New report from Brand Finance highlights growing values of seven of the top-ten Qatari brands
29 April 2024, LONDON – QNB has increased its brand value 10% to USD8.4 billion, as well as increasing its brand strength index (BSI) score to 86 out of 100 and maintaining its AAA rating, according to new data from Brand Finance, the world’s leading brand valuation consultancy. As the region’s largest financial institution, its growth is fuelled by robust financial performance and strategic market positioning. In 2023, QNB's notable financial results, propelled by increased customer deposits, sustained a loan-to-deposit ratio of 99.5%, reinforcing financial stability and bolstering brand valuation.
Andrew Campbell, Managing Director, Brand Finance Middle East commented:
"Driven by its robust financial performance and undisputed dominance in the region's financial sphere, QNB has once again solidified its position as the most valuable and strongest Qatari brand. Relentlessly committed to customer-centricity, digital innovation, and sustainable finance, QNB is continuing to deliver exceptional value to its stakeholders across the Middle East and beyond."
QatarEnergy’s brand value has achieved industry-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 Qatari brand and as a result, Qatar’s second most valuable brand. In addition to its brand integration, this growth can also be attributed to a significant rise in revenues. The brand strength for the enlarged brand is well below peers at 62.3 out of 100, which is not surprising as a brand embarks on major brand consolidation of this scale. Behind QatarEnergy, Qatar Airways (brand value up 27% to USD3.1 billion) maintains is position in third for both brand value and brand strength.
Qatar Insurance re-enters the ranking in ninth position following a 24% increase in brand value to USD376 million. Despite its relatively smaller brand value, Qatar Insurance ranks fourth overall for brand strength. According to Brand Finance research, Qatar Insurance performs well across several metrics, including consideration and forecast revenue growth.
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.
