Saudi Arabia’s listed telecommunications companies generated record first-half 2026 revenue of SAR55.53 billion ($14.8 billion), up 3.59 percent year on year, driven by higher revenue from consumer and enterprise services, growth in carrier and wholesale revenue, an expanding customer base, and an improved revenue mix.
stc accounted for 72.2 percent of the sector’s total revenue during the first half of 2026, generating SAR40.11 billion ($10.7 billion), a 3.75 percent increase from a year earlier. Revenue at Etihad Etisalat (Mobily) rose 5.35 percent to SAR10.12 billion ($2.7 billion), while Mobile Telecommunications Company Saudi Arabia (Zain KSA) posted a 0.7 percent decline to SAR5.3 billion ($1.4 billion).
The sector comprises four listed companies. Three—stc, Mobily, and Zain KSA—follow the calendar year, while Etihad Atheeb Telecom (GO Telecom) has a fiscal year ending in March.
Financial results showed that the combined net profit of the three major operators rose 2.33 percent in the first half of 2026 to SAR9.5 billion, compared with SAR9.29 billion in the same period last year, an increase of SAR216 million.
The increase was driven by an 11.5 percent rise in Mobily’s net profit to SAR1.78 billion and an 84.1 percent jump in Zain KSA’s earnings to SAR405 million, while stc’s net profit edged down 2.05 percent to SAR7.32 billion.
In the second quarter of 2026, combined sector revenue climbed to SAR28 billion, while net profit slipped 1.1 percent to SAR4.73 billion, compared with SAR4.78 billion in the corresponding quarter of last year.
The decline in quarterly earnings was mainly due to a 5.2 percent drop in stc’s profit to SAR3.623 billion, from SAR3.82 billion a year earlier. By contrast, Mobily’s profit rose 8.55 percent to SAR901 million, while Zain KSA’s increased 60.6 percent to SAR204 million.
Demand Remains Strong
Commenting on the results, Dr. Suleiman Al-Humaid Al-Khalidi, a financial and economic expert and member of the Saudi Economic Association, told Asharq Al-Awsat that the figures were reassuring. Combined sector profits exceeded SAR9.5 billion, up 2.3 percent, while revenue topped SAR55.5 billion, reflecting continued demand for telecommunications and technology services and confirming that the sector remains one of the Saudi stock market’s most stable and profitable.
Al-Khalidi said the results also highlighted a clear divergence in company performance. Mobily delivered strong results by improving operational efficiency, diversifying revenue sources and expanding digital services, lifting profit by more than 11 percent. Zain KSA recorded the strongest increase, with profit rising more than 84 percent, reflecting the success of its restructuring efforts, tighter cost controls and improved profit margins after years of strengthening its financial position.
By contrast, stc’s modest decline in profit was not a cause for concern, he stated. The company still generated more than SAR7.3 billion in earnings and accounted for more than 72 percent of the sector’s revenue, underscoring its continued market leadership. He attributed the decline primarily to increased investment in digital infrastructure, 5G networks, data centers, and artificial intelligence—investments that will shape the company’s future growth.
Al-Khalidi added that the results underscored rising operating and capital costs as telecom operators accelerate investment in advanced technologies amid intensifying competition, growing cybersecurity requirements and the expansion of digital services.
He expected the Saudi telecom sector to enter a more mature stage, supported by the Kingdom’s digital transformation and the goals of Saudi Vision 2030, with steady growth continuing over the coming years as current investments begin generating returns. The differing profit growth rates among operators, he added, do not signal weakness but rather reflect differing business strategies and investment cycles. Those who examine the figures closely will recognize that the sector’s future belongs to companies that combine innovation, operational efficiency, and financial discipline.
Beyond Traditional Telecom
Mohamed Hamdy Omar, Founder & CEO at G.WORLD, told Asharq Al-Awsat that the first-half results demonstrate the continued resilience of Saudi Arabia’s telecommunications sector and its ability to deliver growth in both revenue and earnings. However, he said the results should be assessed by distinguishing between accounting growth and underlying operating performance.
Omar expects the Saudi telecom sector to maintain moderate, positive growth in the second half of 2026 as competition shifts from traditional voice and data services toward integrated digital offerings. He underlined that future growth will be driven primarily by cloud computing, data centers, cybersecurity, the Internet of Things, managed services for businesses and government entities, financial solutions and digital platforms. Enterprise services are expected to contribute more to revenue growth than traditional telecommunications, which has become a more mature market.
He further noted that artificial intelligence is likely to influence the sector in two stages. The first will improve operational efficiency through network management, predictive maintenance, customer service, fraud prevention and cost optimization. The second will make AI a direct source of revenue through dedicated AI infrastructure, cloud services, data analytics and solutions for corporate and government clients.
Omar concluded that the sector’s performance in the second half will depend on each company’s ability to convert digital investments into recurring, high-margin revenue streams. The next phase of competition, he said, will not be determined solely by subscriber numbers or pricing, but by which operator can most rapidly transform itself from a telecommunications company into an integrated digital technology company.
