A new report from Deloitte Middle East and Saudi Authority for Accredited Valuers TAQEEM, ‘The Future of Intangible Assets in the Kingdom of Saudi Arabia,’ presents a comparative analysis with Tadawul, the Saudi Arabian stock index, to establish that ‘the Saudi Arabian economy is at the start of a similar transition’ as those experiences in UK and North American markets. The report also examines recent M&A transactions in the Kingdom to conclude a new ‘focus on intangibles and their increasing contribution towards the value composition of a business.’

The ‘review of select recent regional transactions illustrates how intangible assets are becoming a major value contributor in the region,’ say the report’s authors, Ben Moore, partner, Valuation & Modeling Services, and Mohammad Araj, director, Valuation & Modeling Services. Moore has worked with Deloitte-Dubai for a dozen years, since leaving their UK headquarters.

Like the UK markets, the report finds a greater percentage of value in intangibles, whether measured in terms of market capitalisation or as part of premiums paid over net tangible assets. ‘Intangible assets such as brand names, licenses, customer and supplier relationships, know-how and developed software are increasingly becoming key value drivers for businesses in Saudi Arabia,’ the authors conclude.