MEED lists 5 Kuwaiti companies among the largest in the Middle East

Five Kuwaiti companies have made it to the top positions on MEED magazine’s list of the 100 largest listed companies in the Middle East in terms of market capitalization. Kuwait Finance House (KFH) came in first place, followed by National Bank of Kuwait (NBK) in second, then Boubyan Bank in third, Zain Group in fourth, and finally Mabanee Company in fifth place.

Breakdown by market capitalisation

In detail, the MEED magazine report said that the total market value of the aforementioned Kuwaiti companies reached $84.4 billion, distributed over three sectors: the banking sector, the telecommunications sector, and finally the construction sector. They were as follows: Kuwait Finance House (KFH) in 11th place in the Middle East with a market capitalization of $41.2 billion. National Bank of Kuwait (NBK) came in 18th place regionally with a market capitalization of $24.3 billion, followed by Boubyan Bank in 49th place with a market capitalization of $8.3 billion, then Zain Group in 57th place with a market capitalization of $6.8 billion, and finally Mabanee Company in 99th place regionally with a market capitalization of $3.8 billion.

Top players in the Middle East

The top 10 companies on MEED’s list in the Middle East included: Saudi Aramco in first place with a market capitalization of $1.95 trillion, followed by International Holding Company (UAE) with a market capitalization of $236.6 billion, then ACWA (Saudi Arabia) with $94 billion, and Emirates Power (UAE) with a market capitalization of $88 billion.

In fifth place came Al-Rajhi Bank (Saudi Arabia) with a market capitalization of $85.9 billion, sixth ADNOC Gas (UAE) with a market capitalization of $63.8 billion, seventh SABIC (Saudi Arabia) with $63.3 billion, eighth Saudi National Bank with $55.1 billion, ninth Saudi Telecom Company with $50.9 billion, and tenth Saudi Arabian Mining Company with $50.2 billion. The total value of these 10 companies boasted a staggering $2.74 trillion.

The magazine said that Middle East equities have proven to be strong in the face of the storm, and despite the high geopolitical risks, the region’s large-cap stocks have largely maintained their positions.

However, the magazine said that the combined value of the 100 largest listed companies on its list in the Middle East and North Africa region fell slightly to $3.7 trillion this year – from $3.8 trillion in 2023 – as rising regional geopolitical risks led to increased caution towards international investment in the region.

New listings and shifting landscape

MEED’s Top 100 Companies ranking this year includes five newly listed companies with a combined value of $36 billion, including two listings on the Abu Dhabi Securities Exchange and three listings on Tadawul Saudi Arabia.

The ranking is still heavily weighted towards the oil and gas sector due to the size of Saudi Aramco, but the overall sector share in the list has declined slightly – from representing 61.3% of the total value in 2023 to representing 58.4% this year. The value of Saudi Aramco itself fell from $2.1 trillion to around $1.95 trillion, making it a major contributor to the decline in the total value of the list.

The second largest sector is the banking sector, which represents 15.5% of the listed value on the list, up from 15% in 2023.

The utilities sector increased its share of the value to 6.6%, up from 5.2%, driven by the rise of ACWA Power, which tripled its market capitalization from around $30 billion to over $90 billion, putting the company in third place on MEED’s Top 100 list.

The real estate sector also achieved modest success amid rising property prices, with listed developers on the list adding $18 billion in value and raising the real estate sector’s share in the list from 1% to 1.5%.

At the same time, the telecommunications sector appears to have lost its popularity, as the same group of listed companies on the list lost $33 billion in combined market capitalization, causing the sector’s share in the ranking to decline from 4.5% to 3.8%.

Overall, the stability of MEED’s Top 100 list around the $3.7 trillion to $3.8 trillion mark over the past three years is a sign of increasing maturity in MENA’s capital markets amidst a wave of initial public offerings (IPOs) and growing diversity among listed companies and funds. Encouragingly, even during this period of heightened geopolitical uncertainty, major stocks in the region haven’t witnessed significant decline.

Three key takeaways from the 2024 list

1. Despite geopolitical risks, major stocks in the region maintained their positions.
2. The aggregate value of the top 100 companies dropped to $3.7 trillion due to increased caution from international investors.
3. Five new companies joined the list, and the oil and gas sector’s dominance slightly decreased, while utilities and real estate sectors experienced growth.