LONDON: With Saudi Crown Prince Mohammed bin Salman’s Saudi Vision 2030 plan well underway, the country’s own brand value has been steadily rising through the ranks.
Just this year, the kingdom’s brand value moved up the list to rank 19, with an increase of 8 percent from $662.3 billion to $714.9 billion, according to International brand valuation consultancy Brand Finance.
“Saudi Arabia has been making leaps and bounds towards its Vision 2030, taking impressive strides to not only diversify its economy to work towards long term growth, but also positioning itself as an attractive nation to do business with and an investment power across the region,” Andrew Campbell, Managing Director, Brand Finance Middle East told Arab News.
“This, paired with the nation’s impressive COVID-19 response and vaccine rollout, have enabled Saudi to not only rebound from its 2020 nation brand value, but also surpass its 2019 pre-pandemic valuation, which stands at an impressive US$715 billion this year.”
As mentioned by Campbell, this growth in brand value has been driven by significant improvement in gross domestic product forecasts. As the kingdom rebounds from coronavirus disease (COVID-19)-imposed restrictions, its economic recovery has been strong along with improvements in the macroeconomic environment.
Local Saudi brands play an integral role in the transformation and progress of the kingdom. The Saudi Telecom Company (STC), for example, is stimulating growth in the IT sector by establishing a digital hub for the region, while chemical manufacturing company SABIC is developing programs to help the creation and development of small and local businesses, and Saudi Aramco is propelling the kingdom onto the global state by sponsoring international initiatives.
Brand Finance also includes assessments of the strength of nation brands by evaluating brand investment, equity, and performance. This year, the strength of Saudi Arabia as a brand has gone up by four points to 69.3/100, largely driven by improved perceptions among audiences around the world.
The nation has specifically seen improved scores in the soft power pillars of Influence, Reputation, and Governance. There has been a significant improvement in the perceptions of Saudi Arabia’s leaders, as well as views of it being a safe and secure nation. The kingdom has made massive efforts to improve perceptions of its general governance, such as encouraging and promoting women’s sports with the first women’s football league kicking off last year and holding the Aramco Saudi Ladies International golf event.
It also became the first Arab state to host the G20 summit last year in Riyadh and by doing so, it assumed responsibility to promote and adhere to the G20 agenda, including a commitment to the UN Sustainable Development Goals.
And while the nation is still dependent on oil, the recovery of oil prices has helped stimulate the economy, but that is not the only reason for its economic growth. The progress in its non-oil sectors, such as investments in tourism, infrastructure, and industrial diversification, have contributed significantly.
The government’s effective response to the COVID-19 pandemic, including a successful vaccine rollout, has not only helped it rebound from its decline in 2020 value but also helped it surpass its 2019 pre-pandemic valuation.
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Tarek Ali Ahmad is the head of the Arab News Research & Studies Unit and a Media Editor. He has covered the October 2019 protests in Lebanon and the country’s 2018 parliamentary elections, as well as the World Economic Forum’s annual meeting in Davos in 2020. He holds an MA in Human Rights Law from SOAS, University of London, and a BA in Media and Communication from the American University of Beirut. Twitter: @Tarek_AliAhmad
