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TAQA Arabia Reports 40% Revenue Increase in 2024

A technician operates a valve on a gas pipeline at a TAQA Arabia gas facility (TAQA Arabia's official website)
A technician operates a valve on a gas pipeline at a TAQA Arabia gas facility (TAQA Arabia's official website)
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TAQA Arabia Reports 40% Revenue Increase in 2024

A technician operates a valve on a gas pipeline at a TAQA Arabia gas facility (TAQA Arabia's official website)
A technician operates a valve on a gas pipeline at a TAQA Arabia gas facility (TAQA Arabia's official website)

TAQA Arabia announced a 40% surge in its revenue last year, reaching 18.9 billion Egyptian pounds ($370 million) compared to 2023.

In a financial statement released Tuesday, the company described the results as “remarkable,” despite facing significant regional and global challenges in 2024.

These challenges included notable economic volatility, inflation, rising interest rates, disruptions in global supply chains, and fluctuations in energy prices.

The company attributed the strong performance to its oil sector, which led the growth in TAQA Arabia’s revenue, posting a 33.6% increase to 10.5 billion pounds, up from 7.4 billion pounds in the previous year.

This growth was driven by a 6.4% rise in fuel sales, alongside fuel price increases implemented during 2023 and 2024.

The financial report also highlighted the electricity and renewable energy sectors, which saw significant growth with a 47.7% revenue increase, reaching 3.531 billion pounds.

This growth stemmed from higher electricity prices in 2024, increased electricity sales from new photovoltaic solar projects, and higher consumption by industrial, tourism, and commercial customers in distribution projects.

Additionally, the depreciation of the Egyptian pound contributed positively to revenues.

The gas sector also reported strong growth, with revenues rising by 30.7% to 4.85 billion pounds compared to the previous year.

This growth was fueled by the expansion of compressed natural gas stations, with five new stations launched, along with price hikes in compressed natural gas in 2024.

Furthermore, the expansion of the gas distribution network in Hurghada and positive foreign currency impacts boosted regional revenues.

On its regional expansion efforts, the company said its strategy had paid off, marking key achievements such as entering the Tanzanian and Mozambican markets and establishing a joint venture in Saudi Arabia.

The company’s regional gas business saw substantial growth, with revenues increasing from 109 million pounds in 2023 to 234 million pounds in 2024.

Additionally, TAQA Arabia reported notable expansion in its water energy sector in 2024, launching nine new projects with a combined capacity of 18,000 cubic meters per day. This expansion led to a 231% increase in revenues, reaching 52 million pounds.

 

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Saudi Inflation Holds Steady in May as Rents Remain Key Driver

Aerial photo of the Saudi capital Riyadh (SPA) 
Aerial photo of the Saudi capital Riyadh (SPA) 
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Saudi Inflation Holds Steady in May as Rents Remain Key Driver

Aerial photo of the Saudi capital Riyadh (SPA) 
Aerial photo of the Saudi capital Riyadh (SPA) 

Saudi Arabia’s annual inflation rate remained stable at 2.2 percent in May 2025, maintaining a pace close to the 2.3 percent recorded in April. The continued stability in prices signals a relative balance in inflationary pressures, despite ongoing increases in housing costs.

This resilience comes amid global economic volatility, reflecting the effectiveness of Saudi Arabia’s fiscal and monetary policies, particularly in controlling energy and rental prices. The monthly Consumer Price Index (CPI) saw a slight uptick of just 0.1 percent.

According to the General Authority for Statistics (GASTAT), the annual inflation rate for May was driven primarily by rising housing-related costs. Prices in the housing, water, electricity, gas, and fuel sector increased by 6.8 percent compared to the same period last year. Food and beverage prices climbed by 1.6 percent, while personal goods and services saw a 4 percent rise.

Residential rents remained the most significant contributor to inflation, continuing their upward trend and exerting substantial influence on the general index. Despite this, the Kingdom’s inflation rate remains among the lowest in the G20.

Commenting on the data, Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics, told Asharq Al-Awsat that Saudi Arabia’s inflation levels remain comparatively low on a global scale. He said the current rate reflects the flexibility and discipline of the national economy, noting that price increases have been modest and largely under control.

Al-Jassar attributed this to effective government policies that have helped shield both the market and consumers from external shocks.

He emphasized that the inflation observed is a result of real economic activity rather than external disruptions or internal imbalances. One of the most effective tools in curbing inflation, he said, has been the government’s decision to stabilize local energy prices, even as global oil prices surged. Since fuel plays a crucial role in the production, transport, and distribution of goods and services, this policy has prevented cost increases from spilling over into other sectors such as food, construction, and housing.

Al-Jassar described this approach as a “smart policy” that successfully absorbed global inflationary shocks before they reached the end consumer.

Although residential rents jumped 8.1 percent year-on-year, he noted that the rise was gradual and primarily driven by strong demand and limited supply. He also pointed out that the Saudi riyal’s peg to the US dollar has helped protect the economy from imported inflation and reduce the cost of importing goods.

Increased competition, tighter price monitoring, and the growing presence of e-commerce were also cited as factors contributing to market stability and limiting price manipulation across various sectors.

Looking ahead, Al-Jassar suggested inflation could see a slight increase in the second half of 2025, potentially rising to between 2.5 and 3 percent. He attributed this potential uptick to seasonal factors or changes in global commodity prices. Additionally, if the US Federal Reserve moves to cut interest rates, this could lead to looser monetary policy in Saudi Arabia, boosting liquidity and consumption—factors that might put upward pressure on prices. However, he stressed that there are currently no signs of any sharp or unexpected inflationary surges.

In April 2025, the inflation rate stood at 2.3 percent, also led by a 6.8 percent rise in housing and related costs. Food and beverages saw a 2.2 percent increase, while personal goods and services were up 3.5 percent.

Month-on-month data showed that while May’s CPI rose by just 0.1 percent, residential rents continued to rise, helping push housing-related prices up by 0.3 percent. Actual rents for residences alone increased by 0.4 percent. Food and beverages inched up by 0.1 percent, while personal goods and services rose by 0.5 percent. Tobacco prices edged up by 0.2 percent.