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Saudi Revenues Up 15% During H1 2019

Saudi Minister of Finance Mohammed al-Jadaan
Saudi Minister of Finance Mohammed al-Jadaan
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Saudi Revenues Up 15% During H1 2019

Saudi Minister of Finance Mohammed al-Jadaan
Saudi Minister of Finance Mohammed al-Jadaan

Financial and structural reforms carried out recently by Saudi Arabia have proven their usefulness and effectiveness.

Figures reveal positive growth in public revenues and increased spending, stimulating the economy to be more active and achieve more growth, which exceeds local and global estimates.

Figures indicated a sharp decline in fiscal deficits during H1 2019 and a 14.4 percent rise in non-oil revenues due to improved economic activity and a package of reform initiatives.

Meanwhile, oil revenues increased by 15 percent year on year.

According to the second quarter performance report of the state's budget for the fiscal year 2019, significant growth in capital expenditure has been noticed during H1, with figures showing 22 percent growth in capital expenditure compared with the same period in 2018.

This growth coincided with progress in the implementation of housing and other developmental projects.

In this context, Saudi Minister of Finance Mohammed bin Abdullah al-Jadaan released the report on Tuesday.

Its results reflect an improvement in financial performance during H1 2019 compared to the same period last year, contributing to the achievement of this year’s targeted results.

They also confirm the effectiveness of the government’s financial and structural reforms, said Jadaan.

The minister drew attention to the increase of non-oil revenue as evidence of successful attempts to diversify government revenue sources.

The results also reflect progress in executing development projects in line with Saudi Vision 2030, he added.

The budget deficit during the first half of 2019 amounted to SAR5.7 billion ($1.5 billion), much lower than SAR41.7 billion in the corresponding period of the previous year.

Total revenues increased by 15 percent while total expenses increased by six percent.

In a statement, Jadaan said the government is in the process of balancing fiscal discipline and raising efficiency to realize the country’s financial targets for 2019.

The targets will be achieved by controlling the deficit rates in the budget and public debt while simultaneously implementing projects, programs, and initiatives to speed up economic growth and improve Saudi citizens’ overall well-being, he stressed.

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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.