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Saudi Arabia Starts Allocating Land for Renewable Energy Projects

Saudi Arabia works to achieve the optimal mix of electricity production and the reliance on renewable energy. (Asharq Al-Awsat).
Saudi Arabia works to achieve the optimal mix of electricity production and the reliance on renewable energy. (Asharq Al-Awsat).
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Saudi Arabia Starts Allocating Land for Renewable Energy Projects

Saudi Arabia works to achieve the optimal mix of electricity production and the reliance on renewable energy. (Asharq Al-Awsat).
Saudi Arabia works to achieve the optimal mix of electricity production and the reliance on renewable energy. (Asharq Al-Awsat).

Saudi Arabia, represented by the Ministry of Energy, announced on Thursday the allocation of two plots of 12 million square meters for the development of two renewable energy plants in Saudi cities, within a strategy to diversify the energy mix.

The Kingdom revealed a project to build a plant with a capacity of 600 megawatts in the Jeddah 3rd Industrial City and the Rabigh Industrial City through the Saudi Authority for Industrial Cities and Technology Zones (Modon).

The Kingdom aims to achieve the optimal mix of energy - the most efficient and the least expensive in the production of electricity - by replacing liquid fuels with natural gas, in addition to renewable energy sources, which will constitute approximately 50 percent of the energy mix for electricity production by 2030.

Under the patronage of Crown Prince Mohammad bin Salman, Saudi Energy Minister Prince Abdulaziz bin Salman recently inaugurated the Sakaka solar power plant project, with a production capacity of 300 megawatts.

The ministry explained that the National Renewable Energy Program constituted one of the main enablers to achieve the optimal energy mix and the strategic objectives of the electricity sector by creating a competitive environment that would attract private sector investments and encourage partnerships between the public and private sectors.

The Saudi Authority for Industrial Cities and Technology Zones (MODON) provides products and services to its investing partners to promote renewable energy projects in the Kingdom.

The ministry worked with the authority to provide the necessary lands for these projects within a number of industrial cities, including the Jeddah 3rd Industrial City and the Rabigh Industrial City.

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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.