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CMA Develops Strategy for 2024/2026

Saudi Capital Market Authority (CMA) headquarters in Riyadh, Saudi Arabia (File photo: Reuters)
Saudi Capital Market Authority (CMA) headquarters in Riyadh, Saudi Arabia (File photo: Reuters)
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CMA Develops Strategy for 2024/2026

Saudi Capital Market Authority (CMA) headquarters in Riyadh, Saudi Arabia (File photo: Reuters)
Saudi Capital Market Authority (CMA) headquarters in Riyadh, Saudi Arabia (File photo: Reuters)

Saudi Arabia's Capital Markets Authority (CMA) is working on its strategic plan for 2024-2026, announced Chairman Mohammed el-Kuwaiz.

By the end of 2022, the financial market surpassed the targets for several indicators set in CMA's strategic plan.

Speaking on the Saudi 93rd National Day, Kuwaiz said the number of listings on the financial market reached 49 in 2022, while the target was 24, with a completion rate of 204 percent.

"The market value of the stock market as a percentage of the domestic product reached 91 percent, with a completion rate of 118 percent, compared to the target rate of 77 percent," he indicated.

The strategic plan targeted the size of the debt instruments market as a percentage of the domestic product to reach 18.7 percent, while what was achieved amounted to 32 percent, with a completion rate of 171 percent.

Kuwaiz pointed out that these numbers and other achievements made the market a role model among the region's needs.

The Authority's 2024-2026 strategic plan aims to achieve sustainable development of the financial sector and new achievements and records that will reflect positively on the financial market and the financial industry in general.

"As we celebrate this year's National Day, the Kingdom has advanced seven positions in the World Competitiveness Yearbook issued by the International Institute for Management Development (IMD) for 2023," he said.

Saudi Arabia reached 17th position globally out of 64 countries that are the most competitive in the world and third place among G20 countries, supported by strong economic and financial performance in 2022 and improved business legislation.

He said that the Kingdom's ranking rose in six out of 12 financial market indicators, and the ranking of two other indicators was maintained, while six indicators ranked among the top ten in the world.

During Q2 2023, the number of investment funds jumped to 1,130, marking a historic peak, with a surge of 34.68 percent, compared to 839 funds in the second quarter of last year.

Kuwaiz noted that the number of public and private investment fund subscribers increased by 33.5 percent to 901,900, up from 675,500 subscribers at the end of Q2 2022.

The Chairman added that qualified foreign investors' ownership of the leading stock market amounted to $79.5 billion in Q2 2023, up from $75 billion in Q2 2022, a 5.1 percent increase annually.

"All the achievements incentivized international institutions to praise the Kingdom's economy, including the International Monetary Fund's praise for the Kingdom's continuing efforts to complete economic and financial reforms and achieve Vision 2030 goals."

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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.