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COP28 Nears Crucial Hours as Divergence Takes Center Stage

Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
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COP28 Nears Crucial Hours as Divergence Takes Center Stage

Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)

COP28 president Sultan Al Jaber has urged countries to get out of their comfort zones and work together to reach an agreement before the two-week United Nations climate summit ends.

The scene at COP28 remains dominated by divergence, with the UN Climate Agency releasing a new draft of the conference agreement on Friday.

This draft included a range of options for the future use of traditional fuels, a highly contentious issue at the conference.

In the coming days, countries are expected to focus on this issue in the hope of reaching consensus before the summit concludes on December 12.

Options mentioned in the draft ranged from “gradual phasing out of fossil fuels in line with the best available science” to no inclusion of any language regarding the future use of fossil fuels.

The document also specified the option of “rapid and unconditional phasing out of coal energy this decade, with an immediate halt to the construction of new coal-fired power plants.”

“Let’s please get this job done,” said Al Jaber, opening a plenary session as the summit entered its toughest phase of negotiations.

“I need you to step up and I need you to come out of your comfort zones,” he added.

The President of COP28 appointed eight ministers, half from developed countries and the other half from the Global South, to work on four topics to break the deadlock in negotiations.

Energy Minister Suhail Al Mazrouei of the UAE, on Thursday, on the sidelines of the COP28 summit, emphasized the need for a gradual phase-out of coal.

“I don't believe we should talk about the gradual phase-out of fossil fuels because technologies are also improving. What if we have technology in the future that removes all carbon dioxide emissions from fossil fuels and makes it as clean as any other fuel type? Why fight it before we have an alternative?” said Al Mazrouei.

Since the adoption of the Loss and Damage Fund agreement on November 30, Al Jaber announced that countries had raised over $726 million to inject into the fund, with more expected by the end of COP28.

Pledges at COP28 are still far from the hundreds of millions needed annually to help developing countries adapt to the warming world, including rising sea levels and increased heat waves.

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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.