For the first time, a company from the Arab world has been named one of the top 50 Most Innovative Companies. The Boston Consulting group ranked Saudi Aramco as number 41 in their 2023 ranking in a list that includes such brands as Apple, Tesla, and Amazon.

The Saudi Arabian Oil Group, or simply Aramco, is a Saudi public oil and gas company based in Dharan, Saudi Arabia. In 2022, it became one of the largest companies in the world in terms of revenue, repeatedly earning the largest annual profits in global corporate history. In addition to holding the second-largest crude oil reserves in the world, the Saudi company extracts the largest quantity of oil per day out of all oil-producing nations, according to the OPEC 2022 annual statistical bulletin.

In order to be listed among the world’s most innovative firms, Aramco and the other companies had to “be more resilient to shocks and disruptions and exploit innovation faster for value-creating growth” and demonstrate their place as innovation-driven leaders that are “ready to develop product, process, and business model innovations that can deliver sustainable impact,” according the Boston Consulting Group’s report. All of the listed companies “outperform the MSCI World Index on shareholder returns by 3.3% points per year,” the report added.

Concerns over insufficient environmental responsibility

But the Boston Consulting Group has come under fire for listing Aramco among five other oil and gas companies, including placing the Chinese BYD Company among the top ten most innovative companies. In the midst of the global climate crisis, critics say that companies like Aramco represent a backwards era of ruining the environment rather than an innovative future.

One commenter wrote, “Considering their significant environmental impact, I believe it would be important to also evaluate innovation alongside sustainability efforts. Shouldn’t we prioritize companies that demonstrate a commitment to both innovation and environmental responsibility?”

Another lambasted the list, commenting: “Does innovation in how to exploit the planet also count? Are you part of the problem or part of the solution?”

In their report, the Boston Consulting Group defended their decision, saying that they are “looking to the energy industry to be a large and creative part of the solution” to climate change. One commenter agreed, writing, “Innovation in oil & gas sector will likely help to reduce the carbon footprint.”

In 2020, economies in the Middle East and North Africa broke the record for implementing the most climate reforms and hosted four of the countries —Saudi Arabia, Jordan, Bahrain and Kuwait — that improved the most world-wide, according to the World Bank Group’s Doing Business 2020 study.

Despite reforms, Saudi Arabia ranks 11th out of 209 countries in terms of carbon emissions, which are increasing in the country by 0.92% per year, according to the worldometer ranking. Other Gulf countries also have high rankings. The United Arab Emirates sits at number 28, while Kuwait and Qatar rank 39th and 40th respectively. All of these countries are also increasing their carbon emissions, despite making climate reforms.

Morocco also falls in the top 25% of carbon emitters at number 54. In 2022, Morocco’s growing oil industry attracted €25 million (MAD 280 million) in investments and Morocco itself invested €1.5 million (MAD 16.8 million) in oil exploration in the first nine months of 2022 alone. Like the afore-mentioned Gulf Countries, Morocco is expanding energy production, rather than reducing it.

Gulf Countries account for one third of the top 15 carbon-emitting countries per-capita, according to the World Population Review. Qatar is the second largest carbon-emitter. Saudi Arabia is the 8th, following Bahrain, Kuwait, and the United Arab Emirates.

Despite Aramco’s innovations and lauded climate reforms across the Middle East and North Africa, Arab countries have a long way to go to mitigate their environmental impact and address the global climate crisis.