All of Kuwait’s top ten most valuable brands see year-on-year brand value growth according to new report from Brand Finance
29 April 2024, LONDON – Kuwait Petroleum Corporation (KPC) maintains its dominance as Kuwait’s most valuable brand, with a 6% increase in brand value to reach USD4.4 billion, according to a new report from Brand Finance, the world's leading brand valuation consultancy.
KPC’s success in 2024 is largely attributed to record profits in 2022-23. Factors contributing to this include soaring oil prices and the completion of refineries in Mina Abdullah and Mina Al Ahmadi, under Kuwait National Petroleum Company (KPNC) (brand value up 80% to USD1.4 billion), KPC’s oil refinery arm. This has enabled KPC to increase its crude processing capacity.
Additionally, KPC is actively consolidating its eight affiliated oil companies to enhance integration and operational efficiency. This includes the ongoing merger between Kuwait National Petroleum Company and Kuwait Integrated Petroleum Industries Company (KIPIC), expected to conclude in mid-2024.
Andrew Campbell, Managing Director, Brand Finance Middle East commented:
“In 2024, Kuwait's leading brands have showcased remarkable resilience and growth, with each of the nation's top ten most valuable brands experiencing year-on-year increases in brand value. Furthermore, eight out of ten brands have grown their brand strength. This notable upward trend underscores Kuwait's emergence as a rising star in the region, with its top brands wielding increasing influence not only within Kuwait but also across the broader Gulf region.”
Zain has further solidified its position as Kuwait’s strongest brand following an increase in its Brand Strength Index (BSI) score to 81.5 out of 100. Zain also witnessed its brand value reach USD3 billion, up 11% from the previous year. Zain’s success comes in the context of its ongoing technological transformation across its telecoms operations, while also diversifying into multiple new tech-centric business verticals through its '4Sight' development strategy. Zain Group is also enhancing its sustainability efforts, through its continued execution of its five-year, 2025 corporate sustainability strategy, contributing to a stronger brand perception.
NBK (brand value up 10% to USD1.428 billion) holds the strongest sustainability perceptions in Kuwait for the Environmental metric, while it is joint top for Social and Governance perceptions with Kuwait Finance House (brand value up 14% to USD1.387 billion). NBK’s brand strength has also increased to 81.1 out of 100, positioning it marginally behind Zain as the second strongest brand in Kuwait with a AAA- brand rating.
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.
