By Mehmood-Ul-Hassan Khan
According to Boston Consulting Group (BCG) January 2011, the United Arab Emirates companies are creating new history of efficacy, service and profitability in 2010 and are now in a strong position to be included in the list of 100 firms from the emerging markets that can challenge existing Fortune 500 firms over the next five years. The BCG said that the global port operator DP World, Emirates, and telecom major Etisalat have now secured a place of honour in the list of 100 companies that can take on the global corporate titans.
In a report titled ‘BCG Global Challengers 2011 said that these three companies including Saudi Basic Industries Corporation and El Sewedy Electric of Egypt fromare the “hidden engines” of the world economy. This year, overall, there are 23 new challengers in the list from 16 countries. “These companies can qualify for inclusion in the Fortune Global 500 in five years as they grow faster and more profitably than MNCs from developed world. Overall, the global challengers generated revenues of $1.3 trillion in 2009. These companies also grew annually by 18 per cent.
The report further mentioned that the inclusion of the UAE, Saudi Arabia and Egypt reflect the growing economic importance of the Middle East in general, and these countries in particular. It also verifies the rapid diversification of economies in the region. These companies achieved success and maintained growth rate due to having unique business and operating models, technological strength or the ability to penetrate fast growing in a not so friendly markets.