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Saudi-Sudanese Deal to Ease Financial Transfers

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economy
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Saudi-Sudanese Deal to Ease Financial Transfers

economy
economy

Hazem Abdul-Qadir, Sudan's Central Bank Governor, assured that the banking climate in Sudan witnessed a revival following the US decision in October to lift sanctions, noting that Saudi Arabian Monetary Authority (SAMA) ordered commercial banks to ease transfers between Sudan and Saudi Arabia.

“I discussed, on Wednesday, with SAMA Governor Ahmed al-Khulaifi developments in terms of the banking climate in Sudan and possible means to urge Saudi banks to ease banking transfers between the two countries, after removing all legal obstacles that existed before lifting the US sanctions on Sudan,” he told Asharq Al-Awsat.

The Central Bank Governor said the meeting with Khulaifi was attended by managers of four commercial banks in Saudi Arabia, including Al-Ahli Bank (NCB) and Al Rajhi Bank. During the meeting, attendees discussed possible ways to overcome some obstacles and enhance the flow of banking transfers from Saudi Arabia that hosts the greatest number of Sudanese immigrants.

“I explained to Khulaifi that things will improve in Sudan,” said Abdul-Qadir, adding that the SAMA governor issued last week a circular for Saudi commercial banks to deal with Sudanese banks stressing the need to investigate banking transactions to prevent money-laundering or suspicious operations.

On the sidelines of a meeting organized by Sudanese Ambassador to the Kingdom of Saudi Arabia Abdulbaset al-Sanousi in Riyadh on Wednesday, Abdul-Qadir stated that Saudi Arabia hosts the biggest Sudanese diaspora exceeding one million people, not to mention the enormous Saudi investments in Sudan.

Musaad Abdul Karim, Chairman of Sudanese Banks Association, expected that discussions with SAMA and Saudi commercial banks would result in restoring ties between Sudanese-Saudi banks and increasing bilateral banking transfers.

“There were no problems in the past. What happened is due to consequences of the US economic embargo imposed on Sudan since 2013. Now these reasons no longer exist,” he added. 

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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)
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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.