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Egyptian Discussions with AfDB on Last Tranche of Loan

Egyptian officials during their meeting with the AfDB delegation in Cairo on Wednesday. Asharq Al-Awsat
Egyptian officials during their meeting with the AfDB delegation in Cairo on Wednesday. Asharq Al-Awsat
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Egyptian Discussions with AfDB on Last Tranche of Loan

Egyptian officials during their meeting with the AfDB delegation in Cairo on Wednesday. Asharq Al-Awsat
Egyptian officials during their meeting with the AfDB delegation in Cairo on Wednesday. Asharq Al-Awsat

Egyptian officials have discussed with a delegation from the African Development Bank the signing of the third and last $500 million tranche of a $1.5 billion AfDB loan.

The discussions took place between Minister of Investment Sahar Nasr and Minister of Water Resources and Irrigation Mohamed Abdel-Ati on one side and the AfDB delegation led by the bank’s Vice President Khaled Sherif on the other.

Talks focused on the bank’s proposed funding for several projects and the measures taken by Egypt to improve the investment climate, including President Abdel Fattah el-Sisi’s approval of the investment law.

The two sides also discussed the signing of the $500 million loan agreement with the AfDB by the end of 2017.

Nasr stressed the importance of receiving the third and last tranche of the $1.5 billion loan and loaded the bank’s cooperation in backing the Egyptian government’s economic program.

The minister noted that the government’s top priority lies in providing better living standards for Egyptian citizens, and implementing projects, which provide employment opportunities for young people, women and the most needy families, and that improve the infrastructure such as electricity and transportation.

Nasr invited Sherif to the three-day Africa 2017 investment conference that will be held under Sisi’s patronage on December 7 in the resort of Sharm el-Sheikh.

The bank’s delegation expressed optimism at the economic reforms undertaken by the Egyptian government, saying the country should be a good magnet for more investments.

Sherif said that Egypt is a founding member of the AfDB and the second largest contributor in the bank, which finances 29 projects with a total value of $2.3 billion.

He also stressed the importance of holding the Africa 2017 investment conference for greater African integration.

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Business

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.