20200403-Brand_Finance-The_annual_report_on_the_most_valuable_and_strongest_UAE_brands_16页_7mb

Summary of UAE Brand Report (April 2020)

Core Content

This report provides an analysis of the most valuable and strongest brands in the UAE, released by Brand Finance in April 2020. It highlights the impact of the Coronavirus outbreak on brand values and outlines the methodology used for brand valuation.

Main Points

• Brand Finance is the world's leading independent brand valuation consultancy, established in 1996 with the mission to bridge the gap between marketing and finance.
• The report emphasizes the importance of understanding brand value to make informed business decisions, including brand licensing, selling, and strategic rebranding.
• The UAE 25 report ranks the top 25 most valuable and strongest brands in the UAE, with 7 of them being in the banking sector.
• ADNOC is the most valuable brand in the UAE, with a brand value of US$11.4 billion, up 29% from the previous year.
• Etisalat is the second most valuable brand, valued at US$8.473 billion, with a slight increase of 2%.
• Emirates is the third most valuable brand, valued at US$6.86 billion, up 9.4%.
• ADCB is the fastest-growing brand in the UAE, with a 40.8% increase in brand value to US$2.667 billion.
• The Middle East 50 report also highlights the UAE's strong presence in the region, with 17 UAE brands included.

Key Sectors and Brand Value Distribution

The report outlines the distribution of brand value across various sectors in the UAE:

• Banks (11 brands): US$15.9 billion (30.6% of total)
• Oil & Gas: US$11.4 billion (21.9% of total)
• Telecoms (2 brands): US$11.2 billion (21.6% of total)
• Airlines (2 brands): US$7.1 billion (13.6% of total)
• Real Estate Services (3 brands): US$2.4 billion (4.7% of total)
• Logistics (2 brands): US$1.2 billion (2.3% of total)
• Other: US$2.8 billion (5.3% of total)

Impact of the Coronavirus (COVID-19)

• The global brand value of the world's largest companies is expected to lose up to US$1 trillion due to the Coronavirus outbreak.
• The aviation sector is the most affected, with the global airline industry facing significant financial challenges.
• The Middle East 50 report indicates that the UAE's brands are showing resilience and adaptability in response to the crisis.
• The report classifies sectors based on the severity of enterprise value loss:
  • Limited Impact: -0% (Household Products, Utilities, Telecoms, Food, Pharma, Cosmetics & Personal Care, Real Estate)
  • Moderate Impact: -10% (Tech, Healthcare, Exchanges, Auto, Car Rental Services, Logistics, Tobacco, Mining, Iron & Steel, Commercial Services, Spirits, Media, Engineering & Construction)
  • High Impact: -20% (Auto Components, Airlines, Chemicals, Restaurants, Beers, Tires, Insurance, IT Services, Banking, Leisure & Tourism, Aerospace & Defence, Apparel, Hotels, Oil & Gas, Airports, Retail)

Brand Strength Index (BSI)

• Brand strength is measured using a BSI score on a scale of 0 to 100.
• The BSI score is used to determine the royalty rate, which is then applied to forecast revenues to derive the brand value.

Brand Valuation Methodology

• Brand Finance uses the Royalty Relief approach to calculate brand values, compliant with ISO 10668.
• The process involves:
  1. Calculating brand strength using a balanced scorecard of metrics.
  2. Determining the royalty range for each industry.
  3. Applying the BSI score to the royalty range to get a royalty rate.
  4. Estimating brand-specific revenues based on forecast revenues.
  5. Discounting post-tax brand revenues to a net present value (NPV) to arrive at the brand value.

Brand Dialogue and Brand Exchange

• Brand Dialogue is a PR agency that develops communications strategies to drive brand value.
• Brand Exchange is a members' club and events space in London, providing networking opportunities for brand professionals.

Brand Finance Services

• Valuation Services: Includes branded business valuation, trademark valuation, intangible asset valuation, and brand contribution.
• Analytics Services: Focus on improving marketing effectiveness through market research, ROI analysis, brand audits, and brand scorecard tracking.
• Strategy Services: Help increase brand value through brand governance, brand architecture, brand transition, and brand positioning.
• Communications Services: Offer digital endorsements, video endorsements, bespoke events, digital infographics, trophies and certificates, and sponsored content.

Disclaimer

• Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government, or organisation.

Contact Information

• For media enquiries: Sehr Sarwar, Communications Director, +44 79366 963 669, s.sarwar@brandfinance.com
• For business enquiries: Richard Haigh, Managing Director, rd.haigh@brandfinance.com
• For all other enquiries: enquiries@brandfinance.com, +44 207 389 9400
• Website: www.brandfinance.com
• Social Media: LinkedIn, Twitter, Facebook, Instagram

Brand Finance Network

• A list of local representatives across various regions, including Asia Pacific, Australia, Canada, Caribbean, China, East Africa, France, Germany, India, Indonesia, Ireland, Italy, Japan, Mexico & LatAm, Middle East, Nigeria, Romania, South Africa, Spain, Sri Lanka, Turkey, UK, USA, and Vietnam, is provided for further information on services and valuation experience.