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Posted, February 13th, 2009
The 5th Annual DS100 - Top 100 Companies ranking continues to benchmark the corporate environment of the 57 OIC (Organization of Islamic Conference) member countries.
This year’s ranking, which covered financials amidst early stages of the current global recession (end-of-year 2007 data), expectedly showed a decrease in growth of the construction, energy, and diversified sector companies.
However, areas of opportunities were also highlighted as basic materials manufacturing, and agriculture/food companies grew faster than the year before. |
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With USD 1.21 trillion in total revenues, the 2008 DS100 list companies recorded a respectable 12.3% growth in revenue over the previous year (14.5%). The Fortune 100 global company revenues grew 12% in the same period.
DS100 - Top 100 Companies of the Muslim World |
2008 Ranking - Sector Breakdown & Growth Trends |
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Please refer to DS Consulting page for our custom research services which includes company analysis of more than 4000 major OIC based corporations.
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The 21 Integrated Oil & Gas Companies on the list continue their dominance representing 64% of the total DS100 company revenues. However, the biggest year on year growth in revenue was logged by basic material (chemical, iron, copper, other) companies at 34% with Goldas from Turkey (# 61 in ranking) recording 72% growth, followed by SABIC’s, the Saudi Arabia based chemical giant, impressive 46% growth (# 8 in ranking). The other sector that showed big gains was agriculture/food, recording a 20% growth benefiting from increased global food demand, with Malaysian IOI Group (#56 in ranking, 64% growth) leading the sector.
Other fastest growing companies in the ranking included, Kazkommertsbank (107% growth, Kazakhstan), Boydak Holding (44% growth, Turkey - furniture, Other), Independent Petroleum Group (44% growth, Kuwait - energy), Kuwait Finance House (443% growth - finance), Pakistan State Oil (41% growth, energy), Ezz Steel (40% growth, Egypt - steel manufacturing), and Iranian Mines – IMIDRO (39% growth - mining).
On the other hand, the construction sector suffered the biggest drop in this year’s ranking, with revenue growth of only 12% compared to 77% the previous year, with Emaar Properties (#49 in ranking, UAE) and Consolidated Contractors - CCC (#55 in ranking, Saudi Arabia) showing one of the sharpest drops.
Companies from 20 out of the 57 OIC member countries are on the DS100. The minimum threshold to be on the 2008 DS100 list was USD 2.29 billion in revenues.
Global Comparison
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Globally, the DS100 Companies represent a mere 10.5% of the USD 11.5 trillion in revenues attributed to the global 100 companies from Fortune magazine's 2008 Global 500 list. This has remained unchanged from the previous year.
Petronas (Malaysia), SABIC (Saudi Arabia), and KOC Holding (Turkey) remain the only three DS100 companies also on the Fortune 500 Global list. Meanwhile, no brands from OIC member countries made it to the BW/Interbrand Top 100 Global Brand list.
As the global economy shrinks further, a review of the 3rd Quarter of 2008 revenues of the DS100 companies show some unexpected results. |
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DS100 - 2008
Key Facts |
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| Total Revenue: US$ 1.21 trillion |
Aggregate Revenue Growth: 12.3%
(from year before) |
| Comparison with Global 100: DS100 company revenues are 10.5% of the $101.5 trillion in revenues of the global 100 companies (from Fortune magazine's 2008 Global 500 list) |
| Companies on Fortune 500 Global: Petronas, SABIC, KOC Holding |
Type of Companies:
Government 30 (69% of total revenues)
Public 54 (25% of total revenues)
Private 16 (6% of total revenues) |
| Top Industries: Energy, Diversified, Finance (see more below) |
| Minimum revenue size on list: $2.29 billion |
| Top Countries: Turkey, Malaysia, Saudi Arabia, Kuwait (see more below) |
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Within the construction sector, Emaar Properties 3rd quarter 2008 numbers showed a -5% growth, whereas Orascom Construction (#98, Egypt) and Enka Holding (#43, Turkey) revenues were up 75% and 46% respectively driven by continued regional infrastructure project investments. Similarly, in other sectors, 3rd quarter 2008 was positive for Erdemir (#68, Turkey – Iron & Steel) growing at 58% compared to the same period in 2007, Astra International (#32, Indonesia – diversified, auto) revenues in 3rd quarter were up by 45%, and Saudi Telecom (#23) revenues rose by 58%.
Industry Breakdown
Saudi Aramco, the world's top oil producer, continues to lead the DS100 list as the largest business enterprise of the Muslim world, recording an estimated 8% rise in its revenues from the year before. This gain however, was below the 19% rise of the previous year.
Overall, the energy sector continues to confirm its dominance based on the mere fact that 16 out of the 20 top companies on the list are all state-owned Integrated Oil & Gas companies, out of which Petronas (Malaysia -(#3 rank) showed the biggest growth of 30% in estimated revenues compared to the previous year.
After the energy sector, it's the diversified companies that represent the second largest sector on the list (20 of 100), with the Turkish family-owned conglomerates Koc Holding, and Sabanci Holding being the largest, followed by Sime Darby (Malaysia) and Astra International (Indonesia.) It must be noted some of the major
The third largest sector represented is Financial services (17 of 100) with Turkish banks Ziraat Bank (#28), IsBank (#30), Akbank (#35), leading the list, followed by Malaysia’s Maybank Group (#52). Bank Melli Iran (#66), Kuwait Finance House (#81), and Al Rajhi Bank (#86 Saudi Arabia) are the leading full Islamic banks within the financial services sector.
The other major sectors represented are Basic Materials Manufacturing and Telecom Services, with 8 companies each. As the fastest growing sector, Basic Material Manufacturing is emerging as a major area of opportunity and investment. SABIC (#8 - chemicals), IMIDRO (#27, metals/mining), and Kazakhmys (#44, metals/mining) are the leading players in this sector. Similarly, a fast maturing Telecom sector, which has become increasingly competitive regionally, is led by Saudi Telecom (#23), TurkCell (#34), and Zain (#36.) This continues to be the most exciting sector with a flurry of acquisitions, market expansion and technology innovation. The other key industries represented in the DS100 include Agriculture/Food Processing, Airlines, Construction, Transportation, Consumer Appliances and Utilities.
Publicly Listed vs. Government and Private Companies
The 2008 DS100 list had 54 publicly traded firms from 13 countries compared to the previous year's 57 firms from 13 countries.
Turkey-based Koc Holding--a diversified electronics, automotive, energy, finance, and retail giant, is the largest publicly traded company on the list. It is followed by SABIC (#8, chemical), and Sime Darby (#22, diversified, Malaysia.).
While a majority of the companies on the DS100 are publicly traded, the bulk of the total revenue (69%) is attributed to the 30 Government-owned companies on the list, signifying their powerful roles in the respective economies. This trend remained mostly the same from the year before, although there was a slight increase of 5% (65% last year) in the Government-owned companies’ revenue share of the DS100. Additionally, it should be noted that some of the 'Listed' companies still have majority Government ownership and are at different stages of privatization drives.
In regards to Privately held companies, the ranking this year has 16 private enterprises which has remained unchanged from last year. Data was available for these companies through public sources. Sabanci Group (Turkey) leads this list, followed by Saudi Oger (Saudi Arabia), and Dallah Albaraka Group (Saudi Arabia). Even though there is a small representation of Private Companies on the list, there are many for whom data was not available and hence were not included in this report*.
Turkish, Malaysian, Saudi and Indonesian
Companies lead the List
Turkish companies continue to lead the list with 23 represented enterprises (compared to 24 last year), followed by 14 from Malaysia, 13 from Saudi Arabia, 8 from Kuwait, 7 from Indonesia, and 6 from UAE and Iran. Other countries represented included the UAE, Iran, Egypt, Pakistan, Oman, Iran, Nigeria, Morocco, Kazakhstan, Bahrain, and Algeria.
Major local currency fluctuations in certain OIC markets affected certain companies’ ability to make the ranking. Between 2007 to 2008, Turkish (-24%), Pakistani (-22%), and Indonesian (-15%) currency lost the largest value to the US dollar. A few additional Turkish companies would have made the list if its currency had not lost major value.
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DS100 - Top 100 Companies of the Muslim World |
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2008 Ranking - Country Breakdown |
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Ranking Purpose & Challenges
The purpose of the DS100 (in its fifth year) is to portray as close a picture as possible of the leading domestic business activities in the OIC (Organization of Islamic Conference) member countries while providing its corporate managers and strategists with a tool to benchmark trends and identify opportunities.
The DS100 aims to recognize companies that are leading the charge in the global competitive landscape and are making a significant impact on the well-being of their communities.
The ranking is based purely on the 2007 end-of-year annual revenue figures (as EOY 2008 data has not been released by most as yet). The ranking continues to include Government and Private enterprises to reflect their disproportionately significant role in the Muslim world economies. In addition, more than half of the list is comprised of publicly listed companies (54 of 100) from the growing public markets of the Muslim World.
Only those private and government enterprises are included for whom data could be estimated or verified through various media sources. Acquiring this verification continues to be a challenge given limited financial disclosure practices. However, a visible positive trend towards better corporate governance, transparency practices, and privatization is facilitating a clearer view of the corporate environment in the Muslim World.
In order to accommodate for corrections, the ranking will maintain a Corrections section online. This will be particularly true in the case of privately held or government businesses. Also, a select list of businesses which might have made it to the DS100 list but whose revenues we were unable to verify are included below. (Click here for more details on the criteria and methodology used)
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