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Saudi Arabia Hosts Ministers, Officials on World Tourism Day

The logo of World Tourism Day in Riyadh that will kick off on September 27. (Asharq Al-Awsat)
The logo of World Tourism Day in Riyadh that will kick off on September 27. (Asharq Al-Awsat)
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Saudi Arabia Hosts Ministers, Officials on World Tourism Day

The logo of World Tourism Day in Riyadh that will kick off on September 27. (Asharq Al-Awsat)
The logo of World Tourism Day in Riyadh that will kick off on September 27. (Asharq Al-Awsat)

Leaders from across the global tourism sector flocked to Riyadh for the most significant event in the tourism sector in 43 years, World Tourism Day (WTD).

The event, which kicked off on Wednesday, is a key driver for the global economy after it came to a halt due to the COVID-19 pandemic and slowed down further following the Russian-Ukrainian conflict.

More than 500 government officials, industry leaders, and experts from 120 countries are set to attend World Tourism Day to foster global collaboration.

They aim to examine investment opportunities and strengthen the resilience of the tourism industry, steering the sector towards an investment-led and sustainably focused future.

Over the past year, tourism's contribution to Saudi Arabia's Gross Domestic Product (GDP) has surged from three to seven percent.

The Saudi Ministry of Tourism said the event in Riyadh is the largest ever in the event's 43-year history.

It welcomed all the participants to Riyadh on World Tourism Day, aiming to promote strategic priorities and discuss key issues related to the tourism sector.

The organizers are gearing up to discuss several critical issues that could lead to recommendations aimed at propelling the global tourism sector to achieve higher growth rates.

Some key topics that will be covered include intercultural dialogue, global tourism investment, green investment, and enhancing innovation in the tourism sector.

Saudi Arabia's Vision 2030 places tourism as one of its pillars, targeting around 100 million annual visits by 2030.

However, Saudi Arabia's unprecedented success has prompted it to target 150 million annual visits, up from the 100 million set over seven years ago.

In a recent interview, Saudi Tourism Minister Ahmed al-Khatib stated that the tourism sector doubled over the past two years, expecting it to double again in the next two.

Khatib added that Saudi Arabia aims to attract 70 million visits from abroad by 2030 under the new target, representing approximately half of the total visits.

He noted that the number of international tourist visits reached 30 million this year, even before the opening of NEOM, Diriyah, The Red Sea Project, and Qiddiya, which are expected to bring a qualitative shift to Saudi tourism.

Saudi tourism allocated about $160 million for launching this year's summer campaign to promote tourist destinations within the Kingdom, as announced by Khatib in May.

He pointed out that the number of international tourists arriving for various purposes in Saudi Arabia reached 7.8 million during the first quarter of this year, marking a 64 percent growth compared to the first quarter of 2019, before the COVID-19 pandemic.

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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.