ACWA Power Increases Its Shareholding to 74% in RAWEC

ACWA Power Increases Its Shareholding to 74% in RAWEC
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ACWA Power Increases Its Shareholding to 74% in RAWEC

ACWA Power Increases Its Shareholding to 74% in RAWEC

Saudi Arabia’s ACWA Power announced the completion of the acquisition of certain shares and debt instruments of Japan’s Marubeni Corporation in Rabigh Arabian Water & Electricity Company as well as certain shares owned by Marubeni in RAWEC’s Operations & Maintenance Company known as Rabigh Power Company.

With that, ACWA Power increased its shareholding to 74 percent in RAWEC after buying all of Marubeni’s stake.

RAWEC is the captive utility provider to Rabigh Refining and Petrochemical Company (“Petro Rabigh Corporation”), a joint venture formed in 2005 between Japan’s Sumitomo Chemical and Saudi Aramco which owns, operates, and manages the Rabigh petrochemical complex. The complex comprises of integrated oil refining and petrochemical operations that produce a variety of refined petroleum and petrochemical products at Rabigh in the Kingdom.

RAWEC owns and operates a conventional thermal power plant and desalination facility with a total installed capacity of 840 MW Power, 6,110 t/h Steam and 12,000 t/h Water, situated approximately 160 km north of Jeddah.

According to ACWA Power’s statement, RAWEC supplies the utilities to Petro Rabigh under a long term take. RAWEC plant comprises of two phases which were commissioned in 2008 and 2016 that run as an integrated operation and is also synchronized to the Saudi Electricity Company (SEC) electricity grid providing a non-stop and highly reliable utility supply to Petro Rabigh Corporation.

RPC is a company responsible for the operations and maintenance of the RAWEC plant as per a long term agreement signed with RAWEC.

The purchase of the target securities was carried out pursuant to certain pre-emptive and other rights that ACWA Power had with respect to the shares held by other shareholders in RAWEC and RPC.

Accordingly, ACWA Power exercised its rights in May 2018 and the physical securities transfer was consummated on March 13, 2019, after securing various consents and completing other regulatory processes.

President & CEO of ACWA Power Paddy Padmanathan commented on the acquisition saying the purchase of additional shares in RAWEC and RPC to increase the existing majority ownership demonstrates the company’s confidence in this utility complex and its desire to further strengthen the partnership with its key client Petro Rabigh Corporation.

CIO of ACWA Power Rajit Nanda noted that by acquiring Marubeni’s Shares in RAWEC and RPC “we intend to build upon our recent successes in the power generation and water desalination sector in the kingdom and the rest of the world and consolidate our position as a major power and water utilities provider to creditworthy energy-intensive industrial customers like Petro Rabigh Corporation.”



Saudi Telecom Revenues Near $7.2 Billion in Q2

A Zain store in Riyadh (SPA)
A Zain store in Riyadh (SPA)
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Saudi Telecom Revenues Near $7.2 Billion in Q2

A Zain store in Riyadh (SPA)
A Zain store in Riyadh (SPA)

Saudi Arabia’s listed telecommunications companies posted robust results in the second quarter of 2025, with both profits and revenues showing solid gains.

Sector-wide net profits rose 17.4 percent year-on-year to $1.27 billion (SAR 4.78 billion), compared to $1.08 billion (SAR 4.07 billion) in the same quarter of 2024.

Revenues grew 3.7 percent to $7.2 billion (SAR 27 billion), up from $6.93 billion (SAR 25.97 billion) a year earlier.

The jump in net profits was driven by higher revenues and operating income, coupled with lower revenue costs, financing expenses, and other outlays.

The sector comprises four companies, three of which — Saudi Telecom Company (stc), Etihad Etisalat (Mobily), and Mobile Telecommunications Company Saudi Arabia (Zain KSA) — follow a fiscal year ending in December. Etihad Atheeb Telecommunications (GO) ends its fiscal year in March.

stc topped sector performance, contributing around 80 percent of total profits. The company posted net income of SAR3.82 billion in Q2 2025, up 15.7 percent year-on-year. Revenues grew 2.6 percent to SAR19.45 billion from SAR18.96 billion in the same quarter last year. stc attributed its profit growth to a SAR492 million rise in revenues and a SAR235 million drop in revenue costs.

Mobily recorded the highest profit growth rate in the sector, with net income up 25.6 percent to SAR830 million. Revenues rose 8.2 percent to SAR4.83 billion. The company credited the gains to higher revenues, stronger operating profits, lower net other expenses, and an increased share in the profits of a joint venture.

Zain KSA ranked second in profit growth, with a 21 percent rise to SAR127 million. Revenues climbed 4 percent to SAR2.65 billion. The company said higher gross profit — up SAR85 million from strong performance in high-margin segments — along with a SAR10 million drop in financing costs, drove its earnings.

Operational Efficiency and Government Support

Commenting on the quarterly results, Dr. Suleiman Al-Humaid Al-Khalidi, a financial markets analyst and member of the Saudi Economic Association, told Asharq Al-Awsat the sector’s performance reflected operational efficiency and improved profit margins.

He said profit growth was also supported by stronger results from subsidiaries and affiliates, business expansion, and lower zakat burdens. The focus on 5G services, robust consumer demand, cost control, and operational improvements all contributed to the positive trend.

Al-Khalidi forecast continued sector growth, projecting the Saudi telecom market to expand from $13 billion by the end of 2025 to around $23 billion in 2026, at a compound annual growth rate of 3.9 percent. He noted that the government’s push for digital transformation and investments in innovation will further boost companies’ earnings in coming quarters.

Investment Diversification and Digital Demand

For his part, Mohammed Hamdy Omar, CEO of G-World, said the Saudi telecom sector delivered strong financial results in Q2 2025, maintaining its collective growth trajectory, with stc clearly leading in profitability.

Omar attributed stc’s dominance to its diversified investment portfolio, which spans finance, entertainment, technology, and telecommunications. He said higher profits across the sector reflected rising revenues, growing demand for data and digital services, operational efficiency gains, and lower financing costs.

He added that the common driver behind the profit growth reported by all three major players was revenue expansion — fueled by increased data consumption, growth in enterprise services, and expansion into digital and financial services. Companies also benefited from lower revenue costs, reduced financing expenses, and improved margins.

Future Outlook

Omar expected the sector’s positive momentum to continue, supported by Saudi Arabia’s Vision 2030, pointing that Telecom companies will play a central role in major digital transformation projects such as NEOM and Qiddiya, ensuring sustained demand for digital infrastructure.

Moreover, the ongoing expansion of 5G networks will open new opportunities for smart city applications and connected vehicles, creating revenue streams beyond traditional voice services, according to Omar. He anticipated fiercer competition, not only on pricing but also on network quality and innovative service bundles, with strong growth potential in big data and artificial intelligence.