LONDON: The 2024 Global 500 index, published by Brand Finance on Wednesday during the World Economic Forum in Davos, reveals that Aramco continues to dominate as the most-valuable brand in the Middle East.
Every year, Brand Finance evaluates 5,000 major brands, publishing over 100 reports across diverse sectors and countries. The rankings highlight the top 500 most-valuable, and strongest, brands in several categories. Various criteria are used to determine brands rated as the strongest, in a type of credit-rating, which is then used to determine the most-valuable overall.
The Saudi oil and gas company, which ranked 36th globally on the index, maintained its regional position by a significant margin, even though its valuation dipped slightly to $41.6 billion.
In the wake of a robust period for the oil and gas sector, driven by heightened energy demand post-COVID-19 and the surge in prices resulting from Russia’s invasion of Ukraine, Aramco, a consistent performer on the index since it was first published in 2020, experienced a minor decline. This was influenced by revenue fluctuations and also linked to a perceived reduction in quality and reliability.
The Abu Dhabi National Oil Company, which took 128th position globally, was the second-most valuable brand in the Middle East and North Africa region. It recorded 7 percent growth to a valuation of $15.2 billion, driven by its commitment to decarbonization.
The company was one of the founding signatories of the Oil and Gas Decarbonization Charter, a global commitment to speed up climate action across the industry that was launched during the UN Climate Change Conference, COP28, in Dubai last year.
In January, it further demonstrated this commitment by announcing the acquisition of a 10.1 percent equity stake in Storegga, a UK company specializing in the development of global carbon-capture and storage projects.
Andrew Campbell, the managing director of Brand Finance Middle East, said the positions of businesses in the region on this year’s index reflects their positive performance, surpassing the global average in terms of brand growth.
“We expect to see the number of brands from the region within global ranks increase over the coming years as part of the substantial economic diversification efforts of the nations,” Campbell told Arab News.
The UAE’s Etisalat by e&, the telecom vertical of e& group, has continued to maintain its status as the strongest telecom brand in the Middle East and Africa, as well as the strongest telecom brand globally with a Brand Strength Index score of 89.4 (out of 100).
Brand Finance said the participation of the Emirati mobile phone provider at global events such as the Formula One Grand Prix in Abu Dhabi and COP28, had contributed to an increased brand value of $11.6 billion.
The Saudi Telecommunication Company also made a significant breakthrough on the index, breaking into the global top 150 most-valuable brands at 149, marking a first for a consumer brand from the Middle East.
With a 12 percent growth in brand value to $13.9 billion, stc’s expansion strategy and key acquisitions, such as its investment in Spain’s Telefonica, played a pivotal role in its growth.
Other Middle Eastern brands in the top 500 include Qatar National Bank (259th, valued at $8.4 billion), Emirates (344th, valued at $6.6 billion), Al-Rajhi Bank (354th, valued at $6.4 billion), and SABIC (491st, valued at $4.9 billion).
David Haigh, chairman and CEO of Brand Finance, remarked on the remarkable progress, noting that numerous brands spanning diverse sectors are on the brink of breaking into the top 500.
He emphasized: “The region is heavily investing in both tangible and intangible assets beyond the oil industry, leading many brands to transition from being strong regional players to aspiring global brands.”
On the global stage, Apple reclaimed its title as the world’s most valuable brand, with a significant 74 percent growth in brand value to $517 billion. Meanwhile, NVIDIA emerged as the world’s fastest-growing brand, experiencing a 163 percent increase in brand value to $44.5 billion, driven by market demand for AI chips.
Tesla, which ranked in the top 10 last year, fell to 18th place due to its exposure to the Chinese EV market and reputational risks associated with Elon Musk.
Media brands dominated the top 20, with Meta’s Facebook and Instagram closely following TikTok.
