A total of five companies from the GCC and one from the Middle East have been highlighted on a list of 100 companies from emerging markets that have showcased stability, growth and development, according to a new study by The Boston Consulting Group (BCG).

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.

The regional firms on the 2016 edition includes Emirates Global Aluminum, Etihad Airways, El Sewedy Electric, Etisalat, Qatar Airways, and Saudi Basic Industries Corp (Sabic), said the report.

Cristiano Rizzi, partner and managing director in BCG's Dubai office, said: “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.”

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 $80 billion to $133 billion – which constitutes nearly 6 per cent of the Middle East’s $2.2T gross domestic product (2014).

Moreover, they have managed to maintain higher gross margins and revenue compound annual growth rate (CAGRs) than many emerging markets such as Latin America and Africa, added the report.
 
Mirko Rubeis, partner and managing director in BCG's Dubai office, said: “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.”

“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,” he said.

In that very time frame, Middle East challengers generated an earnings before interest and taxes (EBIT) margin of 16 per cent; in parallel, S&P 500 companies and global peers, achieved a margin of 12 per cent and 11 per cent, respectively, said the report.

In addition, challengers from the region have also effectively kept pace with local stock indices, it added. – TradeArabia News Service