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Saudi Arabia Presents ‘The Line,’ an Icon for Nature Conservation

The Line pedestrian city in NEOM is the first model for preserving the planet in the world. (SPA)
The Line pedestrian city in NEOM is the first model for preserving the planet in the world. (SPA)
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Saudi Arabia Presents ‘The Line,’ an Icon for Nature Conservation

The Line pedestrian city in NEOM is the first model for preserving the planet in the world. (SPA)
The Line pedestrian city in NEOM is the first model for preserving the planet in the world. (SPA)

Saudi Crown Prince Mohammed bin Salman’s unveiling of plans to build a huge new zero-carbon city at NEOM, a mega project and a key pillar of Kingdom Vision 2030, has put the Kingdom at the forefront of countries pursuing the establishment of modern cities.

Located in northwestern Saudi Arabia, the project named “The Line”, will be home to a million people and have no cars and no streets, Crown Prince Mohammed bin Salman said.

Building The Line is set to cost between $100 to 200 billion. The Crown Prince confirmed that the backbone of investment would come from Saudi Arabia and the Kingdom's sovereign wealth fund – the Public Investment Fund (PIF) – as well as local and international investors for the NEOM project.

Positive reactions towards the new project flooded social media platforms.

According to the Crown Prince, the project was announced after three years of planning.

More so, he confirmed that communities at The Line will be powered by Artificial Intelligence and the city will comprise carbon-positive urban developments powered by completely clean energy.

The project will be an economic engine for the Kingdom and will drive diversification in line with the Vision 2030 reform program.

Construction of the revolutionary city will preserve 95% of nature within NEOM and will commence in the first quarter of this year.

The city will be a 170-kilometer belt of “hyper-connected future communities,” and will be built around the natural environment, confirmed the Crown Prince.

“We need to transform the concept of a conventional city into that of a futuristic one,” he added at an event to launch the city.

“By 2050, one billion people will have to relocate due to rising CO2 emissions and sea levels. 90% of people breathe polluted air,” the crown prince said.

“Why should we sacrifice nature for the sake of development? Why should seven million people die every year because of pollution? Why should we lose one million people every year due to traffic accidents? And why should we accept wasting years of our lives commuting?” he asked.

The pedestrian city will have services such as schools, health centers and green spaces, as well as high-speed public transportation. It also promises that everything anyone could need would be only a five-minute walk away.

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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.