Saudi Aramco tops Middle East companies for 2023: Forbes

Aramco, the oil company that is owned by Saudi Arabia's government, received the top ranking on Forbes' listing of the best 100 companies in the Middle East for the year 2023. The recent announcement confirmed once again that the Gulf region is the main economic hub for the area, specifically in regards to its finance and energy industries.

Forbes, which is a business news platform originating in the United States, utilized sales figures, revenue, and market value as their chief criteria when compiling their list. All of the companies featured on the list hail from the Middle East and North Africa, and can be found on a stock exchange. The subsequent ranking showcases Forbes' top 10 firms from the region:

Aramco has once again secured the first position, being recognized by Forbes for earning a revenue of $604.4 billion in 2022 and having a market value of $2.1 trillion.

The Saudi Arabian government has a majority ownership of over 90% in Aramco. However, in the year 2019 the government of Riyadh made a decision to sell a 1% share of the company to the stock exchange located in their own country.

Last year, Aramco made a record-breaking profit of $161 billion. Unfortunately, their profits took a 19% dip in the first quarter of 2023, thanks to the less than ideal worldwide oil prices.

Aramco postponed another share sale in the month of May.

In the previous week, the media company Forbes ranked Aramco in the second position in its Global 2000 list that comprises the biggest companies across the world. The primary spot was secured by the enormous US financial institution, JPMorgan Chase, whereas the third position was claimed by the Industrial and Commercial Bank of China.

SABIC, or the Basic Industries Corporation in Saudi Arabia, is a company that specializes in petrochemicals. In 2020, Aramco made headlines when it acquired a significant 70% share in SABIC.

In December of last year, Aramco and SABIC dispatched blue ammonia to South Korea.

The Qatari National Bank (QNB) is partially owned by Qatar Investment Authority, with the state holding a 50% stake. The remaining stocks are available for public trade. The bank recorded a 9% rise in earnings, amounting to $3.9 billion in the year 2022.

The Saudi National Bank (SNB) is a big bank in Saudi Arabia. It was talked about in the news this year because it owns a part of the Swiss bank called Credit Suisse. Last year, SNB bought almost 10% of Credit Suisse. In March, SNB said it was not going to buy more of Credit Suisse because the bank was having problems. Later, UBS, another big Swiss bank, bought Credit Suisse. Now, SNB has only 0.5% of UBS.

Abu Dhabi is the location of the International Holding Company (IHC), which operates in various industries such as agriculture, energy, and technology. The IHC's head honcho is Sheikh Tahnoon bin Zayed Al Nahyan, who serves as the UAE's national security advisor and is also the brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan, also identified as MBZ.

One of the biggest banks in Saudi Arabia is Al Rajhi Bank. According to Forbes in April, it was named as the bank with the highest value in the Middle East at $75 billion. In second place was Saudi National Bank with a value of $56.4 billion.

Many people state that the Saudi Electricity Company has exclusive control over the electricity sector in their country, and they are looking to spread their reach beyond their borders. In August of last year, they revealed their intention to allocate funds towards the development of their electricity interconnection project with Egypt.

's CEO, Abdulhamid Saeed, has stressed the importance of sustainable development goals and environmental sustainability in the banking sector. Saeed emphasized how crucial it is for banks to integrate sustainability into their business models and decision-making processes. He highlighted the role of banks in financing sustainable projects and said that "the banking industry must play a crucial role in driving sustainable development." Saeed also spoke about the need for collaboration between different stakeholders, including banks, government, and private sector companies, to achieve a sustainable future. Rewritten: The head of First Abu Dhabi Bank, Abdulhamid Saeed, has emphasized how important it is for banks to prioritize sustainable development goals and environmental sustainability. He stressed the crucial role of sustainability in banks' decision-making processes and business models. Saeed also spoke about the importance of banks in financing sustainable projects, noting that they must take a lead in driving sustainable development. To achieve a sustainable future, it is crucial that different stakeholders, including banks, government, and private sector companies, come together and collaborate effectively.

FAB is a massive banking institution situated in the United Arab Emirates. Its chairman goes by the name of Sheikh Tahnoon. Mubadala Investment Company, which is owned by the state, has about 38% ownership of FAB.

Emirates NBD stands as a significant bank in the UAE. Around 55% of Emirates NBD is owned by the Dubai government.

The energy company TAQA belongs to the government of the United Arab Emirates. Historically, the company has mainly dealt with oil and gas, but now they are paying more attention to clean, renewable energy. TAQA gathered $1.5 billion by selling green bonds in April, which was a significant milestone for the company.

Why it's important: Forbes' compilation of companies notably highlights the consistent economic dominance of the Gulf region when compared with other areas of the Middle East and North Africa. It's remarkable that nearly all of the businesses, a staggering 91%, hail from states that are part of the Gulf Cooperation Council (GCC).

The recently released list shows that the energy and financial industries have a marked influence in the area. 42 different banking and finance organizations made the list, with the vast majority of profits originating from the energy sector. This information was disclosed by Forbes.

According to Forbes, the total market value of the top 100 companies decreased by 5% in the year 2023, dropping from $4 trillion to $3.8 trillion. Forbes explained that this was due to the high inflation and global financial market pressure. However, despite the decrease in market value, the companies' sales went up by 38.5% and profits increased by 37.7%, reaching $1.1 trillion and $277.7 billion, respectively.

Find out more: Morocco has once again proven its business prowess as four of its companies have made it to the list of non-Gulf countries. These companies are Attijariwafa Bank, Banque Centrale Populaire (BCP) Group, Maroc Telecom, and Bank of Africa.

The Jordan Phosphate Mines Corporation has also been included in the list.

Telecom Egypt was positioned at number 83 on the Forbes list last year, but unfortunately didn't make it onto the list this year. In May, the Egyptian government sold a portion of its ownership in Telecom Egypt to aid in their efforts towards economic reform.

The list included only a single airline, which happens to be the low-cost carrier from the United Arab Emirates known as Air Arabia.

The latest additions to Forbes' list included Americana Restaurants, a restaurant operator based in the UAE, and Luberef, an oil supplier in Saudi Arabia. Aramco has a 70% ownership in Luberef.