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, a report said.

Forty-four of the 50 brands have recorded double digit brand value growth rates over the last year, some by as much as 91 per cent, added the Brand Finance Mena 50, the definitive list of the Middle East’s top 50 most valuable brands, published by Brand Finance, the world’s leading brand valuation and strategy consultancy.

The UAE is top when the brand values for each country are totalled. 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.

Emirates remains the Middle East’s most valuable brand and the world’s most valuable airline brand by a considerable margin. Brand value is up 21 per cent from $5.5 billion to $6.6 billion. It remains the only AAA rated brand in the Middle East.

The brand rating is calculated using Brand Finance’s Brand Strength Index which is a benchmark of a brand’s power, stability and future potential, similar to a credit rating, explained Brand Finance Mena 50, now in its eighth year.

Etihad has seen brand value increase 41 per cent, while Qatar Airways has grown by an even more impressive 51 per cent. It too has enjoyed enviable levels of investment as it begins to become a serious competitor for Emirates in scale as well as service. Brand value is up nearly $1 billion in a year and now stands at $2.8 billion, allowing Qatar Airways to jump from seventh to fourth place in the table.

All of Qatar’s brands have performed well this year, according to Brand Finance Mena 50.

While the average brand value growth rate for the Middle East as a whole is 23 per cent, the rate for Qatari brands is nearly double that at 47 per cent. The Middle East’s two fastest -growing brands are both from Qatar; Qatar Islamic Bank has risen 91 per cent and Ooredoo 82 per cent helped in part by the rebrand of providers in markets such as Algeria, Tunisia, Kuwait and Oman under the Ooredoo master brand.

The rebrand to Ooredoo highlights an encouraging trend among brands in the region; internationalisation. Unlike QTel (Qatar Telecom), the new name is free of national associations, making its smooth adoption in foreign markets much more likely, said Brand Finance.

Other brands include National Bank of Abu Dhabi, National Bank of Kuwait and First Gulf Bank (FGB), which refreshed its brand last year. This branding trend points to the growing power of Middle Eastern brands on the international stage and the resulting need for branding to reflect the needs of all markets.

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.

Brand Finance chief executive David Haigh 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