Positioning Your Company’s Brand in Saudi Arabia

For any organization with the aim of building a strong presence in any market, an effective brand positioning is necessary. In today’s dynamic market in Saudi Arabia, on board the major initiative of the Kingdom—the Vision 2030 toward economic diversification—a brand must be strategic in its cultural, economic, and digital approach. From leading brands, businesses can learn exactly how to develop impactful brand positioning strategies that resonate with Saudi consumers.

Understanding Market Dynamics through Best Local Brands in the Kingdom

According to BrandDirectory’s report on the most valuable and strongest Saudi Arabian brands, Aramco remains the Middle East’s most valuable brand despite facing challenges such as a decline in crude oil prices. This resilience highlights the importance of adapting brand strategies to changing market conditions. Aramco’s efforts to strengthen its appeal among business-to-consumer (B2C) audiences demonstrate a strategic shift towards broadening its market reach.

Similarly, stc (Saudi Telecom Company) exemplifies how diversification and digital transformation can enhance brand strength. Achieving a Brand Strength Index score of 88.1/100, stc has expanded its portfolio to include fintech, cloud computing, and entertainment services. This broadening of offerings has not only increased stc’s brand value by 12% but also positioned it as Saudi Arabia’s strongest brand, reflecting the effectiveness of a diversified approach to brand positioning.

In the healthcare sector, King Faisal Specialist Hospital & Research Centre (KFSH&RC) has emerged as the Middle East’s most valuable healthcare brand, with a brand value of USD 1.5 billion. KFSH&RC’s commitment to advancing medical technology and its reputation for innovative treatments have significantly contributed to its strong brand positioning in both local and international markets. This emphasis on healthcare innovation aligns well with Saudi Arabia’s broader goals of becoming a global healthcare hub, further enhancing the brand’s appeal.

Key Brand Positioning Strategies for Success

• Cultural Relevance and Localization: Of the most important aspects in brand positioning within Saudi Arabia is the cultural component. An excellent example is Saudia, the national carrier, for its brand alignment with Saudi cultural values and national identity.  Saudia’s rebranding in September 2023 focused on digital transformation and maintaining authenticity in its customer service, which is deeply rooted in Saudi culture. Additionally, the initiatives in sponsoring international sports teams and global events propelled this airline to showcase Saudi culture to a new global audience. All these actions thus increase not only the reputation of Saudia on the international stage but also strengthen soft power for Saudi Arabia on the global scene by enforcing its cultural influence. By incorporating elements of Saudi heritage into its service and communication, Saudia strengthens its connection with both local and international customers, making it a key player in the Kingdom’s Vision 2030 goal of increasing tourism.
• Embracing Digital Transformation: stc’s growth into areas like fintech and cloud computing showcases the impact of digital transformation on expanding a brand’s market influence. Their strategic move to invest in Telefonica highlights how acquisitions can effectively boost both digital capabilities and brand value. In the same way, Mobily’s focus on digital growth has had a dramatic effect on increasing its brand value, thus providing further proof of aligning with the regional digital transformation agenda.
• Building Trust through Quality and Transparency: Trust and quality are vital elements of brand positioning in Saudi Arabia. Brands like Al-Rajhi Bank, SABIC, and KFSH&RC have shown resilience by maintaining high standards of quality and transparency, even in challenging market conditions. KFSH&RC, in particular, has bolstered its brand strength through its leadership in medical research and innovation. KFSH&RC’s reputation for pioneering advanced medical treatments, such as robotic surgeries, which not only enhance patient care but also reinforce the hospital’s reputation for innovation and reliability in the healthcare sector. This commitment to excellence has been key in building and maintaining consumer trust.
• Sustainability as a Brand Differentiator: Sustainability is becoming an increasingly important factor in brand positioning. Almarai’s top ranking in sustainability perceptions showcases the growing importance of environmental, social, and governance (ESG) considerations in brand value. By prioritizing sustainability, brands can attract environmentally conscious consumers while aligning with Saudi Arabia’s broader goals of sustainable development under Vision 2030.

Conclusion

Effective brand positioning strategies in Saudi Arabia require a careful approach that integrates cultural relevance, digital innovation, trust, and sustainability. By learning from the strategies and examples of industry leaders, your business can achieve a competitive edge in the Saudi market. For companies ready to embark on this journey, we are always here to help guide you through the process.