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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s Jada Fund of Funds plans launching funds to attract investments in favor of NEOM, revealed Jada CEO Adel Al-Ateeq.

“We are looking to increase the volume of Jada’s investment by more than SAR 4 billion ($1.06 billion),” Al-Ateeq told Asharq Al-Awsat.

“Since the beginning of Jada’s launch, we have invested in more than 20 investment funds,” said Al-Ateeq.

“The volume of investment in these funds exceeded SAR2 billion ($533.3 million), distributed among a number of venture capital and private equity funds in the Kingdom,” revealed the CEO.

Al-Ateeq stressed that Jada will continue to invest in venture capital and private equity in the Kingdom. He reaffirmed that the fund would carry on with the momentum it started with three years ago.

He pointed out that Jada’s capital initially amounted to SAR 4 billion ($1.06 billion) but hoped to increase its value in the future.

“We invested SAR 2 billion in 3 years... and I expect to continue at the same level during the next three years... We invested in 20 funds in several companies,” said Al-Ateeq, adding that Jada has capitalized in 350 local and regional companies.

“NEOM is still in the process of being established, and it is working to establish many targeted projects... Therefore, we are looking forward to launching investment funds that will give NEOM a share of its investments when its projects are launched,” revealed Al-Ateeq.

Saudi Arabia’s Ministry of Investment (MISA) and Jada had formed a partnership to bolster the Kingdom’s start-up and innovation sector and support economic diversification under the ‘Catalyze Saudi’ initiative.

Jada, owned by the Public Investment fund (PIF), provides funding to start-ups in the Kingdom through commercially sustainable investments in venture capital and private equity funds.

MISA and Jada aim to connect leaders from government agencies, start-up entrepreneurs, investors and leading family business representatives from the Kingdom to participate in roundtable discussions and reinforce the private sector’s impact on the local economy.

The ‘Catalyze Saudi’ initiative is in line with the Kingdom’s Vision 2030 which aims to raise small and medium sized enterprises’ (SMEs) contribution to GDP from 21% to 35% by 2030.

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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.