SABIC, Almarai among 100 global ‘challenger’ companies

Thirteen companies from the Middle East, including two from Saudi Arabia namely SABIC and Almarai, are among a new class of ‘global challengers’ that are leapfrogging their developed market counterparts to achieve global leadership positions according to a report by Boston Consulting Group (BCG).

Only four companies globally, including SABIC, graduated to become global leaders, according to the report, 'Global Challengers 2018: Digital Leapfrogs'.

Also read: SABIC ranked 4th among top 100 petrochemical firms in 2016: ICIS

Two of the four global challenger graduates—Alibaba and Tencent—are digital powerhouses whose position and influence in their home market of China, as well as elsewhere, rival those of Western digital leaders such as Amazon and Facebook, the BCG report added.

UAE’s Etisalat and Emirates Global Aluminium, are among the companies driving the digital revolution that feature on the list.

Global challengers continue to produce outstanding value from traditional and digital assets, BCG noted. They have multinational physical footprints from which to serve global and local client needs. They have built influential brands that attract and retain a growing customer base.

“Talented workforces deliver high-quality products and services, and proven operating models have built track records of consistent success. Innovation, based on extensive know-how, stays high on global challengers’ agendas,” the report added.

Also, in terms of long-term (2000–2016) total shareholder return, the BCG Global Challengers 100 have substantially outperformed their global peers, the S&P 500, and the MSCI Emerging Markets Index, BCG added.

“Going forward, we believe the global challengers are well positioned to use their digital assets and advantages to capitalize on a number of the defining characteristics of emerging markets,” it maintained.