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Taiwan Seeks to Expand Tech Cooperation with Saudi Arabia

Taiwan looks to increase cooperation with Saudi Arabia in several economic fields. In the photo, Taipei 101, one of the tallest towers in the world at 508 meters, is shown in the capital city of Taipei (Asharq Al-Awsat)
Taiwan looks to increase cooperation with Saudi Arabia in several economic fields. In the photo, Taipei 101, one of the tallest towers in the world at 508 meters, is shown in the capital city of Taipei (Asharq Al-Awsat)
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Taiwan Seeks to Expand Tech Cooperation with Saudi Arabia

Taiwan looks to increase cooperation with Saudi Arabia in several economic fields. In the photo, Taipei 101, one of the tallest towers in the world at 508 meters, is shown in the capital city of Taipei (Asharq Al-Awsat)
Taiwan looks to increase cooperation with Saudi Arabia in several economic fields. In the photo, Taipei 101, one of the tallest towers in the world at 508 meters, is shown in the capital city of Taipei (Asharq Al-Awsat)

A Taiwanese diplomat has emphasized the strategic relations between Saudi Arabia and Taiwan as the latter aims to expand bilateral cooperation in new value-added technologies.
“Since the 1970s, Saudi Arabia and Taiwan have shared a deep and significant partnership. Taiwan has reiterated its support for Saudi Arabia’s Vision 2030, led by King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman,” said Teng Cheng Ping, head of Taiwan’s mission in Saudi Arabia.
Speaking to Asharq Al-Awsat, the Taiwanese representative noted that Taiwan holds the fourth-largest foreign exchange reserves globally, highlighting the saving habits of its consumers.
He pointed out that the entry of Saudi National Bank into Taiwan’s Formosa market as the first Saudi bank reflects the uniqueness of bilateral relations and the mutual desire to forge a strategic partnership for a better future, enhancing comprehensive bilateral cooperation, friendship, and cultural understanding between the two peoples.
“Saudi Arabia has requested Citibank and Goldman Sachs to issue $500 million in unsecured floating-rate bonds for five years. In the future, Taiwan will continue to invest in the Kingdom and support the country’s efforts to advance Vision 2030,” said Ping.
He also mentioned that Foxconn is still discussing high-tech collaboration projects with the Saudi government.
The company’s operations in the Kingdom focus on electric vehicle technologies, a key aspect of industrial technological cooperation that adds value to the industrial economy.
According to Ping, Taiwan leads the world in high-tech industries such as semiconductors, chip manufacturing, and design.
These sectors are crucial components of artificial intelligence technology, making them vital areas for collaboration with Saudi Arabia in shaping the new industrial future.
“Currently, Taiwan has built semiconductor plants in the United States, Japan, and Germany, with these countries also investing in Taiwan,” Ping said.
“Therefore, Taiwan and Saudi Arabia can enhance cooperation in these fields in the future,” he added.
Ping emphasized that Foxconn’s investment in Saudi Arabia, as the world’s largest manufacturer and provider of technical services, in the field of electric vehicle technologies, will bolster the Kingdom’s strategy to empower promising sectors, including the automotive industry.
This move contributes to diversifying Saudi Arabia’s economy, reducing carbon emissions, and preserving the environment, alongside promoting sustainable development, attracting investments, and creating new job opportunities.

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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.