View the full Brand Finance Middle East 100 2021 report here
View the full Brand Finance Saudi Arabia 50 2021 report here
View the full Brand Finance UAE 25 2021 report here
View the full Brand Finance Qatar 10 2021 report here
This year, the Brand Finance Middle East ranking has been expanded to include 100 brands for the first time, with nine Middle Eastern nations’ brands featuring from: Saudi Arabia; the UAE; Qatar; Kuwait; Oman; Bahrain; Jordan; Lebanon; and Iraq. Saudi Arabian brands are the most represented with 45 featuring and account for 56% of the total brand value in the ranking, the UAE sits in second with 25 brands featuring with its brand accounting for 36%, and Qatar in third with its 12 brands accounting for 11% of the total brand value.
Andrew Campbell, Managing Director, Brand Finance Middle East, commented:
“The Middle East is home to some of the world’s leading brands and each of these are supporting the region’s rise on the global stage. It is not surprising that the six oil & gas brands in the Brand Finance Middle East 100 ranking account for 38% of the total brand value, making it the most valuable sector, with banking and telecoms following in second and third, respectively. As we are witnessing nations across the region focus on diversification – including Saudi Arabia’s Vision 2030, the UAE Vision 2021, Qatar’s National Vision 2030, and Kuwait’s Vision 2035 – no doubt we will be seeing the rise of other sectors in the coming years to rival the traditional oil & gas brands’ dominance.”
Oil & gas giants dominate
Saudi Aramco has claimed the title of the Middle East’s most valuable brand for the second consecutive year, with a brand value of US$37.5 billion. Last year’s Brand Finance Middle East ranking saw the new arrival of the oil & gas behemoth, following the top oil exporter’s recording-breaking IPO. The brand maintains a considerable lead over the rest of the ranking, despite it losing 20% of its brand value this year.
As with other oil & gas brands globally, Aramco has suffered major dents to its profits in the first half of last year as it negotiated reduced demand and lower oil prices, which turned negative in April of last year. As the global economy starts to pick up and return to some level of normality, the brand will be hoping this uptick will be reflected in its profits.
For national oil companies (NOCs), like Aramco, economic contribution to national wealth is paramount to their mandate. To ensure this economic contribution is sustainable, NOCs must increasingly venture into new sources of energy for the world after oil. Aramco has made substantial strides towards building a sustainable future and is focusing on utilising technology and embracing digitisation to reduce CO2 emissions and create next-generation materials.
Sitting in second in the overall ranking, is fellow oil & gas brand, Abu Dhabi National Oil Company (ADNOC). ADNOC has managed to successfully shelter its brand value during an incredibly challenging year for its industry, with only a 6% brand value loss to US$10.8 billion, making it the most resilient of all National Oil Companies (NOC) globally.
ADNOC’s transformation since 2016 has taken the brand from strength to strength. Under the astute leadership of Managing Director and Group CEO H.E. Dr. Sultan Ahmed Al Jaber, ADNOC has evolved into a trusted global player with one brand and one strategic vision at its core. It has attracted some of the world’s leading institutional investors as partners across its business and has raised more than US$64 billion through such transactions since the start of its transformation. Due to ADNOC’s competitive advantage in cost and carbon efficiency per barrel of oil produced, it is a likely contender to be “the last barrel standing” in the ongoing transition to a low carbon economy.
ADNOC is actively investing in diversifying its portfolio beyond raw commodity exports with recently announced efforts in hydrogen, ammonia and other value-add Downstream products – part of the brand’s longstanding commitment to future proofing its economic contributions to the UAE and maintaining a legacy of environmental stewardship. To date, the Group has invested in a number of measures to reduce its carbon footprint, notably through a significant expansion of carbon, capture and storage (CCS) technology across its business. ADNOC once again is set to raise the profile of Abu Dhabi and the GCC through the launch of the highly anticipated futures exchange for Murban crude.
Mixed fortunes across the telecoms sector as pandemic increases global dependency on operations
The telecoms industry has been impacted considerably by the challenges posed by the COVID-19 pandemic, with its operations thrust to the centre of how societies are now forced to function. Across the industry there have been key trends that have emerged from the crisis, including the increase in data consumption, network pressure, 5G deployment, cybersecurity, and the enhanced speed of transition towards a digital telco model.
Technological investment and consolidation from related industries - especially in the ICT and fintech spaces - will be key to propel growth and to successfully deliver the digital transformation needed for telcos to remain relevant.
Andrew Campbell, Managing Director, Brand Finance Middle East, commented:
“We see a big growth potential for telecoms brand in cybersecurity, collaboration tools, cloud and IoT - 5G is, of course, is the pivotal enabler of these investments. The challenge for Middle Eastern telcos brands is to manage the successful deployment of 5G, while maintaining a focus on leveraging other growth opportunities. Creating integration between fixed-mobile bundles, TV and content, automated home and smart mobility, health and wellness, and digital commerce will be vital to grow and lead the industry transformation.”
The average brand value growth for telecoms brands in the Brand Finance Global 500 was down 2%. The story is similar for Middle Eastern telecoms brands, where average brand value growth for the top 10 Middle Eastern telcos was down 6%.
This year, stc has recorded a standout performance, claiming the title of the most valuable telco across the region, with a brand value of US$9.2 billion. stc’s brand has evolved and grown following its successful masterbrand refresh and extension into Kuwait and Bahrain at the beginning of last year. The company continues to execute its DARE strategy successfully and has strengthened its positioning as a company that enables digital life. Its commitment to digital transformation has been shown with stc pay, recognised as the first tech unicorn in Saudi Arabia.
Etisalat has been crowned the MEA’s strongest telecoms brand, with a Brand Strength Index (BSI) score of 87.4 out of 100 and a corresponding AAA brand strength rating – the only brand in the region to achieve this rating. Thanks to its strategy over the last few years and its recent achievement of becoming the fastest network on the planet, the brand was in a position to respond immediately to the 'new normal' of the pandemic, providing solutions and flexibility in a way that connected emotionally with consumers. Etisalat Group, the most valuable telecoms portfolio of brands in the region which has recently broken the US$11 billion mark, is turning its sights on transforming into a truly global player.
According to the Global Brand Equity Monitor research Etisalat has very strong brand equity in the UAE, ranking first on all of the key measures such as Consideration, Reputation and Quality. Reinforcing its strong performance on functional attributes, Etisalat also connects with UAE residents emotionally far better than any direct competitor, with a significant lead on the ‘Closeness’ dimension.
Mobily (brand value up 17% to US$1.3 billion) is the fastest growing brand this year amongst the telecom players, having exceeded growth expectations in the market. The growth is mainly attributable to a more positive outlook compared to previous years. The brand also celebrated strong growth in the data and wholesale space thanks to the continued execution of the GAIN strategy, where the company is looking at growing core revenues, accelerate digital revenue streams, implement, and optimize efficient delivery and nurture a positive experience for all.
With a brand value of US$3.2 billion, telecoms brand Ooredoo is Qatar’s second most valuable brand. Since celebrating Qatar becoming the first telco country in the world to launch a live, commercially available 5G network through Ooredoo in 2018, the brand has made significant progress on its 5G journey. Now with over 70 live 5G sites spread across the country, the brand has now launched 5G networks inset its sights on Kuwait, and Oman and the Maldives, and is deploying 5G infrastructure in Indonesia - an expansion supported by strategic partnerships with Nokia and Ericsson.
Banks’ aggregate brand value down 9%
40 banks feature in the Brand Finance Middle East 100 2021 ranking, with a combined brand value of US$37.4 billion. The banking sector is the second most valuable sector across the region, sitting behind oil & gas.
Despite being the second most valuable sector, the aggregate brand value for the industry fell 9% year-on-year (from US$41.1 billion in 2020). In fact, only two banks in the ranking have recorded brand value growth this year: the UAE’s NBF (up 2% to US$259 million) and Qatar’s QNB.
A large reason for this industry wide decline in brand value is down to the role of governments, central banks, and banking brands themselves in combatting the economic repercussions of COVID-19 - distributing government mandated funds, extending credit, reducing fees, and being considerate to customers. The potential loan loss provisions and future economic uncertainty globally is having a negative consequence on the value of all banking brands.
Despite the year-on-year declines in brand value, the net result of the excellent work banking brands have done over the last 12 months is a general feeling of goodwill among consumers. This goodwill is reflected in higher reputation scores for banking brands.
QNB is the region’s most valuable banking brand with a brand value of US$6.1 billion, widening its lead over second-placed Emirates NBD (brand value down 10% to US$3.7 billion) even further. QNB has also broken into the top 50 most valuable banks in the world, according to the Brand Finance Banking 500 2021 ranking. QNB is also the sector’s strongest brand with a Brand Strength Index (BSI) score of 81.7 out of 100 and a corresponding AAA- brand strength rating.
In the face of global adversity, as the pandemic wreaks havoc on the global economy, QNB has continued on its impressive growth trajectory, surpassing the trillion-riyal watermark in total assets for the first time in the bank’s history – the first brand across the region to do so. QNB is spearheading digital transformation across the sector in the region, embracing technology to implement its strategy, spanning open banking, platforms, Robotics Process Automation (RPA), Big Data and Analytics, Artificial Intelligence (AI), as well as digitisation and automation.
According to Brand Finance’s Brand Equity Monitor research, the most important drivers of brand consideration (and therefore customer acquisition and revenues) are perceptions regarding the quality of a brands websites and apps, level of customer service, innovation, and ease of use. QNB, as well as being the strongest banking brands in the region continues to demonstrate high performance against these measures.
The second ranked banking brand, Emirates NBD - which sits in 8th position in the overall ranking – has followed the sector trend, dropping 10% in brand value this year to US$3.7 billion. Unsurprisingly, the bank’s profits have taken a hit in 2020 driven by higher provisions. As the official banking partner of the Expo2020 – now rescheduled to commence in October – this will be the perfect opportunity to boost the brand’s profile globally as it helps to demonstrate the nation’s innovative culture.
Utilities sector at forefront of energy transformation
The utilities sector globally has had a strong start to the decade. The pandemic and the shift to clean energy has brought renewed focus and investment into the sector. The energy transition presents opportunities in digital transformation, new service lines and inorganic growth opportunities. The utility brands in the region are competing to capture these opportunities; the extent to which the successfully navigate this will determine the brand winners and losers over the next decade.
Saudi Electricity is the strongest and most valuable utilities brand in the region with a brand rating of AA with a brand value of $902m. The brand has been undergoing a digital transformation to tie together the huge investments in world class infrastructure to ensure a superior customer experience.
TAQA is the second most valuable Utilities brand in the region with a value of $698m. The recent reorganization and rebrand aims to position the brand as a sustainable energy champion that is fit for the future. The brand is closely aligned with the economic vision of Abu Dhabi; building brand strength amongst its key stakeholders globally will be important to contribute to the vision.
It has the lowest brand strength compared to Saudi Electricity and DEWA, however the building blocks for a strong brand are taking shape; in terms of scale, it is a top 10 utility player in EMEA, it has a strong balance sheet, credit profile, a regional footprint and has the largest market cap in the UAE.
DEWA is a new entrant to the report this year with a value of $526mn. The brand is a central pillar of the Dubai economy and outperforms major global listed utilities in terms of operational performance. The brand is positioning itself for the energy transition with a goal to increase the mix of renewable to 25% by 2030 and 75% by 2050. Some recently announced initiatives such as the shams Dubai initiative, and green charger initiative are examples of the initiatives that will help DEWA realise its goal of becoming a leading sustainable innovative global corporation.
Bupa Arabia clinches top spot in sector from Qatar Insurance
Bupa Arabia has overtaken Qatar Insurance to become the most valuable insurance brand in the Middle East; strong financial forecasts have helped drive brand value up by 23% to U$618 million.
Bupa Arabia is also the strongest insurance brand in the region, increasing its BSI score to become the only AA+ brand strength rated brand. Qatar Insurance, Tawuniya and Orient Insurance also saw brand strength rating improvements, with the latter seeing a 9.7-point increase in BSI help brand value jump by 42%.
Brand Finance conducted market research among consumers in KSA and UAE to determine the strength of the region’s insurance brands. This includes brand funnel metrics Familiarity, Consideration and Recommendation for which Bupa Arabia achieved the highest scores in each category. The research also investigated attributes associated with the brands, including Innovation, Quality, Excellent Website & Apps and Value for Money. These market research results make up over 60% of the total Brand Strength Index scorecard, and are strongly reflected in the results, with Bupa Arabia, Tawuniya, and Qatar Insurance all performing well.
Although the top three brands make up 71% of the total brand value in the top 10, they don’t dominate on all market research metrics; 6th ranked Oman Insurance Company scored the highest for Great Value for Money and 9th ranked Gulf Insurance Group recorded the highest result for Loyalty. This shows that there are still gaps for challenger brands to use a targeted positioning to secure a niche in the market, as well as beat out foreign brands such as Allianz and AXA that are present in the region.
The top 10 brands are a diverse group, representing five countries and a range of insurance types, with four of the brands featuring in the ranking of the Middle East’s 100 most valuable brands. Qatar RE enters this group as the only dedicated reinsurance business, with a brand value of US$209 million.
Andrew Campbell, Managing Director, Brand Finance Middle East, commented:
“Overall, the brand value of the top ten insurers in the Middle East increased by 23% compared to 2020; this strong growth during a year with difficult economic conditions shows that the sector has space to grow into. It is the strongest brands that are seeing the greatest growth and returns. Next year a Middle Eastern brand could enter the ranking of the global top 100 Insurers for the first time.”
View the full Brand Finance Middle East 100 2021 report here
View the full Brand Finance Saudi Arabia 50 2021 report here
View the full Brand Finance UAE 25 2021 report here
View the full Brand Finance Qatar 10 2021 report here
ENDS
Note to Editors
Every year, Brand Finance puts 5,000 of the biggest brands to the test, evaluating their strength and quantifying their value, and publishes nearly 100 reports, ranking brands across all sectors and countries. The Middle East’s top 100 most valuable brands are included in the Brand Finance Middle East 100 2021 report.
The full Brand Finance Middle East 100 2021 rankings, additional insights, charts, more information about the methodology, as well as definitions of key terms are available included in the Brand Finance Middle East 100 2021 report.
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. Please see below for a full explanation of our methodology.
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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.
Methodology
Definition of Brand
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 Value
Brand value refers to the present value of earnings specifically related to brand reputation. Organisations own and control these earnings by owning trademark rights.
All brand valuation methodologies are essentially trying to identify this, although the approach and assumptions differ. As a result, published brand values can be different.
These differences are similar to the way equity analysts provide business valuations that are different to one another. The only way you find out the “real” value is by looking at what people really pay.
As a result, Brand Finance always incorporates a review of what users of brands actually pay for the use of brands in the form of brand royalty agreements, which are found in more or less every sector in the world.
This is known as the “Royalty Relief” methodology and is by far the most widely used approach for brand valuations since it is grounded in reality.
It is the basis for our public rankings but we always augment it with a real understanding of people’s perceptions and their effects on demand – from our database of market research on over 3000 brands in over 30 markets.
Brand Valuation Methodology
For our rankings, Brand Finance uses the simplest method possible to help readers understand, gain trust in, and actively use brand valuations.
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.
Our Brand Strength Index assessment, a balanced scorecard of brand-related measures, is also compliant with international standards (ISO 20671) and operates as a predictive tool of future brand value changes and a control panel to help business improving marketing.
We do this in the following four steps:
1. Brand Impact
We review what brands already pay in royalty agreements. This is augmented by an analysis of how brands impact profitability in the sector versus generic brands.
This results in a range of possible royalties that could be charged in the sector for brands (for example a range of 0% to 2% of revenue).
2. Brand Strength
We adjust the rate higher or lower for brands by analysing Brand Strength. We analyse brand strength by looking at three core pillars: “Investment” which are activities supporting the future strength of the brand; “Equity” which are real perceptions sourced from our original market research and other data partners; “Performance” which are brand-related measures of business results, such as market share.
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.
3. Brand Impact x Brand Strength
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. Brand Value Calculation
We determine brand-specific revenues as a proportion of parent company revenues attributable to the brand in question and forecast those revenues by analysing historic revenues, equity analyst forecasts, and economic growth rates.
We then apply the royalty rate to the forecast revenues to derive brand revenues and apply the relevant valuation assumptions to arrive at a discounted, post-tax present value which equals the brand value.
Disclaimer
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.
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.
