The United Arab Emirates has been named the world’s 11th strongest nation brand, according to the latest Brand Finance Nation Brands 2021 report. It now ranks above the United States and the United Kingdom, among others.
Breaking the Western monopoly at the top of the brand strength ranking – along with Singapore in 4th position – the UAE has climbed three spots since last year following a 2.5-point increase in its Brand Strength Index (BSI) score to 79.1 out of 100.
Brand Finance determines the relative strength of nation brands through a balanced scorecard of metrics evaluating brand investment, brand equity, and brand performance. The nation brand strength methodology includes the results of the Global Soft Power Index – the world’s most comprehensive research study on nation brand perceptions, surveying opinions of over 75,000 people based in more than 100 countries.
Overseas perceptions of the UAE’s prowess in the Education & Science pillar are high, and the successful Emirates Mars Mission is clearly a factor. The UAE also stands out for its COVID-19 response, and scores high for the Influence and Business & Trade pillars, both of which should see a further boost from Expo 2020 inaugurated in Dubai this month.
His Excellency Mohammed Abdullah Al Gergawi, Minister of Cabinet Affairs, said: “The rise in the economic value of the UAE’s national brand from 18th to 17th position this year is a clear indication of the country’s global reputation and competitiveness in various fields. There is no doubt that achieving 11 percent brand value growth, from US$672bn to US$749bn, is a major achievement in the 50th year of the UAE and underlines how quickly our nation has established its name and global identity as a developed and pioneering country. It is an exceptional success story that will be told to all generations.”
Al Gergawi pointed out that the UAE’s rise from 14th to 11th place in the Brand Finance National Brand index of the strongest national brands for 2021 is “the latest confirmation of the excellence of the Emirati model in strategic planning and development. It confirms the nation’s success in establishing modern, open, transparent and interactive media communication with the public around the world, through which it has been able to present its many inspiring success stories.”
Al Gergawi emphasised that an advancement of three positions over the past year reflects the pioneering projects and policies that have helped foster a climate of excellence, competitiveness, innovation and leadership. It also comes in conjunction with the golden jubilee of the nation’s founding, which will mark the beginning of a new stage of development and creativity.
Andrew Campbell, Managing Director, Brand Finance Middle East, commented:
“The United Arab Emirates punches well above its weight in terms of nation brand strength and challenges the Western status quo in the ranking. As the UAE celebrates its Golden Jubilee year, it continues to fly the flag high, promoting the nation’s achievements across the world through ground-breaking initiatives like the Emirates Mars Mission and serving as the gateway to the region by hosting the world for 182 days at Expo 2020.”
The UAE has also improved its position in the nation brand value ranking, claiming 17th position, compared to 18th last year, following an impressive 11% increase in nation brand value to US$749 billion. The UAE’s continued increases in brand strength and value are testament to the nation’s strategy of diversifying its economy for long-term growth and solidify its position as the foremost nation brand in the Middle East.
Total nation brand value up 7%
The top 100 most valuable nation brands in the world have recorded a 7% increase in brand value since 2020, signalling that recovery is underway from the COVID-19 pandemic.
Although this is a positive sign, uncertainty lingers and nation brand values have not reached pre-pandemic levels yet. At US$90.8 trillion, this year’s total brand value of the top 100 ranking is still 7% lower compared to 2019.
David Haigh, Chairman and CEO, Brand Finance, commented:
“Unlike previous economic crashes, recovery is uneven and is pinned on the combination of initial COVID-19 response strategies and a successful vaccination rollout. We are starting to turn a corner, as the world’s most valuable nation brands begin to return to pre-pandemic brand values. But results are varied, and it may take years for some to recoup lost brand value, creating even greater disparity between the most and least valuable nation brands.”
US & China lead the pack
There has been no movement in the top 10 this year, with each nation retaining its rank from last year. All the top 10 have recorded a modest uplift in brand value, however, in line with the global trend across the ranking.
The United States and China remain in a league of their own, claiming the first and second spot in the ranking, respectively. The US has recorded a 5% brand value increase to US$24.8 trillion in a year that has been marked by great political and economic change with President Joe Biden taking the helm. Similarly, China saw a 6% uptick in nation brand value to US$19.9 trillion. Both nations have celebrated economic recovery since the outbreak of the pandemic, contributing to their uplift in brand value. China’s economy was the first to recover – doing so at a meteoric pace – as the only nation to register positive GDP growth at the end of 2020 and growing at record pace in the first quarter of this year.
Many thought that relations would improve between the two superpowers under Biden’s leadership, following the turbulent Trump years, but this has not been the case thus far.
David Haigh, Chairman and CEO, Brand Finance, commented:
“The superpowers from the West and the East unsurprisingly dominate the Brand Finance Nation Brands ranking, with China remaining hot on the heels of long-standing leader, the US. With China’s recovery and economic rise showing no signs of slowing down, as growth hit a record high at the beginning of the year, no doubt the gap will continue to close in the coming years.”
Switzerland is world’s strongest nation brand
Switzerland is the world’s strongest nation brand with a Brand Strength Index (BSI) score of 83.3 out of 100.Switzerland’s BSI score has remained stable, while the nations around it saw theirs take a hit, resulting in Switzerland moving to the top spot for brand strength. According to Brand Finance’s research, the Alpine nation saw external perceptions slightly rise following its strong response to COVID-19. It used a mix of compulsory and non-compulsory measures during the pandemic to control the spread of the virus. For example, non-essential businesses had to close, but the government’s order to stay at home was only ever advisory – entrusting the people to make the decision for themselves.
This is reflective of Switzerland’s model of government, with the public allowed to voice their opinions on laws through frequent referenda – last year the population rejected a motion to end its freedom of movement agreement with the EU and voted to make discrimination on the basis of sexual orientation illegal.
David Haigh, Chairman and CEO, Brand Finance, commented:
“Small size is no barrier to occupying a solid position for nation brand strength and Switzerland securing the top spot this year is the perfect example. Switzerland has held firm whilst other nations have faltered over the course of the pandemic. The nation has recently been thrust under the spotlight, however, with the leak of the Pandora Papers, which could taint its reputation as Swiss financial advisers are scrutinised on the global stage.”
Germany slips to 5th
Last year’s strongest nation, Germany, has dropped down to 5th position in the brand strength ranking, following a 2.3 point drop in BSI to 82.6 out of 100. Despite garnering praise on the global stage for her strong and stable leadership spanning 16 years, Angela Merkel sees mixed results on home soil. Domestic perceptions are consistently less favourable across the metrics to their overseas counterparts, particularly in regard to the Global Soft Power Index Business & Trade and Influence pillars.
COVID-19 hurts perceptions of world’s largest economies
At the same time, the UK, US, Japan, and France have all fallen out of the top 10 strongest nation brands ranking due to the perception of how they handled COVID-19.
The UK, falling from 2nd to 14th with a BSI score of 77.4, and France, falling from 9th to 16th with a score of 75.4, recorded average Global Soft Power Index scores for overseas perceptions of their handling of the pandemic, but perceptions domestically were particularly low.
Japan, falling from 7th to 15th with a score of 76.7, saw a similar story with the perception at home that the pandemic was mishandled. However, this is polarised when compared to their perception abroad, where it achieved some of the highest scores in the Global Soft Power Index research.
The US, dropping from 4th to 17th with a score of 75.1, saw poor scores at home and abroad, and was also one of the lowest ranked nations by the specialists.
Despite their brand strength taking a hit, these nations all still feature in an unchanged top 10 when ranked by nation brand value.
David Haigh, Chairman and CEO, Brand Finance, commented:
“It will be important for the world’s largest economies to focus on making up the ground they have lost in brand strength, in order to protect their brand value. The UK, US, Japan, and France have all scored poorly domestically for their handling of COVID and they need to rebuild this trust with their respective populations.”
View the full Brand Finance Nation Brands 2021 report here
-Ends-
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 100 most valuable and strongest nation brands are included in the Brand Finance Nation Brands 2021 ranking.
In a global marketplace, nation brand is one of the most important assets of any state, encouraging inward investment, adding value to exports, and attracting tourists and skilled migrants. Brand Finance’s studies provide an all-round view of perceptions and value of nation brands – their presence, reputation, and impact on the world stage.
Understanding the strength and value of nation brands is key for governments and corporates alike to achieve success internationally, allowing to identify strengths and weaknesses and to improve growth strategies going forward.
Additional insights, charts, and more information about the methodology are available in the Brand Finance Nation Brands 2021 report.
