عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Kuwaiti Firm Wins a $490 Million Appeal

Kuwait's Agility announces a court ruling to compensate one of its subsidiaries (Asharq Al-Awsat)
Kuwait's Agility announces a court ruling to compensate one of its subsidiaries (Asharq Al-Awsat)
TT
TT

Kuwaiti Firm Wins a $490 Million Appeal

Kuwait's Agility announces a court ruling to compensate one of its subsidiaries (Asharq Al-Awsat)
Kuwait's Agility announces a court ruling to compensate one of its subsidiaries (Asharq Al-Awsat)

The Kurdistan Regional Government (KRG) must pay $490 million (149.4 million Kuwaiti dinar) to Agility Public Warehousing Company as compensation, Kuwait's Agility said in a press release on Wednesday.

According to a court's ruling, the respondent must pay the appellant the amount of the loan and seven percent interest since September 11, 2007.

A lawsuit was filed by Alcazar Capital Partners, a subsidiary of Kuwait's Agility, on the grounds that on 11 September, the Kurdistan Regional Government of Iraq sent the company a letter of guarantee for a loan amounting to $250 million plus interest of seven percent.

Alcazar lent Korek Telecom this loan in order to enable it to pay the second installment of the price of its national mobile phone license covering Iraqi territory, for use as indicated in the guarantee.

As part of the guarantee offered by the Kurdistan Regional Government in Iraq, Alcazar Capital Partners has the right to file a claim against the Kurdistan Regional Government of Iraq independently.

For this reason, Alcazar has requested the involvement of the experts department at the Ministry of Justice in order to assign one of its specialized experts to review the case's file and its documents, and to issue a report on the amount AlCazar Capital Partners is owed from the Kurdistan Regional Government.

The sums include both the principal sum of the loan and the interest accrued at the interest rate determined in the guarantee, from the date of granting the loan and the guarantee to the date of payment, as well as the fees, expenses, and legal fees.

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.