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New Saudi Development Projects' Funds Exceed $40 Bln

Two photos of the Custodian of the Two Holy Mosques and His Crown Prince at the entrance to the city of Waad AlShamal project, Asharq Al-Awsat
Two photos of the Custodian of the Two Holy Mosques and His Crown Prince at the entrance to the city of Waad AlShamal project, Asharq Al-Awsat
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New Saudi Development Projects' Funds Exceed $40 Bln

Two photos of the Custodian of the Two Holy Mosques and His Crown Prince at the entrance to the city of Waad AlShamal project, Asharq Al-Awsat
Two photos of the Custodian of the Two Holy Mosques and His Crown Prince at the entrance to the city of Waad AlShamal project, Asharq Al-Awsat

Mega development projects nationwide have been inaugurated by Saudi King Salman bin Abdulaziz, in the presence of Crown Prince Mohammed bin Salman, during a royal tour of the Kingdom.

The new development projects will see astronomical investments totaling SAR150 billion ($40 billion), of which SAR 85 billion ($22.6 billion) is allocated to Waad AlShamal Development City, the largest industrial project in the region and the future’s largest phosphate producer worldwide.

Most new projects are being implemented by national ministries and agencies.

There have also been 11 projects for the Saudi Commission for Tourism and National Heritage, 69 projects for the Ministry of Municipal and Rural Affairs, 21 projects for the Ministry of Environment, Water and Agriculture, 16 projects for the Ministry of Transport, 18 port projects, as well as housing and education projects.

Waad AlShamal is propped up as an integrated mineral city, located northeast of the city of Tarif which lies near the Kingdom’s northern border region.

At least 600 Qasim region projects will boost the Kingdom’s central district’s performance across 12 sectors. It is worth noting that the spot is known for abundant natural resources in addition to a strategic heartland geographic location.

The most notable projects have been launched for the Ministry of Energy, Industry and Mineral Resources. These projects are worth 4.94 billion Saudi riyals ($1.3 billion).

Apart from its economic value, the Qasim region is also home to historic cultural heritage.

King Salman also launched 259 projects in the northern region of Ha’il at a cost of 7 billion Saudi riyals ($1.9 billion).

As for projects launched in the Tabuk region, they will cover an area of more than 3,800 sq km and will target more than 2,500 hotel keys and 700 residential villas, apartments and estate homes, plus over 200 high-end retail establishments with an eclectic mix of galleries, ateliers, artisan workshops and bespoke retail shops supported by a wide range of international and local signature dining venues.

The Saudi Commission for Tourism and National Heritage is set to own 11 of the projects worth SAR 98 million and the Ministry of Municipal and Rural Affairs owns 69 projects worth SAR 757 million.

The Ministry of Environment, Water and Agriculture will cover 21 projects worth SAR1.5 billion; the Ministry of Energy, Industry and Mineral Resources owns two projects for the Saudi Authority for Industrial Cities worth SAR46 million and three projects for the electricity department worth SAR5 billion; the Ministry of Housing owns two projects worth SAR408 million; the Ministry of Education owns 11 projects, six of which are educational projects and five for the University of Tabuk, worth SAR1.6 billion; the Ministry of Transport owns 16 projects worth SAR1.6 billion; and the General Authority of Ports owns 18 projects at a total value of SAR 876 million.

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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.