Saudi Arabia’s STC ranked most valuable brand in Middle East

Saudi Telecom Company (STC), the largest telecom operator in Saudi Arabia, has been ranked the most valuable brand in the Middle East, according to UK-based consultancy Brand Finance.

STC grew 11 percent in value this year to $6.2 billion, nudging out the seven-year leader Dubai’s Emirates airlines from the top spot.

“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,” Andrew Campbell, Brand Finance Middle East managing director, said in the report.

Emirates was ranked second, with its brand value down 21 percent to $6.1 billion. The carrier has been the most valuable brand in the Middle East since Brand Finance initiated its ranking in 2010.

The airline was affected as lower oil prices have leveled the playing field for international rivals, leading to increased competition, driving down fares, said David Haigh, chief executive for Brand Finance.

“The discount rate applied to all Gulf airlines has increased in tandem with this less favorable environment, reducing long term value,” Haigh said. “Finally, the strength of the dollar has increased operating costs and also had a negative FX impact on all non-US domiciled brands.”

Among others on the list of top 50 most valuable brands were:

Saudi Arabia

A total of 18 companies from Saudi Arabia made it to the list, down from 21 last year. The kingdom’s companies made up 32 percent of the total value of the top 50.

Dairy producer Almarai stood at seventh place, with a brand value of $2.6 billion.

Al Rajhi Bank slipped from last year’s No. 6 spot to No. 12, with petrochemical heavyweight Saudi Basic Industries Corp (SABIC) – valued at $2.1 billion – following at number 13.

Also in the top 50 was National Commercial Bank (ranked 15); Mobily (21); Saudi Electricity Co. (22); Riyad Bank (23); Samba Bank (25); Saudi British Bank (26); Saudia airlines (27); Banque Saudi Fransi (29); Arab National Bank (32); Petro Rabigh (35); retail firm Panda (37); Jarir Marketing (43); NADEC (44); and Alawwal Bank (48).

United Arab Emirates (UAE)

The 17 UAE companies included on the list accounted for 44 percent of the total value of the region’s top 50 brands – ahead of Saudi Arabia.

If gauging by the combined values of all brands owned by a corporate organization, Etisalat would come on top of the list, the report said. On a portfolio basis, the Etisalat is $1.5 billion ahead of STC.

UAE also had the region’s fastest growing brand, Dubai Islamic Bank was at 17th place, whose brand value was up 136 percent on 2016.

Emaar Properties came in at number 16 with a brand value of $1.9 billion.

Qatar

“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,” the report said.

The Gulf state had the Middle East’s most valuable bank brand, Qatar National Bank, which is valued at $3.8 billion.

Kuwait & Oman

Kuwait’s four brands accounted for 7 percent of total brand value, less than half the total of Qatar’s eight brands.

Oman has just one brand in the list, with Omantel improving its rank from 47th to 45th.

Bahrain was the only GCC nation not to feature. 

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com