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Israeli PM Approves 50 Mln Cubic Meters Sale of Water to Jordan

Israeli Prime Minister Naftali Bennett (AP)
Israeli Prime Minister Naftali Bennett (AP)
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Israeli PM Approves 50 Mln Cubic Meters Sale of Water to Jordan

Israeli Prime Minister Naftali Bennett (AP)
Israeli Prime Minister Naftali Bennett (AP)

Israel’s newly-elected Prime Minister Naftali Bennett approved the immediate sale of 50 million cubic meters of water to Jordan, to be followed by another 50 million next year, in a step to improve relations with Amman.

Bennett's spokesman said that Jordan might potentially get the same amount of water for the next five years and the Israeli National Security Council would discuss the matter each year separately.

Political sources in Tel Aviv noted that the Biden administration was active in applying pressure on Israel to agree to Jordan’s request, to improve recently-soured relations between the two countries.

Bennett wanted to put an end to the tense bilateral relations, which Netanyahu is accused of sabotaging.

Israel supplies Jordan with about 55 million cubic meters of water annually, according to the peace agreement signed between the two in 1994. However, Jordan's water needs to be increased significantly after the influx of about three million refugees from Iraq and Syria.

Israel increased the quantities of water according to Jordanian demand, and Jordan paid 40 cents per cubic meter, four times the regular price.

However, political relations between the two countries became tense in 2017, following the tensions in East Jerusalem and al-Aqsa Mosque, which Netanyahu used as a tool of pressure.

The former PM refused Jordan's requests for additional water supplies, and earlier this year, tensions heightened after Israel imposed impossible conditions on the Jordanian Crown Prince's visit to Jerusalem, prompting him to cancel the trip.

Jordan responded by delaying an order to allow Netanyahu's plane to pass over Jordanian airspace, on its way to the UAE. Netanyahu was forced to cancel his trip.

Last April, Netanyahu backed down and agreed to provide Jordan with additional water. But the deal was not completed and was transferred to the new Israeli government.

Bennett approved the additional quantities, saying his approval was based on the position of the professional officials in the Israeli Water Authority, who confirmed that the situation in the Sea of ​​Galilee allowed the request to be met.

He explained that Jordan will pay the full price for the water, and that "this kind gesture will not cost the Israeli taxpayer anything."

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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.