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Saudi MODON, Techno for Advanced Materials Agree to Establish First CNTs Plant

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)
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Saudi MODON, Techno for Advanced Materials Agree to Establish First CNTs Plant

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)

The Saudi Organization for Industrial Cities and Technology Zones (Modon) signed an agreement with a technology company for advanced materials to host the latter’s first plant to produce Carbon nanotubes (CNTs) in an effort to empower the industry in Saudi Arabia and support value added industries.

While Saudi Arabia has been working to boost the growth of industrial production, thus increasing its contribution to its GDP, Modon aims to support value added industries and stimulate local companies to expand in this field.

The agreement aims at supporting the specialized company to establish its first factory for the production of CNTs, which stimulate the paint industry and is in line with modern construction techniques.

It comes as Saudi factories achieved positive growth rates in the second quarter of 2018, confirming the vitality of these factories and their ability to contribute effectively to the Kingdom’s GDP.

The country’s economic growth rates started to increase in 2018, with expectations for higher growth this year.

Meanwhile, Saudi Arabia’s General Authority for Statistics issued the Index of Industrial Production (IIP) for the second Quarter 2018, which shows the results of the relative change and development in the quantities of materials and goods produced.

“When comparing the results of the second quarter 2018 with the results of the previous quarter (Q1 2018), we find that the production quantities have increased by 4.17 percent in all industrial activities, amounting to 137.87 points,” the report said.

The production increase rate in the mining and quarrying activity rise up 1.89 percent. However, the production growth rate increased by 5.07 percent in the manufacturing industry activity, and the electricity and gas supply activity rise by 83.46 percent.

“Furthermore, when comparing the results of the second quarter 2018 with the results of the second quarter 2017, we find that the production quantities increase by 5.84 percent in all industrial activities,” the report explained.

The production growth rate recorded 16.44 percent in the manufacturing industry activity while the production rate of electricity and gas supply has recorded a decrease of 0.30 percent.

These results coincide with the process of providing industrial land developed at very nominal prices, one of the most important support tools provided by Saudi Arabia to investors in the industrial sector, in addition to the provision of high financial loans to these investors.

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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.