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Saudi Arabia: Council of Economic, Development Affairs Tackles Investors’ Contribution in Logistic Services

Meeting between the Local Content Unit and the National Logistics Committee at the Council of Saudi Chambers in Riyadh on Wednesday. Asharq Al-Awsat.
Meeting between the Local Content Unit and the National Logistics Committee at the Council of Saudi Chambers in Riyadh on Wednesday. Asharq Al-Awsat.
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Saudi Arabia: Council of Economic, Development Affairs Tackles Investors’ Contribution in Logistic Services

Meeting between the Local Content Unit and the National Logistics Committee at the Council of Saudi Chambers in Riyadh on Wednesday. Asharq Al-Awsat.
Meeting between the Local Content Unit and the National Logistics Committee at the Council of Saudi Chambers in Riyadh on Wednesday. Asharq Al-Awsat.

Fahd al-Sukait of the Council of Economic and Development Affairs has discussed with officials in the National Logistics Committee at the Council of Saudi Chambers (CSC), on Wednesday, the condition of investors in logistic services and suggestions to boost this sector and its contribution in the public sector.

This comes amid expectations that the sector grows in 2018 up to 17-22 percent.

The meeting discussed programs that contribute in reinforcing logistic services within the plan to stimulate the private sector, programs to support SMEs and plans to qualify and train the Saudi youths. It also tackled plans to saudize and attract Saudi youths to this sector.

The two sides discussed the role of chambers of commerce and the Local Content Unit in highlighting both the risks and upsides of this decision, and how to address any challenges in this regard to make jobs in the sector sustainable.

Sukait stressed importance of associative strategy between the public and private sector, which achieves economic growth, contributes in accomplishing the Saudi Vision 2030 and reduces unemployment.

He directed the Local Content Unit to submit the five main challenges to the logistics sector so as to address them as soon as possible and elevate the sector’s performance.

Saud al-Nefaei, head of National Logistics Committee at the Council of Saudi Chambers, said to Asharq Al-Awsat during a phone-call that “work is ongoing so that the logistics sector becomes a system linked with many related sectors whether transportation, storage, customs and others."

Nefaei noted that the sector is witnessing a mounting growth, expecting the logistics sector growth to range between 17-22 percent during 2018.

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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.