New report from Brand Finance highlights that diversification and innovation is a central development strategy across sectors for the Middle East’s leading brands
29 April 2024, LONDON – Aramco maintains its status as the Middle East’s most valuable brand, despite an 8% drop in brand value to USD41.6 billion, according to a new report from Brand Finance, the world's leading brand valuation consultancy. This decrease is primarily revenue-driven, due to a fall in crude oil prices and lower volumes sold, however, Aramco’s falling brand strength also contributed to this.
e& UAE (formerly known as etisalat by e&), is the strongest brand in the Middle East across all industries, boasting a Brand Strength Index score of 89.4/100 and an AAA rating. This also makes it the world’s strongest telecoms brand. Thriving under the larger technology group, the telecom operator has expanded into new markets through its Partner Market program and strategic acquisitions. Substantial investments have also been made in communication campaigns to promote brand awareness and the brand’s transformation from a traditional telco into a global tech company. e&, as a standalone brand, is now the Middle East’s fastest-growing tech brand, up 52%.
Fellow telecoms giant, stc has also pursued an expansive growth strategy, solidifying its position as the region’s second strongest brand with a Brand Strength Index score of 88.1/100. Now encompassing an integrated system of subsidiaries specialised across sectors, alongside its traditional telecommunications services, the brand’s acquisition of an interest in Telefonica marks another key milestone in stc’s growth journey. With a 12% increase in brand value to USD13.9 billion, it also ranks as the Middle East’s most valuable telecoms brand.
ADNOC is the Middle East’s second most valuable brand (brand value up 7% to USD15.2 billion) and the most valuable UAE brand. The brand has seen a 1-point improvement in its BSI to 80.2, driven by its decarbonisation and diversification efforts, making it the strongest of the energy brands in the region.
Andrew Campbell, Managing Director, Brand Finance Middle East commented:
“In an era defined by change, the Middle East's leading brands are embracing diversification strategies to drive growth and safeguard their futures amid evolving market conditions. From ADNOC's forward-looking investments in alternative fuels, e& Group and stc’s telecom transformations, and top healthcare brands’ growth and innovation, the region’s brands’ adaptability reflects a commitment to fortifying their market positions, while also propelling the Middle East towards a future of progress and prosperity.”
QatarEnergy’s brand value has achieved region-leading growth substantially due to the integration of its subsidiary, Qatargas, into the QatarEnergy brand. This achieved an 82% increase in its brand value to USD3.2 billion, positioning it as the fastest-growing Middle Eastern brand and as a result, Qatar’s second most valuable brand.
King Faisal Specialist Hospital & Research Center (KFSH&RC) has reinforced its position as a key player in driving the Middle East’s transformation into a global healthcare hub. With a brand value increase of 31% to USD1.5 billion it is the Middle East’s most valuable Healthcare brand. The brand’s strong levels of awareness and familiarity, and reputation for research and adopting the latest medical treatments and technology, are also reflected in its enhanced Brand Strength Index score of 73.9/100. This ranks it first in the Middle East and 20th globally in Brand Finance’s Global Top 250 Hospitals ranking for 2024.
PureHealth Group, the UAE’s largest integrated healthcare platform, is a new entrant in the ranking with a brand value of USD434.2 million. 2023 was a transformative year for the PureHealth brand, in which it posted strong revenue growth and completed its initial public offering on the Abu Dhabi Stock Exchange. The company also expanded its global footprint, investing in US-based Ardent Health Services, and acquiring the UK’s largest private healthcare group, Circle Health Group. Additionally, three of PureHealth’s subsidiary brands, SEHA, Sheikh Shakhbout Medical City (SEHA), and Daman secured positions among the UAE’s most valuable brands.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
