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Initiatives Boost Progression of Saudi Investment Environment Internationally

Initiatives Boost Progression of Saudi Investment Environment Internationally
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Initiatives Boost Progression of Saudi Investment Environment Internationally

Initiatives Boost Progression of Saudi Investment Environment Internationally

The Saudi trade and investment system has strengthened its success through a series of qualitative initiatives that have been undertaken over the past period in the light of the Kingdom’s Vision 2030.

In the past period, global indicators have witnessed many achievements that contributed to improving the ranking of the Global Competitiveness Report for the first time in six years.

It reached the 39th position in the world, achieved the fourth place at the G20 level in business environment reforms in the World Bank 2019 report, and the seventh globally in the minority shareholder protection index.

The system implemented initiatives aimed at improving the business environment, facilitating business, enacting new legislative regulations and other amendments to provide an attractive and fair investment and trade environment, raise awareness and protection of consumer and merchant, and develop e-services.

The trade and investment system has taken advanced steps in improving the business environment. During the past period, a number of initiatives and projects have been launched.

Among these projects and initiatives is the establishment of the General Authority of Small and Medium Enterprises, the Saudi Intellectual Property Authority (SIPA), the Saudi Business Center and the E-Commerce Council.

It has also launched Maras initiative, the Small and Medium Enterprises Support Center in Riyadh, new customer service centers for the business sector, Bayan Credit Bureau and Investment Atlas and issued Business Licensing Guide to business activities.

The system continues to work to improve the business environment within the framework of planned strategies and projects aimed at making business easier in order to attract value-added foreign investments.

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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.