Don’t Throw Russia Out of G20, Aid Group Says, with Eye on Food Crisis

Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
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Don’t Throw Russia Out of G20, Aid Group Says, with Eye on Food Crisis

Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)
Ears of wheat are seen in a field near the village of Zhovtneve, Ukraine, July 14, 2016. (Reuters)

Excluding Russia from the Group of 20 major economies and other international institutions could slow efforts to address a worsening global food crisis exacerbated by the war in Ukraine, the head of German aid group Welthungerhilfe (WHH) told Reuters.

Mathias Mogge, chief executive of the group, which serves 14.3 million people with projects in 35 countries, said it was critical to maintain communication with Russia, one of the world's largest producers of wheat, in tackling the crisis.

"Of course, Russia is the aggressor here, and there needs to be sanctions and everything. But in a humanitarian situation as we have it today, there must be open lines of communication." Mogge said in an interview this week.

Mogge's comments come days after US President Joe Biden said he thinks Russia should be removed from the G20, although experts say that is unlikely to happen given lack of support from India, China and several other G20 members.

Russia's invasion of Ukraine in February is driving food prices sharply higher across the world and triggering shortages of staple crops in parts of central Asia, the Middle East and north Africa, according to United Nations officials.

The war, which Russia calls a "special military operation," has slashed shipments from the two countries, which together account for 25% of world wheat exports and 16% of corn exports, driving prices sharply higher on international markets.

Mogge said he expected Group of Seven leaders to address the issue during their upcoming meetings.

Russia was still part of what was then the Group of Eight during the last food crisis of 2007 and 2008, and played a constructive role in reducing hunger worldwide, Mogge said.



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.