Telecoms firms, traditionally the safe havens of the stock markets, lost ground this year. The combined market capitalisation of the telecoms sector was $127.53bn, down from $129.6bn in 2011.

Saudi Telecoms Company (STC), the highest-ranking telecoms firms on the list, dropped one place this year. The firm’s performance has been buoyed by higher revenues in its operations outside of its home market. Its net income was $2.06bn in 2011, up 2 per cent growth on 2010.

One of the biggest losers on the table was Kuwait’s Zain Group, which fell from fourth to the 12th position

STC has, however, slid down the MEED 100 over the years. The firm was ranked second in 2009 and third in 2010. Like its competitors in the region, it is facing increasing competition and falling voice revenues as users move over to using their phones for data services, such as email and web browsing.

One of the biggest losers on the list was Kuwait’s Mobile Telecommunications Company (Zain Group), which fell from fourth to 12th position. The firm has faced two failed takeover attempts for its Saudi Arabian operation, one by the UAE’s Etisalat and the other a joint bid from Riyadh’s Kingdom Holding Company and Bahrain Telecom.

Zain Group subsequently faced a court case filed by shareholders dissatisfied that takeover talks with Etisalat were undervaluing the company. There have also been changeovers in management across the group, which has not benefited the firm’s performance despite a 2 per cent rise in revenues in 2011.

Etisalat declines

Another firm that has tumbled down the list is Etisalat, which has withdrawn from its expansion plans and instead focused on its home market over the past year.

Meanwhile, Egyptian Company for Mobile Services (Mobinil) climbed from 94 to 75 after France Telecom announced its intention to increase its stake in Egypt’s largest mobile operator by subscriber number.

However, the biggest gainer this year was Saudi Mobile Telecommunications Company (Zain Saudi Arabia), which jumped from 99 to 51 after the firm announced that it had narrowed its losses in 2011 by 11 per cent.