Saudi Arabia’s Kingdom Holding and Savola Group have both advanced up the MEED 100 table this year.

Kingdom Holding has moved up nine places to return to its 2010 ranking in 15th position. The firm has interests in the banking, real estate, hospitality and media sectors, including stakes in the US’ Citigroup, Apple and Time Warner and Canada’s Fairmont Raffles Hotels group.

Kingdom Holding has made headlines in recent months, first with the announcement of a $300m investment in social media network Twitter in December 2011, then again in February when it won approval to build the world’s tallest tower, the SR4.6bn ($1.2bn) Kingdom Tower, in Jeddah. The Twitter investment gave a major boost to the firm’s valuation with its shares rising nearly 9 per cent after the announcement. Construction of Kingdom Tower is already under way and the 1,000-metre-tall building will form the centrepiece of Kingdom City, which is being developed by Jeddah Economic Company.

Kingdom Holding’s current market capitalisation is $12.3bn, 75 per cent higher than a year ago

Kingdom Holding has also continued to expand its real estate and hotel portfolio over the past year. The firm reported a net profit of SR639.6m in 2011, compared with SR605.2m in 2010. Its current market capitalisation of $12.3bn is 75 per cent higher than a year ago.

Retail giant Savola Group, in which Kingdom Holding owns a stake, has also had a strong year, moving up 21 places in the MEED 100 table to position 45. The group, which owns more than 100 supermarkets and hypermarkets in the kingdom and dominates the market for edible oils and sugar, reported its best financial results in 2011. Its net profit totalled SR1.2bn, a rise of 35.6 per cent on 2010. Its fourth-quarter performance was particularly strong and bodes well for the year ahead. Despite higher raw materials prices, Savola is seeing continued sales growth and a rising market share in the Saudi retail market.

Saudi dairy giant Almarai Company also achieved a record financial performance last year. Sales totalled SR7.95bn, representing an increase of 14.7 per cent from 2010. Strong sales growth was seen across all its product categories, which include dairy, fruit juices and bakery. Poultry sales saw the strongest growth, increasing almost two-fold compared with 2010.

New product launches and expanded distribution throughout the GCC contributed to Almarai’s strong performance, along with a general improvement in demand for food stuffs. Rising raw materials prices for packaging and ingredients are squeezing margins though.

Qatar profits

Industries Qatar has also had a record-breaking year, posting its highest revenue and profits since its launch in 2003. Sales increased 34 per cent year-on-year to reach QR16.5bn ($4.5bn), while net profit climbed 45 per cent to QR7.9bn.

The firm has a diverse portfolio, which includes interests in petrochemicals producers and metals manufacturers. Higher product prices, improved utilisation rates and new capacity contributed to the strong performance, with an average 28.4 per cent price inflation across all products. Its petrochemicals and fertiliser businesses returned full-year margins of about 60 per cent, while its steel business delivered a net profit margin of 29 per cent.

Industries Qatar’s equity involvement in some of the state’s leading firms ensures it remains Qatar’s largest listed company. It is 70 per cent owned by state energy firm Qatar Petroleum and its market capitalisation climbed 10.6 per cent from 2011. In December 2011, it completed the liquidation of assets in the local Fereej Real Estate Company.