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Foreign Investor Shares in Saudi Stock Market Settle Above 5%

A Saudi trader monitors stocks at the Saudi stock market in Riyadh. Reuters/Faisal Nasser
A Saudi trader monitors stocks at the Saudi stock market in Riyadh. Reuters/Faisal Nasser
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Foreign Investor Shares in Saudi Stock Market Settle Above 5%

A Saudi trader monitors stocks at the Saudi stock market in Riyadh. Reuters/Faisal Nasser
A Saudi trader monitors stocks at the Saudi stock market in Riyadh. Reuters/Faisal Nasser

The shares of foreign investors in the Saudi stock market reached 5.06 percent end of August, exceeding five percent for the second month in a row.

The market value of the shares has inched close to SAR100 billion (USD26.6 billion), reaching at the end of August tradings to SAR95.9 billion (USD25.5 billion).

The data comes as a report by the Saudi Ministry of Commerce and Investment revealed a growth in the profitability of the Saudi private sector in 2017. Sectors that enjoyed the most growth were administrative consultations, manufacturing of equipment, mining, recycling, natural gas, financial consultation activities, training, education, maintenance, agricultural activities, administrative facilities and warehouses of medical and pharmaceutical products.

Qawaem 2017 report revealed that the growth included revenues of the refined oil products industry, chemical products industry, education, agriculture, fishing, medicines, pharmaceuticals, health, food products, media, and publishing.

All institutions of the private sector are compelled to provide Qawaem with financial lists of 2017, within a determined period after the end of the fiscal year. The program aims to improve and increase work efficiency and take advantage of the financial statements to provide information and services unique to the beneficiaries, stakeholders, and shareholders.

According to the General Authority for Statistics, the domestic product of the non-oil sector in Saudi Arabia achieved positive growth of 1.6 percent during the first quarter of the current year, while that of the non-oil sector reached around 2.7 percent during the same period.

The economy expanded at an annual rate of 1.2 percent in the first quarter, according to the authority. 

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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.