Qatar Airways’ first superjumbo A380 shortly after landing at the Hamad International Airport in Doha. PICTURE: Noushad Thekkayil
Qatar Airways is among the six Middle Eastern organisations that were named ‘global challengers’ by The Boston Consulting Group (BCG), a recognition of their rapid growth, global expansion and emerging position as leaders in key markets.
The other organisations are Emirates Global Aluminium, Etihad Airways, Etisalat, Sabic and El Sewedy Electric. In 2013, there were only four global challengers from the region.
Abu Dhabi’s Etihad Airways and Qatar Airways, two of the fastest-growing airlines in the Middle East have also made both the 2013 and 2014 lists. In recent years, both airlines have succeeded in leveraging the region’s favourable geostrategic location as a transportation hub at the crossroads of Asia-Pacific, Europe, and Africa.
“The six Middle East challengers for 2014 are growing up rapidly, relying on innovation, talent and other strengths to win,” added Cristiano Rizzi, partner and managing director in BCG’s Dubai office. “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.”
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.
Emirates Airline has reported a remarkable record of 25 consecutive profitable years. In parallel, Saudi Aramco is, today, the largest integrated global petroleum enterprise in the world, with ventures all over the globe. The 2014 BCG Global Challengers report sheds light on the innovative business models, strategies, and challenges arising from emerging markets. Entitled “Redefining Global Competitive Dynamics: 2014 BCG Global Challengers”, the study also highlights how these companies are rapidly gaining success in developing capabilities beyond low-cost manufacturing.
This year’s list reflects the reshaping of the global economy, as the number of emerging markets represented is larger than ever.
The list features companies from 18 countries – eight more than on the original 2006 list – 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. From 2000 through 2013, the revenues of the challengers as a group grew at an annual average rate of 18%.
