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Qatari Companies Transfer World Cup Construction Expertise to Saudi Arabia

Executive Director of Export Development and Promotion at Qatar Development Bank Hamad Mejegheer (Asharq Al-Awsat)
Executive Director of Export Development and Promotion at Qatar Development Bank Hamad Mejegheer (Asharq Al-Awsat)
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Qatari Companies Transfer World Cup Construction Expertise to Saudi Arabia

Executive Director of Export Development and Promotion at Qatar Development Bank Hamad Mejegheer (Asharq Al-Awsat)
Executive Director of Export Development and Promotion at Qatar Development Bank Hamad Mejegheer (Asharq Al-Awsat)

Qatar wants to increase its trade and investment partnerships with Saudi Arabia during the coming period.

A Qatari official announced that several Qatari private companies that established the infrastructure for World Cup facilities intend to launch partnerships with Saudi companies to contribute to constructing stadiums and giant projects.

Executive Director of Export Development and Promotion at Qatar Development Bank Hamad Mejegheer told Asharq Al-Awsat that the agency continues to support entrepreneurs and small and medium enterprises (SMEs) to develop non-oil exports and connect them to global and regional markets.

Mejegheer stated that the Qatari private sector wants to be part of the significant projects that Saudi Arabia is currently launching, adding: "We saw a great desire from Saudi companies to launch partnerships in various fields."

Qatari industrial companies completed several contracts last week. The Qatar Aluminium Extrusion Company (Qalex) signed a contract worth $6.4 million annually, while other companies implemented contracts worth $3.2 million.

The Executive Director pointed out that this is a positive indication that Qatari companies can contribute to the Saudi private sector in this giant construction boom that the Kingdom is currently witnessing to achieve Vision 2030.

Mejegheer said that Qatar aims to enhance cooperation with the Saudi private sector in supplying its requirements for the mega projects currently being launched in the Kingdom.

The Qatari private sector is still on the right path after recovering from the implications of the coronavirus pandemic that hit global markets, said the official.

He believes that the construction sector that contributed to the preparations for hosting the World Cup has a great need for cooperation between the two countries private sectors.

Qatari companies constructed projects to host the global event, with over $55 billion, including stadiums and underground metro, said Mejegheer, noting that this experience is essential in transferring relevant knowledge to the Saudi market.

Qatari companies have completed building six fully-equipped stadiums for the World Cup 2022, and Saudi Arabia is witnessing plans to inaugurate many stadiums, which supports partnership in transferring knowledge of World Cup projects to the Kingdom.

Mejegheer stated that Qatari non-oil exports amounted to an estimated $9 billion in 2021, a 50-percent increase from 2020, which is a positive indication that non-oil exports are back on track and exceed pre-coronavirus records.

The Qatari market and private sector enjoy high-quality products and have achieved highly competitive prices capable of reaching all markets in the region and the world, according to Mejegheer.

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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.