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Rising Subscriptions, Digital Banking Boost Saudi Telecom Profits in Q3

An investor walks past the logo of the Saudi Stock Exchange (Tadawul) in Riyadh. (AFP)
An investor walks past the logo of the Saudi Stock Exchange (Tadawul) in Riyadh. (AFP)
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Rising Subscriptions, Digital Banking Boost Saudi Telecom Profits in Q3

An investor walks past the logo of the Saudi Stock Exchange (Tadawul) in Riyadh. (AFP)
An investor walks past the logo of the Saudi Stock Exchange (Tadawul) in Riyadh. (AFP)

Telecommunications companies listed on the Saudi stock market (Tadawul) achieved a 43% growth in their quarterly profits during Q3 of 2023, reaching SAR 5.7 billion ($1.52 billion).

This surge is attributed to the increasing number of subscriptions, expansion into digital banking, service diversification, especially during the Hajj season, and the companies leveraging the growth in customer base during these seasons.

By the end of the third quarter of 2023, the profitability of Saudi telecommunications companies increased by 1.71 compared to the same quarter of the previous year, during which they recorded profits of around SAR 4 billion, according to the financial results announced by three companies in the financial market.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia.

The profits of Saudi telecommunications companies jumped by 57.43% during Q3 compared to the previous quarter of 2023, amounting to about SAR 3.63 billion.

Additionally, they recorded a growth in revenues during the third quarter by 10.3%, reaching SAR 24.73 billion, compared to SAR 22.4 billion in the same quarter of the previous year in 2022.

During the first nine months of 2023, Saudi telecommunications companies registered a significant increase in profits, with a growth rate of 283%, totaling SAR 2.71 billion.

This resulted in a net profit increase to SAR 13.47 billion, compared to SAR 10.76 billion in the same period of 2022.

Mohammed Makni, a financial and investment expert and the CEO of Ithmar, told Asharq Al-Awsat that telecommunications companies are a fundamental pillar of the Saudi economy.

According to Makni, the sector receives significant attention and effort to promote investment and support it for the growth of non-oil output.

He added that in 2020, the telecommunications market in Saudi Arabia reached $36 billion, contributing to a 5.1% growth in the local GDP.

Makni further explained that one of the main reasons for the high and increased profitability of telecommunications companies during the third quarter is the 38.5% profit jump by STC, as well as its 9.1% profit growth during the past nine months compared to the same period in 2022.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.