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Saudi Tourism Awaits Results of Legislative Environment Enhancements

One of the historical sites near AlUla, Saudi Arabia (AFP)
One of the historical sites near AlUla, Saudi Arabia (AFP)
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Saudi Tourism Awaits Results of Legislative Environment Enhancements

One of the historical sites near AlUla, Saudi Arabia (AFP)
One of the historical sites near AlUla, Saudi Arabia (AFP)

The tourism sector in Saudi Arabia looks forward to reaping the benefits of the newly established legislative framework for the sector.

Princess Haifa bint Mohammed Al Saud, the Deputy Tourism Minister, has revealed that legislative advancements will directly impact attracting substantial investments to the tourism sector in the Kingdom, both from within Saudi Arabia and abroad.

She also noted that the sector has witnessed significant growth in recent years.

The Kingdom’s Tourism Ministry had launched a list of experimental activities on Monday to enable innovation and promote the growth of this sector, according to Princess Haifa.

This is a continuation of efforts to improve the legislative environment, which is a crucial factor in the development of the tourism sector and achieving the ambitious goals outlined in Saudi Arabia’s National Tourism Strategy introduced in 2019.

During the opening session of the second day of the Saudi Law Conference, Princess Haifa explained that the Ministry of Tourism, through its proactive plans, ensured the development of the legislative framework for the tourism sector.

The ministry has adopted a tourism system that aligns with global best practices in tourism legislation.

This system, implemented worldwide, has been accompanied by the creation of executive regulations.

These legislative changes have significantly contributed to the remarkable growth in the tourism sector in recent years.

As a result, the Kingdom has advanced in the international tourism revenue index and achieved prominent positions in the growth rate of international tourists.

Princess Haifa emphasized that the fundamental cornerstone on which the system is built is the protection of the rights of tourists, investors, and industry workers.

The deputy minister also highlighted the importance of fostering partnerships with legal stakeholders and professionals.

She noted that the ministry, through the tourism system, aims to empower itself with the necessary authority and tools to create a competitive, fair, and attractive investment environment.

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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.