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Riyadh Governor: Saudi Arabia Ranked among World’s Top Economies

A panel discussion at the Riyadh Economic Forum. (SPA)
A panel discussion at the Riyadh Economic Forum. (SPA)
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Riyadh Governor: Saudi Arabia Ranked among World’s Top Economies

A panel discussion at the Riyadh Economic Forum. (SPA)
A panel discussion at the Riyadh Economic Forum. (SPA)

The progressive policies of Custodian of the Two Holy Mosques King Salman bin Abdulaziz have paved the way for Saudi Arabia to become among the world’s top economies, said to Riyadh Governor Prince Faisal bin Bandar.

Under the patronage of King Salman, Prince Faisal inaugurated on Monday the eighth edition of the "Riyadh Economic Forum" at the King Faisal Hall, where he addressed over 300 delegates.

The event is held under the theme “Plan Today for Tomorrow’s Economy” and is sponsored by the Riyadh Chamber of Commerce and Industry.

Prince Faisal stated that the government’s support to the private sector reflects its trust in its vital role in the economic development of the Kingdom and activating its role in facilitating economic reforms and development goals embodied in Vision 2030.

The Riyadh governor said the recent economic reforms introduced in the Kingdom under the "wise leadership of King Salman” created a conducive climate for the growth of the Kingdom’s economy and enhancement of investments.

The importance of the eighth edition of the forum can be noticed in the changes in Saudi Arabia’s national economy, such as in restructuring, building an economic base on diversifying sources of income, optimizing the Kingdom's natural and human resources and integrating the philosophy of innovation and technological knowledge in production.

During the first session of the forum, adviser to the Ministry of Energy, Industry and Mineral Resources Abdullah al- Dabbagh chaired a debate panel on a study on mineral resources and investments. The discussion saw the participation of partner and board member of al-Kifah Holding Saleh Bin Hassan Abdullah al-Afaleq and CEO of Saudi Arabian Mining Company (Ma'aden) Khaled bin Saleh al-Mudaifer.

Saudi economic circles and public and private sectors consider the Riyadh Economic Forum an important economic event given that it focuses on the in-depth research of the national economy and its main problems.

The forum also addresses the government's efforts to achieve Vision 2030, as well as efforts to raise the efficiency of the national economy against local, regional and global economic challenges.

Additionally, the Riyadh Economic Forum aims to promote the effective partnership between the public and private sectors.

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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.