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Saudi Forum Showcases 3,000 Projects Worth $266 Bln

Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail (Asharq Al-Awsat)
Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail (Asharq Al-Awsat)
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Saudi Forum Showcases 3,000 Projects Worth $266 Bln

Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail (Asharq Al-Awsat)
Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail (Asharq Al-Awsat)

Government and private entities in Saudi Arabia have reviewed construction projects worth an estimated SAR 1 trillion ($266 billion) in front of local and international contractors from 16 countries.

This took place during a specialized forum that kicked off on May 22 in the Saudi capital, Riyadh.

The projects were presented by approximately 41 government and private entities, with an estimated total of around 3,000 projects.

They were featured at the fifth edition of the Future Projects Forum in Riyadh. The forum is organized by the Saudi Contractors Authority and was attended by officials from 11 government and private entities.

Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail said that the contracting sector serves as a fundamental pillar for the growth and prosperity of Saudi Arabia.

He added that the sector plays a crucial role in enabling many initiatives of Vision 2030 and serves as the primary driving force for numerous important sectors.

The minister emphasized that the government places great importance on the development and support of the sector, as evidenced by the establishment of the Saudi Contractors Authority.

For his part, Engineer Zakaria Al Abdulqader, the Chairman of the Board of Directors of the Saudi Contractors Authority, highlighted Saudi Arabia’s remarkable economic development.

The Future Projects Forum, featuring almost 3,000 projects valued at over SAR 1 trillion (266.6 billion dollars), shows a significant advancement in the contracting sector, said Abdulqader.

He added that the percentage of registered participants from outside Saudi Arabia reached 25%, reflecting the importance of the Authority’s role in organizing and highlighting the magnitude of future opportunities and projects in the Kingdom’s contracting sector.

As the executive arm of the Vision 2030 projects and the main driving force for many vital sectors, the contracting sector is crucial for the Kingdom’s future, noted Abdulqader.

 

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.