for 2014 are growing up rapidly, relying on innovation, talent and other strengths to win.

“Their work, however, is not done. To become global leaders, they need to develop even deeper benches of talent and strengthen current people practices. And, as the cost advantage of global challengers shrinks, they need to become increasingly innovative – not just pouring money in R&D but also developing a strategic technological landscape and their place within it.”

The report, which has been produced by BCG’s Global Advantage practice area, is based on a comprehensive screening of thousands of companies from emerging markets conducted by BCG experts in each such market.

The screening analyses each company’s international presence, the number and size of its international investments, its M&A (mergers and acquisitions) activity over the past five years, and the strength of its business model. It also compares the size of each company with the size of other challengers and multinational competitors in their industries. As in previous years, the team excludes those companies that pursue only low-end, export-driven businesses.

The final selection is based on these criteria as well as feedback from industry experts around the world.

The other three Middle East global challengers are Etihad Airways and Emirates Telecommunications Corporation (Etisalat), both from the UAE, and Qatar Airways of Qatar, while the other Middle East graduate is Emirates airline of the UAE. - TradeArabia News Service