عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Companies Suspend Commercial Dealings with Lebanon

Saudi companies respond to calls to stop commercial dealings with Lebanon (Asharq Al-Awsat)
Saudi companies respond to calls to stop commercial dealings with Lebanon (Asharq Al-Awsat)
TT
TT

Saudi Companies Suspend Commercial Dealings with Lebanon

Saudi companies respond to calls to stop commercial dealings with Lebanon (Asharq Al-Awsat)
Saudi companies respond to calls to stop commercial dealings with Lebanon (Asharq Al-Awsat)

Chairman of the Council of Saudi Chambers Ajlan al-Ajlan revealed that all Saudi national companies have stopped all of their dealings with Lebanese companies in response to what he said was the Lebanese government warranting terrorist attacks against Saudi Arabia.

All Saudi companies will not deal with Lebanese companies or economic sectors, al-Ajlan told Asharq Al-Awsat, adding that Saudi firms will abstain from dealing with the Lebanese government.

According to al-Ajlan, cutting dealings with Lebanon is the least Saudi companies and businessmen can do to stand in solidarity with their country. Lebanon’s government had justified terror attacks launched against the Kingdom and its people, a matter which is unacceptable.

Al-Ajlan added that the swift move by Saudi companies to stop commercial dealings heeded the call he made earlier on Twitter to stop all commercial and economic dealings with Lebanon.

His call came to respond to the persistent targeting of Saudi Arabia with drug smuggling and justifying all forms of terrorist acts staged against the Kingdom.

Regarding Saudi investors in Lebanon, al-Ajlan confirmed to Asharq Al-Awsat that the suspension of cooperation includes all economic and commercial levels as well as investment.

“It is illogical for the Lebanese government to continue this behavior of encouraging terrorist acts and flooding the Saudi market with drugs without facing consequences,” said al-Ajlan, adding that the Saudi government had previously tried cooperating with Lebanese authorities to stop such actions.

Lebanon’s economy is set to shed around $220 million in the value of total exports because of the move by Saudi companies. The Levantine country’s total exports do not exceed $3 billion.

The Lebanese agriculture sector will receive the hardest hit with a loss estimated at $92 million.

Lebanese producers will face a problem in finding alternative markets for the export of Lebanese industries and agriculture, since these products do not meet the requirements of the European Union.

Most Viewed

 
 
Business

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)
TT
TT

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.