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Oman Inaugurates $417 Mn Mega Solar Energy Project

ACWA Power Chairman Mohamed Abunayyan during the inauguration of Ibri 2 (Asharq Al-Awsat)
ACWA Power Chairman Mohamed Abunayyan during the inauguration of Ibri 2 (Asharq Al-Awsat)
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Oman Inaugurates $417 Mn Mega Solar Energy Project

ACWA Power Chairman Mohamed Abunayyan during the inauguration of Ibri 2 (Asharq Al-Awsat)
ACWA Power Chairman Mohamed Abunayyan during the inauguration of Ibri 2 (Asharq Al-Awsat)

Oman inaugurated Ibri 2, the first solar independent power project (IPP) to be launched under the country’s national renewable energy program and connected to the primary national grid.

The project is located in the northwestern governorate of al-Dhahirah with an investment of $417 million, with a capacity of 500MW. It comprises of 1.5 million bi-facial solar panels and extends over an area of 13 million square meters.

The project is a consortium consisting of ACWA Power, Gulf Investment Corporation (GIC), and Alternative Energy Projects Co. (AEPC).

At peak generation capacity, the plant output will be enough to supply an estimated 50,000 homes with electricity and offset 340,000 tones of carbon dioxide emissions a year.

The project will efficiently deliver clean energy to the primary national grid, create tangible socioeconomic value, and contract local start-ups to build mechanical installations.

CEO of Oman Power and Water Procurement Company (OPWP) Yaqoob al-Kiyumi, described the project as a “milestone” and a “remarkable achievement” that delivers on the national priorities set by Oman Vision 2040, which entail environmental conservation, utilization of natural resources, the development of governorates, and the integration of the private sector.

Kiyumi stressed that Ibri 2 would be a turning point for launching similar projects in renewable energy.

He explained that OPWP is currently developing two solar plants in Ad-Dakhiliyah ‍ with a total capacity of 1,000 MW and wind projects in North al-Sharqiyah and al-Wusta.

Chairman Mohamed Abunayyan also stated that ACWA Power is proud to play a vital role in supporting Oman’s ambitious Vision 2040 energy transition goals as a company driving the transition globally.

“Since our market entry into Oman in 2011, we have brought in significant foreign direct investment because we believe strongly in its vision and future.”

“As we look ahead, partnerships, and solutions like we have introduced at Ibri 2, will be crucial in solving the real-world problems associated with climate change and ensure that together we realize a greener future,” Abunayyan added.

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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.