Aramco Is Middle East’s Most Valuable Brand In New Ranking Of Global Brand Values

Aramco is most valuable Middle Eastern brand in global ranking, followed by ADNOC

Oil and Gas brand Aramco (brand value up 4% to US$43.6 billion) is the most valuable brand in the Middle East region, and 29^th most valuable brand in the world, according to the Brand Finance Global 500 2023 rankings, the annual ranking of the world’s most valuable brands.

Every year, leading brand valuation consultancy Brand Finance puts thousands of the world’s biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 500 most valuable and strongest brands in the world are included in the annual Brand Finance Global 500 2023 ranking.

UAE-based energy producer ADNOC is the second most valuable brand in the Middle East region with a brand value of US$14.1 billion and ranked at 138th globally, entering the top 150 for the first time. The brand’s value has grown by 11% over the past year and has a corresponding brand strength rating of AA+. The brand has grown significantly through its partnerships in the sector and is seen as a role model in the region for attracting global capital. ADNOC is also actively embracing the energy transition, committing US$15 billion to low-carbon solutions, new energies and decarbonization technologies in support of their Net Zero by 2050 ambition.

David Haigh, CEO and Chairman of Brand Finance, commented:

“While the world’s top global brands have taken a hit to their values, the leading Middle East brands have grown in value. This reflects the on-going success of local brands to step up from being strong regional players to becoming brands with global aspirations.”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. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 150,000 respondents in 40 countries and across 31 sectors.

etisalat by e& is strongest Middle Eastern brand, stc second-strongest

etisalat by e&, telecom brand of the tech conglomerate e& operating in the UAE and Egypt, retains its position as the Strongest Brand in the region at 89.1 out of 100. This year saw a new evolution from Etisalat Group to e&, a brand identity change to accelerate its transition into a tech-driven telco. This transition has manifested in both infrastructural changes to the etisalat by e& operations to enhance its services to the customer, as well as external-facing service offerings of the other e& divisions that previously operated under the Etisalat brand. This year the etisalat by e& branded portion of the group is $10.5bn, with the combined value for all e& branded operations at $11.7bn (up from a combined value of $10.1bn in 2022). The e& group, present across 16 countries, operates several other branded operations and boasts the most valuable portfolio of telecom brands in the Middle East and Africa, exceeding $14bn.

stc (brand value up 17% to US$12.3 billion) climbed 25 places in the Global 500 ranking, the most by any Middle Eastern brand in the study, profiting from the robust future growth given its dominance in its home market. The brand value was positively affected by stc’s technological investments to keep delivering on its DARE strategy and increased focus on the expansion of the brand in adjacent sectors such as ICT and IT. The brand successfully achieved the IPO of Solutions by stc in late 2021, and in 2022 the company launched a new IoT company, in partnership with PIF, IOT Squared: that will offer smart solutions including manufacturing, logistics, and smart cities aiming to become a “one-stop-shop” for IoT solutions. Another ICT-related move that came in early 2022, was the establishment of Center3, a wholly owned subsidiary active in providing services related to big data, data analytics and cloud computing. The stc Group launched Center3 to enhance the digital system, which will contribute to enhancing the Kingdom’s position as a regional digital centre.

QNB up 9% in wake of World Cup, Al-Rajhi Bank enters Global 500 ranking

Qatari bank QNB (brand value up 9% to US$7.1 billion) benefited this year from the unique opportunity to connect globally and enhance its international presence amongst Global brands to solidify its strong market position as the official sponsor of the FIFA World Cup 2022™ in the Middle East and Africa. It remains the most valuable banking brand in the Middle East since 2013 and has entered the top 300 brands globally for the first time. This performance is underpinned by its very high capital strength, its strong talent, and its international presence (the largest bank in the Middle East and Africa).

Saudi Arabia’s Al-Rajhi Bank (brand value up 32% to US$5.7 billion) is the newest Middle Eastern brand to enter the Global 500 ranking. It is one of the strongest brands in the Middle East region with a Brand Strength Index (BSI) score of 85 and corresponding AAA- brand rating. It is the largest Islamic bank in the world by assets and market capitalization. It has built an enviable retail franchise in Saudi Arabia and is using the halo effect of its strong brand to expand into previously non-core segments such as corporate, SME, and private banking.

Amazon is world’s most valuable brand, despite losing US$51 billion in value

Amazon has retaken top spot as the world’s most valuable brand despite its brand value falling 15% this year from US$350.3 billion to US$299.3 billion, according to a new report from leading brand valuation consultancy, Brand Finance.

Amazon’s brand has fallen by over US$50 billion this year, substantially in connection with its fall in brand strength, with its rating falling from AAA+ to AAA as consumers evaluate it more harshly in the post-pandemic world. Brand Finance’s research has found that customer perception of customer service at Amazon has fallen – at the same time as delivery times have lengthened – and in concert with this, consumers have become less likely to recommend Amazon to others. Concurrent with the conclusion of pandemic restrictions, people are returning to shopping in-person, slightly mitigating the need for online retail.

David Haigh, Chairman and CEO of Brand Finance, commented:

“Technology brands across the world have lost significant value in response to shifting demand patterns. Inflation has affected brands across many sectors, but as consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard. Additionally, disrupted supply chains, labour shortages, and greater obstacles to financing have left their mark.

Apple loses its top ranking after losing US$57.6 billion

Apple (brand value down 16% to US$297.5 billion) has fallen to be the world’s second most valuable brand with its brand value falling US$355.1 billion. This year’s fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products.

There was a total of 48 global tech brands that featured in the ranking, two down from the 50 in 2022, after Snapchat and Twitter dropped out. Other tech-focused brands to lose value include Samsung Group (brand value down 7% to US$99.7 billion), Alibaba.com (brand value down 56% to US$10.0 billion), Facebook (brand value down 42% to US$59.0 billion) and WeChat (brand value down 19% to US$50.2 billion).

On the positive side, Instagram (brand value up 42% to US$47.4 billion) and LinkedIn (brand value up 49% to US$15.5 billion) have grown in the tech sector, with the brand value of each growing due to well-executed strategy to commercialise their services.

Tesla and BYD are amongst the world’s fastest-growing brands as demand grows for electric vehicles

Some of the other big global winners in brand value include electric car manufacturers Tesla (brand value up 44% to US$66.2 billion) and BYD (brand value up 57% to US$10.1 billion) as demand grows for electric cars as part of a broader transition a to low carbon economy.

In addition to the Global 500 2023 ranking of the world’s most valuable and strongest brands, Brand Finance is also launching the Brand Finance Sustainability Perceptions Index, in association with the International Advertising Association at the World Economic Forum in Davos. This report reveals that major global brands such as Amazon, Tesla, Apple, and Google each have billions of dollars contingent on carefully managing a reputation for commitment to sustainability.