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Saudi Arabia’s Most Valuable Brands Revealed in Inaugural Report

25-Apr-2018 | Source : AG-IP News | Visits : 1890
LONDON - The 25 most valuable Saudi brands have been announced in the first ever Brand Finance Saudi Arabia 25 report. Set against the backdrop of Saudi Arabia’s Vision 2030 goals and the Saudi market’s growing interest in brands, Brand Finance has complemented its wider Middle East league table with a Saudi-specific publication for the first time. Brand Finance Saudi Arabia 25 ranks petrochemicals giant SABIC as the fastest-growing brand in the country and STC as the most valuable, according to Brand Finance.
 
In the wider Brand Finance Middle East 50 report, Saudi Arabian brands feature more prominently than in previous years, with 21 brands represented in 2018, up from 18 brands in 2017. The overall brand value represented by Saudi Arabian brands swelled by 3%, up from 32% in 2017 to 35% in 2018.
 
Andrew Campbell, Managing Director of Brand Finance Middle East, commented:
 
“All 25 of these top-ranking Saudi Arabian brands are playing crucial roles working towards realizing Saudi Arabia's Vision 2030 and National Transformation Plan. The rankings are also a testament to the Saudi government’s US$19.0 billion stimulus package aimed at empowering the private sector and bringing in more commercial global standards into government entities.”
 
STC charge towards Vision 2030
 
Top of the inaugural Brand Finance Saudi Arabia 25 report is STC, valued at US$6.7 billion. The Riyadh-based telecom operator has turned the dial up with a 7% increase to its brand value, cementing its place as a key contributor towards Saudi Arabia’s Vision 2030.
 
Alongside its 5G rollout plans, STC’s new digital transformation strategy includes investment in digital media content and advertising services, creating opportunities outside of its core business. STC is firmly focused on introducing and investing in the latest digital technologies such as cybersecurity, cloud computing, Internet of Things, data analytics and digital identity; positioning itself as the regional leader in the technologies of the new economy.
 
STC’s results prove reassuring, particularly amidst speculation that Saudi Arabia’s telecom sector’s profitability will be hurt this year by reforms being undertaken across the Kingdom and changes in policies of the Communications and Information Technology Commission.
 
Petrochemicals giant SABIC is Saudi’s fastest-growing brand
 
Saudi Arabia’s fastest-growing brand, displaying a whopping 78% brand value growth since last year is petrochemicals manufacturer SABIC. Contributing to this notable increase in brand value to US$3.7 billion are SABIC’s renewed efforts to capitalize on the US shale boom by growing its business in America. Having recently announced plans for a new head office in Houston, Texas, SABIC is a major supplier of polyethylene and other commodity resins across the Western Hemisphere. SABIC has designated the United States as a focus of its future growth plans as fracking and horizontal drilling in shale formations have unearthed cheap US natural gas that made the country among the most profitable places to produce chemicals, even trumping the Middle East in attracting projects.
 
Saudi banks dominate rankings
 
Of the 25 Saudi Arabian brands valued in the ranking, 11 (44%) are banking brands, with Al Rajhi Bank taking the top rank (up 22% to US$2.6 billion). Al Rajhi Bank is the largest Islamic Bank in the world by total assets and one of the largest financial institutions in the region in terms of customer base, network, and a number of transactions. Other banks in the top 10 showing robust performance include National Commercial Bank (up 16% to US$2.3 billion), Samba Financial Group (up 14% to US$1.0 billion), and SABB (up 3% to US$0.8 billion). The dominant position of the banking sector can be attributed to consistent efforts by Saudi banks to manage operating costs effectively alongside a committed drive towards investing in digital strategies.
 
Saudia soars to new heights
 
Amongst otherwise turbulent times for Gulf carriers and the airline industry as a whole, there are positive signs coming from Saudia which has grown its brand value 30% since last year to US$0.9 billion. The Kingdom’s national carrier currently flies to 89 destinations across four continents and operates a fleet of narrow-body and wide-body Airbus and Boeing aircraft. The airline has just announced new seasonal services for the upcoming summer period with flights to Malaga, Spain starting 9 June and a daily service to Izmir, Turkey launching from 8 June.
 
Saudi Electricity Company powers up brand strength score
 
Of all 25 Saudi Arabian brands, Saudi Electricity Company holds the highest Brand Strength Index (BSI) score of 82.4 out of 100. In a landmark move towards full digitalization at the beginning of the year, the utility brand introduced electronic bills instead of paper-based bills for all of its customers. Multiple efforts have also been made in the community awareness sphere as the brand rolled out a highly successful national campaign on electrical safety.
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