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SAC Ensures Global Foothold of Saudi Quality Control

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
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SAC Ensures Global Foothold of Saudi Quality Control

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat

The Saudi cabinet has approved granting the Saudi Accreditation Committee independence, rebranding it as the Saudi Accreditation Center (SAC).

Such a move is set to widen the horizon and reinforce the center’s performance and works.

SAC is a new platform aimed at increasing quality control for services and products offered in the Kingdom, contributing more to achieving the objectives of Kingdom Vision 2030.

It is expected to contribute indirectly to achieving four of the first level targets for Vision 2030: Developing and diversifying the economy, enhancing government effectiveness, enabling a healthy living, and increasing employment rates.

Over the past years, SAC has been responsible for the policy-making process when it comes to accreditation regulations, as well as the granting, renewing, freezing, withdrawing, expanding and limiting accreditation for certification-issuing third parties.

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi noted that the SAC rebranding and structural shakeup will aid the Kingdom in taking longer strides towards completing a reliable and impartial national quality-regulation infrastructure with international recognition.

“Independent accreditation is an essential step in the right direction to avoid conflicts of interest, ensure the integrity of national infrastructure activities for quality, and gain international recognition,” Qasabi said.

Qasabi also affirmed SAC will indirectly contribute to developing and diversifying the economy and enhancing institutional efficiency.

This follows SAC successfully accomplishing digitization for all its accreditation activity, which has contributed significantly to enabling beneficiaries, residents and committee members to access the Commission's services, complete accreditation procedures and follow-up online.

This has significantly reduced the period of processing from an average of 260 days, when the system is introduced in 2016, to 175 days in 2018.

The national accreditation body holds core values of impartiality, integrity, competency and teamwork spirit and looks to partake in developing the Kingdom’s economy by raising the level of technical competency, establishing conformity in terms of certification-granting bodies and insuring better consumer protection. 

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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.