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GCC Says it has Ambitious Development Plans on Technology, Digital Infrastructure

Secretary General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi
Secretary General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi
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GCC Says it has Ambitious Development Plans on Technology, Digital Infrastructure

Secretary General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi
Secretary General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi

Secretary General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi has said that GCC states have ambitious development plans on technology and digital infrastructure.

In a speech delivered at the 7th Indian Ocean Conference in Perth, Australia, on Saturday he also mentioned the economic and trade relations between the GCC states and members of the Indian Ocean Rim Association (IORA), underlining the strategic importance of the Indian Ocean region for the Council.

He highlighted the progress achieved by the GCC in critical sectors of the Indian Ocean region, such as renewable energy and digital infrastructure. Furthermore, Albudaiwi pointed out how these sectors can serve as models for regional cooperation. He also addressed the significance of fuel and mineral oils, constituting 72.3% of the GCC's exports to IORA countries, with a total value of $215 billion.

The Secretary General emphasized the potential of green technologies and innovations in the sectors led by the GCC states to contribute to efforts across the Indian Ocean region.

Additionally, he underscored the importance of developing digital economies to complement the physical trade of essential commodities, including fuel, oils, and precious metals. He also urged for innovation in digital transactions and e-commerce throughout the region.

The Secretary General reaffirmed the commitment of the GCC states to leverage their strategic position, technological advancements, and economic resources for the mutual benefit of the Indian Ocean region. He highlighted the significance of cooperative efforts to address common challenges and seize opportunities for growth and innovation.

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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.