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World Bank Says Not Suspending Projects in Gaza

A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
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World Bank Says Not Suspending Projects in Gaza

A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)

The World Bank is not currently considering suspending its projects in Gaza, and it is monitoring the development of the situation, which it hopes will end soon.

The World Bank's VP for the MENA region, Ferid Belhaj, told Asharq Al-Awsat that the size of the World Bank's projects with the Palestinian Authority (PA) is in the range of $80 million annually, divided among many projects such as sanitation, water, and others.

Belhaj asserted that the World Bank continues to work positively with the Authority while monitoring the developments.

"To date, we have no intention of suspending projects and funding in Palestine."

The World Bank finances Palestinian projects in water, energy, urban and local development, social protection, education, health, solid waste management, and digital, financial, and private sector development.

Asharq Al-Awsat asked the official about Tunisia and its program with the International Monetary Fund (IMF). Belhaj said the door is open to any member state seeking IMF loan agreements.

In September 2022, Tunisia reached a preliminary agreement with the IMF to obtain a loan worth $1.9 billion.

However, talks regarding its implementation reached a dead end for several reasons, notably the government's refusal to restructure 100 public companies burdened with debt and to lift subsidies.

Belhaj indicated that there has been a recent change in positions that may lead to a convergence of views and reaching an agreement.

On Thursday, the Fund's Director of the Middle East and Central Asia Department, Jihad Azour, said that Tunisian authorities did not propose any alternative to the program.

He said that by reforming the subsidy, Tunisia could allow more resources to finance inclusion and increase social spending.

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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.