Etisalat is region’s most valuable brand — report

Updated 23 April 2018

Etisalat is region’s most valuable brand — report

  • Abu Dhabi-based telco overtakes STC as brand value hits $7.7 billion
  • Dubai-based Emirates Airlines fell to third position in the overall rankings for the region

Abu Dhabi-based telco Etisalat has been named as the region’s most valuable brand for 2018, rising by 40 percent to $7.7 billion in the past year, according to consultancy Brand Finance, with leading Saudi firms also experiencing gains.

Drivers behind the increase in value include “the brand’s innovative customer service-driven strategy, its leadership position on the 5G revolution, and successful launches of global brand-building initiatives,” Brand Finance said in a statement. 

Etisalat overtook fellow telco STC of Saudi Arabia to become the region’s most valuable brand. But STC enjoyed a positive year, its brand value rising 7 percent to $6.7 billion.

“Alongside its 5G rollout plans, STC’s new digital transformation strategy includes investment in digital media content and advertising services, creating opportunities outside of its core business,” according to Brand Finance. 

Dubai-based Emirates fell to third position in the overall rankings for the region, its brand value slipping 12 percent to $5.3 billion. Fellow airline Etihad also experienced a fall in brand value, with the regional aviation market hit by geopolitical issues over the past year. 

Emaar Properties entered the regional top 10 for the first time in 2018, its brand value increasing 39 percent to $2.7 billion, following a joint venture partnership with Abu Dhabi’s Aldar Properties, announced last month. 

“The strategic partnership between Aldar and Emaar strengthens prospects for the UAE’s real estate sector as well as delivering a real boost for the investment community as we inch closer toward Expo 2020,” said Andrew Campbell, managing director, Brand Finance Middle East.

The rise in Emaar’s brand value comes despite lingering uncertainty over Dubai’s real estate market. The developer’s shares have fallen more than 20 percent so far this year, as soft economic conditions and increasingly supply continue to weigh on prices and rental rates.

The UAE is home to 6 of the region’s top 10 brands and 42 percent of the total brand value in the Brand Finance Middle East 50 league table, more than any other country. But Saudi firms accounted for 21 of the region’s most valuable 50 brands, up from 18 in 2017. 

STC topped Brand Finance’s inaugural Saudi rankings. SABIC, in second place, was the Kingdom’s fastest growing brand of the past year, its value increasing 78 percent to $3.7 billion, which the consultancy attributed to the company’s renewed efforts to capitalize on the US shale boom by growing its business in the country. 

Banks accounted for 11 of Saudi Arabia’s 25 most valuable brands, led by Al-Rajhi Bank, the world’s largest Islamic bank by total assets. Al-Rajhi’s brand value rose by 22 percent during the year, with NCB and Samba rising 16 percent and 14 percent respectively. 

Amazon was named as the world’s most valuable brand by Brand Finance in February, its value increasing 42 percent to $150.8 billion, with technology companies Apple, Google, Samsung and Facebook rounding out the top 5. 

Philips to close its UK factory in 2020, with loss of 400 jobs

Updated 3 min 6 sec ago

Philips to close its UK factory in 2020, with loss of 400 jobs

AMSTERDAM/LONDON: Dutch health technology company Philips said on Thursday it planned to close its only factory in Britain in 2020, with the loss of around 400 jobs, the latest firm to move manufacturing jobs out of Britain.
The move is part of a push by Philips to reduce its large manufacturing sites worldwide to 30 from 50, and a spokesman said the decision had no direct link with Britain’s decision to leave the European Union.
However, the company said in a statement that it had to “pro-actively mitigate the potential impact of various ongoing geopolitical challenges, including uncertainties and possible obstructions that may affect its manufacturing operations.”
The factory in Glemsford, Suffolk, produces babycare products, mainly for export to other European countries. Almost all its activities will move to Philips’ plant in Drachten, the Netherlands, which already employs around 2,000 workers.
“We have announced the proposal after careful consideration, and over the next period, we will work closely with the impacted colleagues on next steps,” said Neil Mesher, CEO of Philips UK & Ireland.
“The UK is an important market for us, and we will continue to invest in our commercial organization and innovation programs in the country.”
Once a sprawling conglomerate, Philips has transformed itself into a health technology specialist in recent years, shedding its consumer electronics and lighting divisions.
The firm has previously warned that Brexit would put Britain’s status as a manufacturing hub at risk.
Chief Executive Frans van Houten last year said that without a customs union — which has been ruled out by Prime Minister Theresa May — Philips would have to rethink its manufacturing footprint.
Britain is set to leave the EU on March 29, and politicians are at an impasse over how to do so after lawmakers overwhelmingly rejected May’s proposed withdrawal agreement on Tuesday.
Other firms have moved jobs out of Britain in recent weeks, sparking alarm among lawmakers that Brexit is impacting corporate decision-making.
Jaguar Land Rover has slashed UK jobs — mainly due to lower Chinese demand and a slump in European diesel sales — while Ford has said it will slash thousands of jobs as part of its turnaround plan.
While both decisions were driven by factors other than Brexit, each firm has also been vocal in warning of the risks of no-deal Brexit, where Britain leaves abruptly in March without a transition period.