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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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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.