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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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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)

Saudi Arabia has tripled its foreign investment inflows and increased the number of investors tenfold since the launch of Vision 2030. More than 1,200 international investors have also obtained premium residency in the Kingdom.

These figures were revealed by Minister of Investment Khalid Al-Falih during the 28th Global Investment Conference, held in Riyadh on Monday under the patronage of Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister.

Al-Falih emphasized that premium residency is a key enabler for attracting foreign investment, as it simplifies procedures for investors and enhances their ability to seize the opportunities available in Saudi Arabia, solidifying the Kingdom’s position as a global investment hub. Residency holders, he noted, are treated as if they were in their home countries.

Since the introduction of Vision 2030, investment inflows have tripled, and the GDP has grown by 70%, reaching $1.1 trillion—half of which comes from non-oil sectors, he continued.

Al-Falih also stressed the immense opportunities in areas such as digital infrastructure and research-driven economic growth. He identified sustainability and circular carbon economy projects as key focus areas for future investment.

He acknowledged the geopolitical risks and labor shortages that pose challenges to investment. However, he projected that the Global South is poised to attract half of global financial flows by 2025.

The minister went on to say that hosting the Global Investment Conference in Riyadh provides Saudi Arabia with a platform to present its strategic vision to international partners and highlight its status as a trusted partner in sustainable economic growth.

Nivruti Rai, Managing Director and CEO of Invest India and President of the World Association of Investment Promotion Agencies (WAIPA), underscored the importance of international collaboration in achieving sustainable growth and digital transformation. She lauded Vision 2030 as a model for economic and social progress, underlining the role of technology, education, and tourism in driving development.

The world has consumed nearly 2.5 trillion metric tons of greenhouse gas emissions, leaving only 500–700 billion metric tons for sustainable use, she noted, while underscoring the need for countries like Saudi Arabia and India to lead innovation in renewable energy sources such as solar, wind and green hydrogen.

Saudi Arabia’s commitment to innovation in energy and water was also commended, with Rai describing mega projects like NEOM as a “dream come true” and a leading example of integrating technology and sustainability to improve quality of life.

During a panel discussion, Saudi Minister of Economy and Planning Faisal Al-Ibrahim revealed that investment and fixed capital now constitute 25% of the GDP. He noted that Vision 2030 has unlocked vast opportunities in previously untapped sectors, including mining, tourism, culture, and entertainment, significantly contributing to the Kingdom’s non-oil growth.

Al-Ibrahim stressed the importance of adopting advanced technologies in renewable energy, green hydrogen, defense, education, and healthcare.

He stressed Saudi Arabia’s role as a central platform for accessing new markets and boosting global economic stability through continuous innovation.

Egyptian Minister of Investment and Foreign Trade Hassan Al-Khatib highlighted the importance of Saudi-Egyptian cooperation and sound policy adoption to attract investments in promising sectors.

Saudi investments in Egypt would significantly contribute to fostering a favorable investment climate, he said.

Greek Deputy Minister of Foreign Affairs Kostas Fragogiannis discussed Greece’s focus on attracting investments in gas, including talks with Saudi Arabia and other nations, to access European markets.

The Invest in Saudi Arabia platform organized the three-day Global Investment Conference from November 25 to 27 in collaboration with WAIPA. This major event brings together global leaders, investors, and stakeholders to explore opportunities in sustainable growth and digital transformation, aiming to diversify and enhance global investment strategies.