Aramco first Middle East company to make BCG’s Top 50 Innovation list

Aramco has been named one of the 50 most innovative companies in the world, having made its debut in Boston Consulting Group’s Most Innovative Companies 2023 report. The recognition is a major milestone for the Middle East as a whole, with the oil group the first company from the region to land a sport in the prestigious top 50.

The Saudi Arabian Oil Group, known simply as Aramco, is a public oil and gas company headquartered in Dharan, Saudi Arabia. It is considered the world's largest oil producer and exporter, with significant reserves and production capacity. Aramco plays a crucial role in the global energy industry and has a major influence on the oil market.

Though it had not before made it to the top 50 list until now, Aramco was in fact previously named by Boston Consulting Group (BCG) – a global strategic consulting firm – as the most innovative company in the Middle East three years ago.

Boston Consulting Group defines innovative companies as those that use a diverse set of tools to innovate their platforms and practices. These companies will often use mergers and acquisitions to acquire innovative technologies, processes, or talented individuals. They will often also engage with external partners – sometimes even competitors – to collaborate on innovative initiatives.

At the top of the list are five American companies: Apple, Tesla, Amazon, Alphabet and Microsoft. The five all headed the 2022 edition of the ranking as well (but in a different order).

Other newcomers to this year’s top 50 include Schneider Electric, Honeywell, Glencore, and Stripe. Aramco is one of five energy / oil & gas companies that made the top 50.

Earlier this year, Aramco signed a major deal with consulting firm Accenture to kickstart a digital transformation plan, which the company reportedly spent nearly $2 billion on. This partnership was among a slew of around 100 other deals that the company invested in, amounting to an incredible total of $7 billion.

Innovation is increasingly seen as a top priority among large companies, with 90% of companies surveyed by BCG reporting that they will increase innovation spending this year. The majority of respondents said that building on innovation was among the top three goals for their companies.

“As growth has slowed in core markets, the importance of being able to innovate new products and services that carry companies into new markets with new business models has increased,” according to the BCG report.