Six companies from the Middle East were named ‘global challengers’ by The Boston Consulting Group (BCG), in recognition of their rapid growth, global expansion and emerging position as leaders in key markets.

The organisations included Emirates Global Aluminium, Etihad Airways, Etisalat, Qatar Airways, Saudi Basic Industries Corporation (Sabic) and El Sewedy Electric, said a statement.

The 2014 BCG Global Challengers report, entitled ‘Redefining Global Competetive Dynamics: 2014 BCG Global Challengers,’ shed 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 including 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, Saudi Aramco and Emirates.

These international players – both of which also featured in last year’s roster of ‘graduates’ – are starting to closely resemble established multinationals. They are becoming true global leaders in their respective fields, said the report.

Cristiano Rizzi, partner and managing director in BCG’s Dubai office, said: “The six 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.

Companies generally need to have annual revenues totaling at least $1 billion and overseas revenues of at least 10 percent of total revenues, or $500 million.

The screening analyses each company’s international presence, the number and size of its international investments, its M&A 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. - TradeArabia News Service