Five of the Middle East’s top 10 most valuable brands are from Saudi Arabia, according to a recent study published by Brand Finance, the world’s leading brand valuation and strategy consultancy.

The ‘Brand Finance Mena 50’ study shows that Saudi Arabia holds 17 of the top 50 ranked brands in the Middle East, valued at $21.7 billion.  

Saudi Telecom Company (STC) comes is the second most valuable brand in the Mena with a brand value of $5.69 billion, after UAE brand Emirates which has a value of $6.64 billion.

Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test, including the top 50 in the Middle East. They are evaluated to determine which are the most powerful, and the most valuable.

The total brand value for the Middle East’s top 50 brands has increased 23 per cent between 2014 and 2015 from $50.3 billion to $61.7 billion. This does not merely reflect a very large jump by a small number of the largest brands, brand values are growing strongly across the board. 44 of the 50 brands have recorded double digit brand value growth rates over the last year, some by as much as 91 per cent, the study said.

The UAE is top when the brand values for each country are totaled. It has reclaimed the title from
Saudi Arabia, which last year pulled ahead for the first time. The combined value of all 16 Emirati brands is $25.5 billion, while the 17 brands from Saudi Arabia total $21.7 billion.

The average brand value to enterprise value ratio (BV/EV) for the region is growing. The figure was 7.2 per cent in 2013 (the same as in 2010) but rose to 8.1 per cent in 2014 and to 10.7 per cent this year. This change shows that brand values are not just increasing in line with company expansion. It demonstrates that Middle Eastern enterprises are starting to more effectively develop their intangible assets and maximise their contribution to business value.

David Haigh, chief executive of Brand Finance, said: “It is very pleasing to see such robust brand value growth across the board when the countries of the Gulf are surrounded by troubled nations.”

“Mena brands are not just surviving this tricky period but are thriving, growing in importance within their domestic markets and in many cases out-competing international brands. They are emerging from their position of regional significance and becoming international brands themselves, adapting or changing their identities to suit global markets,” he added. – TradeArabia News Service