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Saudi Arbah Successfully Exits Residential Project in Central London

The Regent Crescent high-end residential development in central London.
The Regent Crescent high-end residential development in central London.
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Saudi Arbah Successfully Exits Residential Project in Central London

The Regent Crescent high-end residential development in central London.
The Regent Crescent high-end residential development in central London.

Saudi Arbah Capital announced on Monday the successful exit for its investors of a £27 million facility for the Regent Crescent high-end residential development in central London.

The development consists of 76 housing units overlooking Regent Park in the heart of the British capital.

It is the rebuild of an 1800’s Grade 1 listed building designed by John Nash, who was the architect of Buckingham Palace.

Arbah Capital is licensed by the Capital Market Authority (CMA) in Saudi Arabia as a closed Saudi Joint Stock Company, and commenced business operations in August 2008.

In May 2018, Mahmood Al-Kooheji, CEO of Arbah Capital had said: “This is a landmark moment in Arbah Capital’s successful progress into becoming an Investment Bank which participates in carefully selected, risk adjusted, investment opportunities internationally.”

“This is just the beginning of an exciting period in our development and shortly we will be bringing further unique investment opportunities for our valued clients.”

On Monday, he stressed that “Arbah Capital has delivered on these expectations with the successful exit of the Regent Crescent project, and subsequent carefully selected investments both in the UK and US.”

This includes the £60 million investment in the mixed use Sauchiehall Building in Glasgow, and the investment of $36 million into a development of a Senior Care facility in Florida, US.

“We are very proud to have made an exit from an international investment which underlines the strength of our investment thesis and analysis, and execution capability.”

“Arbah is aiming to launch other products soon which address the key concerns that we now face and build sustainability for the future,” he revealed.

“We are currently working to acquire a core social infrastructure asset in the US, another income producing product in a very defensive sector, looking to introduce Purpose Based Student Housing into Saudi Arabia, and looking to launch a product in the Trade Finance sector,” said Al-Kooheji.

“These products we believe are innovative and in defensive areas, which will provide investors with a degree of stability and comfort, at a time of such great volatility in other markets.”

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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.