CAIRO, 27 February 2005 — While oil and gas companies continue to dominate the market in Muslim countries, there is some evidence that other businesses are surprisingly coming to the fore. This is particularly true to the first ever ranking of top 100 domestic firms in the Islamic world released by Dinar Standard (DS), a new business strategy e-magazine based in New Jersey.
The DS100 list is based purely on 2003 or latest revenues of the 57 member countries of the Organization of the Islamic Conference (OIC) - the combined total revenue of the DS100 was $512 billion in 2003.
Dinar Standard, which aims at raising the bar of competitiveness of businesses in the Muslim world and the level of thinking and ability to compete globally, said that the goal of the list is providing practical, actionable strategies that highlight the approaches, and practices of global brands and address issues unique to the Muslim world. “The goal of creating the list was to raise the competitive spirit of the companies in the Muslim world,” said Rafi-uddin Shikoh, editor of Dinar Standard. “At the same time, the DS100 aims to recognize companies that are leading the charge in the global competitive landscape and are making a significant impact in the well-being of their communities,” he explained.
Shikoh told Arab News that the rankings try to reflect a close picture of leading business activities by also providing strategists with “a tool to benchmark trends and identify major opportunities.”
Ranking companies of the OIC, however, was not an easy job according to Shikoh since the list includes “private, family, or government held business for whom data could be estimated or verified through various media sources. “The list, however, is a new tool to benchmark trends in the Muslim countries for those looking for establishing new businesses in these countries.”
The first ranked company in the list is Saudi Aramco, the top oil producer in the world, supplying 11 percent of its oil demand, with $83 billion revenues. The next seven companies on the rankings are also state-owned integrated oil and gas companies including National Iranian Oil Company, Abu Dhabi National Oil Co., Kuwaiti Petroleum Corp. and Iraq National Oil Company.
While, energy sector represents 18 percent of the companies ranked, the list also shows a rich diversity of companies that are leading their markets.
In fact, diversified companies represent the largest industry sector of the list with 21 percent led by Turkish family-owned conglomerates Koc Holding ($10.99 billion) which is a leader in the automotive industry, household appliances, financial services and information technologies. Financial Services companies follow with 20 percent of the list led with Turkish banks such as Ziraat Bank ($8.29 billion) and IsBank ($4,29 billion). The other major sectors include telecoms with 10 percent led by Saudi Telecom Company ($7.35 billion), Turk Telekom ($5.11 billion) and Telkom Indonesia ($3.23 billion), and transportation that represent 6 percent of the list as well as capital goods with 4 percent.
Interestingly, 59 of the 100 companies on the list are publicly traded in 11 countries led by the Saudi Basic Industries Corporation, the Middle East’s largest non-oil industrial company, followed by the Turkish giant Koc Holding. Privately held companies represent only 11 companies led by the Saudi Kingdom Holding Company followed by the Turkish Sabanci Group and Dallah Albaraka Group, which is also a Saudi firm.
Overall, only 18 out of 57 member countries of the OIC have made their way to the rankings. Turkish companies formed the first largest number in the DS100 list followed by Malaysia with 22 companies, Saudi Arabia with 15 companies, Indonesia with 11 companies and Egypt with 6 companies.
A closer look at the list would reveal that there is no single region lead the list, a sign of balanced development in the Islamic companies.
None of the OIC based companies of the DS100 was part of the list of top 100 worldwide companies released last December. Fortunes Global 500 list, however, ranked only one company of OIC, which is the Malaysian company Petronas.
Heading the list of Egyptian companies is Egyptian General Petroleum Corporation with revenues of $ 7.24 billion in 2003 and ranked 15th in the entire list, followed by Suez Canal Authority (ranked the 61st with $ 1.80 billion) and National Bank of Egypt (ranked 69th with $1.58 billion). The other three Egyptian companies making into the list are Asfour Crystal (ranked 84th with $1.17 billion), Orascom Telecom Holding (ranked 95th with $1.05 billion) and Mansour Group ranked 100th with $1,00 billion.
Despite being ranked the 95th of the DS100 list, Dinar Standard ranked Orascom Telecom as the seventh most exciting company in its list as it has quickly become the largest and most diversified GSM network operator in the Middle East, Africa, and Pakistan.
Shikoh told Arab Times that despite being uncertain if Egyptian companies will move up in next year’s list, he appreciated the enthusiasm of the new Cabinet and the improvement in Egypt’s business climate.
“We (Dinar Standard team) are encouraged by the improving business climate in Egypt and growth strategies of firms such as Orascom Telecom,” Shikoh said.