KPC remains dominant as Kuwait’s most valuable brand
Kuwait Petroleum Corporation (KPC) remains the most valuable Kuwaiti brand, with its brand value growing by 6% to reach USD4.4 billion. This marks its continued dominance within Kuwait since Brand Finance began assessing the country’s top brands in 2022.
The corporation's success in 2024 is largely attributed to record profits in 2022-23, surging by 198% in dinars compared to the previous year. Factors contributing to this include soaring oil prices and the completion of refineries in Mina Abdullah and Mina Al Ahmadi, under Kuwait National Petroleum Company (brand value up 80% to USD1.4 billion), KPC’s oil refinery arm. This has enabled KPC to increase its crude processing capacity. With plans to invest USD 410 billion by 2040 and raise oil capacity to 4 million barrels a day by 2035, as well as boosting natural gas production, KPC is on a growth trajectory. The development of the offshore Durra gas field, despite territorial disputes, is likely to be pivotal to KPC's ambitious targets.
Additionally, KPC is actively consolidating its eight affiliated oil companies to enhance integration and operational efficiency. This includes the ongoing merger between Kuwait National Petroleum Company (brand value up 80% to USD1.4 billion) and Kuwait Integrated Petroleum Industries Company (KIPIC), expected to conclude in mid-2024.
Andrew Campbell, Managing Director, Brand Finance Middle East commented:
“In 2024, Kuwait's leading brands have showcased remarkable resilience and growth, with all of the nation's top ten most valuable brands experiencing year-on-year increases in brand value. Furthermore, eight out of ten brands have grown their brand strength. This notable upward trend underscores Kuwait's emergence as a rising star in the region, with its top brands wielding increasing influence not only within Kuwait but also across the broader Gulf region.”
Zain is the strongest brand, reaping rewards from development strategy
Zain is Kuwait’s strongest brand with a Brand Strength Index (BSI) score of 81.5 out of 100 and AAA- brand rating, this is a 3.4 BSI score increase year-on-year. Zain also witnessed its brand value reach USD3 billion, up 11% from the previous year.
In line with global telecom trends, Zain is embarking on a technological transformation across its telecoms operations, while also diversifying into multiple new tech-centric business verticals through its '4Sight' development strategy. Fintech plays a pivotal role in this, with plans to increase the contribution of fintech services to Zain’s revenue by 10% over the next 3 years. A notable achievement in this endeavour is the launch of Zain's new fintech brand, Bede, a Shariah-compliant microfinance mobile app.
Zain Group is also enhancing its sustainability efforts, through its continued execution of its five-year, 2025 corporate sustainability strategy, contributing to a stronger brand perception. An example of this is the collaboration between Zain KSA and Red Sea International Company to launch the world's first carbon-free 5G network. This network operates entirely on renewable energy sources, showcasing Zain's dedication to sustainability and green initiatives. Moreover, Zain is the only telecom operator in the MEA region to achieve the A- rating in the CDP (Carbon Disclosure Project) that positioned Zain first in the region and among leaders globally with respect to climate control initiatives.
Through its updated business and ESG strategy, Zain is exploring ways to reposition its brand to better reflect its expanded scope and diverse portfolio of businesses, aiming to amplify the brand's value by capitalising on the collective strength of its various entities.
NBK's (brand value up 10% to USD1.428 billion) brand strength has increased to 81.1/100, positioning it marginally behind Zain as the second strongest brand in Kuwait with a AAA- brand rating. This increase in brand strength is primarily attributed to enhanced perceptions of Usage, Price Premium, Recommendation, and Reputation. These improvements align with NBK's focus on effective relationship management, achieved through continuous client interaction across various locations. The bank's commitment to offering more comprehensive and integrated financial services to meet its customers’ needs is exemplified by the introduction of NBK Wealth. This service provides clients with private banking, financial planning, wealth management, investment management, and advisory services.
The Kuwait National Petroleum Company (KNPC) post impressive 80% growth, making it the fastest growing brand in the ranking
The Kuwait National Petroleum Company (KNPC) emerges as Kuwait's fastest-growing brand, soaring by 80% to USD 1.4 billion. As part of the KPC brand ecosystem, this national oil refining company achieved record profits exceeding USD 3.3 billion in 2022-23. These remarkable results stem from the completion of additional refineries and the ongoing merger with KIPIC.
NBK leads in Environmental and Governance perceptions
As part of its brand valuations, Brand Finance analyses the contribution of specific attributes on overarching brand value. An attribute that continues to draw attention is sustainability. Brand Finance quantifies brands' sustainability perceptions in its Sustainability Perceptions Index. Brand perceptions are researched across the environmental, social, and governance (ESG) dimensions of sustainability. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability.
NBK (brand value up 10% to USD1.428 billion) holds the strongest sustainability perceptions in Kuwait for the Environmental metric, while it is joint top for Social and Governance perceptions with Kuwait Finance House (brand value up 14% to USD1.387 billion). NBK’s brand strength has also increased to 81.1 out of 100, positioning it marginally behind Zain as the second strongest brand in Kuwait with a AAA- brand rating.
NBK's strategic pillars of Responsible Banking, Governance for Resilience, Investing in Communities, and Capitalizing on Capabilities are exemplified through various initiatives. These include aiming for carbon neutrality by 2060, forming a sustainability committee, introducing customer-tailored card designs, and fostering diversity in its workforce. Such efforts have yielded positive outcomes, enhancing the brand's ESG and overall perception among stakeholders.