Emaar dropped out of top 100 firms reshaping global industries - Emirates24|7

Emaar dropped out of top 100 firms reshaping global industries

Ninety-three companies have agreed to invest in the city, says Emaar the Economic City chief Fahd Al Rasheed. (File)

Property major Emaar Properties has been dropped out of the world’s top 100 companies which are the rising starts from rapidly developing economies and reshaping the global industries, according to a Boston Consulting Group’s (BCG) study.

Reason for the exclusion – though not given in the report – could apparently be inferred from its heavy exposure to Dubai’s volatile property sector which has lost around 60 per cent of its value since the beginning of financial crisis in 2009.

BCG’s Global Challengers 2011 report included three companies from the UAE against four in its previous report released in 2009.

The two companies – Etisalat and Emirates airline – retained their positions among the 100 players shaking up the established economic orders while global port operator Dubai Ports World dethroned its parent group Dubai World to be ranked among the world’s top 100 rising stars from the fast growing developing economies.

BCG analysts said that DP World will strongly benefit from the rise in trade. “DP World has focused on emerging markets as a core strategy is growing 50 per cent faster than the industry average. Of its 50 terminals and 11 new developmens and major expansions, 37 are in Africa, Asia and Latin America,” the report said.

DP World plans to double capacity in line with market demand during the new decade to around 92 million TEU, mostly in such emerging markets as Brazil, Egypt, India, Pakistan and Turkey, it added.

From the Middle East, only Saudi Arabia’s Sabic and Egypt’s El Sewedy Electric could make to the top 100 list.

The 2011 global challengers come from 16 countries with China, India, Brazil, Mexico and Russia dominating the list.

Within the next five years, BCG analysts predicted that about 50 of the global challengers, vying for global leadership, could qualify for inclusion in the Fortune Global 500.

By 2020, the global challengers could collectively generate $8 trillion in revenues, an amount roughly equivalent to what the S&P 500 companies today, it said.

The global challengers, said BCG, will be engaged in three key battles with companies from developed markets. First frontier would be battle for the middle class in emerging markets as they will make up 30 per cent of the global population by 2020. On the second frontier, the battle between established players and global challengers will intensify for the industry leadership. Third battle would take place for new markets, the analysts said in the report.

 

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