A new report from Brand Finance reveals ADNOC and e& UAE’s (formerly etisalat by e&) enhanced brand strength is driving increased brand values and dominance among other UAE brands
29 April 2024, LONDON –ADNOC is the UAE’s most valuable brand (brand value up 7% to USD15.2 billion), according to a new report from Brand Finance, the world's leading brand valuation consultancy. The brand has seen a 1-point improvement in its Brand Strength Index score to 80.2, driven by its decarbonisation and diversification effort, making it the strongest of the energy brands in the region.
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%.
Andrew Campbell, Managing Director, Brand Finance Middle East, commented:
“ADNOC and e& UAE (formerly known as etisalat by e&), continue to assert their dominance as the UAE’s leading brands. Despite operating in distinct sectors, both brands showcase remarkable strategic prowess through relentless diversification and investment strategies to fortify their positions and expand within rapidly evolving markets. The growing strength of these brands and their ascending brand values underscore the strategic vision of HE Dr. Sultan Ahmed Al Jaber and Hatem Dowidar, respectively, signalling a new era of leadership and innovation in the region.”
The resurgence of post-pandemic travel has propelled airline brands FlyDubai (brand value up 65% to USD260 million) and Emirates (brand value up 30% to USD6.6 billion) to significant increases in brand value. FlyDubai's brand value increase positions it as the UAE’s fastest-growing brand. This growth is primarily attributed to a 23% revenue increase in 2023, driven by a 31% rise in passenger numbers year-on-year. Emirates’ growth solidifies its position as the Middle East’s most valuable airline brand and the fourth most valuable globally. However, Emirates has yet to surpass its pre-pandemic brand value of USD6.9 billion.
Mashreq’s strong financial performance and investment in its digital Banking platform, Mashreq Neo, have driven its 44% brand value growth to USD1.4 billion. This means it is the fastest-growing banking brand in the Middle East. Its brand value has also tripled since 2021, now featuring in the top 165 banking brands globally. A key contributor to Mashreq's brand value growth is the uplift in its Brand Strength Index (BSI).
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.
