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Telecom Service Providers Yield $19.5 Bn in Saudi Arabia in 2018

Telecom Service Providers Yield $19.5 Bn in Saudi Arabia in 2018
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Telecom Service Providers Yield $19.5 Bn in Saudi Arabia in 2018

Telecom Service Providers Yield $19.5 Bn in Saudi Arabia in 2018

The financial indicators of Saudi Arabia's telecom sector have witnessed an increase in the companies’ profitability by SR11 billion ($2.9 billion) in 2018, up 18 percent from 2017, according to official reports.

The telecom companies’ market value has also increased to SR62 billion ($16.5 billion) while total revenues of telecommunications service providers amounted to SR73.3 billion ($19.5 billion) by the end of 2018.

Saudi Communications and Information Technology Commission (CITC) explained during ICT Indicators Forum 2019, which was held in Riyadh on Wednesday, that number of YouTube users in Saudi Arabia has reached 19.1 million, followed by Facebook with 16.8 million, WhatsApp with 15.2 million, Instagram with 15 million, and SnapChat with 9.4 million.

It revealed that the Kingdom ranked 45th in the Speed Global Index for the development of Internet speeds, surpassing Japan and the United Kingdom.

CITC Governor Dr. Abdulaziz al-Ruwais stressed during the forum on the importance of the statistical information as a tool to help knowing the market’s current status and the availability of services in it.

He said this aims at developing strategies and regulatory policies that ensure the availability of infrastructure, basic equipment and the spread of services to all Saudi regions.

Ruwais also pointed to the expanded service provision, with total subscriptions in mobile telecom services market amounting to 49.7 million.

The prevalence of voice services has also risen to 127 percent among people in addition to the 4G coverage for about 90 percent of Saudi regions, including centers, villages and remote areas.

The latest global reports indicate an increase in the average speed of mobile Internet download in Saudi Arabia to 31.06 Mbps, Ruwais added, compared to the world average speed of downloading, which is 25.27 Mbps, indicating Saudi progress at the speeds of mobile Internet at the global level.

He referred to the spread of modern communication technologies across Saudi Arabia through launching many spectrum auctions that aim at raising the total spectrum allocated for mobile communications services in the Kingdom from 260 MHz to 1010 MHz, which will contribute to doubling the Internet speed.

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Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
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Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo

Oil prices fell more than 2% on Monday on signs of progress in talks between the US and Iran while investors remained concerned about economic headwinds from tariffs which could curb demand for fuel.

Brent crude futures slipped $1.51, or 2.2%, to $66.45 a barrel by 1115 GMT after closing up 3.2% on Thursday. US West Texas Intermediate crude was at $63.11 a barrel, down $1.57, or 2.4%, after settling up 3.54% in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday, Reuters reported.

"The US-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, group head of research at Onyx Capital Group. "The immediate implication would be that Iranian crude would not be off the market."

Markets also have lower liquidity due to the Easter holiday, which can exacerbate price moves, he added. In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran's foreign minister said, after discussions that a US official described as yielding "very good progress." The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.

Markets also came under stress on Monday, after US President Donald Trump last week made criticisms about the Federal Reserve. Gold prices rose to another record, with jitters rippling into energy markets due to concerns about demand, according to analysts.

"The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+," said IG Market Strategist Yeap Jun Rong. OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to increase output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas. A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50%. The US is the world's biggest oil consumer.

Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy.

"This week's series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften," IG's Yeap said, adding oil prices face resistance at the $70 level.