By Economic Expert Samer Choucair
After twenty years spent here in Riyadh, witnessing massive economic transformations, I can confidently say that most discussions around public relations are taking place in the wrong arena. The issue is not about press releases or organizing events, but about building a strategic asset with real weight on the company’s balance sheet. It is time to move this conversation from media and communications departments to boardrooms and investor meetings where decisions are made and value is created.
The fundamental mistake many companies make is treating public relations as a secondary expense item, or a cosmetic tool used when needed. In today’s investment landscape, that thinking is not only outdated it is extremely costly. The modern concept I adopt and work with is that public relations is a systematic process of building what I call “Reputational Capital.”
This reputation is not a mere slogan or media campaign; it is hard currency in today’s economy an asset that grants a company a competitive advantage that cannot be replicated.
But how does this intangible asset translate into direct financial impact?
It begins in the capital markets, where companies with strong reputations built on trust and transparency are perceived as less risky, significantly reducing their cost of financing. That same trust drives investors to pay a premium for their shares, raising market value. In times of crisis, reputation acts as the first line of defense, softening the blow and accelerating recovery.
On the human capital front, companies with strong reputations become magnets for talent and expertise and in today’s competitive landscape, that is a priceless strategic advantage.
Nowhere is this equation clearer than in the Kingdom of Saudi Arabia. At the heart of the race driven by Vision 2030, and with fierce competition for mega contracts and international investments, reputation is no longer a luxury it has become a decisive competitive weapon. Winning the trust of entities like the Public Investment Fund or a major global partner is not achieved by a strong financial or technical offer alone, but requires a flawless record and an unblemished reputation.
My strategic takeaway is this: the biggest mistake companies can make is waiting until a crisis strikes before they begin to think about their reputation. The right approach starts from day one, by proactively building Reputational Capital and directly linking public relations objectives with financial goals.
The real investment begins with building a professional team fluent in both the language of media and numbers operating within an integrated system, starting with the board’s strategic mindset and ending with precise execution that builds trust and creates value.
Always remember:
He who tells his story well, attracts capital well.
In today’s world, building wealth begins with building trust.
