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Saudi Arabia's PIF, Bahrain's Mumtalakat Sign MoU to Promote Cooperation, Investment in Strategic Sectors 

The MoU provides multiple benefits to PIF and its portfolio companies by providing investment opportunities aimed at boosting PIF’s investments in Bahrain. (SPA)
The MoU provides multiple benefits to PIF and its portfolio companies by providing investment opportunities aimed at boosting PIF’s investments in Bahrain. (SPA)
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Saudi Arabia's PIF, Bahrain's Mumtalakat Sign MoU to Promote Cooperation, Investment in Strategic Sectors 

The MoU provides multiple benefits to PIF and its portfolio companies by providing investment opportunities aimed at boosting PIF’s investments in Bahrain. (SPA)
The MoU provides multiple benefits to PIF and its portfolio companies by providing investment opportunities aimed at boosting PIF’s investments in Bahrain. (SPA)

Saudi Arabia’s Public Investment Fund (PIF) and Mumtalakat Holding Company, the sovereign wealth fund of Bahrain, signed on Tuesday a memorandum of understanding (MoU) to expand cooperation and enable new and promising investment opportunities in Bahrain.

The MoU provides multiple benefits to PIF and its portfolio companies by providing investment opportunities aimed at boosting PIF’s investments in Bahrain. It also allows for the creation of additional opportunities for the private sector in both countries, said a PIF statement.

“We are pleased to cooperate with PIF. This cooperation is an extension of the strong relations that bring the two kingdoms together,” said Bahrain Mumtalakat Holding Company CEO Shaikh Abdulla bin Khalifa Al Khalifa.

“The memorandum signed today aims to enhance cooperation between Mumtalakat and PIF by establishing strategic partnerships and stimulating partnership opportunities for the private sector to support the diversification of the economy in the two brotherly countries."

He added: “This is also in line with Mumtalakat’s efforts to invest in promising economic sectors, provide quality job opportunities, continue to contribute to the national economy, and work towards achieving the goals of Bahrain Vision 2030.”

Deputy Governor and head of MENA Investments at PIF Yazeed A. Al-Humied said: “The MoU with Bahrain’s Mumtalakat Holding Company is an important step that aims to contribute to enhancing collaboration and investment opportunities in various sectors in Bahrain.”

“The MoU also supports PIF’s objectives of building long-term strategic regional partnerships that bring additional value to local economies and create more partnership opportunities for the private sector. It also enables the achievement of sustainable returns that further contribute to maximizing PIF’s assets and diversifying the economy in line with the objectives of Saudi Vision 2030.”

Through this agreement, PIF seeks to increase its investments in multiple targeted sectors in Bahrain, while Mumtalakat aims to explore attractive investment opportunities for cooperation and partnership with PIF.

The MoU follows the establishment of the Saudi-Bahraini Investment Company – a PIF subsidiary – which aims to invest up to $5 billion in multiple promising sectors in Bahrain. The company has recently inaugurated its office, in Manama, to expand its range of investment activities.

PIF is one of the largest and most impactful sovereign wealth funds in the world. It plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 93 companies in 13 strategic sectors locally and globally.

Mumtalakat Holding Company owns shares in more than 50 commercial companies covering a variety of sectors, including manufacturing, real estate and tourism, logistics, technology and media, communications, financial services, public services, consumer goods, healthcare, and education.

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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.