Emirates Airlines, Emaar Properties, Etisalat and RAK Ceramics are ranked as the top brands in the UAE, according to Brand Finance Middle East, a division of the UK-based brand valuation consultancy, at the company's launch in Dubai yesterday.
The top 25 brands in the list together represent brand value totalling almost Dh38 billion ($10.3 billion). Brand value accounted for 76 per cent of their collective sales revenues, which reached Dh63 billion ($17 billion) last year.
The more powerful brands, in other words those with the higher brand ratings, are those that are better positioned to perform in difficult business conditions. The top three brands in the UAE table are the most recognised and respected globally as well as regionally. Using a rating system of AAA (extremely strong) to B (weak), Emirates and Emaar received a brand strength rating of AA+, showing they are well positioned to face international competition and enter new markets.
With a brand strength rating of AA, Etisalat is strongly positioned to take on competition from the new mobile telecom operator du and is ready for entering other markets, said founder and managing director of Brand Finance plc, David Haigh. And RAK Ceramics' rating of AA- means that with its strong brand it can leverage its position to raise brand value, he added.
The home finance companies, Amlak, with its A rating and Tamweel with a rating of BBB+, "can look to raise brand strength, to be better prepared to face international competition in the future," said Haigh. But the property and property finance sectors generally need to develop a more customer-centric approach, "to raise brand strength and be better positioned to face international competition in the future," the study found.
Among the banks, Abu Dhabi Commercial Bank (BBB+) and Emirates Bank (A+) fared well both in brand values and brand strength. And although RAK Bank has a higher brand value than Commercial Bank International, it has a lower brand strength rating, "indicating an opportunity to raise brand value by means of a more focused and integrated marketing approach with a greater understanding of what are its true value-drivers," the Brand Finance study concludes. And it also says that the financial services sector generally has "fairly low scores, showing that the resilience of the brands in this sector is relatively weak, despite the existence of a fairly competitive marketplace".
Haigh emphasised that a firm could enhance its brand value by adopting a more customer-centric approach and having a better understanding of customer behaviour. In the UAE, this is likely to mean assessing the impact of Arab culture on brands and brand values, as well as segmenting the market — by customer, geographical areas and product mix.
The recognition of the importance of brand is highlighted by the fact that accounting standards FAS 141 and IFRS 3 now require that the 'goodwill' in an acquisition be allocated to the intangible assets that the company is acquiring.
This means that brand valuations are now a part of the commercial due diligence performed before an acquisition, he added.
The brand strength ratings have been compiled using Brand Finance's proprietary methodology and publicly available financial information. In the UAE however there is a paucity of such information, said Haigh, which means that the ratings are not definitive.
So There are other UAE brands, which are excluded from the table because they are privately held and financial data is unavailable, he said. Haigh also commented that Dubai had the "perfect conditions" to become a "brand-holding country." Source
The top 25 brands in the list together represent brand value totalling almost Dh38 billion ($10.3 billion). Brand value accounted for 76 per cent of their collective sales revenues, which reached Dh63 billion ($17 billion) last year.
The more powerful brands, in other words those with the higher brand ratings, are those that are better positioned to perform in difficult business conditions. The top three brands in the UAE table are the most recognised and respected globally as well as regionally. Using a rating system of AAA (extremely strong) to B (weak), Emirates and Emaar received a brand strength rating of AA+, showing they are well positioned to face international competition and enter new markets.
With a brand strength rating of AA, Etisalat is strongly positioned to take on competition from the new mobile telecom operator du and is ready for entering other markets, said founder and managing director of Brand Finance plc, David Haigh. And RAK Ceramics' rating of AA- means that with its strong brand it can leverage its position to raise brand value, he added.
The home finance companies, Amlak, with its A rating and Tamweel with a rating of BBB+, "can look to raise brand strength, to be better prepared to face international competition in the future," said Haigh. But the property and property finance sectors generally need to develop a more customer-centric approach, "to raise brand strength and be better positioned to face international competition in the future," the study found.
Among the banks, Abu Dhabi Commercial Bank (BBB+) and Emirates Bank (A+) fared well both in brand values and brand strength. And although RAK Bank has a higher brand value than Commercial Bank International, it has a lower brand strength rating, "indicating an opportunity to raise brand value by means of a more focused and integrated marketing approach with a greater understanding of what are its true value-drivers," the Brand Finance study concludes. And it also says that the financial services sector generally has "fairly low scores, showing that the resilience of the brands in this sector is relatively weak, despite the existence of a fairly competitive marketplace".
Haigh emphasised that a firm could enhance its brand value by adopting a more customer-centric approach and having a better understanding of customer behaviour. In the UAE, this is likely to mean assessing the impact of Arab culture on brands and brand values, as well as segmenting the market — by customer, geographical areas and product mix.
The recognition of the importance of brand is highlighted by the fact that accounting standards FAS 141 and IFRS 3 now require that the 'goodwill' in an acquisition be allocated to the intangible assets that the company is acquiring.
This means that brand valuations are now a part of the commercial due diligence performed before an acquisition, he added.
The brand strength ratings have been compiled using Brand Finance's proprietary methodology and publicly available financial information. In the UAE however there is a paucity of such information, said Haigh, which means that the ratings are not definitive.
So There are other UAE brands, which are excluded from the table because they are privately held and financial data is unavailable, he said. Haigh also commented that Dubai had the "perfect conditions" to become a "brand-holding country." Source
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