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Bahrain Tourism Projects Valued at over $13 Billion

The main entrance of The Avenue Bahrain in Manama. Hamad I Mohammed/Reuters
The main entrance of The Avenue Bahrain in Manama. Hamad I Mohammed/Reuters
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Bahrain Tourism Projects Valued at over $13 Billion

The main entrance of The Avenue Bahrain in Manama. Hamad I Mohammed/Reuters
The main entrance of The Avenue Bahrain in Manama. Hamad I Mohammed/Reuters

The Bahrain Economic Development Board (EDB) recently revealed that investments in Bahrain’s tourism infrastructure have reached over $13 billion.

The figure covers 14 prominent projects that will further boost growth in the Kingdom’s tourism and leisure sector.

As part of these developments, Bahrain International Airport is undergoing a $1.1 billion worth expansion to increase passenger capacity to a yearly 14 million by 2020. This will go hand in hand with the new hotels, resorts, real-estate projects, malls, restaurants and other projects that will be implemented in the kingdom.

Dr. Simon Galpin, Managing Director of EDB, said: "The tourism sector contributes 6.3 percent to the country’s GDP, and is set to grow significantly, as the number of visitors and leisure activities increase."

He added: “The total number of tourists visiting Bahrain has reached 8.7 million during the first nine months of this year, a significant number considering our resident population of only 1.5 million people."

The tourism infrastructure projects are part of Bahrain’s large-scale infrastructure development across a wide range of sectors and are valued at over $32 billion. This public-private sector investment consists of $10 billion of government funding, $7.5 billion under the GCC Development Fund, and $15 billion worth of investments in the private sector.

The sector witnessed rapid growth in the past year, with the total number of tourists visiting the Kingdom increasing by 12.8 percent in the first nine months of 2017. Bahrain visitors spent during 2017 around $2.45 billion.

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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.