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Saudi ‘Atheeb’ CEO: Profitability Achieved, Capital Increase Part of Transformation Strategy  

Etihad Atheeb Telecommunications Co., trading as “GO,” participated in the annual LEAP technology exhibition in the Saudi capital, Riyadh. (Asharq Al-Awsat)
Etihad Atheeb Telecommunications Co., trading as “GO,” participated in the annual LEAP technology exhibition in the Saudi capital, Riyadh. (Asharq Al-Awsat)
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Saudi ‘Atheeb’ CEO: Profitability Achieved, Capital Increase Part of Transformation Strategy  

Etihad Atheeb Telecommunications Co., trading as “GO,” participated in the annual LEAP technology exhibition in the Saudi capital, Riyadh. (Asharq Al-Awsat)
Etihad Atheeb Telecommunications Co., trading as “GO,” participated in the annual LEAP technology exhibition in the Saudi capital, Riyadh. (Asharq Al-Awsat)

The CEO of Saudi telecommunications company “Etihad Atheeb Telecommunications Co.” revealed that the company has shifted from losses to profitability due to five key factors, with the foremost being the development of local talent recruitment and a strategic transformation plan.

Yahya bin Saleh bin Mohsen Al Mansour said that debt settlement with creditors, re-establishing relationships with suppliers, and the return of the company’s stock to trading were instrumental in this turnaround.

Previously, Atheeb had recorded a loss of approximately SAR 1.67 million Saudi Riyals ($455,000) in the quarter ending on June 30, 2022, but it has since achieved a net profit of SAR 52.6 million ($14 million).

Al Mansour emphasized that the company, founded in 2009, faced challenging phases marked by intense competition and accumulated losses, which adversely affected both shareholders and investors alike.

Speaking to Asharq Al-Awsat, Al Mansour pointed out that in the year 2021, the company reached a crossroads, with either bankruptcy looming or one last chance to turn things around. The latter option was the chosen course of action.

“I joined the company as CEO with an exceptional executive team, which was one of the key factors contributing to the company’s success,” said Al Mansour.

“Together, we devised a 100-day plan that proved successful, thanks to the aforementioned factors in achieving profitability,” he added.

“The company has consecutively achieved profitability for four quarters, driven by both the business sector and contracts, whether with the government sector or corporate entities, including Hail University, the Najran Emirate, the Tabuk Emirate and SABIC,” he revealed.

According to Al Mansour, the business sector experienced significant growth that had a positive impact on the company’s performance, in addition to cost reduction.

Atheeb had submitted a capital increase request to the Saudi Arabian Capital Market Authority (CMA) by way of rights issue valued at SAR 250 million ($66.6 million).

Al Mansour stated that the request was based on the company having developed a comprehensive transformation strategy encompassing multiple facets. Among the most crucial aspects are the enhancement of network infrastructure, product development, talent acquisition, customer experience improvement, and digital transformation.

Al Mansour emphasized that the execution of this strategy necessitates funding, especially for projects related to infrastructure development and technological advancements to meet the latest requirements of the Saudi market and its customers.

He further clarified that the proceeds from the offering will primarily be utilized to finance the company’s transformation projects, in addition to repaying some of its debts to improve its financial position.

He explained that Atheeb’s transition from loss to profitability, along with a noticeable improvement in its financial and operational performance, as well as winning significant government projects, has had a positive impact on its financial standing in the market, its market capitalization, and the value of its shares.

These factors have encouraged investors and attracted both local and foreign investments.

“In addition to operating in a promising market in Saudi Arabia with the support of Vision 2030, coupled with the improvement and implementation of our transformation strategy, we have positioned ourselves competitively in the telecommunications sector,” Al Mansour told Asharq Al-Awsat.

Also, he emphasized that the implementation of the transformation strategy has begun to yield positive results.

“The company has started to achieve favorable outcomes, including increased revenues, improved services, and an enhanced customer experience driven by network and infrastructure enhancements,” affirmed Al Mansour.

This progress extends to both the business and individual sectors, as well as significant government projects.

The company has also placed a strong focus on cost optimization, financial improvement, and reducing its debt load.

These factors have converged to enhance the company’s operational standing, which has had a positive impact on its financial performance.

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IMF Cuts Growth Forecasts for Most Countries in Wake of Century-High US Tariffs

International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas speaks on the "World Economic Outlook" during the IMF/World Bank Group Spring Meetings in Washington, DC, on April 22, 2025. (AFP)
International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas speaks on the "World Economic Outlook" during the IMF/World Bank Group Spring Meetings in Washington, DC, on April 22, 2025. (AFP)
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IMF Cuts Growth Forecasts for Most Countries in Wake of Century-High US Tariffs

International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas speaks on the "World Economic Outlook" during the IMF/World Bank Group Spring Meetings in Washington, DC, on April 22, 2025. (AFP)
International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas speaks on the "World Economic Outlook" during the IMF/World Bank Group Spring Meetings in Washington, DC, on April 22, 2025. (AFP)

The International Monetary Fund on Tuesday slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs now at 100-year highs and warning that rising trade tensions would further slow growth.

The IMF released an update to its World Economic Outlook compiled in just 10 days after US President Donald Trump announced universal tariffs on nearly all trading partners and higher rates - currently suspended - on many countries.

It cut its forecast for global growth by 0.5 percentage point to 2.8% for 2025, and by 0.3 percentage point to 3% from its January forecast that growth would reach 3.3% in both years.

It said inflation was expected to decline more slowly than expected in January, given the impact of tariffs, reaching 4.3% in 2025 and 3.6% in 2026, with "notable" upward revisions for the US and other advanced economies.

The IMF called the report a "reference forecast" based on developments through April 4, citing the extreme complexity and fluidity of the current moment.

"We are entering a new era as the global economic system that has operated for the last 80 years is being reset," IMF Chief Economist Pierre-Olivier Gourinchas told reporters.

The IMF said the swift escalation of trade tensions and "extremely high levels" of uncertainty about future policies would have a significant impact on global economic activity.

"It's quite significant and it's hitting all the regions of the world. We're seeing lower growth in the US, lower growth in the euro area, lower growth in China, lower growth in other parts of the world," Gourinchas told Reuters in an interview.

"If we get an escalation of trade tensions between the US and other countries, that will fuel additional uncertainty, that will create additional financial market volatility, that will tighten financial conditions," he said, adding the bundled effect would further lower global growth prospects.

Weaker growth prospects had already lowered demand for the dollar, but the adjustment in currency markets and portfolio rebalancing seen to date had been orderly, he said.

"We are not seeing a stampede or a run to the exits," Gourinchas said. "We're not concerned at this stage about the resilience of the international monetary system. It would take something much bigger than this."

However, medium-term growth prospects remained mediocre, with the five-year forecast stuck at 3.2%, below the historical average of 3.7% from 2000-2019, with no relief in sight absent significant structural reforms.

The IMF slashed its forecast for growth in global trade by 1.5 percentage point to 1.7%, half the growth seen in 2024, reflecting the accelerating fragmentation of the global economy.

Sharply increased tariffs between the United States and China will result in much lower bilateral trade between the world's two largest economies, Gourinchas said, adding, "That is weighing down on global trade growth."

Trade would continue, but it would cost more and it would be less efficient, he said, citing confusion and uncertainty about where to invest and where to source products and components. "Restoring predictability, clarity to the trading system in whatever form is absolutely critical," he told Reuters.

US GROWTH DOWN, INFLATION UP

The IMF downgraded its forecast for US growth by 0.9 percentage point to 1.8% in 2025 - a full percentage point down from 2.8% growth in 2024 - and by 0.4 percentage point to 1.7% in 2026, citing policy uncertainty and trade tensions.

Gourinchas told reporters the IMF did not foresee a recession in the US, but the odds of a downturn had increased from about 25% to 37%. He said the IMF was now projecting US headline inflation to reach 3% in 2025, one percentage point higher than it forecast in January, due to tariffs and underlying strength in services.

That meant the Federal Reserve will have to be very vigilant in keeping inflation expectations anchored, Gourinchas said, noting that many Americans were still scarred by a spike in inflation during the COVID pandemic.

Asked about the impact of any moves by the White House to remove Fed Chair Jerome Powell, Gourinchas said it was "absolutely critical" that central banks were able to remain independent to maintain their credibility in addressing inflation.

US stocks suffered steep losses on Monday as the US president ramped up his attacks on Powell, fueling concerns about the central bank's independence. Stocks opened higher on Tuesday.

US neighbors Canada and Mexico, both targeted by a range of Trump's tariffs, also saw their growth forecasts cut. The IMF forecast Canada's economy would grow by 1.4% in 2025 and 1.6% in 2026, instead of 2% growth projected for both years in January.

It predicted Mexico would be hard hit by tariffs, with its growth dipping to a negative 0.3% in 2025, a sharp 1.7 percentage point drop from the January forecast, before recovering to 1.4% growth in 2026.

LOWER GROWTH IN EUROPE, ASIA

The IMF forecast growth in the Euro Area would slow to 0.8% in 2025 and 1.2% in 2026, with both forecasts about 0.2 percentage points down from January. It said Spain was an outlier, with a 2.5% growth forecast for 2025, a 0.2 percentage point upward revision, reflecting strong data.

Offsetting forces included stronger consumption due to rising wages and a projected fiscal easing in Germany after major changes to its "debt brake." The IMF cut its growth forecast for Germany by 0.3 percentage point to 0.0% in 2025, and by 0.2 percentage point to 0.9% in 2026.

Growth in Britain would hit 1.1% in 2025, 0.5 percentage point below the January forecast, edging higher to 1.4% in 2026, reflecting the impact of recent tariff announcements, higher gilt yields and weaker private consumption.

Trade tensions and tariffs were expected to shave 0.5 percentage point off Japan's economic activity in 2025, compared to the January forecast, with growth projected at 0.6%.

China's growth forecast was cut to 4% for 2025 and 2026, reflecting respective downward revisions of 0.6 percentage point and 0.5 percentage point from the January forecast.

Gourinchas said the impact of the tariffs on China - hugely dependent on exports - was about 1.3 percentage point in 2025, but that was offset by stronger fiscal measures.