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Saudi Arabia Joins Global CCS Institute

Saudi Arabia is the latest member to join the Global CCS Institute (SPA)
Saudi Arabia is the latest member to join the Global CCS Institute (SPA)
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Saudi Arabia Joins Global CCS Institute

Saudi Arabia is the latest member to join the Global CCS Institute (SPA)
Saudi Arabia is the latest member to join the Global CCS Institute (SPA)

Saudi Arabia, represented by the Energy Ministry, has become the latest member to join the Global CCS Institute on scaling up carbon capture and storage technology (CCS).

Saudi Arabia reaffirmed its commitment to tackling the climate challenge through collaboration, innovation, and adopting proven technologies.

Saudi Arabia has a diverse portfolio aimed at reducing carbon emissions, including through CCS, with a target to reach net zero by 2060.

Minister of Energy Prince Abdulaziz bin Salman said CCS is a needed technology to drive a low-emission transition across the complex to abate industries.

"In 2022, Saudi Arabia announced plans to develop one of the largest CCS hubs in the world, where 44 million tons of CO2 will be mitigated annually through CCS efforts in the Jubail industrial city by 2035," said the minister.

He indicated that getting ambitious climate projects off the ground will require partnerships and region-specific expertise and knowledge, and being a member of the Global CCS Institute will enhance that further.

The Global CCS Institute said it is keen to work with the Saudi government to provide expertise to drive the accelerated deployment of CCS technology.

CEO of the Global CCS Institute Jarad Daniels stated that Saudi Arabia is putting plans in place to develop large-scale projects that will have the capacity to capture and store millions of tons of CO2 from industry, subsequently being poised to be a CCS leader in the Middle East and North Africa (MENA) region.

"As the country shifts from CCS ambition to CCS action, we look forward to being an active part of that journey," Daniels added.

The Global CCS Institute's diverse membership is over 200 strong, spanning 33 countries, including 13 government members.

Saudi Arabia's Ministry of Energy, leading the government's carbon capture and storage efforts, will work closely with the Institute on CCS capacity building.

Although over 250 CCS facilities are in various stages globally, that number will need to increase by 100-fold for international climate targets to be reached by mid-century.

Saudi Arabia's geological storage capacity makes the country an excellent candidate for CCS deployment and industrial decarbonization efforts.

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Business

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.