New Arab Advisors’ analysis reveals massive gap between the Arab countries and the industrial nations in terms of the online reporting on financial performance and social involvement.
A newly released report from Arab Advisors Group focuses on the Arab world’s attempt to catch up on the global trend of using the corporate website to report transparently on corporate performance and economic Corporate Social Responsibility (CSR) issues. Arab Advisors Group’s Online Transparency Index analyzes the status of the biggest 50 companies by market capitalization in the Gulf, Egypt, Lebanon and Jordan
The comparative analysis of the corporate websites of the 50 biggest companies in the Arab world was concluded by the Arab Advisors Group on August 31, 2007. The report, titled The Arab World Online Transparency Index 2007 (OTI), ranks the 48 companies out of the 50 on their performance in two dimensions (two of the 50 did not have fully operational web sites at the time of the analysis): website usability and website content. The usability analysis covers such issues as website logistics, use of interactive elements, converging media and Web 2.0 technologies. The content analysis focuses on the reporting and transparency of economic performance (such as the annual and quarterly reports, corporate history and outlook) and on economic Corporate Social Responsibility issues (such as corporate governance and business ethics).
Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents.
The analysis provides a valuable first look at the usability of corporate websites and at the online reporting and transparency of corporate performance in the Arab world. The OTI 2007 consists of 50 companies coming from 9 Arab countries (Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, and the United Arab Emirates). The market capitalization of each individual national stock exchange (totaling US$ 726 billion for the Arab world) is used as a weight factor to determine that country’s representation among the 50 companies in the Index. The 40-page report provides statistical analysis of the results and insightful detailed cross tabulations and can be purchased from the Arab Advisors Group for only US$ 2,000.
The overall results reveal a grim situation when considering the global competitiveness of the Arab world. The research shows that there is still a huge gap between the leading Arab nations and the rest of the world in terms of the online reporting on financial performance and social involvement. With this research, Arab Advisors Group clearly establishes the need for the Arab corporate world to recognize the growing importance of online transparency. With national Internet penetration rates rising, national stakeholders will start to look towards corporate websites for their information much more often. Also, if the Arab world truly wants to be a globally competitive region, the quality of the corporate online presence should be improved drastically. Furthermore, it is also recommended that companies and governments make an effort to standardize CSR reporting in the Arab world, and that they should make their websites more user friendly, user orientated and interactive.
“When we look at the individual company level, the UAE real estate company Emaar Properties ranked high in the index. Emaar is very closely followed by Kuwait’s Mobile Telecommunications Company. Out of the 50 companies in the Index, only 21 received a satisfactory score of 50% or above.” Mr. Sander Hofman Arab Advisors research analyst wrote in the report. “The results per country show that Egyptian companies score highest both in the usability and content dimension, while being trailed by boomers Qatar and UAE. Stunningly, the economic heavyweights in the analysis, Saudi Arabia and Kuwait, perform the worst in both dimensions. Looking to the difference between regions, it is interesting that the Levant outperforms the GCC in both dimensions.”
“While having a separate section on the corporate website for Corporate Social Responsibility information is essential in globalizing business, some 52% of the companies in the Index did not have one at all.” Mr. Hofman added. “Also, 90% of the analyzed companies do not publish a separate CSR report online, nor publish a CSR section within the legally obligated annual report. In 2007, this grave lack of information negatively impacts a company’s image to national, regional and global stakeholders, such as investors, customers, environmental organizations, and labor unions. It is therefore essential that the corporate leaders of the Arab world realize the importance of online transparency.”
Arab Advisors Group’s comparative analysis with the Online Transparency Index 2007 was done objectively and impartially. The analysis involved 2 major dimensions of research, namely website usability and website content, and 11 sub dimensions. They were selected from academic literature and validated for use through the Delphi method: this method was used to collect opinions from experts, gauge their indications and develop a consensus. A total of 88 variables were used to measure the website usability and website content on a 5-point scale, after which the grades (on a scale of 0 to 100) for each element and dimension were calculated. This gave the individual company a rank in the Online Transparency Index. All corporate websites were evaluated in May and June 2007.
The Arab Advisors Group’s team of analysts in the region has already produced over 860 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 435 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients. Some of our clients can be viewed on http://www.arabadvisors.com/clients.htm
Special note to the editors: Kindly use Arab Advisors (not AAG) when abbreviating Arab Advisors Group. AAG is not a suitable abbreviation since it conflicts with the name of another company not related at all to Arab Advisors Group.
Arab Advisors Group’s Arabic name is مجموعة المرشدين ال
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Arab Advisors Group provides reliable research, analysis and forecasts of Arab communications, media, technology and financial markets.
Arab Advisors Group Strategic Research Services (Media and Telecoms) are annual subscriptions. The services cover nineteen countries in the Arab World: Lebanon, Syria, Jordan, Palestine, Iraq, Egypt, Sudan, Mauritania, Saudi Arabia, Yemen, UAE, Kuwait, Qatar, Bahrain, Oman, Libya, Tunisia, Algeria, Morocco and Mauritania.
For more information, please contact the Arab Advisors Group offices. www.arabadvisors.com
