STC replaces Emirates as Mideast’s ‘most valuable brand’

STC has replaced Emirates as the Middle East’s “most valuable brand.”
Emirates had been the most valuable brand in the Middle East ever since Brand Finance initiated its ranking in 2010. The Dubai-based airline has been top of its industry at a global level for the last five years. However, Emirates’ brand value in 2017 is down 21 percent to $6.1 billion. It has lost its place at the top of its industry; three US brands (American, United and Delta) have overtaken it.
Meanwhile, STC grew 11 percent in value this year to $6.2 billion.
Andrew Campbell, Brand Finance middle East managing director, said: “The Riyadh-based giant demonstrates a departure from its once traditional approach; it is embarking down a path of ‘humanization,’ re-engaging its many stakeholders with a fresh, personable outlook. A clear indication of its success is the 5-point increase in its brand strength index score, proving that putting some heart into it pays off.”
STC’s victory means Saudi Arabia can now lay claim to the region’s most valuable brand after years of the UAE taking the title. The Kingdom has been less successful in other respects. It continues to have the most brands, 18 to UAE’s 17, however, this is down from 21 last year. It also continues to trail the UAE on total brand value, making up 32 percent of the total value of the top 50; the UAE constitutes 44 percent.
Qatar continues to solidify its position as the Middle East’s third most important brand building nation, further marginalizing Kuwait, which used to hold that status. Kuwait’s four brands now account for seven percent of total brand value, less than half the total of Qatar’s eight brands.
Every year, leading valuation and strategy consultancy Brand Finance values the brands of thousands of the world’s biggest companies. A brand’s strength is assessed (based on factors such as marketing investment, familiarity, preference, sustainability and margins) to determine what proportion of a business’ revenue is contributed by the brand. This proportion is projected into perpetuity and discounted to determine the brand’s value. The Middle East’s 50 most valuable brands, classified by both their industry and their nation, are featured in the Brand Finance Middle East 50.

Source: Arab News