Aramco retains crown as most valuable Middle Eastern brand, Soft Power index reveals

LONDON: Aramco has retained its crown as the most valuable Middle Eastern brand, the 2023 Soft Power index by Brand Finance revealed.

According to the report published on Tuesday, the Saudi Arabian oil and gas giant saw its brand value rise by 4 percent to $45.2 billion over the last year.

Aramco, which has claimed the top spot since it first featured on the index in 2020, has benefited from a surge in prices and demand for oil and gas in recent months.

In what Brand Finance’s report described as “a sign of confidence and ambition for continued growth,” Aramco has continued to invest heavily in its brand to support growth in both core and growth businesses through a global campaign as well as investments in sports, including Formula One and golf.

The Middle East’s 150 most valuable and strongest brands are included in a dedicated regional ranking, the Brand Finance Middle East 150 2023.

Valuation is determined by the economic value a brand owner could receive from licensing their brand on the open market.

Brand strength is the “efficacy of a brand’s performance on intangible measures, relative to its competitors.” The index looks at factors such as level of trust, loyalty, retention, market share and awareness that customers have toward a brand to evaluate its strength against competitors.

Driven by an increase in demand for energy supply spurred by the Ukraine-Russia conflict, Middle Eastern energy and petrochemical companies are topping this year’s table for the Middle East region.

Abu Dhabi National Oil Company also retained the top position as the strongest oil and gas brand in the region and second most valuable Middle Eastern brand, with a brand value of $14.2 billion, an 11 percent growth over the past 12 months.

Saudi chemicals company SABIC also reclaimed the top spot as the most valuable chemicals brand in the Middle East, with a brand value of $4.7 billion, up 1 percent from last year, while DP World, with a brand value of $1.8 billion, remains the most valuable logistics brand in the region.

Qatar Energy-owned Qatargas topped the chart for the fastest-growing brand in the region, with an annual brand value growth of 147 percent, pushed by the increase in demand for natural gas, particularly from Europe.

Telecom company Etisalat was named strongest brand in the region this year.

This achievement, according to Brand Finance, is attributed to a combination of factors, including a “refreshed brand identity, high levels of customer satisfaction, and an outstanding company culture,” which allowed the brand to score 89.1 out of 100 on the Brand Strength Index.

It was followed by telecom company stc, whose brand value increased 17 percent over the previous year to $12.3 billion, allowing the Saudi telecom to climb 25 places in the Global 500 list, the most of any Middle Eastern brand in the survey.

The report also highlighted the continued emergence of Middle Eastern banking brands, a sector that has witnessed a 28 percent average year-on-year brand value growth.

Saudia, the national airline of Saudi Arabia, has also made significant strides in its brand value growth.

While Dubai-based carrier Emirates remains the most valuable Middle Eastern airline with a brand value of $5.1 billion, the Saudi airline’s brand value has increased by 14 percent in the last year to $650 million, solidifying its position as a leading Middle Eastern airline operator.

This year’s report also features King Faisal Specialist Hospital and Research Center, which has entered the ranking for the first time with a brand value of $1.1 billion.