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Emirati MAF to Enter Saudi Cinema Market

Emirati MAF to Enter Saudi Cinema Market
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Emirati MAF to Enter Saudi Cinema Market

Emirati MAF to Enter Saudi Cinema Market

Ahmed Galal Ismail, CEO at Majid Al Futtaim Ventures, stated that MAF is willing to play a role in the Saudi cinema market, following the kingdom’s permission of establishing cinemas in the country. MAF CEO noted that VOX Cinemas have 300 screens out of 600/ 700 screens placed in Gulf countries.

Opening cinemas in Saudi Arabia would have a huge impact on the economic and cultural sectors, said Ismael. He added: “The decision to start up a cinema in Saudi Arabia is a historic moment that was anticipated by investors, given that entertainment is a basic component of the Saudi Vision 2030 announced by Crown Prince Mohammed bin Salman."

“Saudi Arabia enjoys the biggest market in the Gulf, with a population of 30 million,” he continued.

MAF CEO said there is a huge Saudi turnover on entertainment, which is indicated by the number of users of YouTube and digital entertainment. “This is also shown through the malls of Bahrain, UAE and Oman. Many Saudi families and youths are looking for new entertainment aspects, something that would positively affect the economy and add to the cultural life,” he added.

Ismael hopes that MAF wins the first cinema-operating license in Saudi Arabia, affirming that MAF exists in the market for more than ten years, and has more than 4,000 employees in the fashion and retail sectors. “We are currently planning to inaugurate the biggest entertainment center. We have an investment program that exceeds SAR14 billion (USD3.7 billion) and is to be implemented over a short period of time, which would create direct and indirect opportunities,” revealed Ismael.

Speaking about challenges facing the cinema sector such as Netflix, he said that the competition in the meantime is not over the market share but over getting the consumer’s time.

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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.