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Saudi Arabia: Global Strategic Partnerships Accelerate Electric Vehicle Industry

An electric car displayed during the Global EV & Mobility Technology Forum 2024 (Asharq Al-Awsat)
An electric car displayed during the Global EV & Mobility Technology Forum 2024 (Asharq Al-Awsat)
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Saudi Arabia: Global Strategic Partnerships Accelerate Electric Vehicle Industry

An electric car displayed during the Global EV & Mobility Technology Forum 2024 (Asharq Al-Awsat)
An electric car displayed during the Global EV & Mobility Technology Forum 2024 (Asharq Al-Awsat)

Saudi Arabia has forged strategic partnerships with major international companies to exceed the production capacity of 600,000 electric cars annually, supported by the efforts of the Public Investment Fund to promote this sector.
Speaking at the Global EV & Mobility Technology Forum, which is held in Riyadh on July 10-11, Undersecretary of the Ministry of Investment for Investment Development, Mohammed Al-Sahib, said that the Saudi market accounts for more than half of the total car sales in the GCC, which reflects the crucial role of the technology sector in the Kingdom’s economic landscape.
Al-Sahib also underlined his ministry’s keenness to double efforts aimed at providing the necessary resources, knowledge and guidance to support the industry.
Sustainable mobility
The forum featured an exhibition during which international companies, such as Lucid Motors, displayed sustainable mobility solutions, in addition to dialogue sessions that touched on several important files in the electric vehicle industry, including: future mobility solutions, operational efficiency and sustainability, the landscape of the automotive industry and opportunities in Saudi Arabia as part of the national strategy for the industry.
The forum also saw other important discussions on future initiatives and government policies for sustainable mobility in the Kingdom, in addition to strategies for promoting the adoption of electric vehicles, and the necessity of partnerships between the public and private sectors in financing and implementing future projects.
Foreign investments
The American Lucid company, which is partially owned by the Saudi Public Investment Fund, has opened the first factory in the Kingdom for electric cars in King Abdullah City (western Saudi Arabia).
Moreover, the Saudi sovereign fund established the Ceer automobile company, which is expected to attract foreign investments amounting to SAR 562 million ($149 million) and contribute to the domestic product by about SAR 30 billion ($8 billion) by 2034.
In November 2023, the Fund also launched the EVIQ Company, which specializes in providing electric charging points throughout the Kingdom, in addition to building a strong infrastructure for the sector, which helps raise the percentage of use of electric vehicles among members of society.

 

 

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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.