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Global Financial Company Northern Trust Moves its Regional Headquarters to Riyadh

The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
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Global Financial Company Northern Trust Moves its Regional Headquarters to Riyadh

The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)
The regional headquarters program has so far attracted 200 foreign companies. (Asharq Al-Awsat)

Northern Trust Corp. has become one of the first major global financial institutions to establish its regional headquarters in Riyadh, which strengthens the Saudi government’s efforts to have international companies manage their operations in the Middle East from the Kingdom.
The American financial services company, which manages assets worth $1.3 trillion, obtained a license from the Saudi Ministry of Investment to establish its Middle Eastern base in Riyadh.
Speaking to Bloomberg, a company spokesman said that Northern Trust continues to achieve “significant growth” throughout the region through its offices in Abu Dhabi and Riyadh, explaining that the establishment of the regional headquarters for the Middle East and North Africa region in Saudi Arabia reflects the continued investment in infrastructure, capabilities and expertise in the region.
The Kingdom announced on Tuesday that it would provide a new tax incentive package for a period of 30 years to foreign companies whose regional headquarters are located in the Kingdom, including exemption from income tax.
The Saudi News Agency (SPA) said that the Ministry of Investment - in coordination with the Ministry of Finance and the country’s Zakat, Tax and Customs Authority - announced “the provision of a new tax incentive package, for a period of 30 years, to support the program to attract the regional headquarters of international companies.”
This step comes to “encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia,” the agency added.
The Regional Headquarters Program was launched in 2021, which is a joint initiative between the Ministry of Investment and the Royal Commission for the City of Riyadh, which calls on international companies to move their regional headquarters to Saudi Arabia, to transform the country into a leading regional hub for multinational companies.

 

 

 

 

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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.