Muslim World's Top 100 Businesses Show Strong Growth In Sales

The 2nd Annual DS100 ranking continues to benchmark the corporate environment in the Muslim world. With US $678 billion in total revenues and a healthy 28.7% in revenue growth over the year before, the ranking shows a strengthening of the Muslim world economy (Fortune 100 Global Company revenues grew 14% in the same period.)

The ranking continues to show a rich diversity of industries represented--led by diversified conglomerates (22 of 100) and service companies, which are challenging the dominance of the top placed energy sector enterprises (18 of 100.)

All in all, there are 14 new names on the ranking and the annual revenue threshold for inclusion on the list has been raised from $1 billion in 2004 to $1.2 billion this year.

Ranking Purpose & Challenges

The purpose of the DS100, as laid out with its launch last year, is to portray as close a picture as possible of the leading 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.

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.

The ranking is purely based on 2004 end of year annual revenue figures. It continues to include Government and Private enterprises to reflect their disproportionately significant role in the Muslim world economies.

At the same time, more than half of the list is comprised of publicly listed companies (57 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. This continues to be a challenge. 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 we think may 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)

Industry Breakdown

The combined total revenue of the DS100 Companies was $678 billion in the 2005 which was an increase of 28.7% from the year before ($512 billion.)

Globally, the DS100 Companies represent a mere 8% of the $8.1 trillion in revenues attributed to the global 100 companies from Fortune magazine's 2005 Global 500 list. However, a higher revenue growth of 28.7% by DS100 companies against the world 100's revenue growth of 14% is a positive sign.

Petronas (Malaysia), SABIC (Saudi Arabia), and KOC Holding (Turkey) are the only three DS100 companies also on the Fortune 500 Global list. Meanwhile, no brands from OIC member countries make it to the BW/Interbrand Top 100 Global Brand list.

Saudi Aramco, the world's top oil producer, continues to lead the DS100 list as the largest business enterprise of the Muslim world with an estimated 36% rise in its revenues from the year before. Overall, the energy sector continues to confirm its dominance by the mere fact that the next seven companies on the list are all state-owned Integrated Oil & Gas companies of which the Iraq National Oil Company moved up from #8 to #5 due to an 88% rise in estimated revenues.

The largest growth companies however are part of the Orascom Group of Egypt with its publicly listed companies Orascom Telekom recording a 113% growth and Orascom Construction recording a 98% growth.

Even with the energy sector's top placement on the ranking, it's the diversified companies that represent the largest sector on the list (22 of 100), with the Turkish family owned conglomerates such as Koc Holding, Sabanci Holding, and Dogus Holding having the highest revenues.

Finance continues to be the next most represented sector (17 of 100) with Turkish banks Ziraat Bank, IsBank, Akbank, and Yapi Kredi leading the list, though, Malaysian, Saudi, and Indonesian banks are also well represented.

The other major sector is Telecom with 10 companies represented and led by Saudi Telecom, Turk Telecom and Telkom Malaysia. This continues to be the most exciting sector with a flurry of privatization, market expansion and innovation activities. The other key industries represented in the DS100 include Food Processing, Airlines, Construction, Automotive, Basic Materials, Consumer Appliances and Utilities.

Publicly Listed vs. Government and Private Companies

SABIC - Saudi Basic Industries Corporation, the Middle-East's largest non-oil industrial company, leads the list of publicly traded companies followed by the Turkish giant Koc Holding. 57 of the 100 companies on the DS100 are publicly traded firms in 11 different countries. 27 out of the 57 OIC member countries today have securities markets at different stages of maturity with high growth seen accross most of the markets (see Stock Market Analysis Report.)

While a majority of the companies on The DS100 are publicly traded, the bulk of the total revenue, more than 60%, is attributed to the 27 Government owned companies on the list. This trend remains the same from the year before. At the same time it should be noted that some of the 'Listed' companies still have majority Government ownership and are at different stages of privatization drives; examples of this phenomenon are SABIC and Turkish Petroleum.

In regards to Privately held companies, the ranking this year has 16 private enterprises compared to 12 last year. Data was available for these companies through public sources. Kingdom Holding Company (Saudi Arabia) leads this list, followed by Sabanci Group (Turkey), and Dogus Holding (Turkey). Even though there is a small representation of Private Companies on the list, it is believed that there are many for whom data was not available and hence were not included*.

Turkish, Malaysian, Saudi and Indonesian Companies lead the List

Companies from 18 out of the 57 OIC member countries are on the DS100. No new OIC member country company broke onto the list from a year ago.

With phenomenal global media interest in the first DS100 ranking (see 2004 media coverage), we are confident that the ranking is playing its part in understanding the nature of business in the Muslim World and helping to raise the competitive bar for its corporate enterprises.

Corporate benchmarking is a key management tool for strategic planning efforts and to raise the level of competitiveness to a global level. Recognition on the DS100 also gives the ever-important workforce a source of motivation and pride in their company's efforts. We hope the ranking will help corporate leaders focus their efforts in emulating and surpassing the strategies of those who are innovating and succeeding in the new global knowledge economy.

* Following are some Private and Government held Companies whose information could not be verified that may have made the DS100:
Libyan Iron and Steel Co. - Libya
Salim Group - Indonesia
Uzbekneftegaz State Holding Co. - Uzbekistan
Obegi Group - Lebanon
Zorlu Holding - Turkey
SOCAR - Azerbaijan
Arabian Fal Company for Trading and Contracting - Saudi Arabia
National Iranian Steel Corporation - Iran
Azimut Energy Services -Kazakhistan
Saudi Arabian Airlines - Saudi Arabia
Damac Group - United Arab Emirates
Perodua- Malaysia
Al Owaidah Group - Saudi Arabia
Omzest Group - Oman
Cukurova Group - Turkey
Mansour Group of Companies - Saudi Arabia
Dubai Ports Authority - United Arab Emirates
A H Al Zamil Group of Cos. - Saudi Arabia