KPC, the Kuwait Petroleum Company,is the most valuable Kuwaiti brand of 2022, according to the latest report by leading brand valuation consultancy Brand Finance. With its brand valued for the first time at US$4.0 billion, KPC has also been ranked as the ninth most valuable brand across the broader Middle-East region.
Every year, Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world’s top 150 most valuable and strongest telecoms brands are included in a dedicated national ranking – the Brand Finance Kuwait 10 2022, while the Middle East’s top 150 most valuable and strongest brands are included in the Brand Finance Middle East 150 report.
KPC maintained a valuable brand through the pandemic, despite the significant reduction in oil demand during the second half of 2020 and much of 2021. Prior to the pandemic, KPC had long-term plans to increase production from around 2.5 million barrels per day to 4.75 million barrels per day by 2040. Revised targets of 4 million barrels per day by 2040 will ensure that the company continues to operate a very strong brand in the global oil market.
KPC’s brand architecture is hybrid in nature while its peers in the region and internationally have moved to a branded house approach to build a strong global brand to appeal to their unique set of stakeholders as key enablers of the global transition to renewable energy in the medium to long term while delivering optimal value to their shareholders.
The other KPC owned brands that feature in the analysis are; KOC (3rd), KNPC (6th), KUFPEC (7th), Q8, KGOC, KPPC, Kafco, PIC, KOTC, KARO. As part of KPC’s long standing strategy to exploit the most value for its hydrocarbon resources it is building the largest refinery in the Middle East (Al Zour refinery) to be managed by KIPIC and has built a leading European petroleum refining and marketing brand in Europe, Q8.
KPC also owns the Kuwait Oil Company (KOC) brand, whose brand value stands at US$1.9 billion. KOC has been seeking to manage production expansion in an environmentally and socially responsible manner, and has been recognized within Kuwait for its responsible approach to recovering from COVID-19.
Andrew Campbell, Managing Director Brand Finance Middle East, commented:
“Covid-19 caused a significant drop in global oil prices, and current global events are causing a significant rise in global oil prices. KPC and KOC will need to carefully manage relationships with suppliers and customers to ensure that their brand is able to overcome the big changes in supply and demand dynamics when many economies are seeking to reduce oil consumption.”
Zain is Kuwait’s second most valuable brand and fastest-growing
Meanwhile, just ahead of KOC, Zain (brand value up 9.6% to US$2.4 billion) was the fastest-growing brand amongst the Kuwait top 10 most valuable brands. Zain continues to consolidate its presence in its current markets. It’s Brand Value and Strength is based on its strong position in Kuwait, Jordan, Iraq, Bahrain and Sudan while it continues to challenge stc and mobily in Saudi Arabia. Zain is executing its strategy to be asset light and focus on incremental growth drivers such as the Tamam Fintech arm.
NBK loses brand value, but remains Kuwait’s strongest brand
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Certified by ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
According to these criteria, NBK (brand value down 12% to US$1.2 billion) is Kuwait’s strongest brand with a brand strength score of 78.2 out of 100 and a corresponding AA+ rating. While NBK did lose some brand value through the pandemic, it still remains the most valuable Kuwaiti bank brand, ahead of Kuwait Finance House (brand value up 3% to US$936 million) and substantially smaller brands Gulf Bank (brand value up 6% to US$199 million) and Boubyan (brand value up 7% to US$192 million).
Despite the pandemic challenges, NBK maintains high brand strength as a universal bank and as the clear Kuwaiti market leader in banking. NBK has built a strong brand by retaining a focus on customer service, especially in the retail sector.
Andrew Campbell, Managing Director Brand Finance Middle East, commented:
“NBK’s brand strength is driven by product innovation and providing a reliable and trusted banking service. It delivers on customer needs across all sectors of the economy as it defends its leadership position in Kuwait and seeks to diversify operations internationally.”
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. Kuwait’s top 10 most valuable and strongest brands are included in the inaugural Brand Finance Kuwait 10 ranking, while the Brand Finance Middle East 150 report ranks the top 150 most valuable and strongest brands in the region.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
About Brand Finance
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations 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 nearly 100 reports which rank brands across all sectors and countries.
Brand Finance is a regulated accountancy firm, leading the standardisation 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 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.