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Saudi Finance Minister: Economic Indicators Have Shown Positive Reforms

Saudi Minister of Finance Mohammed al-Jadaan. (Reuters)
Saudi Minister of Finance Mohammed al-Jadaan. (Reuters)
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Saudi Finance Minister: Economic Indicators Have Shown Positive Reforms

Saudi Minister of Finance Mohammed al-Jadaan. (Reuters)
Saudi Minister of Finance Mohammed al-Jadaan. (Reuters)

Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan said in a speech on the occasion of the 88th anniversary of the Saudi National Day that the positive economic indicators have proved the importance of the structural reforms that the Kingdom has undertaken.

He pointed out that this year’s national day coincided with a number of achievements in support of economic growth, with the economic indicators highlighting positive structural reforms thanks to the wise leadership that enabled the Saudi economy to address the challenges.

“Today, we live in an important phase of the development process; we are moving towards the horizons of glory, in accordance with an ambitious vision that is the Kingdom’s Vision 2030,”
Jadaan stated.

These positive assurances come as recent figures published in the 54th annual report of the Saudi Arabian Monetary Agency (SAMA) highlighted the strength of the Kingdom’s financial sector, with the figures showing the growth of local banks’ capital and reserves by 6.3% in 2017.

According to the same report, the Saudi economy registered a number of positive indicators, notably the non-oil GDP growth of 1.05% and the current account surplus of SAR57.1 billion ($ 15.2 billion) in 2017.

The report revealed that the total assets of commercial banks increased by 2.2% to reach more than two trillion riyals ($ 533.3 billion). The capital and reserves of local banks increased by 6.3% to reach SAR318 billion ($ 84.4 billion).

Saudi Arabia - one of the 20 most powerful economies in the world - has played a key role in energy markets over the past years. The Kingdom is among the top countries that achieve balance in providing oil, which has helped stimulate the global economy towards more production and manufacturing processes.

The Saudi economy has recorded in 2018 the highest spending budget in the country’s history that exceeded one trillion riyals ($266.6 billion).

With regards to the Saudi budget for 2018, the financial performance indicators of the general budget for Saudi Arabia for the first half of the current year showed that the total revenue amounted to about SAR439.8 billion ($117.2 billion), an increase of 43% compared to the same period last year.

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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.