STC Registers $2 Billion in Net Profit over Nine Months

STC Registers $2 Billion in Net Profit over Nine Months
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STC Registers $2 Billion in Net Profit over Nine Months

STC Registers $2 Billion in Net Profit over Nine Months

Saudi Telecom Group reported a net profit growth of 18.2 percent in the third quarter of 2017 compared to last year. Net profit growth for nine months was 7.5 billion riyals ($ 2 billion), up 10.4 percent.

“The financial results for Q3-17 were good due to the distinct growth in Enterprise and wholesales sectors revenue despite the decline in consumer revenue during the period,” the CEO Khaled Biyari said.

The Kingdom-based telecommunication provider attributed the growth in its year-on-year net profits to the decrease in revenues cost by SAR 1.72 billion.

“These good results were achieved despite the various economic and regulatory conditions in the domestic market,” Biyari added.

"These outstanding results were achieved as a result of company’s strategy adopted several years ago—which focuses on diversifying income sources and introducing innovative programs to improve operations efficiency,” he added.

The CEO also said that the improvement came “through increasing productivity and reducing costs”.

“STC through its various companies is collaborating with various government agencies and the private sector companies in Saudi Arabia to at a steady pace to create a modern environment which contributes to expanding and enhancing the digital environment,” added Biyari.

“The growth strategy adopted by the company recently aims to achieve the Kingdom Vision 2030 and the National Transition Program 2020. This means introducing major change to the telecommunications sector which will provide new opportunities outside the framework of traditional services,” he added.

Biyari also said that the market value of STC is expected to increase exponentially and rapidly.

STC competes in Saudi Arabia with Etihad Etisalat (Mobily) and Zain Saudi.

STC, which owns stakes in operators in the Gulf, Turkey and Asia, said in a separate statement that its board had proposed a cash dividend of 1 riyal per share for the third quarter.



Saudi Real Estate Activities Record Deals Worth $170Bn Since Beginning of 2024

The Al-Qasr project, one of the projects of Dar Al Arkan Real Estate Development Company in Riyadh (Reuters)
The Al-Qasr project, one of the projects of Dar Al Arkan Real Estate Development Company in Riyadh (Reuters)
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Saudi Real Estate Activities Record Deals Worth $170Bn Since Beginning of 2024

The Al-Qasr project, one of the projects of Dar Al Arkan Real Estate Development Company in Riyadh (Reuters)
The Al-Qasr project, one of the projects of Dar Al Arkan Real Estate Development Company in Riyadh (Reuters)

Real estate activities in Saudi Arabia continued to grow since the beginning of 2024, recording more than 280,000 transactions worth more than $170 billion (SAR 636 billion), and extending over a total area of more than two billion square meters.

The sector’s contribution to the Saudi GDP reached 5.9 percent in the fourth quarter of 2023.

During the last week ending June 22, the real estate stock exchange witnessed 518 deals, with a transaction value exceeding SAR 331.7 million, and a trading area of about 900,000 square meters. The highest recorded price per square meter reached about SAR 15,000, while the average price was SAR 371 riyals.

Al-Wisam area in Jeddah topped the list of the most traded neighborhoods in Saudi Arabia on the real estate stock exchange during a week, with a value of transactions exceeding SAR 89.3 million, followed by the Arid district in Riyadh, with a value reached SAR 6.35 million.

The list included Al-Rimal neighborhood in Riyadh, with a value of SAR 5.59 million, followed by Jawharat Al-Arous in Jeddah, with a value of SAR 3.98 million, and the northwestern Al-Bukayriyah district, with transactions reaching SAR 700,000.

In remarks to Asharq Al-Awsat, real estate expert Eng. Ahmed Al-Faqih said the sector is seen as the safest option in light of the changes and fluctuations of the stock and gold markets and their impact on rising interest rates.

He added that the real estate market has shown stable and steady growth in all its sectors, thanks to the investors’ confidence in the government’s policies and the injection of large capital by launching huge real estate projects such as Qiddiya, NEOM, the Red Sea, and others.

In addition, the market has witnessed in recent years a package of legislation and regulations that have increased confidence and further attracted capital and real estate investments, he underlined.

He added that since the third quarter of 2023, the Saudi market has seen a remarkable increase in the number and value of real estate deals compared to the previous quarter, which indicates a change in the general mood of investors and their shift from a state of anticipation to seizing real estate opportunities.

Another real estate expert, Saqr Al-Zahrani, told Asharq Al-Awsat that the performance of the Saudi market reflected the remarkable growth and sustainability of demand for real estate, adding that the numbers and sizes of transactions registered through the real estate stock exchange highlighted the confidence of investors, thanks to government efforts and the economic reforms implemented within Vision 2030.

Al-Zahrani stressed that the real estate sector represents one of the basic pillars of the Saudi economy and contributes significantly to supporting the gross domestic product through huge investments and large development projects.

He also noted that government initiatives to regulate and promote investments in the real estate sector have revitalized the economy and created broad job opportunities for citizens and a variety of new skills in the real estate sector, thus reducing unemployment rates and achieving sustainable development.

He identified several reasons that supported the continued growth and sustainability of the Saudi real estate sector, including economic reforms and policies for investment, in addition to the government’s efforts to improve the business environment by facilitating procedures.

Al-Zahrani pointed to the mega projects taking place in the Kingdom and their role in attracting investments, as well as the increasing demand for housing and associated services as a result of urbanization.

In addition, political and economic stability played a vital role in enhancing investor confidence and encouraging long-term investment in real estate, he stated.