Gulf states pay out for image revamp

Middle East nations raise spending to position themselves as attractive hubs for business.

Visitors at the opening day of Cityscape Abu Dhabi.

Branding expenditure is on the rise across the Middle East as governments try to make themselves more attractive to foreign investment, according to industry consultants. Branding agencies report a pickup in state sector business after the global economic downturn.

"Government departments are increasingly seeing branding as an important investment," said Hermann Behrens, the chief executive of The Brand Union Middle East, which works for various government entities in Dubai and Abu Dhabi. "Traditionally they've never invested a lot in their brands. "They're starting to see a change in the value of what branding is." The Brand Union was engaged in "a lot of conversations" with government bodies, Mr Behrens said, declining to name any. He attributed the growing demand for branding to the downturn.

"Many countries have been hit by negative press during the downturn, and now that things have settled down, governments are seeing the importance of rebuilding their brands," he said. "There is huge competition for foreign direct investment, so countries and governments are actively seeking to position themselves as the ideal place for investment. "Dubai, Bahrain and [Saudi Arabia] have all actively driven this angle, and we expect the same from Abu Dhabi."

Better branding and communication with the public can also pay off domestically, said Mr Behrens. "Traditionally, government service delivery is known as slow and bureaucratic and often unfriendly," he said. "A brand-centric approach to improving service performance is being sought by many government departments." Adam Booth, the managing director of the branding and design agency Omnia Middle East, said his company's regional expansion was partly fuelled by rising demand from government bodies.

Omnia, which was founded in Guernsey but does the bulk of its business in the Middle East, plans to open office in Jeddah and is considering one for Muscat. The company recently opened an office in the Abu Dhabi media free zone twofour54 and has acted as a consultant to Abu Dhabi's Tourism Development and Investment Company. "We do a huge amount of government work," said Mr Booth. "We will be opening Jeddah at the end of this year. And we're also looking at Muscat. There's a lot of business going on in Muscat.

"Government-wise, they're looking at how they're branding their country." Mr Booth said Omnia was working with two government bodies in Oman and with one government-linked university in Saudi Arabia. "A lot more time and effort" was going into government branding, marking "a huge step forward in communicating brands", he said. "It's to do with perception and international perception. You have a lot of people coming in from outside the UAE. Being internationally recognised goes hand in hand with having international-standard brands."

Much work remained to be done, he said. "Some of the newer [government] bodies that have come into place have taken the time and invested. "But the older ones need some work. They need an upgrade ? There are some brands that are outdated." But Abed Bibi, the managing partner of the international branding agency Wolff Olins, said there were still widespread misconceptions about branding in the region.

"Most governments don't yet differentiate between doing an advertising campaign and doing the brand strategy for a nation. And there is a big difference," said Mr Bibi. "Branding is about how we do things, why we do them, and how we act. It's not just about a logo." [e-mail]