London: STC is Saudi Arabia’s most valuable brand, as its brand value grew 6.7% over the past year to US$7.1 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.
The report has for the first time been expanded to include 50 Saudi Arabian brands, building on last year’s report valuing 25 brands from the Kingdom.
STC topped chart to defend its first place, brand value up 6.7% to US$7.1 billion, says report.
“A digital enabler working towards Vision 2030, the brand is paving the way for 5G activities in the region, having launched its first 5G live network in May last year and more recently announcing that it has successfully made a call using a 5G smartphone – making it among the first in the world.”
Saudi Arabia’s petrochemicals giant SABIC has seen its brand value boosted 6.5% since last year, valued now at US$4.0bn. This success can be attributed to the brand’s continued expansion of investments across China, despite an expected slowdown in the country’s economic growth. SABIC has also continued to raise its presence in Africa which remains a promising lucrative market. As part of its national effort to enhance cooperation between public and private sectors to support domestic development and enable Saudi Vision 2030, SABIC is at the forefront of providing opportunities for downstream growth across the Kingdom.
All eyes are now on Saudi ARAMCO which for the first time earlier this month, chose to publicly declare its earnings and give a breakdown of its financial performance. ARAMCO announced recently that it would buy a 70% stake in SABIC as part of its downstream expansion strategy.
“Saudi Arabian brands have continued to excel and in turn grow their brand values this year, giving this league table impetus to expand into a rank of 50 brands for the first time. As these brands work towards the common goal of Vision 2030, the results show just how crucial the role of brands are in realising a sound economic future for the Kingdom,” David Haigh, CEO of Brand Finance, said.
A notable performance in this year’s Saudi Arabia 50 comes from chemicals brand Petro Rabigh, growing 42.3% since last year with an impressive US$907 million brand value and entering the Top 10 for the first time. With the help of the world’s largest single-phase integrated refining and petrochemicals complex, Petro Rabigh yields 140 million barrels of petroleum-based products and 5 million tons of petrochemical products per year.
Petro Rabigh breaks into top 10
A joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, it is the Middle East’s first producer of several petrochemical products and the sole producer of propylene oxide, which of course provides tremendous opportunities for both local and international investors.
Almarai set for growth
Retaining its fifth-place rank, Saudi Arabian food and beverage manufacturing and distribution brand Almarai is valued at US$ 2.9 billion, while its Brand rating has improved to an AA+ becoming the strongest food brand in the kingdom. Continuing its food chain expansion in Saudi Arabia, the brand has announced its intention to acquire a 100% stake in Riyadh based Premier Foods, which is the leading producer of value-added halal products.
With the acquisition set to further increase Almarai’s footprint for expansion within the foodservice channel, Almarai has tripled its capacity and provides a comprehensive range of both generic and bespoke products to more than 35 top international restaurant brands. Almarai also launched a no-added-preservatives infant formula of a baby drink which has contributed to the brand’s growing success.
Saudi bank brands to watch
Saudi banking brands which have risen through the ranking in the past year are Alinma Bank and Albilad Bank. The fastest growing Saudi Arabian brand in the ranking is Alinma Bank, with its brand value up 55% since last year to US$ 586 million. Followingly closely behind, Albilad Bank has grown 50% to US$ 347 million.
Alinma Bank is pioneering efforts in the digital banking space, with its new digital banking branch and interactive teller machines (ITMs) which means they have one of the most advanced technical infrastructures in Saudi Arabia. The bank provides customers with a number of 24/7 of self-service banking options, which include Alinma Internet, Alinma Phone, Alinma Mobile (WAP) and a suite of applications for smart devices.
Albilad Bank carries a reputation for solid customer service across its network of over 150 branches throughout the country, offering banking to its customer base in Riyadh, Jeddah, Dhahran, Al-Kharj and Tabuk.
Al-Rajhi Bank crowned Saudi’s strongest brand
Aside from calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value.
According to this criteria, Riyadh-headquartered banking brand Al Rajhi Bank is the strongest brand in the Brand Finance Saudi Arabia 50 2019 ranking, with a brand strength index (BSI) score of 82.6 out of 100 and a corresponding AAA- brand rating.
The bank was founded in 1957 by four brothers from the prominent Al Rajhi family, a testament to the strength of the family office model. With its network of over 600 branches across the Kingdom, Al Rajhi Bank also has branches in Kuwait and Jordan, and a subsidiary in Malaysia.
Saudi’s new brand entrants
As the league table has expanded to accommodate 50 brands for the first time, it is interesting to take a look at the new entrants. These brands represent a variety of sectors, spanning across B2B sectors such as engineering (Zamil Industrial) and logistics (Bahri), to B2C sectors such as healthcare (Mouwasat), Retail Fuel (Aldrees), Restaurants (Herfy), Retail (Extra, Saco, Farm superstores), and Leisure (Fitness Time).
As more corporates and brands from Saudi Arabia move towards becoming financially and operationally transparent, it is likely that we will see large family owned brands making an appearance on the table in the coming years.
