100 Saudi Firms Listed in the Local Market See 2.46% Profit Increase

A Saudi man counts banknotes at his jewelry shop at Tiba market in Riyadh, on October 3, 2016. (AFP/ Getty Images)
A Saudi man counts banknotes at his jewelry shop at Tiba market in Riyadh, on October 3, 2016. (AFP/ Getty Images)
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100 Saudi Firms Listed in the Local Market See 2.46% Profit Increase

A Saudi man counts banknotes at his jewelry shop at Tiba market in Riyadh, on October 3, 2016. (AFP/ Getty Images)
A Saudi man counts banknotes at his jewelry shop at Tiba market in Riyadh, on October 3, 2016. (AFP/ Getty Images)

Total profit of 100 Saudi firms listed in the local market saw a rise of 2.46 percent compared to the same period of 2017, amounting to $14.5 billion, according to the companies’ financial results for the first half of this year.

The profits were majorly gained from banking and petrochemical industries, as they embrace the largest Saudi companies in terms of capital and revenues. The rest of the companies are expected to announce their results on August 9.

The Saudi Stock Market closed this week 1.36 percent down, at 8,254 points, compared to last week's results at 8368 points.

Last week’s total tradings increased significantly, reaching up to $4.9 billion, compared to $4.2 billion in the previous week.

Saudi Ministry of Commerce and Investment revealed in its recent statements that the level of profitability of the private sector is an important indicator that will boost confidence levels and increase investments in the country.

The positive figures announced by the Saudi Ministry come in line with recent figures published by Saudi companies listed in the local financial market. The numbers showed positive growth rates in listed companies during the first half of this year, compared to the profit levels of 2017.

The Ministry confirmed last week that companies and institutions operating in the Saudi market showed a 5.6 percent growth in profits during 2017 and a 1.7 percent revenue growth during the same year when compared with 2016.

Recent statistics of Qawaem, the electronic filing program of financial lists, showed that profit had been achieved in listed and non-listed companies and institutions of various sectors.

The report identified the sectors that saw the highest growth levels during 2017: management consultancy, machinery and equipment manufacturing, mining and recycling, natural gas, financial advisory, training, education, administrative facilities, maintenance and hygiene, agricultural activities and stores of pharmaceutical and medical supplies.

The Saudi economy, the largest in the Middle East, achieved a positive growth in the first quarter of this year, at 1.2 percent, a sign on the feasibility of economic reforms that are aimed at diversifying the economy and reducing oil dependency.

Saudi GDP rose 1.2 percent at the end of the first quarter to reach $172.7 billion compared to $170.7 billion during the same period last year, General Authority for Statistics (GAStat) data showed.

Non-oil GDP increased 1.6 percent by the end of the first quarter of this year, while non-oil governmental sector showed a 2.7 percent increase during same period.

GDP of the oil sector rose 0.6 percent to $72.8 billion compared to $72.4 billion of the first quarter of previous year.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.