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Revenue Growth, Service Expansion Raise Profits of Saudi Telecom Companies in 2023

Saudis are seen at the Saudi financial market in the capital, Riyadh (Asharq Al-Awsat)
Saudis are seen at the Saudi financial market in the capital, Riyadh (Asharq Al-Awsat)
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Revenue Growth, Service Expansion Raise Profits of Saudi Telecom Companies in 2023

Saudis are seen at the Saudi financial market in the capital, Riyadh (Asharq Al-Awsat)
Saudis are seen at the Saudi financial market in the capital, Riyadh (Asharq Al-Awsat)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 16.8 percent growth in their net profits by the end of 2023, bringing their profits to SAR 16.8 billion ($4.5 billion) during the past year, compared to SAR 14.38 billion ($3.8 billion) in 2022.

This surge is mainly due to increased revenues and investments in new areas and services.

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 in the Saudi Stock Exchange (Tadawul), the Saudi Telecom Company (STC) acquired about 79.2 percent of the sector’s total profits, at the end of 2023, announcing the growth of net profits to about SAR 13.3 billion in 2023, compared to SAR 12.17 billion in 2022, with an increase of 9.24 percent.

According to STC, the growth of net profit is due to increased revenues, as well as the company’s continued investment in new areas, in accordance with its approved strategy.

Etihad Etisalat (Mobily) ranked second, achieving a net profit of SAR 2.23 billion in 2023, compared to SAR 1.66 billion in 2022, an increase of 34.7 percent.

The company attributed the rise in profits to the growth of revenues and customer base, as well as the company’s efficient operational management.

The net profits of Saudi Mobile Telecommunications Company (Zain) jumped to SAR 1.27 billion in 2023, compared to SAR 550 million during the previous year, an increase of about 130.36 percent.

Commenting on the sector’s results, financial markets analyst Abdullah Al-Kathiri told Asharq Al-Awsat that the rise in net profits of the telecom sector companies was due to the continuous expansions and acquisitions in several locations, in addition to non-operating revenues from some lands, real estate and towers.

For his part, the economic analyst and CEO of G-World, Mohamed Hamdi Omar, attributed the growth in net profits to the companies’ strategies to access multiple sectors, including cyber-security, live broadcast over the Internet (OTT) and financial technology.

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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.